Non-manufacturing secrets for manufacturing success
8 minutes read · 19th August 2024
Transform your operations
In today’s fast-paced and competitive market, manufacturing organizations face relentless pressure to improve efficiency, reduce costs, and enhance product quality. While many manufacturers focus on traditional methods to achieve these goals, there is a wealth of untapped potential in looking beyond their own industry for inspiration. Non-manufacturing sectors, such as professional services, can offer valuable insights for manufacturing leaders, particularly in departments with less urgency and those involving highly technical, intricate, or manual processes.
This article explores three key learnings from non-manufacturing improvement projects that manufacturing leaders can draw lessons from to transform their own operations.
Back to basics: Knowing your goal(s)
Setting clear and concise goals is crucial for any successful project, yet it’s often overlooked as an initial step. Many organizations get caught up in the rush to execute, neglecting the foundational aspect of goal setting. For example, one of our clients, a legal firm, found that by defining clear goals, they could streamline their operations significantly. Once the client and Chartwell knew exactly what we were aiming for, everything else fell into place — it was like having a roadmap for success. In environments with low urgency but high importance, especially where products have a longer feedback loop, setting shorter-term, inspiring goals can accelerate change.
This continuous improvement approach can be particularly effective in areas of operations that are often sidelined for more urgent tasks. Without a clear vision, teams will naturally gravitate towards immediate fires. However, investing time in refining processes will yield long-term gains, repaying the initial effort manifold.
Distilling complex information into actionable insights
Distilling complex information into actionable insights is essential for driving successful projects. One effective technique is the Chartwell Zero-Loss methodology, which focuses on identifying hidden potential and prioritizing opportunities. This involves close observation of the process, detailed studies, and thorough data analysis to gain a clear picture of the workflow. A client in the legal sector broke down and simplified their intricate processes by developing a clear workflow and splitting overall case timeline into the main time blocks. This removed confusion and allowed the use of data to map out the actual duration of each stage to show where improvements were needed and what action could be taken. This not only made training new team members easier but also allowed leadership to prioritize and optimize key stages. By breaking down the complexities, Chartwell could see exactly where to focus our efforts.
The same principle applies in manufacturing: simplifying processes can uncover new opportunities and streamline operations.
Aligning goals with organizational strategy
To ensure improvement goals align with the broader organizational strategy, precision in measurement is key. Key Performance Indicators (KPIs) drive behavior, so it’s important to measure aspects that reflect the effectiveness of efforts rather than just the time spent. For instance, in manufacturing, instead of merely tracking the operating time of all the assets, it is more insightful to measure how effectively the bottleneck asset runs across the board (via downtime, average speed and yield). When aligning goals with organizational structure it’s important to keep two things in mind:
- KPIs need to be aligned with incentive and performance measurement structures
- Overall business metrics should be broken down to be actionable and relevant to individuals
A Chartwell client successfully implemented a bespoke tool that provided managers with visibility into the performance of each process step. This enabled them to offer targeted training and support to their team, significantly enhancing overall efficiency. Having precise data allowed the team to align their efforts with their strategic goals effectively. Visualizing the team’s performance allowed the team to interact meaningfully with the data and identify key areas for additional improvement and training.
This alignment ensures that all improvement activities contribute directly to the organization’s overarching objectives, fostering a cohesive and focused approach to progress.
Shiny object “syndrome”
Not all problems require new assets, tools, or systems. Many organizations, especially in professional services, may lack the funds or resources to implement new solutions and need to think creatively. Legal firms, for example, are often not data-heavy and do not rely heavily on metrics for operational decisions. Therefore, getting the basics in place can be revolutionary.
Manufacturing environments can learn from this by focusing on fundamental improvements rather than investing in new software without the foundations of what needs to be measured and how in place, as an example. Legal firms emphasize the importance of embedding an improvement cycle and tiered review, demonstrating that operational decisions can be significantly enhanced by doing the basics well. Often, the true nature of the problem and the need for a new asset become apparent only after thoroughly clarifying the goal.
For instance, utilizing the Chartwell Zero-Loss analysis to scrutinize the process flow can highlight the top 2-3 critical steps on the Pareto chart that, when improved, will significantly impact performance. This focused approach ensures that any new asset is genuinely necessary and precisely designed to address the real issues.
Leveraging existing assets
Organizations can employ various strategies and creative approaches to make the most of their existing tools, systems, and resources. A Chartwell client successfully optimized their operations by leveraging existing assets rather than investing in new ones. By comparing performance across departments or sites, they identified best practices at one location that could be shared and implemented elsewhere. Users of existing assets often uncover efficiency improvements and previously hidden functionality. By identifying these best practices and sharing them with the wider business, Chartwell was able to unlock significant improvement at a professional services client.
Another Chartwell client discovered that software used in one part of the business for automating documentation could be beneficial elsewhere. By communicating and training teams on these tools, the client saw significant improvements across the board. The client didn’t need new tools; they just needed to use what they had more effectively. This approach underscores the importance of maximizing current resources before seeking new investments.
Changing mindsets
Effective communication strategies
Effective communication is crucial for successfully implementing goals and changes within a team. Techniques such as regular updates, open forums for feedback, and clear, concise messaging can make a significant difference. For instance, one Chartwell professional services client found that using both company-wide updates to share the vision and smaller, focused 1-1s and workshops to refine ideas and test improvements led to more successful changes. An open feedback culture throughout the business in conjunction with regular business wide updates ensures that opportunities are continuously improved upon.
Running trials with as many people as possible is particularly important for manual processes, where variations in how tasks are performed require broad feedback. Creating a culture and structure for sharing input helps harness the creativity and experience of team members who might otherwise feel uninspired after years of using sub-optimal processes and not having the time to implement change.
Empowering teams
Giving teams autonomy and encouraging ownership of improvement projects can lead to faster and more effective changes. Teams are experts in their own processes, and with clear direction on targets and opportunities, they can implement and refine improvements more quickly when they have ownership rather than top-down directives. When our client teams were empowered to adjust and optimize their work, the benefits were immediate and substantial.
Workshops that gather a range of team members to focus on top-priority opportunities can generate innovative solutions. Aligning internal appraisal and development systems with business goals ensures that performance reviews measure KPIs that drive the desired behaviors, reinforcing the connection between individual efforts and organizational success.
Strategies for behavioral change
To alter team behaviors and foster a culture of continuous improvement, a clear vision and understanding of goals are essential. Using the clarity from goal-setting and insights from existing and new tools helps get everyone involved in the change process.
A tiered review methodology, familiar to many manufacturers, can be highly effective. This approach involves clear, consistently applied structures, high-frequency but short-duration meetings, and fact-based decision-making supported by accurate data. Feedback loops allow for the escalation of support requests and information sharing. One Chartwell client successfully changed organizational behaviors by setting a clear vision and engaging everyone in the process. The transformation was remarkable once everyone understood why the changes were beneficial for both the business and themselves. By focusing on continuous improvement and aligning individual and organizational goals, teams become more invested in driving and sustaining positive change.
Conclusion
Manufacturing organizations can benefit from non-manufacturing sectors to enhance their improvement projects. Clear goals ensure alignment and efficiency. Avoiding shiny object “syndrome” by using existing assets reduces costs and fosters innovation. Effective communication, team empowerment, and strategic behavioral adjustments are crucial for sustainable improvement.
By adopting these strategies, manufacturing leaders can overcome challenges and achieve breakthrough results when improvement is critical to success.