MARKETING MATTERSCEO JOURNAL
The Art and Science of Operations Management H
DAN MARCUS, TDC CONSULTING INC., AMHERST, WISCONSIN
’ow many engineers does it take to change a light bulb? I wish I had a funny punch line
for that setup, because good laughs are hard to come by when dealing with engineering-oriented clients. Among other challenges, these metalcasters strongly resist my answer to a similar but altogether serious setup: How many engineers does it take to manage operations? As I see it, the decidedly unfunny punch line is “none,” because proper operations management is not much about engineering at all. Instead, the heart of operations
management is production schedul- ing, labor planning and plant supervision, and I have found these critical responsibilities are impaired by over-application of the scientific principles and technical approaches so dear to the hearts of engineers. So, it’s my view engineers tasked with managing operations must embrace a new set of skills and tools if they are to be successful. When it comes to produc-
tion scheduling, engineers tend to be too eager to accept that software can do the job. But in truth there is no such thing as “scheduling software,” only programs that mechanically count lead times and blindly assign molding hours to the soonest available capacity, no matter whether it “fits” there. Instead, the best operations managers know the heart of scheduling, especially in a job shop, is in the art of scheduling—in human- based knowledge about exactly how much should run, where and in what order, throughout each molding shift and production day. Rather than ever more complex algorithms, production scheduling is about carefully craft- ing perfect shift-by-shift production days that are set up to optimize flow, throughput and manufacturing ef- fectiveness, and only a flesh-and-blood scheduler can do that. Contrary to engineering instinct, labor planning is not exclusively or even mainly about productivity and
questions such as “How many people can I eliminate with new technology?” or “How much efficiency can I gain by making cycle time reductions?” To be successful as operations managers, engineers need to understand the job is to create the right labor force rather than the most efficient or least costly labor force. Te best know to leave efficiency to the engineers and always subordinate efficiency to effectiveness. So what is the right, most effective
labor force? First and foremost, it’s the one that can execute the produc- tion schedule, exactly as it is laid out, each day throughout the month
When it comes to
production scheduling, engineers tend to be
too eager to accept that software can do the job.
without overtime and with near 100 percent on-time delivery and short lead times. Te right labor force also is the one that can accomplish it all with not one more labor hour than is necessary; it is perfectly right-sized for each day’s production schedule and each month’s production forecast, so it can both optimize operational effectiveness and enable maximum business profitability. Once the right labor force has been put into place and overtime, late deliveries and long lead times are gone, the time will be ripe to explore productivity gains. Te art and science of operations
management is nowhere differenti- ated more starkly than in the realm of plant supervision. Engineers tend to focus on waste, productivity, efficien- cy and establishing “the rules”—stan- dards, rates, routings, work instruc- tions and so on. Again, while these
tactics are necessary and valuable, the most successful operations managers learn quickly that outstanding plant supervision is mainly about people rather than process.
It begins with the ability to com-
municate, facilitate, resolve conflict and exercise initiative in an entre- preneurial way to motivate employ- ees, execute production schedules, hit targets and otherwise put the operation “in control.” Once in control, plant supervision can begin to explore productivity and other forms of improvement, often in concert with engineering but always with an eye to the training and development of hourly person- nel and improving their safety, health and working conditions. What impresses me most about the best plant managers and production supervisors is their innate ability to respect and gain respect from the hourly workforce. Tey seem somehow gifted at getting employees to come to work each day, inspiring them to produce good castings and holding them accountable for performance. And their
natural sense of right and responsibil- ity enables them to do this in a fair, firm and consistent manner without angst and without accountability becoming personal. Engineers can and do success-
fully make the transition to opera- tions management. Some get there by embracing what’s described here, others by surrounding themselves with colleagues who embody those skillsets and thought processes. CEOs need to understand what they are getting when an engineer is appointed to lead operations. Tey need to manage and develop them appropriately, support them by investing in strong shift and/ or department supervisors and, maybe most important of all, maintain a good sense of humor.
Keep the conversation going. Reach the author at
tdcmetal@wi-net.com to comment on this or any CEO Journal column or to suggest future topics.
October 2013 MODERN CASTING | 43
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68