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Tag Archives: Management Operating System
With Halloween just around the corner, we started thinking about nightmares that can occur to manufacturers. Is something bedeviling your productivity leading to more tricks than treats? Is there a ghost in the machine? Here are some of the most common “monsters” that haunt manufacturing managers, and ways to banish them from your operation for good.
Things that go bump in the night (or day). Every manufacturing plant on the planet has experienced an “unexpected shutdown” that seemingly comes out of nowhere. Something broke, wore out, went awry or otherwise seized up, causing production to grind to a halt. These unexpected dark periods, whether they last an hour, a day or longer until the problem is resolved, are extremely costly in lost productivity and revenue, delays in shipments and deliveries, and more.
Banish it! Regular shutdowns for maintenance need to be an essential part of your yearly calendar. Yes, these planned maintenance periods still mean downtime, but the point is, you build them into your schedule and plan accordingly for shift scheduling, delivery and other variables.
Zombies on the line. Unmotivated teams can bedevil companies in any industry. From the Great Resignation to Quiet Quitting, employee morale has taken a tumble since the pandemic. People are just going through the motions out there. Couple that with some spooky stats: According to a Gallup survey, only 36% of U.S. employees are engaged at work and 74% say they are actively looking for new jobs. Low morale costs companies in just about every way possible — increased absenteeism, dips in quality and efficiency, and rock-bottom motivation levels among them.
Banish it! There are many spells you can cast to break that zombie curse. Invest in training and development for your employees. Hold listening sessions to get ideas for improvements on the job. Walk the floor and talk to your people regularly, something management just doesn’t do enough. Build a promotion pipeline from your front lines. All of these will help increase employee engagement and get their heads back in the game.
Process poltergeists. Are you constantly putting out fires that seem to combust without warning? Human errors, unforeseen backups, supply chain bottlenecks, inventory imbalances (too much or too little), glitches on the line. It can feel like you have a firefighting mentality, and it’s counterproductive to, well, productivity. When you’re in a constant state of troubleshooting, you’re not efficient at doing the job today or laying the groundwork for tomorrow.
Banish it! A solid Management Operating System, which is a structured approach to your operations, will help stop trouble before it starts. This allows you to make adjustments and otherwise pivot so your operations aren’t adversely impacted. The best management operating systems focus on processes, systems, roles and structures to map out how the job gets done, and by whom. To learn about MOS in more detail, watch our short (and dare we say fun) video, Stop the Firefighting Mentality.
“20% of each dollar is wasted in manufacturing due to inefficient processes each year”
Wasting disease. Waste can hide on your shop floor like a monster under the bed. It hides where you least expect it, like time, energy, employee talent, productivity and more. Here’s a figure that will keep you up at night: 20% of each dollar is wasted in manufacturing due to inefficient processes each year, adding up to $8 trillion globally.
Banish it! Waste is such an enormous problem in manufacturing, Toyota (or Henry Ford, depending on who you ask) created a process methodology about it. Lean is all about identifying and eliminating waste in manufacturing operations. The classic Seven Deadly Wastes (we think it’s eight, but let’s not split hairs) include overproduction, waiting, transporting, processing, inventory, motion and defects. (People is our eighth.) Lean is the process to minimize or eliminate those, boosting your bottom line. Read more about it by downloading our eBook, “Lean Six Sigma: Do You Really Know These Methodologies?”
The invisible man (or woman). The loss of institutional knowledge happens when your best workers vanish (retire or quit) and take all their hard-earned, on-the-job know-how with them. It’s the tips, tricks and tactics that aren’t in the employee manual. The loss of this irreplaceable knowledge is a growing issue for manufacturing, because the workforce is aging, and there is a lack of skilled younger workers to take their place.
Banish it! Capture that knowledge before your seasoned pros retire or otherwise leave the workforce. Create mentorship programs pairing older workers with younger ones, ask those older employees to participate in roundtable sessions that can focus on “what’s not in the manual” knowledge, and solicit their advice on how to do the job better.
While this is a lighthearted look at manufacturing problems, these issues are no joke. They can seriously hamper your efficiency, productivity and ultimately, your bottom line. At USC Consulting Group, we’re the experts in helping companies reach operational excellence. If you’d like to learn more, please give us a call.
Are you always putting out fires? Not in the literal sense, of course. We’re talking about operational problems that pop up at the most inconvenient times. Once you take care of one issue, two more seem to appear in its place. Issues such as:
- Machines break down
- Workers calling in sick
- Human errors
- Backups and bottlenecks
- Inventory uncertainty
If you’re busy troubleshooting today, it’s hard to focus on improving tomorrow. Opportunities for growth can be missed.
Get ahead of problems before they catch fire by watching this video:
At USC Consulting Group, we’ve been helping clients for over 50 years to implement strong Management Operating Systems that assist them with breaking that firefighter mentality.
The best management operating systems center around four main components:
- Processes
- Systems
- Roles
- Structures
A well-designed MOS will have your company operating like a well-oiled machine, making your bottom line stronger and your operations more efficient.
So put down the fire extinguisher and enhance your management operating system today by contacting USC Consulting Group.
Phone: +1-800-888-8872
Email: info@usccg.com
Learn more about the benefits of an effective MOS in our article How Can A Management Operating System Help Your Organization?
Does it seem like you’re always putting out fires? Not in the literal sense, of course. We’re talking about operations problems and snafus that seem to pop up at the most inconvenient times. Machines break down. Workers call in sick. Human errors can result in costly fixes. Unforeseen backups or bottlenecks slowing things down. Too much inventory. Not enough inventory. Some days, it can seem like you’re in a constant state of troubleshooting. The problem with that is, it’s hard to move forward into tomorrow when you’re consumed with putting out the fires of today.
Sound familiar? You’re not alone. At USC Consulting Group, we hear it a lot from the clients we partner with to increase efficiency and streamline operations at their facilities. Over the years, we’ve learned that the best course of action to break the cycle of constantly putting out fires is to get ahead of those problems before they become “fires.” Easier said than done, right? Actually, no. The way to do it is to implement an effective Management Operating System (MOS).
MOS 101
What is a Management Operating System, or MOS? Without using industry jargon, a MOS is simply a structured approach to operations. It’s intentional, forward-looking and at times anticipatory, in that it can help spot trouble before it spots you.
A good MOS is a set of tools, processes and frameworks that guide the operations of your business, namely the way employees work. It fosters continuous improvement to address issues as they occur. Or, ideally, before they occur.
Because many of the “fires” you’re stamping out every day can range from production shortfalls to problems related to worker safety, companies that use production lines or have other types of hazardous workplace environments commonly employ management operating systems.
Your MOS should be able to spot inefficiencies in an operating system before they become major problems. This ensures that adjustments can be made so operations are not adversely affected. An MOS should also use real-time feedback so an organization can safely direct operations, funding and other resources to maximize return on investment.
The best management operating systems center around four main components:
- Processes
- Systems
- Roles
- Structures
In other words, it maps out how the job gets done, in what way and by whom.
Let’s look at that in a little more detail.
When designing processes, businesses must be sure that they’re safe, secure and clear for employees to understand and tools are used to support operations — and never in ways that are not dictated by the overall structure. This means users should not use tools in inappropriate ways, especially those that could simply automate their inefficient methods. One process change we always recommend is preventative maintenance. Taking a little downtime today to service your machines can save major work stoppages tomorrow.
An effective MOS uses well-designed systems that help employees and the company as a whole achieve goals, which means they should run smoothly and enhance and even boost established efficiency.
Roles within an MOS should adhere to clearly defined job descriptions that require certain skill sets, and when combined with a business’ processes and systems can best utilize talents. The skills gap has only complicated the matter, but that’s fodder for another blog.
The best-run management operating systems always establish a business-wide structure upon which the different roles within the company interact. This is usually done last because it ensures that the processes do not dictate the entire established structure and cause further issues.
Read more about it in our blog, “How Can a Management Operating System Help Your Organization?”
Benefits of using a good MOS
Putting a carefully planned management operating system in place, one that is unique to your organization and its challenges and strengths, can result in a boatload of positive benefits. According to CEO Magazine, an MOS allows for an organization to “better control the flow of work and production, driving higher outcomes in customer service, quality and cost.”
At a minimum, these systems make use of tools that allow organizations to create plans for future work in certain operations, carry out that work, and then measure the work performance data to suggest future improvements that could be needed.
At maximum? Your company will perform with operational excellence, humming along at capacity, anticipating hiccups before they become problems, planning for growth or even downturns so you won’t be taken by surprise and generally making your life easier and your bottom line stronger.
Other ways an MOS can benefit you and your company:
- Cost savings
- Waste reduction
- Increased product quality
- Identification of workflow gaps
- Find ways to improve efficiency
- Get a handle on any compliance issues or regulations
- Elimination of impediments to your workflow
- Inventory wrangling (so you don’t have too much or too little despite supply chain bottlenecks)
A word about technology. Sure, you can automate your management operating system. Many companies do. But in our opinion, it can’t match good, old-fashioned brainpower, experience garnered through years on the line, common sense of longtime employees and forward-thinking ideas.
Ready to stop the firefighting mentality and talk about it? Give us a call or email us at info@usccg.com. We’ll listen first and then collaborate with you on a path toward operational excellence. It’s what we do.
Are you having trouble hiring or retaining talent? Not surprising. Our economy, no matter the industry you’re in, is experiencing a hiring crunch the likes of which we haven’t seen in a long time. Even decades. This, in the midst of a surge in demand brought about by the lifting of COVID restrictions and the fact that consumers are spending money again after a long spending drought.
It has been a wild ride. First, demand dropped through the floor, if not dried up completely, as a result of the lockdown. Companies in many industries laid off or furloughed workers. Now, demand is skyrocketing, and companies are scrambling to staff up and fill those positions. In all segments of the economy, people are simply not answering the call.
But the fact that you’re getting few responses to your job postings isn’t the only problem. It’s deeper than that. It’s retention, too. Not only are those laid-off workers not rushing back to their old jobs, but people who kept their positions during the pandemic are now quitting en masse.
It has been termed “The Great Resignation,” and the numbers are staggering. According to the Department of Labor, 4 million people left the workforce in April 2021. Voluntarily. In May, another 3.6 million joined them. In June: 3.9 million.
It adds up to staff shortages nationwide coming at a time when demand is through the roof. The U.S. Chamber of Commerce called it a “national economic emergency.”
Strategies to combat the hiring and retention crunch
At USC Consulting Group, we’ve been helping companies find efficiencies in their operations to do more with less for 50-plus years, and this year, because of what everyone is going through, that effort has kicked into high gear. Here are five strategies we’ve been recommending to our customers to combat the hiring and retention crunch.
1. Put a greater focus on onboarding and training
A couple of staggering statistics about onboarding and training: Glassdoor tells us that companies with a strong onboarding process improve employee retention by 82%. And, according to Gallup, 88% of companies aren’t doing it well at all. If your onboarding is focused on paperwork, informal or inconsistent, you’re in danger of losing your talent. One key to onboarding: automate what you can. Great onboarding is not about paperwork. It’s about acclimating your new hire to your company, and to the job. Automating the paperwork will allow you to focus on more important things: namely, getting your new hire onto the floor and doing the job faster. Also, onboarding and training need to go hand in hand from Day 1, but training doesn’t and shouldn’t stop when onboarding ends. Develop training programs that will keep talent up-to-date with the latest and greatest techniques and skills.
2. Preserve your institutional knowledge
Companies that are experiencing the hiring and retention crunch are having more problems than simply being short-staffed. It’s also a matter of losing their institutional knowledge. What is that, exactly? It’s generally defined as “what an organization knows.” Expanding on that, it’s the experiences, processes, deep understanding and “this comes naturally” abilities of your people to get the job done in an intuitive way. The hard-won, trial-and-error-gleaned instincts that your senior people have absorbed from years on your front lines. That’s your company’s institutional knowledge. But what happens when those people leave? It’s critical to find ways to retain or pass along institutional knowledge when talented, experienced workers retire or leave the company. Read more about this important topic in “How to Preserve Institutional Knowledge for Future Operational Success.”
3. Identify gaps and weaknesses in your operations
At USC, finding holes in the operation is one of our specialties. Are those gaps or weaknesses due to people or processes? Is your line as efficient as possible? What’s the ideal throughput, and how can you get there? Hidden efficiencies can be lurking in your operations. They could help you do more with less.
4. Enhance your management operating system
This is about assessing how you plan the work, assign it to employees, and follow up on their progress. Define the roles and responsibilities of each employee so your process drives your success. We help companies do this by meeting with everyone, from the bottom up, from blue to white collar. Getting different perspectives from different angles lets us see the whole picture. It also ties in with EIP, because it gets people on board and involved in the process.
5. Realize that hiring may not be the solution
If you’re used to working with a certain number of boots on the ground, naturally that’s the number you were going to gravitate to when it was time to staff up after the pandemic. But do you really need all of those people? Focusing on efficiencies and streamlining operations may well mean you can get the job done with fewer people.
If you’d like to learn more about how we work, or talk with us about strategies you can use to harness your existing assets to meet your growing customer demand in the midst of this hiring and retention crunch, please get in touch today.
The story of the manufacturing industry has been one of progress. Few manufacturers continue to produce the same products as they did in their infancy years. In order to remain competitive, manufacturers must continue to evolve their products to meet the demands of the marketplace. But meeting consumer demand is only half the battle — the other half is staying up to speed with industry advancements.
New technology brings a host of changes that manufacturers must recognize. For example, increasing dependence on automation leads to the need for more skilled workers who understand these advanced systems. If workers cannot adapt successfully, organizations could find themselves struggling to keep up with the rest of the industry.
To remain competitive in this dynamic environment, organizations should have several tools at their disposal that go beyond the physical equipment and technology innovations used in their facilities. These tools are ideas manufacturers can keep in their toolbox and use to produce next-level productivity. For instance, one tool can be an investment in regular maintenance, which can ensure that machinery stays in service for as long as possible. This results in higher productivity and fewer costly downtime periods.
There’s more than one kind of tool necessary for success in manufacturing. Check out this infographic containing twelve important concepts and ideas manufacturers should have in their toolbox to yield higher productivity and become more efficient overall.
As you can see there are many areas for opportunity to boost your manufacturing productivity levels. Tackling these initiatives in stages, however, is the way to go. This will help to avoid overwhelming your team as well as ensure success at each phase. A third-party operations management consultant can be a guide in the process by providing a playbook for obtainable and sustainable results and accelerate process improvements. To ramp up your operations contact USC Consulting Group today.