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Author: Will Haim
Choosing to outsource the packaging of your manufactured goods and products to a reputable third party packager can benefit your organization’s bottom line in several ways. When trying to eliminate waste from your production process, it’s vital to know what you do well and what you don’t. Trying to do everything in house can become costly and a significant source of waste.
Consider logistics. Would you purchase a fleet of vans and trucks and then hire and train your own drivers to pick up and deliver all the goods your production line requires and produces? Of course not. So why is it any different when it comes to the process of packaging or bagging and inspecting your finished product? Handing this part of your process to any number of contract packaging services can certainly have the same impact when you consider the in-house cost of purchasing and managing all of the equipment and additional process professional grade packaging and/or bagging requires.
When choosing a partner to outsource this important step to, you must be extremely judicious about your selection. Not all third parties are created equal. Finding a local packaging service will cut down on waste. The closer in proximity to your facility, the better because time is one of the seven deadly wastes that you can count on experiencing if you choose a facility that is too far away. Your finished products can’t do anything while in transport so consider the logistics of this aspect.
Second is how efficient you can expect this new partner to be when moving your inventory through the supply chain. The faster they can operate, the sooner you can move your product to the next phase be it to other suppliers or direct to retail. If they have a quality management system like ISO 9001 then it’s a good sign that they are dependable company. Just know that many organizations that claim to be compliant are not in fact certified so be sure to look for their registration information.
Last but not least, it’s a good idea to inspect their facilities first hand. See what kind of equipment they possess and familiarize yourself with their full range of services. A dream partnership is more than just about fulfilling needs. Your perfect outsource should be like a happy marriage in the way that it gets better over time. Sticking with a solid partner should serve to improve process as this gives data to evaluate for further improvement down the road. A good partner should work hard to communicate with you and should never settle when it comes to their process. If they are committed to you, then they will be committed to looking into ways to improve what they can do to provide you with greater value. This is the most important key in my opinion.
Stick to these quick tips and apply them to not just contract packagers, but to any third party based service you intend to bring on board as part of your production strategy.
Lean production has ended up being a preferred and commonly adopted financial and corporate management viewpoint. Companies worldwide are beginning to count on it in the middle of political and recessions even in the most progressive all countries.
Yes, the tough times have extended from the 3rd world nations to the fully developed or first world nations. It is since economies are now led and influenced by volatilities involving oil producers and business.
Because all industries are practically run and powered by energy, companies appear to not get away from the troubles hounding the energy sector.
For practically even more than a year now, companies all over the world have actually been experiencing crunches brought about by the increasing and skyrocketing rates of oil worldwide market.
A lot of business have actually fallen and have weakened due to the increasing oil prices. There are a growing number of business now applying for bankruptcy security not due to the fact that their management messed up or some executives defrauded them, however because of the external environment positioned by unstable oil prices.
That is why, lean production is getting an increasing number of attention, and more and more companies are choosing to lastly carry out the concepts of the strategy.
Exactly what specifically is lean production? The popular Web website Wikipedia specifies lean production as an approach in management that concentrates and looks carefully at the reduction and elimination of the 7 wastes.
The seven wastes are the typical jobs, equipment and practices discovered in the modern-day day work location. The seven wastes are recognized as factors that hinder productivity or significantly damages it.
The seven key wastes LM attempts to eliminate are the following:.
Over manufacturing– management professionals believe that over production is a complete and unnecessary waste of energy, effort, and capital. That is since overproduction leads to over supply that results in inventories piling up, which in turn will lower or bring down rates for the made items. Essentially over production leads to devaluing the goods that are produced because of simple laws of supply and demand. Create too much and you then have more supply than the market can reasonably demand and then you are forced into selling inventories at fire sale prices.
Over production likewise drains capital from companies, with most of the excess items either put into the trash bin or reaching expiration dates. Production always comes at a cost. If you produce more than the market can bear, you can’t get any return on investment for goods or products that collect dust. It’s best to invest in production when you have reason to expect the market to sustain your production levels.
Over processing– Over processing is essentially just like over production, only that over processing commands extra and unneeded processes.
Transportation and movement– Lean producing objectives to minimize unneeded expenses for transport. Motion is the pace of action within the work places. If the work stations are too compressed and small, employees will not have the ability to move easily, affecting their efficiency.
Inventory and waiting– As mentioned earlier, lean production removes accumulated inventories. Waiting time in all elements is abolished since of the streamlined structure and due to the fact that efficiency is increased.
Scrap and flaws– Mostly, lean production aims to fight the production of commodities and merchandise with scrap and problems.
Goods and outputs with scraps and flaws are undervalued in the market. Exactly what is worse is that the trustworthiness and picture of the business producing them are polluted, resulting to poor sales, poor profits, then eventually to loss, and further, to bankruptcy and business closure.
Not since lean production is a strategy that initially and principally targets the structure of business is lean production always regulating and requiring for organizational modification.
Yes, lean manufacturing aims to justify, simplify and speed up business operations. However its does not imply organizational changes follow.
The organization is generally not modified or changed upon execution of lean manufacturing principles. Lean producing never targets organizational modification, but rather strikes changes in the companies’ environment design and work practices.
Organizational modifications, nevertheless, are suggested and carried out together with lean production only when the desired results and outcome from lean manufacturing practices are not obtained.
Failure of lean production is constantly found to be connected to the effectiveness and adherence to the actual concepts in the implementation of lean production principles and techniques.
That is the only time when organizational change along with lean production is executed. The effects and gains from the implementation will balance out all the difficulties and expenses sustained, so why hesitate anyhow?
At what point does it make sense to seek help? Lean process is not something that can always be achieved internally because it goes against our human nature to be completely objective about the businesses we ourselves run. I personally believe that hiring competent and experienced consulting professionals is well worth the investment. Oftentimes, lean processing consultants may also provide ISO or AS9100 certification services. If you contact a consultant, be sure to do lots of research ahead of time and ask for plenty of references.
Principles of lean manufacturing heavily focus on the reduction or elimination of waste throughout the operation of a manufacturing company. It is so vital to minimize waste that it even has its own term in concepts of lean production, “Muda” which also suggests waste in Japanese.
There are 7 kinds of waste these principles of lean production are committed to get rid of, particularly:.
1. Defects – Having to repair or refurbish the defected product and the time and effort it takes.
2. Processing – Having different add-ons that the consumer does not need.
3. Movement – The movement of people throughout manufacturing.
4. Stock – Having to save the product.
5. Over Production – Producing more than exactly what is demanded in the market.
6. Transport – Unnecessary transport of products or products from one place to another.
7. Waiting – Idle time of individuals because of traffic jams in the manufacturing system.
In decreasing these wastes, the principles of lean production use methods that concentrate on enhancing the production procedure. These are:.
1. Value – The cost of the item is only based upon the customer’s expectation. This indicates that as one of the concepts of lean manufacturing, it has to be value for money and need to meet his/her requirements at a designated time. What makers do to alter the raw materials to the final product is not of relative value to the consumer.
These concepts of lean production are one of the hardest to attain since of competition that the company has to enhance its operations and recognizes the different jobs that add value and those that do not add value.
2. Continues Improvement – As one of the principles of lean production, this involve drawing up the entire company process. From analyzing business process to examining the most reliable points, as one of the principles of lean manufacturing, this modifications exactly how business is handled from the very foundations.
As part of the concepts of lean manufacturing, it is vital to get optimized levels of performance from time, shipment, to resource management and obviously, profit.
3. Consumer Focus – Every production company always has the client initially prior to revenue. As part of the principles of lean production, consumer focus makes certain that customer fulfillment is reached, feedbacks are heard and the needed changes carried out to satisfy the customer base as a whole.
4. Excellence – One of the principles of lean manufacturing takes into mind that there are great deals of ways of making use of business properties efficiently. This principle focuses on the reduction of operating costs while satisfying client’s expectation.
To be able to carry out all the concepts of lean manufacturing in a business, the expert needs to be able to:.
1. Motivate People – Motivate people for the new modifications that the principles of lean production has actually done to the business. This can be done through training of the personnel and employment of people with the required abilities for the task.
2. Employee Involvement – Giving the regular workers the right to choice making will give them a sense of involvement and value to the business is important to follow the concepts of lean production. Having various activities that will bring out the best in each individual.
3. Sharing of Information and Experience – Having experienced co-workers provide info to the newer ones on ways to get the desired outcomes while performing the certain job serves the principles of lean manufacturing.
4. Empowering Key Employees – Identifying the employees that have management and providing them different tasks or obligations through training or other business activities like team building workshops.
5. Favorable Environment – To bring out the concepts of lean manufacturing, having the right environment that is strict and lax at the very same time is very important. People have to comprehend that if they make mistakes, the steps to correct them is plainly stated.
6. Payment and Benefits – Having the right evaluation for each individual with no predispositions is essential in principles of lean manufacturing. Focusing on the results instead of the number of activities or tasks done is important in the principles of lean manufacturing.
7. Perform various tasks all over the business – After successfully having one project that accomplishes the principles of lean manufacturing prosper in one sector of business, it must be extended throughout the whole business one action at a time.
One of the best courses of actions that a company can follow is to consider hiring quality management system consultants that specialize in standards such as ISO 9001 or AS9100. Complying with international standards and being certified is a proven and effective way to communicate that your organization is committed to lean manufacturing principles.
If you are the sort of quality management professional that thinks their lean process ought to be a lean process, well, you have definitely come to the right place. Lean manufacturing is the process that identifies areas of waste that present zero value to the end customer. Here at the Lean Process Blog we will evaluate the modern day trends that shape the most current and cutting edge implementations of lean process quality principles. Connect with us and stay tuned as we blog about all things “Lean” before anyone else.