90% Manufacturers Do Not Know The Goal Of Their Factory. Do You?
Factory Scene 1
“Where is Roll No. 11, it was supposed to be laid in this lay!” Shouted the Cutting Manager.
“We don’t know Sir, it was supposed to be here.” Replied the helpless Fabric Guy.
Nobody knows where the roll is, so where did it go?
Factory Scene 2
The Buyer calls the Merchandiser, “The order shipment is in 10 days, what is the status of the order?”
The Merchandiser rummages through documents, unable to find the accurate status replies, “Don’t worry sir it will be on time.”
With lack of complete information, will it really ship in time?
Factory Scene 3
“All our workers have achieved high efficiency.” Exclaimed the Sewing Manager, proudly.
“Then why is throughput reduced by 30%?” Asked the Production Head, simply.
If efficiencies are high, what is causing the reduction in throughput?
Missing rolls.Lack of accurate information. Reduced throughput. Are these the goals a factory sets out to achieve? No.
The “GOAL” of any business big or small, is to make money.
The “GOAL” of a factory is to make money.
But what is tracking? And how does it help me reach my goal?
Tracking in its true sense is keeping track of your production with the help of real time floor data so that you actually know where your money is sitting in the long process of manufacturing. To know exactly where all my rolls are, what is my exact order status every minute to ensure timely delivery and to know is causing the reduction in my throughput. Comprehensive tracking allows us to track the three essential measurements of our proximity to our goal of making money.
Throughput: The rate at which our oraganisation generates money though sales. Our sales could depend upon a small section of cutting room or our entire factory. So it is essential to track the throughput of every:
d. Entire Factory
Inventory: All the money the organization has invested in purchasing things it intends to sell. Every resource purchased to convert into a sellable item must be tracked – this includes
a. Raw material
b. Partly processed garments (WIP)
c. Over produced garments
- Operational Expense: All the money the system spends in converting inventory into throughput. This primarily includes the worker/operator costs.
A robust organization will need to have high throughput accompanied by low inventory and low operational expense. A comprehensive tracking system will need to ensure the status of the throughput, inventory and operational cost are highlighted.
As the manufacturing industry becomes more globalized, the multi-factory supply-chain model has prevailed. The garment-manufacturing industry has always aimed for new product development and efficiency improvement in production. In past years, advanced computer technology has already facilitated new manufacturing operation and build up management tools. The need of the hour is to look towards how the new technology can bring practicality to the running of the enterprise.
Click here to know of a tool to bring your factory closer to your goal.
What do you track in your factory?