Finding opportunities in logistics
Logistics sometimes means different things to different companies, which we once made the mistake of pointing out at a trucking convention (see Lessons Learned # 2 – Don’t put down your audience).
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Finding opportunities in production
In production, management’s task is to effectively schedule the multitude of component processes that run in series or in parallel. In operations that are process-oriented, management must schedule resources and output around
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The conflicting objectives of materials management
Material costs can make up a significant part of a product’s cost structure, often many times more than labor costs, so it’s a good profit driver to focus on to find opportunities.
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When being more productive doesn’t make you more productive
There are a number of functions in an organization where it’s tough to move the productivity meter. You might actually produce more but the base costs don’t change so the true productivity measured from a financial perspective doesn’t change.
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How to Determine When to Use Push or Pull Production Scheduling
To fulfill customer demand in the most efficient, cost-effective way, companies can use push- or pull-scheduling or something in between. Which one works best? That depends on the characteristics of your product and market.
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The red flags of management system changes
Management system changes often entail tightening up the planning standards that are used to schedule the operations, and then providing managers with tools to control, monitor and report on attainment to the plan.
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The red flags of process changes
Implementing change requires re-configuring processes – and modifying the management systems and behaviors that need to accompany them. But as anyone who has ever tried to instill change knows, maintaining those gains can be very difficult
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The insidious nature of complexity
You simply can’t be great at everything. There are not enough hours in the day, and companies would come to a grinding halt if they managed entirely by this edict.
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Variability is difficult to manage
One of the things we look for when we examine organizations is the degree of variability present. The more variability, the harder it is to manage. Variability can be both inherent in the nature of the industry and it can be self-imposed through policy or errors.
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The black box of scheduling
Lesson Learned #14 We have learned over the years that scheduling is one of the most important and least understood aspects of many organizations. Its possible because it’s generally so dull as a topic.
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