In this infographic, I have tried to explain the various issues faced by the manufacturing companies and how to spot those issues. In addition, I have also given tips to solve these issues. Feedbacks and Suggestions are welcome.
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How to spot the areas for improvement in a manufacturing company?
1. Function Opportunities Tools to use
Purchase
• Very high Inventory. i.e >2
month stock
• Frequent Stock-Outs
• ABC Analysis
• Ordering Techniques
(ROL / Scheduled
shipments)
• Strategic Sourcing
Stores
• Searching for the items in
the stores
• Mismatch between Physical
stock and System stock
• 5S, Perpetual Stock Count
• Everyday documentation
of receipts & issues
Production
• High Work-In-Progress
(WIP)
• Poor adherence to
Customer Orders
• Breakdown of machines
• Lean Manufacturing
(Single Piece Flow, SMED,
Line Balancing, etc.)
• Improve Employee
Involvement
Quality
• High rejection rates
• Frequent Customer
Complaints / Market
Returns
• Lean Manufacturing
(including, TQM)
• 7 QC Tools
Despatch /
Sales /
Marketing
• Poor On-Time Delivery
Performance
• Penalties by the
customers / Rejections due
to late deliveries
• Lean Manufacturing
(including, Single Piece
Flow, JIT, Kanban)
Customer
Focus
• Reduction in the business
generated from top
customers
• Pareto Analysis of the
customers
• Customer Profitability
Analysis
One Page GuideTo Spot Opportunities for
Improvements in a Manufacturing Company …
We help manufacturing companies in
improving their operations through Lean and
Supply Chain Initiatives.
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