| Driving a turbo-powered sports car is an
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| | 40-50% of total time. Some of the time is
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| exciting experience. Step on the gas
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| | lost in travel, some is lost in the
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| pedal zero to sixty in a few seconds.
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| | processing backlog, and some may be lost
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| Maneuvering through traffic....
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| | diverting it to a credit department for
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| downshift, accelerate past others,
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| | release. If the nonvalue-added time in
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| upshift....gone. Curves coming
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| | the cycle can be identified, ways to
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| up?....downshift...corner.....
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| | eliminate the causes can be devised.An
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| accelerate. You notice the responsiveness
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| | Engine RedesignMost organizations today
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| of this finely engineered product. You
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| | are designed to compensate for
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| expect this; this precision machine was
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| | circumstances that could go wrong,
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| designed for this, and it is performing
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| | particularly on the shop floor. The
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| to spec.Wouldn't it be great if you could
| |
| | causes are found in the way parts are
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| do this with your business? That
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| | manufactured, with delays, queues,
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| is...quickly respond to market demand by
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| | missing parts, pirated parts, bad parts,
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| accelerating new product introduction, .
| |
| | and part shortages.Within the factory,
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| . . .or quickly change your product
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| | velocity can be induced by physically
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| mix,... ...or maneuver orders through the
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| | clustering successive operations into
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| organization quickly,...or move parts
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| | cells and reducing operation cycles and
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| across the factory floor with velocity,
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| | set-up times. Deep organizational changes
|
| ....or handling the unforeseen, the
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| | cannot be effective until key problems in
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| "curves,"..or quickly moving decisions
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| | factory flow and cycle times are
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| through the organization? This is
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| | removedAdding Some AerodynamicsFostering
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| maneuverability and turbo power. This is
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| | innovation, among other things, requires
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| enterprise agility. It can't be done
| |
| | good organization of information. Our
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| today because the organization wasn't
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| | current systems and procedures have been
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| designed for this. The way we have
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| | developed at length to control an
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| organized ourselves over decades works
| |
| | unwieldy information channel. When we get
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| against us.Our current organizational
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| | past the stifling paper flow, disparate
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| structure is stifling. Functional
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| | computer systems, and functional
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| departments result in colloquial thinking
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| | organizational walls, the homogeneity of
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| and narrow points of view. Natural and
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| | ideas will begin to generate
|
| functional conflicts create internal
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| | quickly.Organizing for ease of sharing
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| adversarial relationships that prevent
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| | information for innovation is a first
|
| sharing of ideas. Classes in the business
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| | step. The information chain must be
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| environment cause an "us and them"
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| | streamlined and electronically linked, so
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| syndrome. Politics
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| | that the flow is direct. Removing useless
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| prevail.Worse,..operations are physically
| |
| | and redundant data existing on screens
|
| separated from headquarters, component
| |
| | and reports from the job stream increases
|
| plants from assembly, assembly from the
| |
| | the value of the information provided.
|
| market. The factory floor is organized by
| |
| | Reducing business cycle times to the time
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| process, creating poor product flow. In
| |
| | it actually takes to efficiently process
|
| the office people are separated by
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| | information supports fast movement of
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| departments and physical walls creating
| |
| | physical parts.The Turbo
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| poor communications and information flow.
| |
| | OrganizationHaving the ability to produce
|
| What happens when we step on the gas? The
| |
| | spontaneously upon demand requires short
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| engine floods.The Grand PrixWhy is all
| |
| | lines of communication and velocity
|
| this important? Competing has taken on
| |
| | throughout the work chain. To reduce
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| new proportions. A global resegmentation
| |
| | business cycle times, fast communications
|
| of markets emerging is changing the world
| |
| | and decisions are required throughout the
|
| economy. U.S. manufacturers face stiff
| |
| | organization. This means reducing numbers
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| offshore competition in most markets.
| |
| | of vertical and horizontal management
|
| Companies failing to respond to the
| |
| | layers. Physical walls have to come down.
|
| challenge will find themselves left
| |
| | Organizing around business cycles, and
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| behind in the dust.The U.S. in ReverseIn
| |
| | physically clustering people in cells for
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| 15 years, the U.S. lost significant world
| |
| | fast, effective communications is one way
|
| market share in key industries:
| |
| | to do it.A Faster, Lighter
|
| wide-bodied aircraft, semi-conductors,
| |
| | VehicleInducing velocity throughout a
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| automobiles, and steel. There is almost
| |
| | business has a profound effect on time
|
| no production of VCR's, camcorders, tape
| |
| | and cost. The need for nonvalue-adding
|
| players and recorders, radios,
| |
| | functions disappears, and the functions
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| phonographs, or compact disc players in
| |
| | designed to accommodate exceptional
|
| the U.S. Imports in other industries
| |
| | circumstances fall out. The organization
|
| continue to increase. Industries under
| |
| | chart becomes flatter. Following this is
|
| intense foreign competition include farm
| |
| | a dramatic reduction of overhead.The
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| machinery, lawn and garden equipment,
| |
| | Winner's CircleYou have to ask yourself
|
| machine tools, bicycles, and process
| |
| | what it could do for you if you could
|
| controls. Foreign competitors deliver
| |
| | respond to a dynamic market with velocity
|
| high quality products with one pass
| |
| | in delivery and new product introduction,
|
| through the factory, while U.S.
| |
| | and manufacture high quality products at
|
| production is consumed in fixing
| |
| | low cost. Chances are, when you're able
|
| mistakes.Back to the Drawing
| |
| | to do this, you will be in the winner's
|
| BoardOrganizations need to be fast and
| |
| | circle, and the trophy will be the new
|
| flexible to change with market dynamics.
| |
| | results on the "bottom
|
| All physical and logical events must be
| |
| | line."BIOGRAPHYRichard G. Ligus is
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| enacted swiftly, accurately, and
| |
| | President of Rockford Consulting Group,
|
| effectively to compete in the next
| |
| | Ltd., located in Rockford, IL., with over
|
| century. The faster that parts,
| |
| | 30 years experience in manufacturing,
|
| information, and decisions flow through
| |
| | procurement, transportation and
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| an organization, the faster the response
| |
| | distribution. He specializes in
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| to customer needs. The keys are flow and
| |
| | developing and implementing supply chain
|
| time.Every business has basic cycles that
| |
| | strategies. Rich is an author and a
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| govern the way that paper is processed,
| |
| | speaker, and has developed seminars with
|
| parts are manufactured, and decisions are
| |
| | the American Management Association. He
|
| made: customer order, product
| |
| | is certified by both the Institute of
|
| development, production, procurement,
| |
| | Management Consultants and the The
|
| etc. Examining the flow of documents
| |
| | National Bureau of Certified
|
| within the cycles and the time consumed
| |
| | Consultants.Rich has a bachelor of
|
| can be revealing. A customer order cycle
| |
| | science degree in mechanical engineering
|
| begins with the placement of an order. It
| |
| | from the New Jersey Institute of
|
| ends with the payment for goods or
| |
| | Technology, and a master of business
|
| services rendered. There are activities
| |
| | administration degree from Rutgers
|
| in between the two events that consume
| |
| | University. He is a member of CASA/SME,
|
| time. Some add value, such as packing and
| |
| | and has been listed in Jane's Who's Who
|
| shipping, and some are nonvalue- adding
| |
| | in Aviation and Aerospace. He has been a
|
| and delay time, such as moving the order
| |
| | speaker at IMTS, USCTI, APFA, NEPMA,
|
| around the building from mailbox to
| |
| | MCAA, Hand Tools Institute, CASA/SME, and
|
| mailbox, or repeating motions.When a
| |
| | others. He has appeared several times on
|
| cycle ends, a lot of nonvalue-adding time
| |
| | WREX-TV, Mid-Morning Magazine.
|
| has been consumed that may constitute
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| |
|
