Standard costing is really a ‘best guess’ at labor costing — these numbers are often inaccurate, incomplete or out of date. Accurate job costing requires the capture of all tasks associated with a specific product or job, including direct and indirect labor in setup, production and customer service. Inaccuracies in the collection of time allocated… […]
Read More… from BPCS/LX Tip of the Week: Accurate Job Costing
Sit down with your IT team. Decide how the information will be captured and where it will be stored so that employees have access to it. What software tools need to be used to capture the information? How does it need to be organized? Create a repeatable process to make this easy for your staff.… […]
Are you tracking downtime? Is it done manually, or with some type of automation or application that gathers information in real-time, or is it based upon history? If you are measuring team effectiveness by shift, you know there are significant differences between them. Have you figured out why? One of our automotive customers was experiencing… […]
Read More… from BPCS/LX Tip of the Week: How to Move From Good to Great – Manufacturing Optimization
I’m not talking “Modus Operandi,” which is a fancy way to say: “what’s your plan to get stuff done”. I’m talking about M anufacturing O ptimization. It is all about efficiency, and by that I mean doing more with less. Less labor, less time, less materials, while still delivering a high quality product on time.… […]
Scrap and rework costs are a manufacturing reality impacting organizations across all industries and product lines. Scrap and rework costs are caused by many things—when the wrong parts are ordered, when engineering changes aren’t effectively communicated or when designs aren’t properly executed on the manufacturing line. No matter why scrap and rework occurs, its impact… […]
Read More… from BPCS/LX Tip of the Week: Ways to Prevent Scrap & Rework From Costing You
Common sense rules. We may not like them, but generally, they stand the test of time and should be followed. Here are 8 common sense rules related to inventory management published by Inbound Logistics back in 2007. They still hold true today. 1. If you don’ t know where you are going, no road will… […]
Read More… from Tip of the Week: 8 Common-Sense Rules for Inventory Management
When fixing a downtime issue, make one change at a time. Often, multiple changes are made at the same time, without individually checking their impact on the equipment. This makes it much harder to diagnose problems and evaluate the effectiveness of solutions. 60185 Rate this article: No rating […]
Read More… from BPCS/LX Tip of the Week: Getting a Handle on Downtime – Part 2
It is essential to capture a reason and duration for each downtime incident to enable the team to effectively prioritize and focus. Start simple, and make sure every reason is clear (when compared with other reasons) and describes symptoms (as opposed to attempting to diagnose root causes). Remove reasons that aren’t regularly used and add… […]
Read More… from BPCS/LX TIP OF THE WEEK: GETTING A HANDLE ON DOWNTIME
From a recent article published by M4B Marketing : When analyzing your sales performance consider the following: Pricing changes eg. price increases or discounting Competitors – competitors entering or exiting the market New product or service launch growing sales New product or service cannibalizing existing product or service sales Customers moving between products or services… […]
Read More… from BPCS/LX Tip of the Week: What Should I Consider When Analyzing my Sales?
Two big sources of inefficiencies in manufacturing are paper and spreadsheets. I know that you love ‘em, but they are the cause of more problems than you probably realize. Think of how long it takes you to get paper-based data into the hands of those who can do something valuable with the data. Is the… […]