The pressure to improve factory margins is on, and often during early periods of economic recovery inflationary pressures return with abundance, and the small margins that many factories operate on can be wiped out. So improving fast is the order of the day, but what is the recipe for success?
Well, we’ve long known that change of any sort requires three ingredients – Inclination, Ability, and Time. In fact, with sufficient of these, anything is possible – you can even go to the moon – literally. But what does that mean for a factory?
If we start with inclination, then of course this stems from leadership and how leaders behave. But is this enough? It is no good just the senior leadership desiring to change and improve – the ”will’ has to be cascaded throughout the entire organization, and that takes strong management processes.
Next, we need both the ‘know-how’ to improve and the ‘know-what’ – the ability – to change. The ‘know-how’ is all about having the right tools – Continuous Improvement (CI) tools come in many flavours, but being able to choose the right tool for the right situation is key. The ‘know-what’ is about having the right KPI’s and measurement systems in place that tell you what the biggest losses to the business are, and point you in the right direction so that you can go and see the problems, and hence apply one of those tools to do something about it.
The final ingredient is time – because it’s no good having everyone in a business all enthusiastic to improve, kitted out with the right information and tools, and then keeping everyone busy at the coal-face, and never giving them an opportunity to do improvement. And it’s not about appointing one or two people into improvement roles (although a champion is important!).
It’s a rare business these days that can afford extra resource – so it’s about making more of the people you already have – and doing that is called “engagement”.
So, to keep ahead of the competition, make sure that you’ve got all the ingredients for success in place. For a free 1-day consultation to determine your health towards sustainable improvement, drop us a line.