7 Aralık 2021 Salı

SCAI.TECH sizi yeni paradigmaya hazırlar, Goldfish ürünlerini önerir.

SCAI.TECH tüzel kişiliği yoktur, ticari değildir, satış yapmaz. Değişen paradigmaya uygun Kısıtlar Teorisini (TOC) tanıtmak ve uygulamaya geçişi kolaylaştırmak üzere kitap, makale, gönderi, blog, seminer, eğitim, danışmanlık, pilot çalışmalar yapar. GOLDFISH / Şili firmasının Türkçe destek verilen FILLRATE100 ve OTIF100 bulut servislerini önerir. utkan.ulucay@gmail.com  05325987515
Perakende Çözümü
  • Problem: Yüksek stok seviyesine rağmen bazı ürünlerde aşırı stok, bazı ürünlerde yetersiz stok var. Yok satılıyor, depoda yer sıkıntısı var, nakit akışı bozuluyor. 
  • Ortam: MTA-Make To Availability, Bulunurluk için üretim, MTS-Make To Stock, Stok için üretim, perakendeciler, toptancılar, tedarik zincirleri içindir.
  • Mevcut Çözüm: Tahmin, optimizasyon, SCM-Supply Chain Management, Tedarik Zinciri Yönetimi, WMS-Warehouse Management System, Depo Yönetim Sistemi yazılımları, dijitalizasyon
  • Önerilen Çözüm: TOC Replenishment-Tamamlama. Daha çok satmak için stokları müşteriden uzaklaştırın. Goldfish bulut servisi FILLRATE100
  • Referanslar: Kom Tekstil, Makbul Kurugıda ve diğer vaka çalışmaları, KendinYap Türkçe Kılavuz, Simulatör, Şimdi Anladım! kitabı (Isn't It Obvious? - E.M.Goldratt tercümesidir), blog sayfamızdan forecastingparadigm shift, supply chain, DDMRP, scai.tech, TOC etiketlerine bakabilirsiniz.
Üretim Çözümü
  • Problem: Terminler gecikiyor, üretimde çizelgeleme sorunu var, sık müdahale gerekiyor, dengeli banda rağmen yeterince iş çıkmıyor, fazla mesailer yükseliyor, nakit akışı bozuluyor. 
  • Ortam: MTO-Make To Order, Sipariş için üretim, kesikli üretim yapan atölyeler, fabrikalar, tedarik zincirleri içindir.
  • Mevcut Çözüm: Tahmin, optimizasyon, simulasyon, bant dengesi, dijitalizasyon, APS-Advanced Planning & Scheduling, İleri planlama ve Çizelgeleme,  ERP-Enterprise Resource Planning, Kurumsal Kaynak Planlama yazılımları
  • Önerilen Çözüm: TOC DBR-Drum Buffer Rope, Kısıt Tampon Bağ. Daha çok üretmek için bandı dengelemeyin. Goldfish bulut servisi OTIF100.
  • Referanslar: KendinYap Türkçe Kılavuz, Simulatörler, Amaç E.M.Goldratt kitabı, blog sayfamızdan  forecastingparadigm shiftsupply chainDDMRPscai.techTOC etiketlerine bakabilirsiniz
Proje Yönetimi Çözümü
  • Problem: Projeler termininde, bütçesinde, kapsamında bitmiyor. Fazla mesailer yükseliyor, nakit akışı bozuluyor. 
  • Ortam: Proje üretimi, şantiye, koleksiyon, arge, ilaç,...üreten fabrikalar, tedarik zincirleri içindir.
  • Mevcut Çözüm: Tahmin, optimizasyon, simulasyon, dijitalizasyon, CPM-Critical Path Method, Kritik Rota Yöntemi, PERT-Project Evaluation & Review Technic, Proje Değerlendirme ve İzleme Tekniği, vb yazılımlar
  • Önerilen Çözüm: TOC CCPM-Critical Chain Project Management, Kritik Zincir Proje Yönetimi. Daha çabuk bitirmek için daha geç başlayın. 
  • Referanslar: Critical Chain, E.M.Goldratt kitabı, blog sayfamızdan forecastingparadigm shiftsupply chainscai.techTOC , project management etiketlerine bakabilirsiniz.
Finansal Raporlama Çözümü
  • Problem: Geleneksel muhasebe sistemi günlük kararlara destek olamıyor. 
  • Ortam: Tüm üreticiler, perakendeciler, toptancılar, tedarik zincirleri içindir.
  • Mevcut Çözüm: Finansal Muhasebe, Maliyet Muhasebesi, Tek Düzen Hesap Planı, tahmine dayalı bütçeleme, hedeflerle yönetim
  • Önerilen Çözüm: TOC TA-Throughput Accounting, Dönüşüm Muhasebesi, TOC TP-Thinking Process, Düşünme Süreçleri, Yalın Muhasebe. Geçmişe değil geleceğe dönün, akışı iyileştirin. Beni nasıl ölçtüğünü söyle, sana nasıl davranacağımı söyleyeyim. 
  • Referanslar: The Haystack Syndrome, E.M.Goldratt kitabı, blog sayfamızdan forecastingparadigm shiftscai.techTOC , accounting etiketlerine bakabilirsiniz.

3 Aralık 2021 Cuma

The Client Stampede / Julie Guest / 2021 / kitap özeti

https://www.clientstampedebook.com/ 

Yapabilecek olanaklara, kabiliyete, cesarete sahipsin. Hedeflerin var, iyileştirmek istiyorsun. 

Tavşan-kaplumbağa yarışı hikayesi yanlış öğretidir. Kaplumbağa risksiz, alıştığın gibi, konfor alanından çıkmadan ömür tüketir. Tavşan canlıdır, delidir, risk alır, denemekten çekinmez., değişen dünyaya uyum sağlamaya hazırdır. Bu kitap tavşana parkur planını vermek, riskleri-ipuçlarını göstermek, koçluk etmek  için hazırlanmış :)

Hayat karmaşık, piyasalar dalgalı, işler zor.. Bu programın sizi kurtarabilmesi için katılmanız, emek vermeniz gerekiyor.

Bu kitap tavşanlar içindir!

  • Başkalarına aldırmayın
  • Zamanın gelmesini beklemeyin
  • Farklı olan kazanır
  • Sürüden ayrılacak cesaretin olsun
  • Organize ve tutarlı olun
Doğru bilinen pazarlama yanlışları:

  • Herkes bizim müşterimizdir
  • Sadece dijital pazarlama işe yarar
  • Her zaman marka öne çıkarılmalıdır
  • Başkasında işe yaradıysa bizde de işe yarar
  • Pazarlama = Reklamdır.
7 adımlı plan:

  • Hedef pazarı belirleyin
  • Cazip (red edilemeyecek) teklif hazırlayın
  • Marka-ikon konumlandırın.
  • Ürün sunumuna özen gösterin
  • Fiyatlama-satış
  • Pazarlama organizasyonu
  • Olağanüstü müşteri deneyimi
1. Hedef pazar. Kime?
En çok canı yanan, genel değil özel (niş) gruptaki adayları bulun. Fiyata değil değere odaklanın. Fiyat rekabeti olan taban grubundan orta-üst gruplara kaymaya çalışın. Firmalar satın almaz, insanlar satın alır. Her segment ayrı stratejiyi hak eder. 
ASSUME = You are making ASS out of U and ME. Varsaymayın, araştırın.

2. Cazip teklif
10 kelimeyi geçmeyen, merak uyandıran, yaptığınız işi tarif eden manşet yazın. Rakiplerinizden ayrıldığınız özgün noktayı vurgulayın. İnsanlar ihtiyaçları yoksa, zamanları yoksa, pahalıysa, acelesi yoksa (ertelenebilirse) veya sana güvenmediğinde satın almazlar. Müşterinin deneme riskini kaldırın (ücretsiz deneme, para iade garantisi, ...). Bir hikayeniz olsun, öncelik satmak değil, güven sağlamaktır.

3. Konumlama
5 aşamalıdır: Temel (isim-logo-manşet-ürün adı), Gelişen (cazip teklif, tutarlı), Yayılan (çevrimiçi/dışı tutarlı müşteri deneyimi), İvmeli (kurum kültürü), İkon (sadık ve hararetli müşteriler, fanlar).
Göz alıcı, mümkün mertebe kişisel, tutarlı olmalıdır.

4. Ürün sunumu
Sadece ürünler değil, servisler de paketlenir. Kartvizit-web-sosyal medya-... hepsi pakete dahildir. Müşterinin karar vermesini kolaylaştırın.

5. Fiyatlama
"Ödediğin fiyat, aldığın değerdir"- Warren Buffet. Ücretsiz önerilen bir "değer" için asgari eposta-isim-iletişim izni alın. Fiyat rekabetinden kaçının. Basamaklı fiyatlandırın, en alttan en üst basamağa doğru: ücretsiz deneme, uzatılmış ücretsiz deneme, ücret iadesi garantili satış, üst pakete geçiş, tamamlayıcı ürünler, en üst paket.

6. Pazarlama Organizasyonu
3 aşamalıdır: İlgi çekmek (aday müşterilere ulaşmak), Satış (adaydan müşteriye geçiş), Tutmak (müşteriden müdavime geçiş). Geçmişteki ve güncel müşterilerin eposta-telefon listesi hazinenizdir, kimseye emanet etmeyin, her yeni adayı listeye ekleyin, etkinliği izleyebilmek ve ürün/sektör/vb için sınıflayabilmek iyi olur. İyi organizasyon için aynı anda ve uyumlu olarak hedef niş pazar, cazip teklif, uygun medya seçilmelidir. En önemli medyanız web sitenizdir; mobil uyumlu, ziyaretçiyi 5 saniye içinde sitede kalmaya ikna edebilen, ferah, sade, modern, müşterinin ne yapmasını istediğimizi açıkça belli eden tarzda olmalıdır.

7. Olağanüstü deneyim
Müşteriyi şaşırtacak iyi servis viral olur, tanıtımdır.

30 Kasım 2021 Salı

How to Fix a Factory? / Rob Tracy / 2019 / kitap özeti

Fabrikada işleri düzeltmek ile mükemmellik peşinde olmak aynı şey değildir. 

Durumu anlayalım

İşleri düzeltmek ancak yönetim ve çalışanlar ortak paydada buluştuysa mümkündür. Beylik laflar değil, sahici aksiyona ihtiyaç vardır. Öncelik hayatta kalmaktır (rafting), hızlı gitmek (kürek yarışı) değil. Durumun kötü olduğunu kabullenin, umut verin, net aksiyonlar listeleyin, teşekkür edin. Üst yönetim aksiyonun içinde olmalıdır. En iyi liderlik tarzı, firmanın şu anda ihtiyaç duyduğu tarzdır. 

Sorunları ortaya çıkaralım

Paradigmalar, inkar, kişisel kayıp riski, muhasebe hokus-pokusu gibi sıkıntıları aşmalısınız. Dinlemeyi öğrenin, yukarıdan aşağıya herkesi dinleyin, veri toplayın, sentezleyin, üst yönetime sunun. 

Beklentileri şekillendirelim

İşlerin kötü gittiği fabrikalarda yönetim genellikle biraz daha zorlamaya meyillidir. Zor durumdaki fabrikalar irtifa kaybeden uçaklara benzer. Pilot uçağın burnunu havaya kaldırmak için levyeyi kendisine doğru çeker. Başlangıçta kısa süreli bir iyileşme olur, burun kalkmıştır ama hız da düşmüştür, tekrar irtifa kaybeder.. Pilot aynı manevrayı tekrarlar, önce iyileşir, sonra kötüleşir, ta ki uçak düşene kadar…. Uçak ölüm spiraline girer, hızla düşmeye başlar, kontrolden çıkar…. Oysa ki pilot akla yakın olan, doğal ilk tepkiyi vermiştir….. 

Tecrübeli pilotlar uçağın kanat alt-üst basınç farkı sayesinde uçtuğunu bilir. Dolayısıyla akla ziyan şekilde levyeyi çekmek yerine levyeyi iterek burnu yere doğru çevirir ve gaz vererek hava akımını hızlandırırlar. Kısa zaman zarfında ve daha çok irtifa kaybettiği halde uçak yeniden uçmaya başlar… Pilot artık levyeyi çekerek arzu ettiği irtifaya ulaşabilecektir. 

Müşterilerinize geciktiğinizi ve emniyetli teslim tarihinizi önceden söyleyin. Son dakika sürprizini kimse sevmez. Fabrikanın yükleyebildiği kadar sipariş alacak şekilde çizelgenizi düzenleyin. %10 dan fazla “fazla mesai” yapıyorsanız bir şeyler yanlıştır. Eleman seçiminde veya elemanlarınızı tutmakta zorlanıyor olabilirsiniz. Hedefleriniz kilometre taşı tadında “ulaşılabilir” seviyelere geri çekin, başardıkça yükseltirsiniz.  

Her fabrikada çalışır durumda olması gereken 10 temel sistem vardır:

  1. Yetenek Sistemi: kıdem kademelerinin % dağılımına bakın. Bunların yıllar boyunca değişimini izleyin. İşten ayrılan yetenekli çalışanların sayısına bakın. Firmanızın iş pazarındaki şöhreti nedir? Hedef çalışanlara nasıl ulaşacaksınız? Seçme ve işe alım süreçleriniz güncel midir? İşe alınanların “oryantasyonu” nasıl yapılır?
  2. Temiz-Güvenli Fabrika: Üretim sahası yönetimin aynasıdır.
  3. Yönetim Sistemi: Doğru insanları seçmek, eğitmek, uygun araçlarla donatmak ve kontrol edebilecekleri kadar (Üretim Müdürü 100-200 kişi, Şef 20-30 kişi, grup lideri 8-10 kişi) çalışanı emanet etmektir. Orta kademede belirgin eğitim eksiği vardır. Şefler emniyet, termin, kalite, maliyetin anahtarıdır. Eksikliği yüksek işçi sirkülasyonuna sebep olur. Üretim Müdürü koçluk edebilmelidir.
  4. Ekipman Güvenirliği: Bakım, tutum ve kalibrasyondur.
  5. Kalite Sistemi: Sertifikalar kaliteyi sağlayamaz. Seçmeye dayalı kalite anlayışı iç tamirleri azaltamaz.
  6. Tedarik Sistemi: Tedarikçiler siparişlerin akışını aksatacak şekilde gecikiyorsa, tedarikçi seçimi akışı sağlayacak ölçütlere göre yapılmıyorsa, satış-planlama-üretim ilişkisi zayıfsa sıkıntılar görülür.
  7. Stoklar: Stoktan satış yapanlar için kritiktir, önce temel kurallar belirlenmelidir, adresli yerleşim – stok doğruluğu – izlenebilirlik sağlandıktan sonra prosedür oluşturulmalıdır.
  8. Satış – Operasyon Planlaması (S&OP): Orta vadeli plandır, İK dahil edilmelidir, yönetim ekibi birlikte değerlendirmelidir. Her ay gözden geçirilmesi yararlıdır. Tahminler tutmayacaktır, en azından aksiyon birlikteliği sağlanabilir.
  9. Veri ve Ölçümler: Proses verisi işin planlandığı gibi yürüdüğünü gösterir, örnek: gününde teslim oranı. Finansal veri beklenen sonucun alındığını gösterir, doğrulanması ve dolaylı maliyet dağıtımlarından arındırılması gerekir, örnek: gerçek maliyetleri gösteren Gelir Tablosu. İşlem verisi günlük hareketleri gösterir, örnek: faturalar.
  10. İşletim Sistemi: 6 temel bileşeni vardır:  
    1. Temel Değerler: ödüllendirdiğiniz veya cezalandırdığınız davranışlardır.
    2. Değer Önerisi: Müşterileriniz nasıl seçtiğiniz ve rekabette öne geçmek için ne önerdiğinizdir.
    3. Organizasyon Yapısı: Klasik şemalar raporlama yapısını gösterir, siparişlerin akışını desteklemez. Matris yapı her organizasyona uymaz.
    4. Strateji: Sade, öz olmalı, kısa vadeli aksiyonlara odaklanmalı, haftalık gözden geçirilmeli, günlük sıkıntılara dokunabilmelidir.
    5. Sistemler – Süreçler: Sıradan insanların başarılı olabileceği düzgün süreçler tasarlanmalıdır. Standart İş formatında en öz şekliyle dokümante edilmelidir.
    6. Toplantılar: Periyodik – arızi toplantılardır, gündemli, zaman çizelgesine uygun, tam katılımlı, izlenebilirlik sorgulu olmalıdır. 

Disiplinle uygulayalım

90 günlük dönemlerde proje gibi takip edin. Proje konusu-aksiyonları-katılımcıları-beklenen sonuçları tek bir sayfada gösterilebilmelidir. Haftalık gözden geçirin. Başlamak kolay, sürdürmek zor, kalıcı olmak daha da zordur. Başarmak için insanların iş yapma biçimini değiştirmesi gerekir. Herkesi kazanmak şart değildir. Doğal liderliği olan ilk %15 i kazanmanız yeter. Ortadaki %70 lik grup iyi sonuçları görmeyi bekleyecektir. İlk sonuçların paylaşılmasıyla birlikte değişime katılanlar artacaktır. En sondaki %15 lik “her şeye itiraz edenleri” izole etmelisiniz. Eğer işletme kültürü suçlama-güvensizlik içeriyorsa değişimin hızlı olması mümkün değildir. Yönetim aksiyonlarda “görünmelidir”.  

İşletme durumunuzu değerlendirebilmeniz için 20 soruluk bir anket paylaşıyorum: Sorudaki önermeye kesinlikle katılmıyorsanız 1 notu verin, kesinlikle katılıyorsanız 5 notu verin. Ekibinizle birlikte doldurun, isim yazmayın. Toplam skorunuz 75+ ise işler yolundadır, 50-75 arasındaysa aksayan noktalara bakmanız iyi olur, 50 den düşükse müdahale kaçınılmazdır.  

  1. Firmamız tutarlı, öngörülebilir, pozitif finansal sonuçlar üretir.
  2. Firmanın günlük işleyişi stabildir (kaotik değildir).
  3. Müşterilerimiz aldıkları servisten memnundur.
  4. Çalışanlarımız maaş almanın ötesinde katkı sağlamak için işe gelirler.
  5. Firmanın tamamı fark yaratacak birkaç projeye odaklanmıştır.
  6. Firmanın karı yönetimi memnun etmeye ve iş için yatırım yapmaya yetecek kadar yüksektir.
  7. Bugün ve yarın için gereken kalibrede çalışanları işe alabiliyor ve bizimle kalmalarını sağlayabiliyoruz.
  8. İşyerimiz emniyetli ve temizdir, böyle tutabildiğimiz için gurur duyarız.
  9. Makine ve ekipmanlarımız temiz, bakımlı, işler haldedir.
  10. Tedarikçilerimiz ihtiyaçlarımıza uygundur ve iyi servis verirler.
  11. İyi yönetilen ve yeterli stoklarımız vardır.
  12. Satış tahminlerini (bütçe) operasyonel ve finansal planlarla hizalandırmakta iyiyiz.
  13. İşimizi yönetebilmek için iyi seçilmiş veri-kriterlerimiz (metrik) vardır.
  14. Firma stratejisini uygulamakta etkiniz (başarılıyız).
  15. Firmadaki herkes değerlerimiz bilir, değerlerimize uygun yaşarız.
  16. Etkin toplantılarımız vardır.
  17. Firmadaki herkes firmanın stratejisini ve buna katkısını bilir.
  18. Sürekli değişim ve gelişim kaderdir, biz bunlarda iyiyiz.
  19. Çalışanlarımız seslerini duyurabilir, saygı görürler.
  20. Yaptığımız değişiklikler tutar ve pozitif sonuçlar sağlar.

28 Kasım 2021 Pazar

amazon highlights: How to fix a factory / Rob Tracy / 2019

As the African proverb states: smooth seas do not make skillful sailors. There is a difference between fixing the factory and striving towards excellence. Some examples of situations that constitute “fixing” include:

·       On-time delivery that isn’t meeting customer expectations

·       A workforce that is disengaged and going through the motions

·       A cost position that isn’t enabling sales and profitability

·       Difficulty capturing and sustaining the gains of continuous improvement activities

·       High inventories while experiencing stock-outs

·       Reactive scheduling—running the plant from “hot lists”

·       Capital investments in equipment that don’t seem to be paying off

·       Erratic financial performance

Why me? The first bug was a passion for small-and mid-size manufacturers. I enjoyed leading a business as opposed to running a department in a larger company. In a smaller company, you can move fast and you own your decisions. There’s no place to run and no place to hide. I loved it. The second bug was the rush and exhilaration that comes from fixing struggling factories. The journey is always hard, but the emotional rewards are great.

Setting the Stage

Fixing a factory requires a change in direction and momentum, and that change will only happen if the leadership team and the workforce are ready to embrace change and unite towards a common goal. It is leadership’s job to break the Sisyphus trap. The workforce will be thirsty for substantive hope that things are going to improve, and when they see it, they’ll rally behind it. The key is that it must be substantive. Rah-rah speeches, posters, and platitudes will not suffice. It’s going to take visible, tangible action.

Leading a factory that is struggling is rubber raft leadership. The precision of a racing shell can come later. There are three factors that embody rubber raft leadership: Inspiration for the mission, Senior leader engagement, Leadership style

Inspiration for the mission: People will do amazing things when they believe that they are part of building something special. The inspiring message is not a single event, a single speech, or a single memo. It should be a series of messages that are woven into multiple communication methods. The inspiring message to the workforce must confront this paradox. It must communicate faith that you’ll get through the challenges while simultaneously facing the harsh realities of the current situation. People will look you in the eyes to see if you’re for real or not. If they trust you, they’ll get on board and engage to make things better. If they don’t, they’ll punch the clock and go back to being Sisyphus. An inspiring message often contains the following ingredients:

·       An admission of the difficult situation that the company is facing. The people will want to know that you get it and you don’t have your head in the sand.

·       An expression of confidence that the company will prevail. All companies go through difficult times, and this is our turn. We’ll get through it.

·       A description of the specific actions that are being taken to correct the situation.

·      A “silver lining” message about how the challenges are forcing us to build muscle that will make us stronger. Processes that have been issues for years bit us in the ass, and now we’re fixing them. There are painful lessons being learned that are going to make us much stronger going forward.

·       A perspective confirming that customers, shareholders, and suppliers all understand that difficult times happen. Our partners are still with us and they will be there as we emerge from this, if we band together and show the true spirit of our company and our people.

·       News about victories that indicate that you’re making progress.

·       A reminder of the responsibility that we bear to each other, our families, and the community.

·   A subtle warning that difficult times reveal character. It’s time to show the world our real character. Our values still hold true. Let’s remember to…(insert your three or four core values here).

·       A heartfelt thank you.

Senior leader engagement: Every member of the senior leadership team needs to be a guide on the rubber raft. They aren’t passengers in a boat or, worse yet, on the shore just observing. The senior leadership team can follow one of two paths. They can unite towards leading the company through the rapids or they can fragment and become divisive, blaming, and territorial. Leadership teams that unite have great odds of working through their challenges, and leadership teams that fragment will prolong their pain.

Leadership style: The best leadership style is the style that the organization needs right now. There can be no engagement without respect, and deep respect almost always engenders engagement.

“Watch your thoughts, they become your words; watch your words, they become your actions; watch your actions, they become your habits; watch your habits, they become your character; watch your character, it becomes your destiny.” Lao Tzu

We may not be able to change our height or even some parts of our personality, but we can change our thoughts.

·       Live your values; firing toxic people is one of the best ways to earn the trust of your workforce.

·       Clean factory

·       Upgrade the facility

·       Provide transparent communication

·       Implement listening sessions

·       Know each person’s name

·       Involve them in problem-solving

Reveal the Issues

We’re going to question and explore until we have insight into what is really happening—not what we think should be happening or what the manual says.

Reveal the Issues: Paradigms Paradigms are powerful, but they can also create blind spots and obscure the truth. Studies have shown that we will filter out data that doesn’t agree with our paradigms.

Addressing paradigm blind spots The only way that I know how to address paradigm blindness is to intentionally seek out the input and perspective of others and to establish a mindset of curiosity.

Reveal the Issues: Denial, Addressing denial Confronting a difficult issue usually requires the engagement of a trusted advisor.

Reveal the Issues: Personal Loss It would be natural to have concerns about how you might personally be impacted if the issues were revealed. There could be a loss of status in the organization or potentially even a loss of job security.

Addressing personal loss If you’ve done something that has led to the challenges that are facing the factory, it’s best to own up to them.

Reveal the Issues: Real Numbers I try to establish a base of real-life numbers, and I work hard to avoid using dollars as the unit of measure. Direct costing attempts to distill costs down to the real dollars that are spent. Allocations and non-cash items, like depreciation and inventory adjustments, are removed from the analysis.

Go See for Yourself

·       Is the workforce productive?

·       Is the factory leadership disciplined?

·       Is there a lot of inventory with thick dust?

·       “How do they know if they’re having a good day?”

·       Data is important, but remember the power of seeing, hearing, and sensing firsthand.

Reveal the Issues: Process There are five elements that create the right environment for healthy discovery:

1. Prepare to learn and listen: bring a trusted adviser into the organization to help with the discovery and learning. It would be ideal if this outsider has perspectives that may challenge your own thinking.

2. Conduct listening sessions from top to bottom: It doesn’t need to be a large number of people, but it needs to be a broad range.

3. Gather relevant data: It’s common during the listening sessions to hear people say “a lot.” The purpose of this step is to put the numbers to the issue.

4. Synthesize the inputs: Here are examples of typical summary statements:

·       On-time delivery has suffered because production was not meeting targets for several weeks. As they got further behind, the number of expedites increased, leading to more setups and thus eroding capacity further.

·       As part of our implementation of Lean, we dramatically reduced inventories in some key areas, and we are no longer able to absorb some real-life issues, such as machine downtime and spikes in orders.

You may notice that the statements above do not offer solutions and that is intentional. We need to resist the urge to jump into solutions, if only for a time, to make sure that we have clarity about the problem statement.

5. Present the findings to senior leadership: It’s important for the entire leadership team to hear the message together. This session can head down two paths that need to be avoided. One path is the blaming path. The second path to be avoided happens when senior leadership dives into a problem-solving mode.

Reset Expectations

If the factory has struggled for a long period of time, it’s entirely possible that people are not in a good frame of mind. It’s common to hear expressions of anger, frustration, and even depression. We’re not going to win with people in that mindset. Likewise, customers may have started to lose confidence as well.

The process of resetting expectations has a lot in common with the actions that pilots must take when an airplane is struggling and stalls. When a factory is struggling, sometimes leadership responds by pushing harder and applying more pressure. This feels natural and right, but it can lead to a death spiral.

It is similar to a plane that needs to gain altitude. The right way to gain altitude is to apply more throttle so that there is more airflow over the wings. The increased airflow lifts the plane higher. Inexperienced pilots can make the mistake of pulling back on the yoke to gain altitude. That feels right. You want to go higher, so you point the nose where you want it to go—up! Unfortunately, this only feels good for a brief period of time. The plane lifts higher in the short term, but it also slows it down. The reduced speed reduces the airflow over the wing, creating less lift, and the plane loses altitude. The pilot responds by pulling back on the yoke further, and again there is a short lift up, but then it drops. This yo-yo of short-term lift followed by a loss of altitude and a loss of speed continues until the plane is going so slow that it reaches its stall speed. A stall in an airplane doesn’t mean that the engine stalled. It means that there is not enough air flowing over the wings to overcome the force of gravity. When this happens, the plane just starts to drop. It’s no longer a plane that is flying; it’s a rock falling from the sky. It is in a death spiral.

With enough altitude, a stall can be corrected. The process is counterintuitive, which is why pilots train for this scenario. The pilot needs to point the nose towards the ground. Yes, that’s right—towards the ground. Doing this starts to get air flowing back over the wings, and once there is enough air flowing, the wings generate lift and the plane starts flying instead of falling like a rock. At this point, the pilot can start to pull back on the yoke to gently level it out and get back to the business of safely reaching his destination (and cleaning his pants).

We need to take similar actions in the factory. Some of the things we need to do may seem counterintuitive, but it will get air flowing over the wings again.

In order to get people energized and ready to rise to the challenge, they need to see hope, and the reset of expectations accomplishes that goal.

If your factory is having difficulty living up to customer expectations, resetting expectations is delicate but essential. You may need to reconsider: Customer due dates, Production scheduling, Staffing and overtime Performance metrics

Customer due dates When production output has struggled and backlog has grown, you need to come clean with your customers. lead to difficult conversations with customers, and some may even cancel their orders. But it is better to be up-front with them than to disappoint them down the road. My recommendation is to be very conservative with the new due dates. You don’t want to find yourself missing the revised due dates.

Production and scheduling It is common for customer service to commit to due dates that are unrealistic given the mismatch between order intake rates and production rates. This often happens in factories that don’t have robust sales and operations planning processes. Resetting the production schedule can be very challenging. It often requires a team of people comprised of supervisors, schedulers, planners, and IT resources to craft a plan to get the production schedule back in order.

Staffing and overtime over the course of weeks or months, overtime becomes less effective. If you’ve been working more than 10 percent overtime in any area, it’s time to dial it back and address the need for throughput by fixing the underlying issues and increasing staffing. Creativity may be needed to find quality people to bring into the organization. A final consideration is retention. When a factory devolves into chaos, the workforce can become very frustrated. There is a finite supply of workers available and the ones that you already employ have choices. You need to treat your workers as if they are family and show them the respect they deserve.

Performance metrics It does no good to have a metric that is a completely unachievable goal. Recalibrating the definition of success will create small victories and give your workers something to strive for. Qualifying every victory with a “but” will leave workers demoralized. That isn’t the way to turn the ship around.

The Core 10 Systems are:

·       Talent System

·       Clean and Safe Factory System

·       Management System

·       Equipment Reliability System

·       Quality System

·       Supply

·       Inventory

·       Sales and Operations Planning

·       Data and Measurement

·       Operating System

Core #1: Talent System

·       What percent of the workforce has been here less than one year? Two years, five years, ten years?

·       How have those numbers changed over the last few years?

·       How many experienced workers have retired or quit over the last few years?

·       What is the yield from the hiring process? I.e., how many people need to be hired in order to net an employee that stays for one year or more?

There are five components of the talent system that warrant brief exploration because each of these components must be strong to uphold the entire talent system. They are: Talent brand, Talent pipeline, Screening and hiring process, Onboarding process, Training and development process

·       Talent brand: It is your reputation. Some larger companies are getting very good at cultivating an employment brand, but I find it rare in mid-market companies.

·       Pipeline: The term talent pipeline is shorthand for describing the target population from which you want to hire and the tactics that you’ll use to attract them to your organization.

·       Screening and hiring: The screening and hiring process has two goals that may conflict with each other. One goal is to vet the candidate enough to ensure a high degree of confidence in her success. The second goal of the process is to leave a positive impression with the candidate and sell them on the opportunity.

·       Onboarding: Onboarding is the initial time that a new employee spends with a company. In a robust and efficient factory, new workers will need to be fully capable when they enter the production environment. They will need to know the work procedures and quality requirements. For most companies, this will necessitate a more thorough training program. The onboarding program must also account for the social and team needs of the employee. employers need to embrace the challenges faced by new workers and help them reach their full capabilities.

Developing a strong talent system is a company issue, not just an HR issue.

Core #2: Clean and Safe Factory System

The condition of the factory is a reflection of the leadership’s biases and attitudes. Having a clean and safe factory sets the tone for the workplace. Creating a clean and safe factory isn’t complicated. It simply demands the desire and discipline to make it a reality. The reason that the factory is dirty and dangerous is because of leadership. As leaders, we get the behavior we tolerate.

Core #3: Management System

I am referring to the management system from the plant manager down to the value-adding shop floor workers. The management system is the combination of having the right people, with the right skills and capabilities, armed with the right tools in the right proportion to enable the shop floor to achieve its goals. Supervisors are the ones orchestrating the activities with the value-adding workers every day to try to achieve the goals for safety, delivery, cost, and quality. Most of the plants I see still have a lot of people who need more training, support, leadership, and management oversight than was needed before. Factories that don’t develop a strong leadership structure encounter a number of issues:

·       High involuntary turnover is seen among the supervisors and leads as management searches for the super-human person who can excel in the role with little or no training.

·       Employees are disengaged because they do not get enough positive interaction with their leader.

·       Changes and improvements are not sustained because the supervisors do not have the time to reinforce the changes.

·       High turnover of new employees often occurs because they feel inadequately trained and supported during the onboarding.

·       The needs of each company are unique, but an effective leadership structure often follows these ratios:  

Production manager 100-200 people, Supervisor 20-30 people, Lead 8-10 people. Each of these roles has similar accountabilities with the primary difference being the span of control. The key accountabilities for production leadership often include:

·       Achieve goals for safety, quality, delivery, and cost

·       Develop a high-performance team

·       Represent the culture of the company through their actions

·       Perform administrative duties

Developing supervisors and leads requires a well-designed and rigorous program executed over months and years. The most effective programs that I’ve seen include classroom training in small chunks followed by on-the-floor coaching with direct support from supervisors. Production managers need to be coaching and reinforcing the training with their supervisors, and the supervisors need to reinforce the materials with their leads. In Lean circles, this is referred to as leader standard work. This is the daily routine each person in the management chain of command follows to ensure that operations are performing effectively. Leader standard work often includes:

·       Key performance metrics for items such as cost, quality, delivery, and safety.

·       A communication board that is used to convey information to his team.

·       A series of “tier” meetings, usually one for his direct team and one for one level up.

·       A daily action sheet to capture issues and corrective actions.

·       A list of routine items that must be done occasionally, such as conducting an audit of a process.

·       A method for capturing and implementing ideas for improvement.

Core #4: Equipment Reliability System

We can’t make quality products if the equipment isn’t running properly. Most mid-market companies have poor data about unplanned equipment downtime.

Core #5: Quality System

I find that the certifications have little correlation with actual performance. The factory was relying on inspections to catch defects and the defect rates were quite high.

Core #6: Supply

I have experienced three broad categories of supplier issues that can dramatically impact the performance of the factory:

·       Misaligned value streams: Problems arise when there is a mismatch between the reality of how the business works and the design of the supply chain value stream. The remedy for this situation is to get the value stream aligned. This requires a cooperative effort between operations, purchasing, and the supplier. The result is often referred to as a Plan For Every Part (PFEP). Prioritize the parts or suppliers that are causing the most pain. Get the value stream aligned on those, then rinse and repeat.

·       Ineffective supply base management: Supply base management is the practice of deciding on the suppliers with whom you will do business and the nature of the relationship. I recommend using a simple four-square to determine the appropriate strategy for each supplier and compare it to the current strategy. The four-square is shown below:

o   Commodity – high volume/low importance

o   Transactional – low volume/low importance

o   Critical – low volume/high importance

o   Strategic – high volume/high importance

·       Weak sales and opertaion planning

Core #7: Inventory

Accountants tell us that inventory is an asset, and Lean tells us that inventory is a waste. It creates a buffer to cover everyday situations such as: Long supplier lead times, Long setup times, Inconsistent quality, Mismatched cycle times, Batch operations (e.g., nesting of parts on a sheet of steel to optimize yield), Transportation costs (delivering a truckload at a time), Erratic customer demand

guiding principles for inventory control:

·       There must be physical control of the inventory. That means a designated place for everything. The warehouse needs to be organized and labeled clearly. There must be space to accommodate unexpected overflow.

·       Whenever feasible, inventory space should be contiguous. It should be clear where the entry and exit points are to the warehouse space.

·       There must be clear accountability for transactions, with limited people putting and pulling inventory from the locations.

·       There needs to be a clear accountability structure in place for inventory control and accuracy. The person responsible for inventory control should also be responsible for the people transacting inventory on the floor.

·       Planning processes need to be in place to manage inventories and adjust levels as business conditions warrant.

·       Processes for checking on inventory accuracy and adherence to inventory management must be established and followed.

Core #8: Sales and Operations Planning

Sales and operations planning (SOP) is the practice of preparing a mid-range plan—typically three to twelve months—that integrates the sales forecast and production plan. When done well, it creates harmony between sales, operations, finance, and HR.             Some people get hung up on the technical aspects of an SOP process, like elaborate forecasting algorithms. However, I think that the energy aimed at sophistication is misguided. The deep benefit of an SOP process is its power to align the senior leadership team.

The SOP process consists of four milestones that occur each month at regular intervals:

·       The sales forecast is updated to roll forward one more month. Ideally, the forecast has product-line level detail. This happens early in the month.

·       Within 10 days of the sales forecast having been issued, the operations team develops a plan to respond to the forecast. This plan includes headcount changes, inventory needs, and capital investment.

·       After operations has their plan together, mid-level management reviews the sales and operations plans to reconcile points of contention. They then prepare a recommendation for senior management.

·       The last step is for the senior management team to review and approve the recommendation from mid-management. This should not be a rubber stamp. There should be considerable discussion and debate.

Nobody can guess the future precisely, but a monthly look into the crystal ball gets everyone aligned and marching to the beat of the same drummer.

Core #9: Data and Measurement

I believe that having a core set of accurate data is necessary for the operation of a stable and healthy factory. three categories of data: Process data, Financial data, Transactional data

·       Process data: Process data tells us if a process is working as intended. Examples of process data would include: On-time delivery, Productivity, First-pass yield, Percent of calls that roll to voicemail, Machine uptime, Days to close the books. I recommend that the senior leadership team focuses on process measures that are tied to strategy. the senior leadership team must do the heavy lifting to ensure that nonstrategic but important measures are being tracked within the functions.

·       Financial data: Good process data will provide strong indicators of financial performance, but it must be validated periodically with official financial reports. I knew that this accounting system was compliant with Generally Accepted Accounting Principles (GAAP), but it was pretty much worthless to me as a leader trying to figure out what areas I needed to attack. One of the first changes that I like to see in the accounting system is a move from a standard cost P&L to a direct cost P&L. In this P&L, manufacturing costs are reported relative to a standard cost for products. The issue is that this comparison obfuscates the actual numbers. “Absorption Variance.” That’s an accounting mechanism that tries to adjust overhead allocations based on the standard amount of volume that is expected to be produced. It is an algorithmic method for the accountants to produce a GAAP- compliant P&L, but it has almost no bearing on the performance of the factory and provides little insight. I prefer a P&L that shows actual costs. Materials are subtracted to get to value-added revenue. This provides a clearer picture of the revenues that a company is collecting from customers to cover costs. Actual costs are shown rather than standards and variances. When these are plotted month by month, it is clear when there are cost changes. Inventory adjustments are isolated so that the leadership team can see the impact of changes on the income statement. This type of income statement is easy to implement and it can be done in parallel with the traditional financial statements. It’s worth noting the revenue, gross margin, and profit do not change. This approach is not about making the numbers look better. Instead, it is aimed at providing better insight into the data.

·       Transactional data: Transactional data, as the name suggests, is needed to support day-to-day transactions—including sales, customer service, engineering, scheduling, shipping, and invoicing. It seems that everyone thinks that they are the only ones dealing with complexity. We need to dispel this myth. Low-variety, high-volume manufacturing migrated to low-cost countries in the late 20th century, and U.S. manufacturing is predominantly lower-volume, higher-variety manufacturing. Strong companies recognize that accurate transactional data is an asset to be maintained, just like the physical assets of buildings and equipment.

Core #10: The Operating System

I define an operating system as a set of practices and principles that are used to define and implement the company’s strategy and objectives. It isn’t the strategy itself—it’s how the strategy gets converted to reality. There are eight ingredients in a strong operating system:

·       Core Values: I’m talking about the deeply held values of the organization. Core values describe the behaviors you reward and the behaviors that will not be tolerated. Core values are a key ingredient for creating a healthy, aligned team.

·       Value Proposition: The value proposition states clearly and succinctly who your customers are and how you choose to compete to win their business. One company may choose to compete on price while another one wants to offer the most sophisticated products in the marketplace. Another company may highlight their responsiveness when another might emphasize their ability to integrate with customers. The key is that there must be a direction.

·       Organization Structure: Organizations need to know who is responsible for what and a strong operating system provides this clarity. A common challenge is that processes flow across functional boundaries. Some companies are addressing this by going to matrix organizations where a person is assigned ownership of a process while other people own the function. This structure can be very effective in organizations that are healthy, aligned, and have little issue with internal politics. However, it can muddy the waters and create confusion in organizations that have low trust and low team health. There is no perfect organization structure, and companies sway back and forth as the warts of one structure become visible.

·       Strategy Implementation: approaches to assist with the implementation of strategies.

o   Simplify the strategic plan to one or two pages.

o   Focus short-term activities on one or two vital initiatives.

o   Establish a weekly meeting pattern to check on the status and make course corrections.

o   Confront the reality of the day-to-day workload of people.

If the operating system is strong, everyone in the company should have clarity about the strategy, the short-term priorities, and their role in making it a reality. This enables the company to continue to achieve strong results today while still building for the future.

·       Systems and Processes: Good systems and processes can make average people excel and poor processes can make great people look terrible. Systems and processes are related but different. A process is a set of procedures, information, and actions to accomplish a specific task. A system is a collection of processes aimed at achieving a broader business objective. Once the core systems are identified, the key processes involved in building those systems should be identified. The processes need to be documented, Having good, repeatable processes is an action, not a document. Getting people to follow standard work can be a tremendous challenge, especially in organizations that have a long history of letting people do their own thing.

·       Meetings: The operating system should define two meeting parameters. First, it should define the number of regularly occurring meetings that are integral to running the business. Second, the operating system should clarify the tone, tenor, and expectations of meetings so that they are effective.

Execute with Discipline

it is the practice of setting priorities for the next 90 days, working hard on those priorities, and then reprioritizing for the next 90 days. here is something magical about 90 days. It is a time frame that is long enough to allow an organization to accomplish big things, yet it is short enough that it creates some urgency. Another benefit of a 90-day cadence is that it allows a leadership team to course correct and reprioritize every 90 days. The last benefit of the 90-day cadence is that it gets the leadership team realigned.

I’m a big fan of one-page project charters. A charter defines the scope, objectives, team members, and milestones of a project. The benefit of writing the charter is increased alignment of the leadership team. Project charters also dramatically improve the odds of successful implementation. Hint: Priorities should be stated as actions, not goals. Focus and deselect. If you don’t do it, your staff will do it for you and it will be unfocused, unaligned, and it won’t lead to great results.

Now that you’ve launched a vital few initiatives for the next 90 days, we need to check in on the progress regularly to ensure that things are on track. If the leadership team isn’t feeling the urgency and drive to make these initiatives succeed, it’s likely that you picked the wrong initiatives. It also signals to the organization that these projects really are important. Your people pay attention to what you pay attention to. When they see you checking in and making the success of these projects a priority, they’ll get aligned with the same priorities. Do the weekly check-ins. You won’t regret it.

Starting change is easy. Staying with the program and making the changes permanent is a completely different animal. We can only go as fast as the organization will let us go. The key is to listen to the feedback you’re getting. There are clear signs when the rate of change is exceeding the organization’s ability to absorb the change. The ability of organizations to implement changes is strong, but the ability to sustain the changes is not nearly as robust. most companies’ attempts to change. They know how to start the change, but they don’t know how to hold the change.

To execute with discipline, people will need to change. The exact formula for fixing each factory will be unique. Somebody—often many people—will need to do something different than they’ve done in the past, which means that we’ll need to help them move toward the destination. Note that I said that people would need to do something different. I didn’t say that they will need to think something different. I suggest you should spend the preponderance of your time with the pioneers. When implementing change, there is a battle to win the hearts and minds of the settlers. you don’t need to get everyone on board. You only need to get 15 percent of your team bought into the change and embracing the new path. just requires that an individual does not feel completely alone. Group norms of behavior are often described as “culture.” They are the collective set of behaviors that are considered normal and accepted, and shifting these norms is extremely challenging. If fixing the factory requires a change in the norms of the group—a change in culture—then the leadership team has its work cut out for it.

If a company has a history of blame and low trust, you can expect the process will start very slowly. That’s okay. Grab one small thing. Go fix it in a way that doesn’t blame anybody and celebrate the change. Rinse and repeat. Just keep doing it. You’ll be pleasantly surprised by how quickly people will start to get energy from the improvements. The focus on making small, incremental improvements also helps supervisors get the knack of being proactive coaches as opposed to traditional, reactive, tyrannical foremen.

I’ve spent a lot of time discussing the people component of executing with discipline and that was intentional. Leading people through change is one of the largest factors that will determine your success. Building an environment of respect and trust with empathy and compassion is rocket fuel for your business. Place your focus on changing behaviors, not minds, and put yourself in the shoes of those being affected. Your team is not a bunch of robots they’re much better than that. Meet them where they’re at and lead them.

When factories are working well, everyone benefits. Customers are getting the products that they need. Workers have employment stability and are engaged in being part of the business. Owners are seeing financial returns that they deserve for their investments, and the community-at-large is reaping the benefits of being part of the factory ecosystem.

I’ve compiled a list of 20 questions to spur your thought process. This is not a scientific, numerically precise, calibrated assessment. Rather, it is intended to help you reflect and uncover the degree to which your factory may need tuning up.

1) The company produces consistent, predictable, positive financial results.

2) Managing the company feels stable (not chaotic).

3) Our customers feel that we serve them well.

4) Our employees are engaged, and they come to work for much more than a paycheck.

5) The entire organization is focused on the critical few initiatives that will move the needle.

6) The company generates financial results that satisfy ownership and allows for adequate reinvestment in the business.

7) We can hire and retain the workforce that we need today and for the future.

8) The workplace is safe and clean, and we take pride in keeping it that way.

9) Our equipment is reliable and maintained well.

10) The supply base is aligned with our needs, and they serve us well.

11) We have appropriate inventory levels that are well organized and controlled.

12) We do a good job of aligning the sales forecast with the operations and financial plan.

13) We have good data and metrics to run the business.

14) We are effective at implementing the company strategy.

15) Everyone in the company knows our values, and we live by them.

16) We have effective meetings.

17) All employees know the company strategy and their role in implementing it.

18) Continual change and improvement is normal, and we’re good at it.

19) Our employees feel that they have a voice and they feel respected.

20) The changes that we implement stick and generate positive results.

If you scored 75 or better, you likely have a factory that is healthy but in need of improvement in a couple of areas. A score of 50 to 75 is a fragile factory that may be tipping towards unhealthy. A score of 50 or less is an indication that the factory is struggling, and aggressive intervention may be appropriate.

Work isn’t something that you dread. It’s a part of your life that provides intrinsic value and growth. Getting to this point takes hard work and perseverance, but it is possible and worth the journey. I wish you the best as you work to improve your factory. Be strong, stay focused, respect your people, and be a leader.