How Efficient Is Your High Mix EMS Supplier
The objective of this paper is to describe the process of business reinventing which started with the realization that outside help was necessary.
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Authored By:
Dave Cesar
The Parkland Group, Cleveland, OH, USA
Roy Starks
Libra Industries, Mentor, OH, USA
Summary
Business and economic conditions continue to force business managers to seek out improvements and efficiencies. Customers are demanding more, competition is aggressive, and operational speed and flexibility are now as important to customers as technology and quality. Some managers have implemented Kaizen, 5-S programs, Six Sigma, and lean manufacturing for improvements. Industry leaders are at the next step, looking beyond the factory floor for a competitive business edge.
The information in this paper is from a business turnaround initiative at a tier three contract manufacturer. The management team selected an outside resource to analyze existing business processes, implement changes, and identify the proper management metrics to achieve the next level of performance. Some of the benefits included increased monthly shipments by more than 25%, an employee wide gain-sharing bonus program, a dashboard of Key Performance Indicators (KPI) , and a framework to grow sales and sustainable profitability improvements at the Company.
The objective of this paper is to describe the process of business reinventing which started with the realization that outside help was necessary (Who). Next, select an expert driven methodology to identify which processes to fix (How). Then, determine the necessary changes to be made (What). And finally, establish the specific metrics that would be used to measure success (Why).
The reader will benefit from an understanding of how a tier three contract manufacturer reinvented at a business level and looked beyond just the factory floor for a competitive business edge
Conclusions
The management team initiated a process in 2007 that resulted in many company wide improvements. The results can be seen in the eyes of the associates, the data in the dashboard, and continued business growth. The most important critical success factors in this process were: leverage external expertise that is available to provide a different perspective, a dashboard to provide new information, and a collaborative effort that engages all company associates. The Engineering Manager, "We learned the industry experts could guide us, but we had to make the changes, and 'One-Up' improvements to suggestions got us all engaged"
The Management Team, "We now have dashboard metrics. We learned you can't watch it all, so you need to watch what's most important. This gives us a framework to easily manage on a daily basis."
The Management Team, "We asked industry experts for advice. We realized you don't know what you don't know about your business."
The Company's President, "We have been extremely pleased with the results . . . our monthly shipments have increased more than 25% per month during the past six months."
Figure 5. Dashboard of Metrics The Company's President, "I would recommend this process to any company that wishes to improve their bottom line performance."...and..."start making changes that can markedly improve its profitability."
Initially Published in the SMTA Proceedings
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