Baan/LN Tip of the Week: What is your M.O.?
I’m not talking “Modus Operandi,” which is a fancy way to say: “what’s your plan to get stuff done”. I’m talking about Manufacturing Optimization.
It is all about efficiency, and by that I mean doing more with less. Less labor, less time, less materials, while still delivering a high quality product on time.
The Three Secrets to Improving your MO
1. Identify the key metrics
You need benchmark data so you know what realistic goals are, then track them and publish your performance along with a brief comment from time to time on how things are trending and how you compare with others, particularly your primary competitors. The best thing about this is that it is a system that develops a life of its own.
2. Measure it
Automatically, people start to think about improving things. Then the fun part, stuff begins to improve by itself. Once in place, the system just hums along and the benefits appear, because it has motivated people to think about it, and figure out what they can do to make it better.
3. Communicate it
So if you publish gross profit numbers, explain to people how what they do affects the numbers. Employees tend to start to modify their behavior as a result, and look more critically at whether a given purchase is even necessary.