Resource productivity – what does that even mean?

I recently read an article from McKinsey mentioning that manufacturing organizations need to focus on resource productivity in order to be successful. They need to think lean, and all of that other stuff that we always hear about. That is a very tactical way of thinking and only applies to the manufacturing processes themselves. Of course manufacturers need to maximize the outcomes they produce through manufacturing, but the organizations themselves need to think differently.

They need to look at the market and their customers and determine what needs are not being met. They need to look at any additional services they can offer that would be of value to customers. They need to change the mindset of the organization to focus on operational excellence at all levels of the organization. They need to empower front line people to not only improve the current way they operate, but also suggest new ways of operating to increase profit.

The limitation with most manufacturing organizations is that they often only try to do what they are currently doing, only more efficiently. They look at manufacturing metrics, but not necessarily financial ones. Many don’t look at what else they could be doing. They still use the same approaches and methodologies they have been using for 30 years and wonder why they are struggling.

The question manufacturing organizations should be asking themselves is, “What opportunity am I not currently taking advantage of and how do we maximize outcomes from that opportunity?”

Miller’s Monday Morning Message

Andrew MillerMiller’s Monday Morning Message
presented by ACM Consulting Inc.

Andrew Miller on operational excellence, strategy, life balance and everything in between

Toronto – October 27, 2014
Many parents around the world spend many Saturday and Sunday mornings in hockey rinks. This week we received an email from my son’s house league convener with very strict rules about the arena parking lot. The email directed us to use only one opening to enter the parking lot and the other opening to exit. At the time, these seemed like some arbitrary rules that were being issued.
 
However, as I was leaving the parking lot this morning (out the assigned exit), a woman pulled into the parking lot through the exit opening, cutting off everyone trying to leave the parking lot. Chaos ensued. Horns blared. And the woman had to reverse out of the lot onto a busy street, endangering herself and others. I guess she never got the email.
 
Some rules are made for good reason, and others are made without any expected improvement to outcomes. In this case, the rule was made to ensure the safety of the children walking through the parking lot and to ensure a quick and orderly exit from the parking lot.
 
How many of your organization’s procedures improve outcomes, and how many create unnecessary frustration and additional work with no improved result?
To request an interview or more information, please contact:
 
Andrew Miller
416-480-1336

Follow me on Twitter @AndrewMillerACM
© Andrew Miller. All rights reserved. 2014.

Miller’s Monday Morning Message

Andrew MillerMiller’s Monday Morning Message
presented by ACM Consulting Inc.

Andrew Miller on operational excellence, strategy, life balance and everything in between

Toronto – February 3, 2014
Last week I held a workshop on Operational Excellence at the Hilton DoubleTree Hotel in downtown Toronto with more than 20 managers and executives from different industries and different organizations. The day was filled with great discussions about the components of operational excellence, the key elements for implementing successful change, and how to engage employees to help organizations improve performance and maximize profitability. In between all of these great discussions, we found time for some good networking and interacting.
 
Here are some of the key insights from the workshop:
  • Operational excellence is a mind-set, not a tool or a methodology. It must be present in every action and decision organizations (and individuals) make.
  • Organizations need to pursue excellence, not perfection. Perfection leads to disappointment, excellence leads to improved results.
  • Operational excellence happens on the front lines of an organization, so empowerment of employees and productive failure must be prevalent in the culture.
  • Organizations need to focus on outcomes and results to ensure the tactics they perform will add value. Too often we focus on the completion of activities without knowing what we are trying to achieve.
  • Effective execution of a strategy is what differentiates great organizations from everyone else.
  • An effective way of increasing employee retention is to solicit ideas for improvement and act on them.

If you would like more information about the workshop or its content, don’t hesitate to contact me. 

To request an interview or more information, please contact:
 
Andrew Miller
416-480-1336
 
Follow me on Twitter @AndrewMillerACM
© Andrew Miller. All rights reserved. 2014.