Manufacturers have always been only as good (or bad) as their suppliers. Some vendor errors and delays could be overcome, but problems in the supply chain usually rippled downstream, damaging quality or delivery. Manufacturers soothed irritated customers, and that was the end of it.
And then the world changed.
Today manufacturers are held responsible for the practices of suppliers, by both customers and governments. Supply-chain traceability rules, such as those affecting food and beverage markets (e.g., FDA Food Safety Modernization Act) and the high-tech industry (e.g., Conflict Minerals) are increasingly common — and will soon encompass EHS and corporate governance issues.
With so much regulatory enforcement and scrutiny, you might think that manufacturers are taking aggressive steps to manage their vendors.
Not so much.
A full 60% of manufacturers have limited or no real-time tracking of supplies and products at their immediate suppliers. And 15% of manufacturers have no real-time tracking even in their own plants.
Looking for a customer order? Forget it. But looking for trouble? You’ve found it.
As government, customer, and public pressures mount for manufacturers, supply-chain traceability will become an immense competitive differentiator. Some executives recognize this, and are already developing supply-chain processes that improve performance, ensure compliance, and minimize corporate risks. You can, too:
Identify your expectations of suppliers. What do customers and regulators demand today — and what will they likely require tomorrow?
Establish well-defined supplier criteria — governing quality, timeliness, component and material specifications, EHS adherence, corporate governance, financial stability, etc. — and incorporate them into purchase agreements.
Monitor suppliers to ensure adherence to criteria, sanctioning suppliers that fall short (e.g., discounted payments, contract cancellations) and rewarding vendors that meet or exceed expectations (e.g., bonuses, more contracts).
Do you know what your suppliers are doing right now?
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 firstname.lastname@example.org
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