We are continuing our series on feasibility studies and how you can conduct a continuous feasibility study to be more flexible as economic conditions change. There we introduced the five steps that are used to create a good feasibility study.
- Identify the core problem to be solved.
- Understand your current state.
- Brainstorm solutions
- Test Solutions against current state
- Decide on a course of action
Last week, I provided a more detailed look at the first step. I recommend that you read that one first before moving to the second step.
How is Your Business Actually Running?
Years in manufacturing and consulting have shown MTG that most companies do not really have a good idea of how their operations are run and how competitive they are. That is why MTG always conducts an assessment. The assessment is a gap analysis that follows manufacturing process from the intake of raw materials to the final packaging.
An assessment reveals a lot about how operations are really run. It picks up if work instructions and processes are followed, where the bottlenecks are, how much downtime there is, etc.
We encourage companies to complete their own assessment, yet it is often best to have a third party conduct one. A third party can provide an impartial assessment of your operations and often see things that you and your team cannot.
Honesty is vital to a successful assessment. A company needs to be clear on what is working and what is not. Do not spare unflattering details or fail to point out shortfalls. Equally important is to focus on the process and not individual people in the organization. If the process is bad, then it does not matter how good the people are. If the processes are good, then bad people will be weeded out. MTG, as a rule, does not assess people.
Do You Collect Useful Data?
Notice that I wrote “useful” data. Many companies collect data that is not helpful or is misleading. For example, we had a client that said that they had 100% first past yield. That was true; however, it was not useful as it ignored the extensive amount of rework throughout the process. The 100% first past yield applied only to the product before it went out the door. The client’s costs were much higher than they had to be for that reason. We worked to tackle the rework throughout the process and were able to save the client 40% per line on manufacturing operations.
The client's data was compliant with ISO and other quality systems. These quality systems are very useful but not helpful unless smartly integrated into the rest of your
Understand the data collected and ask yourself if it really reflects your operations or if it is just used to show you have “good numbers.”
Is Your Data Used to Improve Operations?
The data you collect is meaningless unless it is used to improve operations. Data is a tool and not an end to itself. The data should be reviewed, placed in a historic context, and used to drive improvements. A good example of this is a client we had that recorded all customer complaints and feedback but never shared that information with production. The data only gains value as it is applicable to the operations.
An assessment is often a good way to discover if your data is used to improve operations.
What is Your Current State?
The current state should provide a clear view of operations as they stand nor as they should be or might be. Call out shortfalls and praises successes. Do not be afraid to state that certain parts of the business are not where they need to be. The results may be painful and embarrassing but cleared eyed perspective will serve your business well as you move to the next step: brainstorming solutions.
What can MTG do to help you improve your operations?
