Let's see how to make a business successful

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I am often asked how I see, how can a company be successful. I usually answer by saying it should find itself each, plus there is no unique way.

It does not reduce the number of requests, I always have with other   Anticipate questions. When I knew the only and the saving solution.  

Finally I reached my waist, I share how I see it. I'm doing this as a   Listing. Fals last it more than what I want to say, then there is no newsletter,   but could be a book.  

This is not for everyone a solution, just my opinion.


 Successful companies

 1. Business

1.1 Customer Scorecard

    • Implement sales strategies successfully 
    • Integrated management tool with effective customer management 

1.1.1 Assess customer needs 

      • The needs of customers first.
      • Analyze the flow of communication between customers and the company. 

1.1.2 Customer Satisfaction Survey

      • Serves as an indicator of quality.
      • Willingness to recommend.
      • Repeat purchase behavior.

1.1.3 Target :To receive the "Best in Class Rating"

      • Highest current level of performance.
      • To achieve a benchmark or exceeded.

1.2 Quarterly reporting / evaluation (QBR) 

1.2.1 Market Trends Watch

      • Detecting if technological solutions deliver the answers.
      • Expansion of cooperation between customer and manufacturer. 

1.2.2 Pricing

      • Design of products, to meet the needs of customers.

1.2.3 Checking Price 

      • Possibility to check the prices of the products according to customer criteria.

1.3 Customer Management

1.3.1 Change Management

      • Keeping track of changes (ECN, ECR) should always be two-way process.
      • Changes (ECN) what customers beaftragen, should be performed as soon as possible.
      • It should be clarified with the customer, how much products are finished with the status before the change, to what geschiehen with the? Who bears the cost of change? What happens to the component may not be necessary?
      • Manufacturers can also start changing (ECR), if it simpler, safe production permits. It can also be carried out only with the consent of the customer.

1.3.2 Traceability

      • For all products should be granted provider that the following information is at disposal:
      • Who's subcontractor the component used and when the delivered?
      • From which production batch, the component? (Subcontractor)
      • Which line, machine, when and by whom the products are created?
      • What were the test Reparir results?
      • For complaints or customer the above information for the customer to be placed at disposal. (But delivery later should be checked !!!)
      • Manufacturers should during product liability period save this data.

1.3.3 Introduction of new products / NPI

      • The customer should have a clear deffinierten termination when their new products are started. It should recommended a project schedule to put together.
      • With the customer following points are to be agreed:
      • Design / process validation (if the customer wants participate on it)
      • Rampup (with schedule numbers)
      • Whether the product, the manufacturer may repair (if yes, how and how often)
      • etc.

1.4 Customer Contact

1.4.1 Pojektmanagement

      • All projects are also on the customer side and for a manufacturer to have a project manager.

1.4.2 Customer contact Technology / Logistics

      • Customer and manufacturer page to be nominated all contacts. (On both sides to facilitate communication)
      • List of contact persons will be notified on both sides
      • In the case language problems to specify who can help with translation.

 2. Manufacturing

2.1 Production Planning

2.1.1 Annual / quarter- / month- / week planning

      • The production is scheduled to carry out their work according to plan exactly defined.
      • These plans are to be followed, the results (quantity, quality, etc.) are reported.
      • Deviations (causes) and results should be coordinated with management.

2.1.2 Standard Time / Standard Time Tracking

      • For accurate planning standard times (norms) are required.
      • As a starting point for the standard times give the experience a good starting point.
      • The engineers should set default times using REFA measurements.
      • These standard times are not embedded in concrete values to be checked evaluated again and again.

2.1.3 Downtime Tracking / Actions

      • Downtime should be collected and evaluated.
      • Most downtime are:
      • Machine (maintenance)
      • Material
      • Method (process - Ingenieuring)
      • Other (eg. Lack of personnel)
      • To downtimes actions should be defined.

2.2 Documentation

2.2.1 Time and quantity registration

      • Input data for production planning, productivity, invoice, etc.
      • Productivity should be regularly evaluated and reported to the management. (One of the main performance indicators - KPI's)

2.2.2 Registration test / repair results

      • Information of quality
      • Input data for CIP
      • Information to customers. See also at   "Organization / Customer Management / Traceability"

2.2.3 Downtime registration (with reasons)

      • see at   "Production Planning / downtime tracking"

2.3 Introduction of Lean Manufacturing

2.3.1 Define activities with value adding

      • Only value-adding processes are interesting for the customers.
      • Everything else is loss, which usually pays the manufacturer.

2.3.2 Power up value

      • Input information to eliminate the losses.
      • Recommended value with the customer to agree on.

2.3.3 Ensure continuity of the value stream

      • Any interruptions in the value stream mean losses.
      • If the interruption is unavoidable, it should be agreed with the customer.

2.3.4 Build pull system

      • Production quantities to be controlled by customer demand.
      • Unmatched cycle times cause loss by overproduction, waiting time. See also later in   "Engineering / manufacturing parameters".

2.3.5 Eliminate the losses (muda)

      • Classic speaks Lean manufacturing over 7 loss factors:
        • Wait
        • The overproduction
        • Transport
        • Movement
        • Rework / failure
        • Stock
        • Over-processing
      • The above seven are increasingly being supplemented with two others:
        • Loss of talent
        • Resources

2.3.6 Visualization / storage space, up to date documents, etc.

      • About Visible production area.
      • No mixed materials, products. (Well can not be mixed with faulty)
      • Visible, what and where should be brought.

2.4 Introduction of 5S

    • Standardization of storage spaces.
    • "Make to order" Reduction of Search, unnecessary movement.

2.5 Introduction of CIP

2.5.1 Introduction PDCA

      • Evaluation, implementation and monitoring CIP actions.
      • Continuous, iterative process.

2.5.2 In the context of teamwork, Kaizen

      • Increase the efficiency of processes in organizations.

2.6 Idea box

    • Terms of employee ideas.
    • Would be a waste not to use the employees' ideas.

2.6.1 Evaluation

      • Performed with the already mentioned PDCA method, of a team.

2.6.2 Idea of the Month / idea with owner

      • Idea what has brought most benefit (measured or not measurable).
      • Posted idea who's owner:
        • Promotes the pride of the employees.
        • Irritating the other to show their ideas may also be useful.

2.6.3 Rewarding ideas with results / economizing Etc. (to promote financial interest / pride of MA)

      • In Hungary, the employee may be most likely financially motivated.
      • Promotion of pride above.

 3. Quality

3.1 Qualityssystem

    • Geared to continuous improvement to the products.

3.2 Introduction and operation

    • Management Responsibility.
    • Involvement of employees.
    • Company-specific planning.
    • Systematic approach.

3.3 Key performance indicators – KPI’s

    • KPI's Rate the success of an organization.

3.4 Quality first Mentality

    • Quality is not to be tested, but produced.

3.5 Non rework policy

    • Rework = correction of faulty, failed or non-compliant products.
    • Standard cost of defective work.

3.6 Timely delivery perfect product

    • Delivery reliability.

3.7 Single digit ppm

    • Zero error rate to reach.
    • Return Material analysis and corrective action (RMA)
    • 8D etc.

 4. Technic

4.1 Manufacturing Machines

4.1.1 Equipment list with details of production parameters

      • List of equipment is needed:
        • Expected capacity.
        • With offers to give to whether a project is feasible.
        • Production parameters agree on the technical possibilities.

4.1.2 Determination of setting parameters

      • Power production reproducible.
      • Same quality with repeated production.

4.1.3 Optimization of the preparation / production line cells

      • Reduktion handling time.
      • Enables tact time balancing. See also later in   "Technic / manufacturing parameters".

4.2 Maintenance

4.2.1 Determination maintenance levels / operator, maintenance, etc.

      • Clear definition of who is to perform the maintenance:
        • Step 1: operator (eg cleaning).
        • Step 2: maintenance staff (mechanical and electrical repair, where the machine is to be geöfnet)
        • Step 3: foreign power (requires special knowledge)

4.2.2 Introduction of preventive maintenance

      • Repair is to allow fire fighting to the further production.
      • Preventive maintenance allows:
      • To improve the condition of the machines regularly.
      • Reduces the number and impact maschienenbedingte quality problems.
      • Exchange of wear parts reduces the number of machine errors and thus the downtime.

4.2.3 With maintenance to reduce the losses due to downtime

      • See before.

4.3 Production parameters

4.3.1 Process Optimization - Cost reduction

      • With the investigation of the processes "unnecessary" steps can be eliminated.
      • So that the cost can be reduced, In addition, the cycle time is reduced.

4.3.2 Workstation optimization REFA - no loss by searching / waiting

      • Everything at your fingertips, thus:
        • Less Search
        • Less waiting time

4.3.3 Cycle time setting - Earnings, Time usage- and human resource planning

      • Cycle times to be fixed to the same production from.
      • Fixed cycle times allow:
        • Income Planning
        • Calculation of cycle time (time required)
        • Human resource planning, as it is for all the processes, steps, the number of employees required is specified manner. 
      • In all process changes the clock time will be reviewed / re-calculated.

 5. Logistic

5.1 Procurement

5.1.1 Components with long delivery times

      • These components (LLT) affect the execution of a project.
      • Timely ordering leads to acceleration of the project.
      • With repetitive use is worthwhile, of course, if the customer did forecast, which hold a stock.

5.1.2 Supplier frame agreement

      • Frame contracts with better prices are erziehlen, the fact that the supplier can also expect its costs.
      • In optimal cases can also be achieved, that the supplier is keeping the component to its costs in stock.

5.1.3 Reduce the number of components of the free market   / Reducing material costs

      • On the free market almost every component sin immediately accessible.
      • But these are always much more expensive than component with agreed delivery dates.

5.2 Warehousing

5.2.1 Assignment Material - Storage Bins / Kanban later

      • Regardless of whether or fix- kaotische storage is performed, the bins with pick should be held.
      • Kanban principle is related to the pull-principle. See also at   "Production / implementation of Lean Manufacturing".

5.2.2 FIFO

      • FIFO method (First in, First out) allows:
      • Components with limited Verwendunszeit (shelf time) to use before this.
      • Inventory more accurately by lead. (Replacement cost)

5.2.3 Inventory Turnover - sales / inventory

      • This feature shows how revenue is to stock in the relation.
      • High value indicates better sales potential, low but high inventory.
      • High inventory is "dead capital" in that it should be financed.

 6. Charge

6.1 Process costs

    • See at   "Engineering / manufacturing parameters".

6.2 Material costs

    • See at   "Materials Management / Procurement".

6.3 Storage costs

    • See at   "Materials Management / Warehousing".

6.4 Contract costs

6.4.1 Distribution

      • The gross wages in Hungary are as follows:
        • Operator:   800 - 1000 HUF / h
        • Administration:   200-250 t HUF / month
        • Engineer (new):   200-250 t HUF / month
        • Engineer (experienced):   300-400 t HUF / month
        • Manager:   500 - 1500 t HUF / month
      • At least for operators Recommended value is to separate the wages as follows:
        • 80% of basic salary
        • 10% QS result (differentiated)
        • 10% power (differentiated)
      • It should be decided whether at least the engineers come to the above classification, because that can affect it most.

6.4.2 Reduce by Timeframe

      • Overtime should be avoided.
      • Time frame gives this opportunity, thus the working time can be better balanced.

6.4.3 Incentive Pay Later

      • Prerequisite for the introduction of performance pay is the accurate measurement of performance
I'll deal with in the next parts of my series is vitally linked to the achievement of the above conditions are regarded as sub-processes.
Best regards,
   Kovács Zoltán
Owner KZK Solutions
Link to the video


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