Production/Service

The delivery of the product or service is where the money is made or lost.

Although there are different thoughts on best practices, our experience shows that the best practice is one that engages its team members, promotes understanding and acceptance and then builds a process that reflects what actually happens.

  • Staying profitable starts at the beginning. For any given project there is only a certain amount of design time allotted to a project (large long term R&D projects exempt), or the project or order loses money. Utilizing team resources saves time and profits.
  • On every drawing there are critical pieces of information, (material, length, width & height). For a CNC using 625 Inconel to make a shaft @ +/- .001” is critical to having the information at the beginning, whereas in the fabrication world using AR plate as an example with a tolerance of +/- 1/16” could be acceptable. Without this information being stated and an accurate drawing being provided at the beginning, will produce cost overruns that that could eat up the entire margin.
  • In a production environment time is of the essence. For every day that information is missing a project delivery date is pushed out roughly 1.5 days.
  • Documented schedules are important as they provide team guidance and establish a standard to be followed. (The other part are schedules that are nice but not followed or used or even worse not  practiced often enough as planning is done on the fly has become an acceptable practice). The cost of this practice can be very costly for both quality and costs.
  • If we fail to plan, execution is impossible. Often what happens is a job comes in and it is sent to the floor half completed (dimensional, location, delivery, etc. detail is missing). The result of poor planning can be very costly, as now the people that are responsible for making the product, or delivering the service, do all the planning.
  • Taking the time required at the beginning to plan out the entire project (consistent process) results in a product or service flowing through any given operation, as the majority of potential issues were resolved at the beginning of the planning stage.
  • Quality, quality, quality. If it is not right it is wrong and needs to be fixed.
  • Self-justification and excuses only add to a problem and will frustrate team members.
  • Spending the time educating and providing facility, progress reports and project information on a daily or weekly bases are essential to keeping your team engaged and costs in control.
  • Do you create graphs and tables and post them on a monthly bases?
  • Some reasons this does not happen may be due to not enough time in the day, or that [people should not see this information they might share it with others.]
  • Statistics that are not being reported or understood compound on costs.
  • Financials are important and most importantly time, labor & material need to be tracked on a daily bases by the person who schedules and/or organizes production or a service. If defined project costs are not being tracked and summarized, questions need to be asked.
  • Engineering Takes a Long Time to Complete Drawings

Staying profitable starts at the beginning. For any given project there is only a certain amount of design time allotted to a project (large long term R&D projects exempt), or the project or order loses money. Utilizing team resources saves time and profits.

  • Inaccurate Drawings

On every drawing there are critical pieces of information, (material, length, width & height). For a CNC using 625 Inconel to make a shaft @ +/- .001” is critical to having the information at the beginning, whereas in the fabrication world using AR plate as an example with a tolerance of +/- 1/16” could be acceptable. Without this information being stated and an accurate drawing being provided at the beginning, will produce cost overruns that that could eat up the entire margin.

  • Drawings and Information Provided at the Last Minute

In a production environment time is of the essence. For every day that information is missing a project delivery date is pushed out roughly 1.5 days.

  • No Production Schedule

Documented schedules are important as they provide team guidance and establish a standard to be followed. (The other part are schedules that are nice but not followed or used or even worse not  practiced often enough as planning is done on the fly has become an acceptable practice). The cost of this practice can be very costly for both quality and costs.

  • Poor Planning and Execution

If we fail to plan, execution is impossible. Often what happens is a job comes in and it is sent to the floor half completed (dimensional, location, delivery, etc. detail is missing). The result of poor planning can be very costly, as now the people that are responsible for making the product, or delivering the service, do all the planning.

Taking the time required at the beginning to plan out the entire project (consistent process) results in a product or service flowing through any given operation, as the majority of potential issues were resolved at the beginning of the planning stage.

  • Accepts Poor Quality Product

Quality, quality, quality. If it is not right it is wrong and needs to be fixed.

Self-justification and excuses only add to a problem and will frustrate team members.

  • Limited Understanding on What Core Products and Services Create the Numbers

Spending the time educating and providing facility, progress reports and project information on a daily or weekly bases are essential to keeping your team engaged and costs in control.

  • Essential Reports Beneficial to Departments not Provided

Do you create graphs and tables and post them on a monthly bases?

Some reasons this does not happen may be due to not enough time in the day, or that [people should not see this information they might share it with others.]

Statistics that are not being reported or understood compound on costs.

  • Cost Accounting Mistakes

Financials are important and most importantly time, labor & material need to be tracked on a daily bases by the person who schedules and/or organizes production or a service. If defined project costs are not being tracked and summarized, questions need to be asked.