5.15.80 DISCIPLINE #9 MANUFACTURABILITY - WILLIAM EASTMAN

Today's show continues the conversation on the power of the Co-Development of Processes, Products, and Services. We will focus on Part 3 - make sure you can build it and maintain your position as the LCP - Lowest Cost Producer. It is not hard to do if this is part of the designing of new processes.

PROFIT RADIO - "A Network of Entrepreneurs for Entrepreneurs"

INTRODUCTION
This process is messy because it requires 2 Approaches - Inside Out & Inside In with much overlap and iterations to finalize the list. The approach I have used is to have two groups work on the problem. One group starts with the customer and works backward while the other works from inhouse expertise for process improvements and the production of Sigma 3 products and services.

OBJECTIVES
Building it right the first every time starts with design. If you can't build it to those standards and maintain LCP position in the market, rethink what you are doing. There is not choice if you want to maintain you market dominance.

Owner/Executive Perspective

1. What is 'manufacturability'?
2. How do I design with this in mind?

What You Need to Know
The 3 Pillars of Lean: Remove Unevenness, Remove Overburden, Remove Waste.

• Unevenness - Any variation leading to unbalanced situations; inconsistent, irregular, etc. It exists when workflow is out of balance, workload is inconsistent, and not in compliance with a standard.
• Overburden - Any activity asking for unreasonable stress or effort from personnel, material or equipment. It exists when the organization expects more than a machine was designed for or too heavy a mental or physical burden is placed on people.
• Waste - Any activity in your process that does not add value; not creating value for the customer. It exists when processes are not under control or when processes are not aligned with customer demand.

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The Essentials

• Horizontal Alignment - processes aligned with customers. This about removing all non-value added steps and activities.
• Everything is Demand Based - never build on spec or based on the calendar, make it after selling it! This is about a JIT (Just In Time) mindset and how to run an efficient operation. Everything you (or the company) does is about making production simple and quick.
• 80% of Gross Margin is Scheduling - how quickly can you deliver, how much can you get done in a day (management). This is about creating an aggressive work schedule that gets as much done in a day and on the day it is due with breaking things or people.
• 15% of Gross Margin is Execution - meet or exceed the budget on every job or task (supervision). This is about being as efficient as possible without doing more that is needed (and hopefully promised).
• 5% of Gross Margin is Quality - every individual builds quality into their work by reducing waste (individual contributors). This is about individual responsibility and looking for ways to do it right the first time.​

​The Concept of P and F Teams

• F Teams: Multilevel Teams focused on the Future and comprised Research, Marketing, Finance, etc. Functions
• P Teams: Multilevel Teams focused on the Present and comprised Operations, Production, Service, etc. Functions

What You Need to Do​

1. Design vs Reality: what type of alpha (1.) testing are you doing in side the business to find out whether what you deigned or intended has any chance of working?
2. What is possible (donable, doable, or bleeding edge) for the materials being used: We are captive to the raw materials we use. What is it capable of doing and that includes people?
3. Best Practices starting at sub-assembly: as you begin building the product or service, how are you putting pieces together? Is that clearly mapped, do you have SOP's that are adaptable or starting from scratch?
4. What are the Upper and Lower Control Limits: what are your quality standars? Usually it is comprised of 3 levels - the best possible, the least acceptable, and a midpoint - the initial goal. This gives you the option of slipping from the goal to least acceptable as you move from alpha to beta testing with end users.
5. How are you handling assembly: have you set up your metrics for dock to dock, TAkT Time, Build First Time, and WIPI?

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Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.