There’s lots to talk about in manufacturing these days — the Internet of Things, cloud computing, additive manufacturing, robotics, etc. And there’s no question these new technologies could transform your company — but only if you’re ready for them.
Alas, there’s the rub: Many manufacturers — especially smaller firms — ignore the improvement strategies that could put more money in their pockets now, while positioning themselves for an more lucrative tomorrow.
In fact, 17% of manufacturing companies have no improvement methodology in place at their plants. Sadly, two-thirds of those facilities belong to small manufacturers (revenues of less than $25 million).
Make no mistake: These “No methodology” facilities woefully underperform vs. their improvement-minded peers: They lag in sales per employee by $105,315 per year — $168,844 (average) vs. $274,159 at plants with an improvement methodology in place – and they’re much less likely to lower production costs: 22% reduced manufacturing costs (excluding purchased materials) over the past three years vs. 37% of plants with an improvement methodology.
It doesn’t have to be this way.
Small manufacturers have major advantages and opportunities in adopting improvement principles. First, the scopes of their efforts are smaller — which means fewer people to train and faster implementations. Second, most improvement methodologies emphasize creativity and process changes instead of capital investments — preserving cash while still generating high ROI. Finally, a commitment to improvement can fundamentally change for the better how a company operates, across a multitude of functions and initiatives (Figure 1).
No improvement methodology
Improvement methodology in place
Formal training program
Formal safety/health program
Teams and team-building practices
How good is you company at the basics? More importantly: How will you improve?
All data from the MPI Manufacturing Study, The MPI Group, 2015.
MAGNET is a part of Ohio MEP, part of the NIST-MEP program.
One remarkable thing about the list is that it rarely changes. The order may change but the top cited standards typically don’t change. Top 10 Sited Safety and Health Violations: 501 - Fall Protection 1200 - Hazard Communication 451 - Scaffolding 134 - Respiratory Protection 147 - Lockout/Tagout 178 - Powered Industrial Trucks 1053 - Ladders 305 - Electrical, Wiring Methods 212 - Machine Guarding 303 - Electrical, General Requirements Three of the 10 sited standards are directed at the construction standard (1926) while other fall within the general industry (1910). It should be noted however that the general industry standard also has fall protection guidelines. Year after year, inspectors see the same on-the-job hazards, any one of which could result in a fatality or severe injury. More than 4,500 workers are killed on the job every year, and approximately 3 million are injured. By understanding these regulations you can improve your safety program and prevent injuries. Give me a call if you have any compliance doubts, or want to review OHSA regulations. Gwido Dlugopolsky at 216-391-7766 or email@example.com
Why does it take a NASCAR pit crew only 15 seconds to change four car tires when it takes people like you and me minutes? The answer is simple SMED. Single Minute Exchange of Dies, or SMED, is a process for reducing the time it takes to do equipment changeovers. Using the principles of SMED you should be able to perform any changeover in your facility in under 10 minutes! The SMED process is simple – convert as many changeover steps as possible to “external”, meaning they are done while your equipment is still RUNNING, while simplifying and streamlining the remaining steps. SMED is broken down into the following 3 Steps: Separate Convert Streamline We found this article to be very helping in explaining the SMED process in more detail: LEAN PRODUCTION - SMED A good first step to achieve this level of SMED efficiency would be to run a kaizen event at your facility to standardize (5S) your tools and supplies. Doing this alone will help you achieve 40% to 50% greater efficiency. Once the “low hanging fruit” is gone, you can still reduce setup times another 20% by practicing more advanced SMED principles.
The secret to closing any sale is to reduce uncertainty in the buyer and replace it with confidence in YOU, your PRODUCT/SERVICE, and your COMPANY. Step 1 – Confidence in YOU Someone buying from you wants to be able to fundamentally connect with you on a human level and feel confident that you’re an expert in what you’re selling If you’re selling paperclips, be an expert in paperclips If you’re selling design and engineering related services, be an expert in design and engineering related services Focus on addressing the problem, not the solution….MEANING you already know you have the solution, connect with the buyer by being an expert with the problem he/she is facing. Prove that you know the problem and all aspects of the problem like the back of your hand. Step 2- Confidence in the PRODUCT/SERVICE you are selling Someone buying from you needs to trust the product/service you are selling will solve their problem. It’s your responsibility to deliver a solution and the benefits associated with it. Basically you need to “Hit a Homerun” communicating this message. Tip – Use Success Stories: Share with the potential buyer examples of your product/service solving problems and delivering value for