Sunday, July 29, 2007

Maintenance - Why Analyze Failure Modes?

An individual machine can fail for several reasons. A group of machines, or a system such as a production line can fail for hundreds of reasons. For an entire plant, the number can rise into the thousands, if not tens of thousands. Many managers are intimidated by the thought of the time and effort involved in identifying all of these failure modes, and abandon the effort. By doing so, the maintenance function is constrained to a day-to-day basis, and maintenance is managed at the failure mode level. These failure modes are recorded, planned for, and dealt with after they occur which by definition is reactive maintenance.

Proactive maintenance means dealing with events before they occur - or at least deciding how they will be dealt with should they occur. To do this we need to know what events are likely to occur - failure modes. If we wish to apply truly proactive maintenance to any physical asset we must try to identify all of the failure modes which are reasonably likely to occur. Once each failure mode has been identified, it is then possible to consider the consequences of that failure and to decide what (if anything) should be done to anticipate, prevent, detect, or correct it - perhaps even to design it out.

Proactive maintenance is a critical element of your operational excellence strategies. Synchronous experts are adept at helping you develop effective, practical, no-nonsense strategies for proactive maintenance and machine reliability. Send us an information request to Sales@SynchronousLLC.com , or review our portfolio of service offerings at www.SynchronousLLC.com

Thursday, July 26, 2007

Designing Out Potential Human Error

In the manufacturing industry we design equipment and processes to be as consistent and fail safe as possible. All manufacturing plants however rely on human beings to operate and maintain them. Therefore most facilities devote significant resources to develop clear, consistent operating and maintenance procedures, and conduct extensive personnel training so they are well understood.

Even the most reliable equipment can fail. Even the best operators and mechanics are subject to human error. The best way to prevent human error is to better understand it, and incorporate that understanding into your equipment design and training efforts. There are four broad categories of human error in the interaction between people and machines:

- Anthropometric factors: These relate to the size and/or strength of the operator or maintainer. A person, or part of the person (hand, etc) does not fit into the space available, cannot reach something, or is not strong enough to lift or move something.

- Human sensory factors: These factors concern the ease with which people can see, hear, feel, and even smell what is going on around them. For operators this could be the visibility and legibility of instruments. For maintainers this could be visibility of components in complex systems. Background noise frequently affects the ability of people to correctly do their jobs.

- Physiological factors: These are environmental stresses which affect human performance. Stresses include high or low temperatures, loud or irritating noises, excessive humidity, high vibration, exposure to chemicals or radiation, or simply working too long at a physically or mentally demanding task.

- Psychological factors: These are by far the most complicated and complex factors to eliminate. Human psychological errors can be intended or unintended. An unintended error could occur when someone does an appropriate task, but does it incorrectly. An intended error could result from someone deliberately setting out to do something, but what they do is inappropriate. Unintended errors can be "slips" ie attentional failures; or a "lapse" ie memory failure. Intended errors can be a "mistake" ie misapplication of a good rule/application of a bad rule; or a "violation" either routine, exceptional or intentional acts of sabotage.

Not all human errors are necessarily the fault of the person who made the error. Error proofing and designing out the potential for human error are critical to a manufacturing firm's operational excellence strategies. Synchronous experts are well position to help you understand contributors to human error, and to implement preventive actions. Send us an information request to Sales@SynchronousLLC.com , or review our full portfolio of service offerings at our web site www.SynchonousLLC.com

Wednesday, July 25, 2007

Manufacturing Excellence via Focused Factories?

The focused factory concept is frequently put forward as a strategy for ensuring manufacturing and maintenance excellence. The focused factory concept has been generally well received, but the advantages have typically been found in batch and discrete manufacturing plants - the concepts are much more difficult to apply to continuous plants. Even in batch and discrete manufacturing plants, the result within the maintenance function is that "the fire fighters have moved closer to the fires, but little is done to eliminate the cause of the fires."

Improved equipment reliability and performance rarely result from the focused factory approach by itself, nor does it adequately support related strategies such as lean or agile manufacturing - which require high reliability and performance. It is hard to be lean or agile when you are broken. Improving production flows and minimizing floor space can lead to significant production improvement, but can also lead to inadequate pull space, lay-down areas, etc, for maintaining equipment resulting in increased costs and downtime. Plant layout and production flow are critical, but they must fully consider reliability, maintenance, and operating requirements.

Synchronous experts can help you implement a focused factory approach to improve operating performance. More importantly we have the broad perspective to make sure production, maintenance, quality, and your lean strategies are integrated not sub-optimized on any one element of manufacturing excellence. Send us an information request to Sales@SynchronousLLC.com, or review our full service portfolio at our website www.SynchronousLLC.com .

Tuesday, July 24, 2007

Execution: Making Things Happen in the Real World

To compete successfully in the 21st century global manufacturing environment, a firm needs to have a well thought out set of strategies. Many consulting companies (including ours) focus on strategy a lot, because some firms are so busy operating day to day in the "here and now" that they fail to step back and make sure their strategies are well developed, commonly viewed, and used as a basis for decision making.

Strategies are great, and clearly needed, but the best strategies in the world will not help your firm succeed unless you successfully execute them. There is a lot of buzz these days about execution. Most professionals would define it as "making something happen" but they falter when you ask them how do you get things done. In our view understanding execution requires perspective in three areas:

- Execution is a discipline, and integral to strategy. Execution is a systematic process of rigorously discussing hows, and whats, questioning, tenaciously following through, and ensuring accountability.

- Execution is the major job of the business leader. Many leaders like to think they are exempt from the details of actually running things - they inspire the organization with visions and strategies whilst managers do the grunt work. A great leader is one who is intimately engaged in the business, and knows enough to ask tough incisive questions and demand complete answers.

- Execution must be a core element of a firm's culture. Execution cannot be a program of the month, it must be firmly embedded in the firms reward systems, and in the norms of organizational and individual behaviour.

If execution is so important, why is it so underrated? Synchronous experts believe that no strategy, plan, or initiative is complete unless execution is specifically addressed. Let us help you improve your organizations execution. Send us an information request to Sales@SynchronousLLC.com , or review our complete service portfolio on our web site at www.SynchronousLLC.com

Monday, July 23, 2007

Manufacturing - Facilities Strategy

We have written and presented extensively about the elements of developing a manufacturing capacity strategy. Once the overall macro capacity strategy decisions are made, planning then turns to two other key elements - an overall facilities strategy, and individual facilities strategy. We like to relate capacity decisions to facilities decisions at four different levels:

- Manufacturing strategy (at the highest level)
- Capacity strategy
- Facilities strategy
- Facility decisions as the operational mechanism by which capacity and facilities strategies are integrated and pursued.

In actual practice, many manufacturing firms, over an extended period of time, make a series of facilities decisions that do not appear to be guided by any facilities strategy, or even any apparent capacity strategy. This behaviour is usually the result of management being in the "reactive" mode - they respond to events as they happen. In this operating mode, when specific facility decisions arise they naturally become the focus of attention. When manufacturing firms are in a reactive mode facility decisions are seen as more concrete (and more urgent) than such abstract activities like strategy formulation. Unless all four levels of strategy are addressed explicitly, a manufacturing firm is likely to make facilities decisions that are inappropriate in the sense that the facilities may prove incapable of meeting the firm's long term needs, or capital spending is misdirected or wasted.

Synchronous experts are uniquely positioned to help you develop your manufacturing, capacity, and facilities strategy - from the "big picture" in the board room, to maintenance and reliability planning in specific facilities. Send us an information request to Sales@SynchronousLLC.com , or review our complete portfolio of service offerings on our web site www.SynchronousLLC.com

Sunday, July 22, 2007

The Strategic Importance of Maintenance

Events in the last five years have amply demonstrated the growing strategic importance of maintenance - more generally physical asset management. There have been a number of very high profile events, across the world, that have highlighted the importance of this activity to the highest levels of the corporate world. Five events that have had effects that continue to circulate today:

- The disaster of the space shuttle Columbia.

- In August 2003 New York was struck by a power outage that resulted from a failure of physical assets that caused thousands of people to be stranded, and left without power for 24 hours. This was followed by similar outages in the United Kingdom, Italy and then the great Northeast USA power outage of 2005.

- The Hatfield train disaster in the UK in 2004 resulted in manslaughter charges being leveled at people in charge of maintaining or managing the railways, including the ex-CEO.

- Canada has recently enacted legislation to impose criminal liability on businesses and individuals in the event of workplace accidents.

- A major oil company had an explosion and fire at a refinery in Texas that resulted in 20 deaths, and the subsequent investigation cited poor training, and an effort to shortcut maintenance as causal factors. The same company also had a oil pipeline leak in Alaska that was attributed to maintenance cost cutting efforts.

The result of these events (and others) have been that corporate boardrooms, and other executives are devoting much more attention to physical asset management as they realize that this is a major area where corporate risk exposure can be managed.

Risk exposure to be sure, but we believe physical asset management can also be a source of substantial strategic advantage. Synchronous experts are ready to help you assess your asset management programs and help you develop sound, practical, and cost effective strategies. Send us an information request at Sales@SynchronousLLC.com , or review our complete service portfolio on our web site www.SynchronousLLC.com

Saturday, July 21, 2007

Quality Improvement - 3 Rs of Competitiveness

Quality programs typically originate with a company's need to improve competitiveness. Quality programs should be evaluated according to how well they serve that objective. In the time compressed, resource lean manufacturing environment today, there are three essential components of a competitive success that can be summed up as the three Rs:

- Responsiveness: A company must be capable of meeting customer needs rapidly and precisely without wasting resources. Superior responsiveness is when your firm can fill the need on or before the customers determined deadline - and faster than your competitors.

-Results Acceleration: A great company can actually accelerate the results it seeks by exploiting the information feedback from Cycles of Learning. More Cycles of Learning accelerates results.

- Resource Effectiveness: Reducing cycle times via the elimination of non-value added steps provides for superior performance without adding new resources. Eliminating steps in a process that add no value allows a firm to be more responsive by reducing the number of actions in the process. Using minimal resources allows a firm to outperform its competitors.

A truly competitive company is differentiated by embracing all three Rs, one or two is not enough. The three Rs can be used to evaluate any business process or program, not just quality programs.

Synchronous experts are well positioned to help you improve your competitiveness through Quality programs, cycles of learning, 3Rs, and numerous other operational excellence techniques. Send us an information request at Sales@SynchronousLLC.com , or review our service portfolio at our web site www.SynchronousLLC.com

Friday, July 20, 2007

Long Term Manufacturing Capacity Strategies

If we could only predict the future, business planning (and life in general) would be much easier. A manufacturing capacity strategy is based on a number of assumptions and predictions about long term market, technology, and competitive behavior. Key factors include:

- Predicted growth and variability of primary demand.
- Costs of building and operating different sized plants.
- Rate and direction of technological evolution.
- Likely behaviour of competitors.
- Anticipated impact of global competitors, markets, and supply sources.

A capacity strategy is a major element of a firms manufacturing strategy. The capacity strategy must be based on corporate and business philosophies, preferences, and market driving forces. At the same time, the capacity strategy should reinforce other strategies and objectives adopted by the firm.

There are three macro alternatives for capacity expansion strategies: Capacity can lead demand, lag demand, or attempt to remain in an approximate equilibrium with demand. Many factors including cost of capital, logistics costs, and the ability to supply within the dynamics of a particular market, help to identify the appropriate capacity strategy.

Synchronous experts are well positioned to help you integrate your demand planning, manufacturing, and supply chain strategies and develop an appropriate long term capacity strategy. Send us an information request at Sales@SynchronousLLC.com , or review our portfolio of service offerings at our web site www.SynchronousLLC.com .

Thursday, July 19, 2007

Characteristics of a Manufacturing Strategy

Many manufacturing professionals are tired of hearing about "strategy," and the word has been so overused that it has lost much of its unique meaning when applied to the practice of manufacturing management. Most definitions of strategy include elements such as establishing purpose, setting direction, developing plans, taking major actions, and securing a distinctive advantage.

Our view is there are at least five important characteristics that are common to the successful use of the term strategy in most manufacturing enterprises:

- Time Horizon: both with regard to the time it takes to carry out activities and the time it takes to observe their impact.

- Impact: the consequences of any strategy may not be apparent for a long time, but it must be assumed that the impact will be significant.

- Concentration of Effort: any effective strategy requires concentration of the firms activity, effort, resources, or attention on a relativity narrow range of pursuits.

- Patterns of Decisions: most (if not all) strategies require that a series of certain types of decisions be made over time. These decisions must be mutually supportive, and follow a consistent pattern.

- Pervasiveness: a great strategy embraces activities from resource allocation to daily operations. All levels of the organization must act in ways that reinforce the strategy.

Synchronous experts are well versed in developing manufacturing strategy, but more importantly - translating strategy into actionable plans. Give us a call, send us an information request at Sales@SynchronousLLC.com , or review our value propositions at our web site www.SynchronousLLC.com

Wednesday, July 18, 2007

Learning From Your World Class Competitors

In great, world class manufacturing companies you rarely see posters proclaiming a new quality or productivity program. You also rarely come across managers entrusted with these responsibilities. In great companies, managers believe that continued improvement in quality and productivity is part of everybodys job. Encouraging that belief, nurturing it over a long period of time so that becomes a permanent aspect of the organization, and working together to translate it into superior products and satisfied customers are the core basis of their industrial success.

Operational excellence is rarely the result of a technological coup, or "9th inning grand slam." Operational excellence results from a firm continually putting its best talent and resources to work doing the basic things a little better, every day, over a long period of time. It really is that simple - and that difficult.

Synchronous experts can help you develop your operational excellence plans to help you compete effectively in the 21st century, world class marketplace. Give us a call, send us an information request at Sales@SyncronousLLC.com , or review our service offerings at our web site www.SynchronousLLC.com .

Monday, July 16, 2007

Manufacturing - Best Use of Contractors

In many manufacturing organizations, the emphasis on cost cutting has led to an emphasis in the use of contractors or, contractor consolidation, as a potential solution for reducing overall costs. In recent years it seems that the maintenance function has been the particular subject of attention for using contractors for the replacement of maintenance employees.

As expected, the use of contractors is usually a sore point with the skilled trades, especially in a union represented manufacturing setting. Some of this is inevitable tension between maintenance employees and contractors. During a time of downsizing, the intensity can increase dramatically as more work is shifted to contractors. When the maintenance employees and/or the union raises issues such as the safety implications of contracting out work to less trained and experienced contractors, the situation can become complex.

Synchronous experts have extensive experience in manufacturing work processes, including maintenance and contractor utilization. We can help you determine an efficient and cost effective contractor strategy. Give us a call, send us an information at Sales@SynchronousLLC.com, or review our service offerings at our web site www.SynchronousLLC.com

Saturday, July 14, 2007

Why Scheduling Doesn't Work

The most important thing to explain to people not familiar with manufacturing and distribution scheduling is the fact that the environment is one of constant change. Most production schedules start with a forecast, and the forecast is typically wrong. To put it simply - all forecasts are wrong. As each day goes by, sales and new orders develop - customer requirements and shipping requests change. Manufacturing lots are moved ahead and others are pushed back. Customer's breakdowns, stockouts, and other emergencies are never in the forecast.

Every change in a production schedule cascades into changes in supporting schedules, and changes in the suppliers schedule. Suppliers often have delivery problems of their own - after all, they are manufacturing companies too!

There is no way for a manual system to cope with the constant changes. Manufacturing companies can compensate for the unknown by keeping extra inventory, or operating with an order backlog to keep ship dates far enough in the future to cover uncertainties. These actions lead to suboptimal financial performance and/or to less than satisfactory customer service.

The manufacturing environment is one of constant change. Synchronous experts are well experienced in manufacturing resource planning (MRP II) and techniques to turn a fuzzy forecast into practical manufacturing schedules. Give us a call, send us an information request at Sales@SynchronousLLC.com, or go to our website www.SynchronousLLC.com to review our capabilities profile.

Thursday, July 12, 2007

Organization Alignment Through S&OP

A key function of senior leadership is to make sure that all organizations within an enterprise are aligned on the meeting the customers needs and providing profitability to the enterprise. An excellent, widely proven tool to align sales and marketing planning directly to the operations side of the business is through Sales and Operational Planning (S&OP). In some companies it is referred to as Sales, Inventory, and Operational Planning (SI&OP).

S&OP is a widely proven, effective tool to gain better control of a companies operations, and to improve the ability to quickly respond to customer needs and market variations.

Effective S&OP accomplishes four key objectives:

- Create a link between the business plan and each department's operations.
- Align the actions of each function through frequent, consistent communications.
- Develop a realistic plan, that can deliver the company's objectives.
- Ensure that decision making throughout the enterprise is made in the context of the impact on the complete organization from sales to operations.

Synchronous experts are well versed in implementing Sales and Operational Planning, and making S&OP deliver results for the organization. We never believe in "One Size Fits All" solutions, let us help you align your organization for success. Give us a call, drop us an information request at Sales@SynchronousLLC.com, or review our capabilities model at www.SynchronousLLC.com

Wednesday, July 11, 2007

We like to look at problems from a different perspective - maybe even to the level of "out of the box thinking." We have previously written about how the decline of technical and trade schools, and shifting desires of high school graduates, will deliver a severe shortage of operators, mechanics, and technicians to operate manufacturing plants in the future. Rather than just focusing on recruiting, training, and retention practices as HR solutions to an HR problem - lets take a different view. What if we can increase the level of instrumentation and automation to reduce the need for human actions and enable us to run our plant with fewer people. This is a way to solve an HR problem with an engineering solution - in addition to reducing operating costs at the same time.

We really like to incorporate equipment and systems reliability efforts into our operational excellence programs. If equipment is more reliable, we spend less time maintaining it, which can result in the need for fewer maintenance mechanics. By focusing on reliability, we can avoid reactive breakdown or "emergency" maintenance, and transition maintenance activities to simpler, more preventive maintenance. Frequently this preventive maintenance can be accomplished by operators rather than mechanics, and incorporated into their normal daily rounds. And of course, it works both ways. Many times the root causes of poor plant reliability and up time performance are poor practices in plant operation, planning, or process control.

Synchronous consultants are expert in understanding not only the operational excellence tools to help you achieve your productivity targets - but the interactions between them as well. We can help you implement solutions that deliver positive results in many dimensions of plant performance. Give a call, send us an information request at Sales@SynchronousLLC.com, or visit our services portfolio at www.SynchronousLLC.com.

Tuesday, July 10, 2007

Manufacturing Plant Design - Capital Projects

Most manufacturing plants are capital intensive - some more than others depending on the manufacturing process involved. Manufacturing companies typically have multiple year capital spending programs, and numerous capital projects in progress at any point in time. A frequent question is what are the characteristics of the best project execution schemes.

There are many characteristics of great project execution, two of the most important are:

- Great companies do not view capital projects as only the line responsibility of the engineering department, they view projects as the principal means by which the corporation's capital asset base is created and maintained. They view technology and engineering as elements in the supply chain that result in competitive products, not as unintegrated functions.

- Great companies also recognize the importance of front-end loading for business, facility, and project planning integration. Front-end loading places emphasis on funding and completing initial engineering to ensure that the project design can meet all of the projects objectives before the full project financial commitment s made.

Synchronous experts can help your business achieve your supply chain and manufacturing excellence objectives. Give us a call, or send us an information request at Sales@SynchronousLLC.com

Saturday, July 7, 2007

Aligning Marketing & Manufacturing Strategies

"Being all things to all people is like being nothing to nobody." - Anonymous

All businesses should clearly understand their target markets, and within those markets their profile customers. This allows a better focus on strategic business strengths, and targets customers more effectively. With a perspective of target markets, a manufacturing company should focus design, new product development, marketing, sales, manufacturing capability, distribution channels, customer support, etc on the needs of the target markets. Even more important is making the profile customers in the target markets knowledgeable of, and successful in using the companies products.

A great way of ensuring alignment is to create a common sense of purpose throughout the organization. Even something simple like "Be the Preferred Supplier" to our customers helps focus the entire enterprise on the common goal.

Synchronous experts have the knowledge and experience to bring operational excellence to all elements of your manufacturing and supply chain organizations. Give us a call or send us an information request at Sales@SynchronousLLC.com

Friday, July 6, 2007

Procurement - Strategic Alliances

When discussing strategic alliances in the procurement process, many people instinctively focus on "discounts for volume." While this may be part of a strategic alliance- it is smart to consolidate to fewer larger suppliers, but a productive strategic alliance involves more than a discount/volume formula for a given material being purchased.

If operational excellence is the objective, a key issue for procurement should be how suppliers working in a strategic alliance can help achieve excellence. A great example is to understand the production losses, operating, and maintenance costs associated with major critical equipment. Having production and maintenance personnel interact with strategic alliance vendors to establish a single supplier that will eliminate these losses based on mean time between failures of the critical equipment clearly goes beyond equipment pricing. This also has the advantage of putting suppliers on notice that the continuing need to buy spare parts for frequently failing equipment is no longer acceptable "business as normal."

Synchronous experts can help you align your operational excellence, procurement, and other operating initiatives. Give us a call, or send us an information request at www.SynchronousLLC.com

Thursday, July 5, 2007

Operational Excellence & Continuous Improvement

Standard practice for Synchronous is to emphasize continuous improvement as part of an operational excellence effort. Sometimes we are told/asked "...we have come a really long way on our improvement efforts, can't we congratulate ourselves and be happy once in a while? The answer is - of course, we need to celebrate successes along the way, and hope everyone is happy most of the time. But there is a difference between being happy and satisfied. Go ahead and be happy, but don't ever be satisfied with the status quo. A good qualitative perspective is:

There is a disconnect with the status quo, and total quality - continuous improvement has become a natural way of life for employees, suppliers, and customers. Improved quality in both manufacturing and support functions, reduced costs, increased velocity, and a focus on the customer has contributed to competitive advantage.

Synchronous experts are well positioned to help you take your operational excellence efforts to the next level. You can bet that our passion for continuous improvement is a cornerstone of our approach. Give us a call, or send us an information request at www.SynchronousLLC.com

Tuesday, July 3, 2007

Equipment Criticality Based Maintenance

Plant and factory maintenance can usually be classified into four broad categories:

- Reactive Maintenance, is the mode where maintenance work is scheduled and executed when something breaks or fails. Emergency work orders are examples of reactive maintenance.

- Preventive Maintenance, is when maintenance work is scheduled based on an interval that could be based on time, or operating cycles. Routine inspections and PMs are typical preventive techniques.

- Predictive maintenance, is when maintenance activity is scheduled based on condition monitoring - vibration analysis, thermography, etc.

- Proactive maintenance, is when the maintenance organization works to eliminate the root cause of equipment failures through improved design, operating, and maintenance procedures.

The key to optimizing plant performance, efficiency, and operating costs is to segment maintenance activity properly between the four categories. If equipment is critical to safety, capacity, or quality, predictive or proactive maintenance are more appropriate. If a piece of equipment has minor or negligible impact on plant performance, operating it until it fails may be a more cost efficient solution.

Synchronous experts are prepared to help you develop a criticality profile for your operations and to optimize your maintenance activity. Give us a call, or send us an information request at www.SynchronousLLC.com

Monday, July 2, 2007

Stores/Parts - A Necessary Evil

All manufacturing plants keep "Stores." Stores are frequently viewed as spare parts, but a more accurate perspective is that stores consists of all items not consumed directly or indirectly in production. Stores are generally classified into five groups:

- Hardware and supplies (bolts, belts, valves, etc)
- Materials (paint, lubricants, etc)
- Spare parts (bearings, circuit boards, etc)
- Spare equipment (complete assemblies, and machines)
- Special items (construction supplies, etc)

The function of stores is to provide materials to maintenance, projects, and construction as needed and where needed. Ideally stores will have exactly the materials needed - immediately, but not be viewed by managers as a necessary evil, a burdensome cost, or a nonvalue adding function. Stores inventory is a critical component of a site's reliability process, and a comprehensive reliability effort helps determine and minimize stores inventory.

Synchronous has the knowledge, experience, and expertise to help you optimize your stores operations, and your overall reliability work process. Give us a call, or send us an information request at www.SynchronousLLC.com