Written by Roger Shrum, IMEC Regional Manager

In my work with manufacturers, I’ll encounter leaders who are frustrated with the slow pace of implementation of their continuous improvement programs.  They are concerned that they are not seeing the payback they were hoping for.  What I share with them is sometimes unsettling: Many enterprise-wide lean deployment programs become stalled because the top manager in the company has not clearly articulated his/her personal vision and committed to making it successful.

In one example, a company I was advising faced chronic late delivery problems, which jeopardized its reputation with longstanding customers and opened the door for its competitors to take business away.  The company was forced to work significant overtime and expedite production just to stay in the game. This company had a history of waiting for a downturn in business to shore up its delivery performance. Along the way, they “dabbled” in implementing lean methods, but as orders increased, a full lean implementation was shelved.  In retrospect, these well-meaning, busy leaders now realize that they may have missed an opportunity for significant growth by not positioning the company to adequately meet customer needs during the upside of the cycle.  

The International Organization for Standardization (ISO) recently released the new ISO 45001 standard for Occupational Health and Safety Management Systems (OHSMS). Published on March 12, 2018,  ISO 45001 provides a framework to improve employee safety, reduce workplace risks and create better and safer conditions for workers everywhere.

Imagine this scenario: Altimax Manufacturer, founded 20 years ago, operates out of rented warehouse space in a large industrial complex.  The warehouse is a metal building and has had three additions, all of different size, shape and roof height over the past 15 years.  Business is good and Altimax expands, hiring more people, renting additional space, adding new products, and using new technologies.  Rather than reorganizing space to incorporate each new operational segment, however, the plant layout has evolved irrationally as the company has grown.  Top management realizes it's got a problem, but the cost of removing walls, cleaning up old stock and moving equipment inhibits the adoption of a more rational plant layout.  Sound familiar?

CIM TECH Plastics is a precision customer injection molder with extensive experience with production of small to medium sized precision components utilizing engineering and commercial grade thermoplastic materials. As a division of Tramec Plastics & Composites, CIM TECH leveraged an internal and external network of expertise to achieve their recent ISO registration success.

Written by Gretchen Clifton, IMEC Technical Specialist

The new ISO 9001:2015 standard places more emphasis on understanding our processes; how they impact our business from an individual process standpoint as well as how they integrate with other processes. The key to success is creating processes that are efficient and effective, integrate well with others for a cohesive flow from start to finish, and ultimately, provide the results we need.

Many companies have a high level process map that fulfills the requirements of ISO or TS, or perhaps as an outcome of a value stream mapping activity. They created it, but has it really been used for anything?

Written by Andy Cave, IMEC Regional Manager

An example of how an accounting approach may hinder continuous improvement efforts

The Accounting concept of Standard Costing was developed in the 1920’s, and its application has remained fairly constant.  Manufacturing was noted for minimal product variation (“You can buy a Model T in any color, as long as it’s black”) and long production runs creating lots of inventory whose financial value had to be estimated. Lean principles have changed the manufacturing world significantly, with shorter set-up times and significantly less inventory.  Meanwhile, Accounting still spends time analyzing and understanding labor, material and overhead variances; often generating thousands of related transactions and accrual entries.  In the Lean world, these are Non Value-Added activities; the customer is not willing to pay more for our cost variance analysis excellence. 

After this month’s kickoff of The Genesis Movement, a new approach to strengthen the region's manufacturing firms and expand employment, earnings, and career opportunities for frontline workers, we would like to feature the first installment of the ‘Manufacturing Tour of the Industry’ Series: Novation Industries.

IMEC is happy to announce United Group, Inc. has successfully implemented a quality management system and become certified to the ISO 9001:2008 standard.  Achieving ISO 9001:2008 registration is an important milestone for United Group as it illustrates a strong commitment to quality at all levels of the organization including the commitment to their customers, and truly, all stakeholders. It is an on-going effort that demonstrates the dedication of all members of the team.

Welcome the newest member of the IMEC team, Lean Six Sigma Specialist serving northeast Illinois...

John Cosentino, a Technical Specialist with the Illinois Manufacturing Excellence Center, has 26 years of manufacturing experience as a Project/Program Manager, Operations Manager, Vice President of Operations, and Continuous Improvement Manager.  A Certified Six Sigma Black Belt and Champion, John has also completed course work in Lean Tools and Methodology, Lean Accounting, and is a Certified Personal and Executive Coach.