We’re not here to tell you how to run your business
The primary services of Maestro Business & Academy are:
- As the Business part, delivery of tangible, sustainable bottom-line benefits
- As the Academy part, knowledge transfer to our customers. How to do flow consistently across one or more sites without further intervention by ourselves
- Culture-change to ensure that “culture does not eat the strategy for breakfast” – Drucker
We’re here, “not to sell fish, but to teach how to fish.” We do whatever it takes for our customers to be more successful and basically work ourselves out of a job – while perhaps being introduced upstream or downstream into their supply chain where we can continue to help them be even more successful.
A. A preliminary exploration of business data, the manufacturing processes and their relationships. This takes place in the context of the overall goals and strategies of the business, It provides some fairly hard cash benefit statements, time-frames and return-on-investment deliverables.
- Financial data relating to the cost of goods sold and current inventories is converted into days of Raw, Work-in-Progress (WIP) and Finished (FGI) inventories. Typically this amounts to several weeks of potentially redundant inventory into which are embedded quite large quantities of cash.
- Days or weeks of WIP represent customer lead time, the time to enter, produce and ship an order. This is the inventory investment pipeline of partially finished product. It contains cash (often more than necessary) embedded in Working Capital that isn’t working.
- These days or weeks of lead time and associated inventory contrast sharply with the hours or minutes of work content time. That is the total time that a product is having value added in machine and/or labour intensive environments.
- The objective is to bring lead times of days or weeks to deliver products into alignment with the hours or minutes it takes to make them.
- This is done by linking and synchronising the output of each of the manufacturing processes in a flow. Then, once a product is released into production it flows. It advances seamlessly from one process to the next instead of going start-stop-start-STOP.
- The shortening of the WIP inventory investment pipeline in this way (e.g. from months or week to days or hours) means that once the WIP is completed and sold, at the normal market price, most of the cash need not be reinvested again in inventory. It can be invested elsewhere in the business.
- By now customer demand can be met within the time customers are willing to wait. Much of the FGI too, when sold at the normal market price, need not have the cash reinvested again in inventory. It can be invested instead elsewhere in the business.
- The difference in days of inventory between current and future WIP and Finished inventories, when translated back into money terms, gives an indication of the quantities of cash that can be released into the business as tangible, sustainable benefits.
- The costs of the implementation of flow manufacturing, off-set against these benefits, provide a hard return on investment or ROI of a programme. That typically exceeds 10:1.
- Raw inventory is the least expensive most flexible inventory since neither Overhead nor Labour costs have yet been accrued. It continues to be held as a strategic reserve until later in the flow manufacturing programme. By bringing the customer much closer to the supplier (in days instead of weeks or months of lead time through manufacturing) it can be replenished more to demand than to an inherently inaccurate forecast.
- Raw material stocks can thereby be reduced over time instead of having too much of what’s not needed but more of what is needed to meet customer demand now,
B. Before and during a flow manufacturing implementation programme, the customer’s team at all levels of the business engages in the knowledge transfer process, appropriately tailored to their requirements, from the top floor to the shop floor to:
- Encourage the critical transfer of ownership from Maestro to the customer team as early as possible.
- Engage the customer team in the implementation process from the earliest stage in order to produce a dynamic relationship whereby the right data and information is made available at the right time to advance the process to a successful conclusion.
We would never pretend to be experts in our customers’ business or industry – although we do have experience of dozens of different industries. Our expertise lies in working constructively and creatively with customer teams and management teams to faithfully amalgamate the business at hand with the principles of flow.
To do flow Manufacturing for greater
Productivity – Profitable Growth – Cash Flow