| In order to remain independent and avoid venture | | | | market you are looking to meet, understand your |
| funding, manufacturers must institute a lean | | | | customer's needs, and be knowledgeable of the |
| business model that can increase productivity and | | | | guiding principles underlying the organisation. |
| reduce overheads. | | | | - Process – have a clear understanding of lean |
| To remain competitive, manufacturers must ask | | | | manufacturing and the Six Sigma principles behind |
| themselves questions such as: How can I develop | | | | manufacturing which aim to eliminate waste |
| and produce my products faster? What are the | | | | throughout the whole manufacturing process. |
| business practices that will enable me to run my | | | | Focus on the production and delivery of products |
| business as efficiently as possible? What metrics | | | | which are directly related to customer orders. |
| do I use to measure my business performance? | | | | - Metrics – identify, define and regularly |
| How can I increase the rate of new product | | | | communicate the key performance indicators |
| innovations? What are my monthly overhead | | | | (KPI's) that can keep each aspect of the business |
| costs and profits? | | | | on track in order to meet established long-term |
| Manufacturers have excellent ideas for new | | | | goals of the organisation. |
| products, however, if it takes too long to bring | | | | - Automation – take advantage of automated |
| them to market and with procedures that require | | | | technologies that can accelerate individual |
| high overheads, they are not likely to survive. For | | | | processes such as design and engineering, |
| small manufacturers, there is usually a limited | | | | production, quality control, product movement, |
| amount of attention paid to internal business | | | | inventory management, order fulfilment and |
| procedures as they usually have a limited number | | | | accounting. |
| of staff, therefore, manual procedures are | | | | - Information Technology – Enable information |
| adopted and more staff are employed to deal | | | | and data to be shared systematically by internal |
| with the rising number of issues, rather than | | | | departments and external resources in order to |
| taking time to analyse customer behaviour and | | | | increase efficiency. |
| make strategic investments that maintain product | | | | After adopting this strategy, it becomes a matter |
| innovation and improve customer service. | | | | of bringing simplicity to what may become a |
| A main cause for manufacturers to fail as a | | | | more complex issue as the organisation grows. |
| business comes from the lack of formal internal | | | | Complexity arises when there is a lack of focus |
| procedures that support business practices. Having | | | | and lack of discipline to work within the boundaries |
| a proactive approach to internal business | | | | of a defined strategy. |
| procedures helps the organisation to grow and | | | | Today manufacturers have more pressure to do |
| helps support the current level of business. | | | | ‘more with less' whether it is increased |
| This lack of defined processes prevents the | | | | competition, the down-turn in the economy or |
| organisation from growing and can lead to the | | | | rising material costs. Developing the above |
| potential failure of a company. Introducing | | | | strategy can help you to position your company |
| procedures for each project can be labour | | | | in a way that prepares it for additional pressures |
| intensive; however, manufacturers can position | | | | that may be added and can quickly pay dividends. |
| themselves for success without recruiting | | | | That is why Infor Enterprise Resource Planning |
| additional people, by simply considering and | | | | Software can help you to reduce your operational |
| adopting the following five key planning guidelines: | | | | costs, improve efficiency and adopt lean |
| - Vision – have a clear understanding of the | | | | manufacturing processes in your organisation. |
| product/service, the need/wants of the customer | | | | |