In almost every project, in every industry, I found that the management team or the project team felt that change was necessary. However, talk is cheap when the rubber meets the road. Getting people to embrace change is very challenging.
In an attempt to help realize why change is sometimes necessary for a business to survive and thrive, here is my view on change, presented for your consideration:
C: Chaos – Loss of control, no clear definition of what is about to happen. How will things change? For what reason(s) do they need to change? Yes, for a period of time, you may feel like the ground beneath you isn’t solid.
H: Hostility- Will you have more work? Will you lose your job? You will be stressed, which may lead to anger?
A: Alone – Why is this happening to you? Why do you feel like you are the only one who isn’t embracing the change?
N: Nightmare - Most people are afraid of the unknown, and dread uncertainty. They go to great lengths to stay where they are to avoid going down a new path. A new path is scary.
G: Grief
Standard costing is really a ‘best guess’ at labor costing -- these numbers are often inaccurate, incomplete or out of date.
Accurate job costing requires the capture of all tasks associated with a specific product or job, including direct and indirect labor in setup, production, and customer service.
Inaccuracies in the collection of time allocated to machinery and the use of materials can result in the inability to properly pass those charges through to the customer, reducing company profitability.
Basically, you can’t manage what you can’t measure -- and you can’t measure what you can’t track. So the inability to track time-to task ultimately inhibits maximum utilization of the workforce. Unproductive activities remain hidden from sight -- managers don’t have the information needed to understand where wasted time exists, and therefore cannot create an action plan to remove it.
Optimize Your Manufacturing Today!
Standard costing is really a ‘best guess’ at labor costing -- these numbers are often inaccurate, incomplete or out of date.
Accurate job costing requires the capture of all tasks associated with a specific product or job, including direct and indirect labor in setup, production and customer service.
Inaccuracies in the collection of time allocated to machinery and the use of materials can result in the inability to properly pass those charges through to the customer, reducing company profitability.
Basically, you can’t manage what you can’t measure -- and you can’t measure what you can’t track. So the inability to track time-to task ultimately inhibits maximum utilization of the workforce. Unproductive activities remain hidden from sight -- managers don’t have the information needed to understand where wasted time exists, and therefore cannot create an action plan to remove it.
Optimize Your Manufacturing Today!
- Sit down with your IT team. Decide how the information will be captured and where it will be stored so that employees have access to it. What software tools need to be used to capture the information? How does it need to be organized? Create a repeatable process to make this easy for your staff.
- Interview the person. Have them talk you through his/her job. What are the things they do every day? What are their biggest challenges? How do they overcome them?
- Have someone shadow the person for a week. Watch what they do and how they do it. Ask questions. Who does he/she interact with in their department? Outside of their department? Why?
- Find out what tools he/she uses to perform their job? Are there spreadsheets? Reports within your ERP / outside of your ERP? Separate stand-alone databases? Drawings? Websites? Why does he/she use them?
- Video record how the person does their job. Is their technique critical to “doing it right” the first time and not ending up with a bunch of scrap that you can’t reuse?
- Figure out if the person does anything special on a monthly, quarterly, or annual basis that might not come up during the observation period or interview.
- Map how he/she uses your business system and how that impacts the rest of the company. Understand both the “what” and the “why”. Without this, new employees may end up figuring out what they need to do, but never understand why they need to do it.
Optimize Your Manufacturing Today!
- Sit down with your IT team. Decide how the information will be captured and where it will be stored so that employees have access to it. What software tools need to be used to capture the information? How does it need to be organized? Create a repeatable process to make this easy for your staff.
- Interview the person. Have them talk you through his/her job. What are the things they do every day? What are their biggest challenges? How do they overcome them?
- Have someone shadow the person for a week. Watch what they do and how they do it. Ask questions. Who does he/she interact with in their department? Outside of their department? Why?
- Find out what tools he/she uses to perform their job? Are there spreadsheets? Reports within your ERP / outside of your ERP? Separate stand-alone databases? Drawings? Websites? Why does he/she use them?
- Video record how the person does their job. Is their technique critical to “doing it right” the first time and not ending up with a bunch of scrap that you can’t reuse?
- Figure out if the person does anything special on a monthly, quarterly, or annual basis that might not come up during the observation period or interview.
- Map how he/she uses your business system and how that impacts the rest of the company. Understand both the “what” and the “why”. Without this, new employees may end up figuring out what they need to do, but never understand why they need to do it.
Optimize Your Manufacturing Today!
- Are you tracking downtime? Is it done manually, or with some type of automation or application that gathers information in real-time, or is it based upon history?
- If you are measuring team effectiveness by shift, you know there are significant differences between them. Have you figured out why?
One of our automotive customers was experiencing significant inefficiencies and difficulties with their receiving operations. After analyzing their operation, we discovered a disconnect between how they were tracking their incoming goods and what their ERP system thought was on hand.
This disconnect created time-consuming steps to process incoming material and determine where the material was needed. The manual process slowed production, caused additional staffing needs and hindered their ability to effectively get needed material to the assembly line. They chose to implement our data collection solution to automate the process.
Since implementing the solution, receiving and moving material was quicker, more accurate and efficient. This enabled the addition of another assembly line, increasing production volume – without adding staff.
Optimize Your Manufacturing Today!
- Are you tracking downtime? Is it done manually, or with some type of automation or application that gathers information in real-time, or is it based upon history?
- If you are measuring team effectiveness by shift, you know there are significant differences between them. Have you figured out why?
One of our automotive customers was experiencing significant inefficiencies and difficulties with their receiving operations. After analyzing their operation, we discovered a disconnect between how they were tracking their incoming goods and what their ERP system thought was on hand.
This disconnect created time-consuming steps to process incoming material and determine where the material was needed. The manual process slowed production, caused additional staffing needs and hindered their ability to effectively get needed material to the assembly line. They chose to implement our data collection solution to automate the process.
Since implementing the solution, receiving and moving material was quicker, more accurate and efficient. This enabled the addition of another assembly line, increasing production volume – without adding staff.
Optimize Your Manufacturing Today!