RFID - Is Now the Time?

Not yet. There has been a lot of buzz (no pun intended) about RFID in the last four years. RFID - Radio Frequency Identification is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. An RFID tag is an object that can be attached to or incorporated into a product, animal, or person for the purpose of identification using radio waves. There are both "active" transponders that generate their own signal, and "passive" transponders that only emit a signal when polled by a reader. An emerging technology called chipless RFID allows for discrete identification of tags without an internal integrated circuit, thereby allowing tags to be printed directly onto assets at lower cost than traditional tags.

The RFID tag can automatically be read from several meters away and does not have to be in the line of sight of the reader. The current thrust in RFID use is in supply chain management for large enterprises. RFID increases the speed and accuracy with which inventory can be tracked and managed thereby saving money for the business.

RFID technology got a big push when Wal-Mart (and later other big box stores) stated their intentions to require suppliers to incorporate RFID technology in their shipments. RFID is one of those "next big things" that has been coming for almost ten years. Whilst promising, the technology is hindered by multiple technologies and standards. Working with one vendor may prevent the use of transponders from other suppliers using different protocols. I believe chipless RFID will need to become common place, after all you can print a bar code on a label with a laser label printer for about $0.00

Synchronous experts can help you solve your warehousing and inventory tracking problems. Give us a call or send us an information request at www.SynchronousLLC.com

Operational Excellence - the Trek Continues

I frequently describe Operational Excellence as a direction or trek, rather than any type of achievable short term accomplishment. When viewed in that way, it is easier to view different manufacturing sites at different locations on the road to Operational Excellence. Some sites may have basic efforts in place, whilst other sites may have more sophisticated efforts and programs.

With that perspective comes the recognition that different tools, methods, and metrics are frequently appropriate for different sites, and even for any individual site as they make progress down the path. Sometimes manufacturing plants can negatively perceive this as "the flavor of the month." An appropriate perspective of the path to operational excellence holds that it is entirely appropriate (as progress is made) to declare victory on certain programs and metrics, and move on to something more sophisticated.

Synchronous experts are well prepared to help you assess your current state of Operational Excellence, and to recommend the appropriate tools and metrics to help you improve your bottom line - quickly. We can also help set the stage for next steps and long term improvements. Give us a call, or send us an information request at www.SynchronousLLC.com

Juran's Quality Trilogy

It seems that every firm has its own definition of "Quality." There are many different definitions of quality in use. I think that is fine, different firms have different customer demands, and quality in a mining industry has a very different perspective than an aerospace turbine manufacturer. Two dominant meanings of quality are:

- Quality consists of those product features which meet the needs of the customers and thereby provide product satisfaction.

- Quality consists of freedom from deficiencies.

I frequently cite Juran's quality trilogy as a structure for implementing or improving a firm's quality processes. The quality trilogy consists of quality planning, quality control, and quality improvement. Synchronous experts are proficient in all supply chain work processes, and stand ready to help to improve your quality processes across your enterprise - not just manufacturing. Give us a call, or feel free to send us an information request at www.SynchronousLLC.com

Future Directions in Transportation

All manufacturing enterprises rely on the transportation sector to bring in raw materials and/or send finished products to customers. Preferred carrier programs at many large firms will accelerate the growth and consolidation of the very large carriers. With this consolidation many of the smaller, marginally profitable carriers will disappear. The Less-Than-Truckload (LTL) segment will also further consolidate, and the remaining large LTL carriers will expand their service offerings into the long haul segment.

Small carriers, localized carriers, and boutique carriers that specialize on certain markets, or that provide specialized hardware will thrive. The current driver shortage, and other environmental considerations will shift increasing amount of freight on to inter-modal and other rail based haulers. We can help you optimize your inbound and outbound logistics solutions. Synchronous experts are well versed in all total supply work processes. Give us a call, or drop us an information request at www.SynchronousLLC.com

Excellence in Customer Service!

All businesses care a great deal about their customer service. Ok some may not - think railroads, but for-profit enterprises sure do. We typically look at three distinct strategies for a solid customer service performance. The first strategy is built around reliability - on-time delivery, order cycle times, order completeness, etc. The second strategy focuses on looking beyond order fulfillment and having plans for emergency product coverage, response systems for customer inquiries, formal return procedures, etc. The third strategy - is to have innovative efforts to go the extra mile for customers that your in-the-box thinking competitors won't provide - innovative packaging, information sharing, willingness to experiment, etc.

Synchronous experts can help you develop and measure your customer service relationships to help your business excel. Give us a call, or drop us an information request at www.SynchronousLLC.com

Manufacturing Excellence - Where Do We Start?

Everybody is in favor of manufacturing excellence - who could argue against it? With that said, what does manufacturing excellence really mean? The answer is - it depends on the industry, the type of manufacturing process, and the financial goals of the enterprise in question. There are however, certain fundamental steps to defining manufacturing excellence for your type of enterprise, and setting a course to implementation. We like the following thought process:

- Where do you stand compared with the best in your industry?
- Where are your losses compared with ideal circumstances?
- How do your practices compare with industry best practices?

Note that the first and third elements are very different. Practices are what you do, not what you measure. Synchronous experts can help you assess your current state, and help define and implement a manufacturing excellence initiative. Give us a call, or send us an information request at www.SynchronousLLC.com

Synchronized Production

We like to view operational excellence from the perspective of synchronized production. Synchronized production is a manufacturing management philosophy that includes a consistent set of principles, procedures, and techniques where every action is evaluated in terms of the global goal of the system. Both kanban (just-in-time philosophy) and drum-buffer-rope (theory of constraints philosophy) represent synchronized production control approaches.

We can help you use the appropriate advanced tools to drive your operational excellence efforts. Give us a call, or send us an information request at www.SynchronousLLC.com

Do You Have a Good Long Term Staffing Plan?

It has been said that the most potent force in humanity is demographics. I believe there is a "perfect storm" coming when it comes to recruiting and retaining a high caliber work force for our manufacturing enterprises. The pending retirement of the baby boomers will hit some companies especially hard. I was working with a firm recently that has 60% of their total workforce within five years of retirement. Another staffing challenge is that the economy has been good for ten years and firms have grown sales nicely - but have been slow to add staff. Many firms are now seeking to recruit great talent to maintain their growth rates - check how many "newly created" positions are out there. The gap will be especially tough in the skilled trades, and operations roles for manufacturing. Trade schools are becoming an endangered species and young people today want to go to college to become a lawyer rather than a maintenance mechanic or machine operator.

Major challenges require innovative thinking. A shortage of skilled maintenance talent can be partially offset by a well thought out reliability program. Automation can partially offset a deficit of operating personnel. Synchronous experts can help you develop strategies to keep your business growing, increasing productivity, and cope with the impending talent shortage. Give us a call, or send us a information request at www.SynchronousLLC.com

Reality? Trade Off of Inventory vs Customer Service

The classic arguement goes like this: Carrying excess inventory helps maintain good levels of customer service, but of course, hits the bottom line via inventory carrying costs. Sales and Operational planning attempts to manage both supply planning and demand planning to optimize inventory. Frequently supply chain professionals spend most of their time focusing on supply planning - because it is easier for us to control. Demand planning is often not emphasized to the proper degree because we either think that customers cant forecast their own needs, or that we cant impact customer demand - and to be a good supplier, we shouldn't even try!

What if we could send the message to our customers - Be predictable to us, and we will give you more reliable service. What if we held the opportunity in our back pocket that for a certain degree of predictability we could share our inventory carrying cost savings?

We believe there are numerous avenues to make customer demand easier to predict and manage. Give us a call, or send us an information request at www.SynchronousLLC.com

Hidden Backbone of US Manufacturing

In a recent report released by the Manufacturing Institute titled "The Hidden Backbone of US Manufacturing" 55% of US manufacturing companies reported a significant, direct dependence on chemicals for their manufacturing. The domestic chemical industry has been heavily (negatively) impacted by the cost of natural gas. Many chemical companies are moving production from the US to lower cost offshore locations. Chemicals are critical for a large percentage of domestic manufacturers success, the supply of which is becoming less certain.

Synchronous experts are proficient in all total supply chain work processes. Give us a call so we can help you with your procurement and sourcing strategies. As always feel free to drop us a note at www.SynchronousLLC.com .

Can A Small Business Implement ERP?

Absolutely. In fact the point is not that small to medium businesses CAN implement Enterprise Resource Planning (ERP), the point is smaller businesses can gain significant benefits from a successful implementation. Steve Bell, and Mike Orzen have a great "how to" in this months APICS magazine on how small and medium size businesses can get ERP right. In that article they cite a recent AMR Research survey of small and midsize businesses that reported 31% of respondents will evaluate an ERP system for the first time in 2007.

The big guys - SAP and Oracle are working to adapt their products work in less than colossal sized enterprises. There are a number of ERP providers that have specifically designed their systems to fit not only smaller firms, but many have focused on a certain type of industry or operation. As a certified Microsoft Partner, Snychronous is expertly positioned to help your business implement one of the multiple versions of Microsoft Dynamics. We are also uniquely qualified to help you evaluate your needs, or assist your firm in selecting and implementing an ERP System. Give us a call, or drop us a note at www.SynchronousLLC.com

Effective Implementation of Technology Software

All businesses use computers and software to help run their business. These technologies can range from a sole proprietor using Office to generate invoices to a full blown Enterprise Resource Planning in a multi-billion dollar multinational corporation. Unfortunately many of us have seen painful systems implementations. Has anyone experienced late deliveries, last minute crunches, spiraling costs, multiple surprises, functions do not work correctly, too much rework and/or frustrated users?

A great way to expertly manage systems and technology implementations is to use the CMMI model, which is a public source tool maintained by the Software Engineering Institute and Carnegie Mellon University.

Capability Maturity Model® Integration (CMMI) is a process improvement approach that provides organizations with the essential elements of effective processes. It can be used to guide process improvement across a project, a division, or an entire organization. CMMI helps integrate traditionally separate organizational functions, set process improvement goals and priorities, provide guidance for quality processes, and provide a point of reference for appraising current processes.

We are proud to provide a link to their website: http://www.sei.cmu.edu/cmmi/general/general.html

As always, contact Synchronous to help you with your Operational Excellence and Supply Chain projects.

Book Review: For Your Improvement

All excellent organizations have formal performance management and development programs. I have long enjoyed using the book FYI - For Your Improvement, by Michael Lombardo, and Robert Eichinger as a reference for performance reviews and feedback sessions that I have conducted. The book is organized into four sections and a comprehensive appendix. The Competencies section describes 67 different competencies which cover the waterfront. The performance dimensions section has 10 additional competencies that deal more with output than personal attributes. The third section is a great description of 19 Career Stallers and Stoppers. The fourth and final section covers seven Special International Focus Areas.

This book is a must have for leaders, performance managers, and mentors. Five Stars!

Benchmarking Should be a Continuous Effort

Benchmarking is the process of measuring the company's products, services, costs and practices relative to other operations or other companies. There are two main types of benchmarking, competitive benchmarking which is a comparison against your industry best, and process benchmarking which is a comparison which is a comparison of a process to the best in class. Benchmarking should be a continuous ongoing part of your operational excellence efforts. Call Synchronous and let our experts assist you with your benchmarking efforts.

Cross Docking - Something New or Buzz Word?

Cross docking is also referred to as direct loading. Smart companies have been doing it for years, but cross docking offers firms a great way to reduce inventory investment and storage space requirements. Cross docking involves packing products on incoming shipments so they can be easily sorted at intermediate warehouses or for outgoing shipments based on final destination. Items are carried from the incoming vehicle docking point to the outgoing vehicle docking point without being stored in inventory at the warehouse. Give us a call to get some help on your warehouse and inventory optimization efforts.

What is a Kaizen Event?

Kaizen is a Japanese term for improvement; continuing improvement involving everyone. In manufacturing, kaizen relates to finding and eliminating waste in machinery, labor, or production methods. The kaizen event is an element of a lean manufacturing program. A kaizen event is a time-boxed set of activities carried out by the work cell team during the week of cell implementation. Think - continuous improvement.