๐—•๐˜‚๐˜€๐˜๐—ถ๐—ป๐—ด ๐— ๐˜†๐˜๐—ต๐˜€ ๐—ผ๐—ณ ๐— ๐—ฎ๐—ป๐˜‚๐—ณ๐—ฎ๐—ฐ๐˜๐˜‚๐—ฟ๐—ถ๐—ป๐—ด – ๐—ช๐—ฒโ€™๐—ฟ๐—ฒ ๐— ๐—ฎ๐—ธ๐—ฒ ๐—ง๐—ผ ๐—ข๐—ฟ๐—ฑ๐—ฒ๐—ฟ ๐—ฆ๐—ผ ๐—ช๐—ฒ ๐——๐—ผ๐—ปโ€™๐˜ ๐—›๐—ฎ๐˜ƒ๐—ฒ ๐—ง๐—ผ ๐—ฅ๐—ฒ๐—น๐˜† ๐—ข๐—ป ๐—™๐—ผ๐—ฟ๐—ฒ๐—ฐ๐—ฎ๐˜€๐˜๐˜€

๐— ๐˜†๐˜๐—ต: “We only produce to customer orders. We donโ€™t have to worry about inventory and forecasts.” ๐—ฅ๐—ฒ๐—ฎ๐—น๐—ถ๐˜๐˜†: For manufacturing processes of a few minutes or hours most Planning Systems allow 2 – 3 days each. Taken together these โ€œtime off-setsโ€ mean Lead Times to produce a few hours of work are forecasted over multiple weeks.… Continue Reading

Myths of Manufacturing โ€“ Machines only make money when theyโ€™re running. Keep them going whatever it takes!

Back to the future – myth or reality? Some Myths ofย Manufacturing to be busted too? Myth:ย Machines only make money when theyโ€™re running. Keep them going whatever it takes! Reality:ย While machines donโ€™t make money when theyโ€™re stopped, they only really make money when what they produce is sold (in the quantities ordered โ€“ at a profit)… Continue Reading

๐—•๐˜‚๐˜€๐˜๐—ถ๐—ป๐—ด ๐— ๐˜†๐˜๐—ต๐˜€ ๐—ผ๐—ณ ๐— ๐—ฎ๐—ป๐˜‚๐—ณ๐—ฎ๐—ฐ๐˜๐˜‚๐—ฟ๐—ถ๐—ป๐—ด – ๐—ง๐—ฎ๐—ธ๐˜ ๐˜๐—ถ๐—บ๐—ฒ ๐—บ๐˜‚๐˜€๐˜ ๐—ฐ๐—ต๐—ฎ๐—ป๐—ด๐—ฒ ๐—ฒ๐˜ƒ๐—ฒ๐—ฟ๐˜† ๐—ฑ๐—ฎ๐˜†

๐— ๐˜†๐˜๐—ต: Takt time must change every day to accommodate changes in product mix and volume. ๐—ฅ๐—ฒ๐—ฎ๐—น๐—ถ๐˜๐˜†: Variable Takt time means changing the “line design” i.e. the layout and number of resources and work to be carried out by each should change on a daily basis. This is rarely if ever practical. ๐—ฅ๐—ถ๐˜€๐—ธ: Orders are batched… Continue Reading

Paying our way in the world

Summary: One third of mid-size British manufacturers are underperforming in critical areas of inventory turns, Cash Flow and Working Capital Management, restricting their contribution to GDP growth and exports. Even though they survived the โ€œgreat recessionโ€ their existence is still at risk over the coming 2 to 5 years. But, it doesnโ€™t have to be… Continue Reading

Myths of Manufacturing – We can only remain competitive if we produce in low-cost countries.

“You can’t have your cake and eat it.” Myth or reality? Back to manufacturing. Don’t we often hear….? Myth:ย โ€œWe can only remain competitive if we produce in lower cost countries, especially with a weaker ยฃ pushing up import costs.โ€ Reality: Lower costs overseas can be more than off-set by higher less quantifiable costs. Risk:ย Cost of… Continue Reading

Industry 4.0 and Lean 4.0 โ€“ What might they mean for you?

โ€œHowโ€™re you doing with the revolution, Comrade?โ€ someone asked me the other day. What?!! โ€œThe 4thย Industrial revolution!โ€ otherwise known as Industry 4.0. Like the rest of us Iโ€™d heard about the 1st Industrial Revolution. It started in Manchester, then known as Cottonopolis – but the 4th? Well, weโ€™re actually in it right now. Each one… Continue Reading

flow beyond Lean – Stories from the Lean Edge

Background โ€“ Business and the British Economy Lord Digby Jones, a dedicated โ€œCaptain of Industryโ€ emphasises in both his books, โ€œFixing Britainโ€ (2011) and โ€œFixing Businessโ€ (2017) the apparently self-evident fact that, โ€œIf it were not for the wealth created by Business there would be no tax revenue, there would be no Public Sector.โ€ He… Continue Reading

๐—•๐˜‚๐˜€๐˜๐—ถ๐—ป๐—ด ๐— ๐˜†๐˜๐—ต๐˜€ ๐—ผ๐—ณ ๐— ๐—ฎ๐—ป๐˜‚๐—ณ๐—ฎ๐—ฐ๐˜๐˜‚๐—ฟ๐—ถ๐—ป๐—ด – ๐—œ๐—ป๐˜ƒ๐—ฒ๐—ป๐˜๐—ผ๐—ฟ๐˜† ๐—œ๐˜€ ๐—”๐—ป ๐—”๐˜€๐˜€๐—ฒ๐˜

Myth: nventory is an asset” โ€“ say the accountants. It adds value to the business. The more the better. Reality: Inventory = your Cash embedded in the business. You can use it as collateral for a loan โ€“ at a fraction of book value?   Book value is a fraction of market value, after thatโ€™s… Continue Reading

๐—•๐˜‚๐˜€๐˜๐—ถ๐—ป๐—ด ๐— ๐˜†๐˜๐—ต๐˜€ ๐—ผ๐—ณ ๐— ๐—ฎ๐—ป๐˜‚๐—ณ๐—ฎ๐—ฐ๐˜๐˜‚๐—ฟ๐—ถ๐—ป๐—ด – ๐—Ÿ๐—ฎ๐—ฏ๐—ผ๐˜‚๐—ฟ I๐˜€ S๐—ผ E๐˜…๐—ฝ๐—ฒ๐—ป๐˜€๐—ถ๐˜ƒ๐—ฒ

Myth: “Labour is so expensive we just have to lay off some (more) people.โ€ Reality: Labour is 10%-15% of most product costs. Overhead is 25%-40% and material 45%-65% of Total Product Cost. Labour only seems expensive because Overhead Absorption is driven by Labour Hours. The Fully Burdened Labour Overhead Rate overstates Labour at 35%-55% of… Continue Reading

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