Tag: kanban

October 14, 2010

Justifying Operational Excellence Tools

Summary:

Justification of Operational Excellence tools is not difficult. However, it is different than justifying other assets because many people that will approve the project do not understand how it will be used to achieve business goals. The justification should layout the whole story – to guide those that will approve the expenditure to show them the capital will provide identifiable, auditable results and meet their financial justification thresholds.

A recommended 7 step method for justification of OPEX tools is as follows:

Step 1: State your program goals that the equipment will help you achieve.
Step 2: State specifically how you will integrate the tools into standard work.
Step 3: State how the tools will help you track and ensure success based on KPIs.
Step 4: State why investing in the project is the preferred way to achieve the goals.
Step 5: Identify benefits for the new equipment and meeting the target goals.
Step 6: Discuss benefits with owners and champions.
Step 7: Write justification emphasizing benefits supported by owners and champions.

I will cover some specific benefits for OPEX Tools next month.

My Top 10 Operational Excellence Tools
October 14, 2010

My Top 10 Operational Excellence Tools

There are a variety of tools that support operational excellence initiatives in manufacturing and the process industries. Many of these tools are industry specific and many have overlapping functionality. Most are underutilized and a fair number are misapplied based on their strengths but using them will help meet business goals.

The purpose of this article is to list a number of a great tools that will help every manufacturing and process company better support operational excellence initiatives that include LEAN, Six Sigma, 5S, and more.

In no particular order here are my Top 10 Tools that Support Operational Excellence Initiatives.

Lean When Orders are Down
June 20, 2010

Lean When Orders are Down

Almost every segment of manufacturing is being affected by the downturn in the economy. Some are in a full crisis. I was at the site of a prospect two weeks ago. Their demand is low and their warehouse inventories are high. The manufacturing facility is running at about 25% of the capacity that is was only a year ago. Is this the time to put your head down, nose to the grindstone, work and tough this thing out saving every penny?

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