In manufacturing, a common misunderstanding persists: that exploiting utilization in segments of operations (cells, machines) will automatically lead to overall success. Yet, our perceptions and management approaches can sometimes produce the opposite of the desired results.
Many companies focus on increasing the efficiency of specific machines or work cells, believing this will yield better plant production outcomes. However, this strategy can create complications down the production line. When manufacturers concentrate solely on localized efficiency, they fail to recognize the interconnected nature of their operations. This oversight can lead to variations, delays, higher inventory, and ultimately, more inefficiency.
The Illusions of Efficiency
Manufacturers often believe that maximizing the performance of individual components will streamline the entire process. This belief can be ironic. For instance, pushing one machine to its limits may disrupt material flow, leading to bottlenecks or wait time. Overall production may be unchanged or reduced.
Batch Production: A Double-Edged Sword
To maintain production flow, many manufacturers turn to batch production. This approach can temporarily shield teams from disruptions but ultimately allows problems to persist. The intent is logical - fewer changeovers, higher productivity for that process.
Having a lot of inventory around enables unresolved issues to circulate, contributing to inefficiencies and other costs. Do any of these phrases get spoken in your leadership meetings?
"But what if we have an issue, we can't stop production."
"We don't have enough space."
"Maximizing usage of [that machine] is essential."
Ironically, in trying to create smooth operations, teams may end up complicating their challenges, causing hidden costs of expedites, overtime, and additional storage. True transformation requires more than quick fixes; it demands identifying and addressing fundamental problems.
Thinking Level-headed
The practice of leveling production loads is a practice to enable standard and stable production rates. When teams neglect this vital practice, fluctuations in production become common, and employees may adjust work standards reactively. Such fixes rarely address the core problems and instead hide underlying issues with temporary solutions.
Reluctance to level production is often anchored in a desire to 1) maximize efficiency through large batches (see above), or 2) a passive relationship with customers where you flex your manufacturing standards to meet deadlines. A reactive mindset can trap teams in a cycle of inefficiency, where issues go unchallenged and unresolved.
Level production loads create a predictable environment for operations workforce and leadership. When targets are not changing all the time we can work to a standard rate and level of quality. When volumes change often, the workers' standards have to change to achieve that. Their work, by definition, s no longer standard. This type of variation at the point of value creation erodes efficiency.
Pace Yourself
How fast do you need to produce? The challenge to go faster is not always met with the same result of productivity. There are two rates or production you should have in mind when pacing the plant:
Customer Demand (takt)
Your bottleneck process (constraint)
Pacing operations to align with customer demand and the bottleneck process is crucial for optimizing overall plant efficiency. When production is calibrated to meet actual customer demand, it minimizes excess inventory and reduces holding costs. You don't pay for excess capacity in equipment, personnel, and storage space/material handling.
By focusing on the bottleneck process, which often determines the maximum throughput of the entire production line, resources can be effectively allocated to ensure smooth and continuous flow. This synchronization helps to prevent overproduction, minimize delays, and ensure that each step of the production process is optimized for efficiency. Ultimately, aligning operations with demand and the bottleneck creates a more agile, responsive, and cost-effective production environment, boosting overall efficiency and customer satisfaction.
Arbitrarily trying to "optimize" a single step in a sequence of production processes may show savings on paper but rarely translates into better plant performance.
The Journey Ahead
Real transformation in manufacturing occurs when organizations lift the metaphorical veil concealing operational realities. This change doesn't happen within the confines of virtual meetings. Genuine improvement comes from leaders directly engaging with their teams on the production floor, observing processes in action.
Walking alongside workers allows leaders to understand daily challenges at a deeper level. This engagement cultivates a culture of transparency, encouraging employees to share their concerns and experiences, which can lead to innovative solutions.
While transformation can be straightforward, it is seldom easy work. As you work to uncover truths about your operations, they may encounter resistance, fear of change, and stagnant mindsets. However, those who confront these challenges can unlock significant potential for efficiency and productivity.
Changing your perspective and recognizing overlooked areas in operations opens doors to meaningful change. Companies like Bareither Group Consulting stand ready to partner with businesses on this journey, providing guidance and support throughout.
By joining teams on the production floor, Bareither Group fosters an environment wher eyou can #improveLESS ... and get better results.
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