by Gerald Najarian

Observation of business success or potential failure has a long history in the realm of financial accounting. We are accustomed to being observed at the end of the month, quarter or year to ascertain success or failure only to realize that accounting data, while the final tally, serves a higher master and are inadequate for the observation that matters—day-to-day performance.

As a practical matter, inspection of operations and operating performance becomes increasingly more difficult as size and complexity grow. Manufacturing performance measures permit this form of inspection for management and are also a positive way to communicate the results of efforts in the management of work centers. In this respect, performance measurement is setting the atmosphere in which activities and processes are monitored as the means to accomplish positive financial results. Properly established, simple and understandable metrics create an environment of positive goal setting in which all know what is expected. (more…)

By Gerald Najarian

The terminology “cellular layout,” “overlapping operations” or “machine cells” now has a familiar ring in manufacturing parlance. What these terms mean for manufacturing in the twilight of the 20th century and in the dawn of the new century is more important than their place in the terminology. The potential for waste avoidance and improved quality and productivity of Lean manufacturing and particularly the cellular manufacturing component of Lean business is dramatic.

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By Gerald Najarian

Going forward by moving backward is how one author described a pull system. Others use the analogies of drums, buffers and rope to explain how to “pull” production through a manufacturing shop.

There are numerous images one can use to visualize pulling goods through a plant. Since pull systems are frequently contrasted to so-called “push” systems (i.e., MRP II) in which production is master scheduled to push production from one operation to the next whether needed or not, they are often thought of as merely scheduling or shop floor control tools. In fact, pull systems are much more. They are the heart of a coordinated factory. They permit synchronization by working backward through signals or triggers which cause production events to happen. The experience of backward motion starts at the finished goods warehouse or shipping area and signals the previous operation—final assembly—when more finished goods are needed. Final assembly, in turn, signals a previous operation—perhaps a component fabrication department—when more components are needed.

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By Gerald Najarian

Now that supply chain management has entered the consciousness of manufacturing managers, we are experiencing the inevitable rush to apply a software solution to implementation of a fully integrated chain of activities from the top to the bottom of the materials flow. But supply chain management is much more than software. It is the adoption of an over arching approach to the management of the modern manufacturing (or distribution) enterprise. Much like Lean manufacturing, supply chain management requires a commitment to doing business in a new and more enlightened paradigm. To be sure, software can help facilitate the management of a seamless flow of goods throughout the supply chain, but its use must be preceded by (or, at least be concurrent with) recognition of the new way of life and be connected to the markets and products and strategy of the enterprise. (more…)