CI (Continuous Improvement) is a ‘Key Word’ for ‘Optimization’. CI is a ‘mindset’. It is a ‘learned behavior’. An antonym, ‘Entropy’, is the gradual re-establishment of ‘chaos and randomness to work areas, events, and methods’.

Your ‘Operation Layout’ can be a hidden efficiency ‘Opportunity‘. There are various degrees of improvement to consider from workstation position to whole-scale layout, building and location change.

The Lean term ‘Standard Work’ covers the ‘What and How’ that is part of a job description. It is the process ‘Best Practice’ and is the ‘baseline’ for ‘Kaizen Sprints’ and ‘Continuous Improvements’.

What is the ‘Fountain of Youth’? For people, it is ‘Health and Vitality’. For business, it is the ‘Start-Up’ (i.e. ‘Entrepreneurial Spirit’, ‘Profit Potential’ and ‘Imagination’). Business is the foundation of all ‘Civilized Society’. The development of ‘specialization’ enabled humans to buy what was not their ‘specialty’. Still, businesses have a life cycle: Startup, Growth, Maturity…. Maintenance. Successful businesses (like humans) eventually need to ‘reinvent’ themselves. ‘New technology, Novel Features and Relevant Applications’ (plus ‘Systems Optimization’) play an important factor in determining customer success of a product and business.

The ‘Key’ to business is that humans always consider the possibility that ‘maybe there is something better’! That ‘unknown’ which might deliver on health, fitness, intelligence, and satisfaction. (After the ‘biology and psychology’ of existence plays out, what else is left? (i.e. Business). Even artistic and humanitarian ‘not for profit’ must ‘Live’, at least, via a ‘Break-Even’ scenario. (Else, the entity is ‘short-lived’). And, so, for humans, New, Novel and Relevant is part of the ‘Path and Psyche’ of survival. The ‘system of business’ might even be said to be the foundation of all ‘purposed civilized human life’.

New Technology, Novel Features and Relevant Applications’ are the ‘key elements’ for ‘New Business and Product creation’. (The ‘why’ of success!). Even with ‘existing’ products and markets, capturing ‘additional market share’ requires a ‘new, novel and relevant’ marketing angle. The ‘why’ for the consumer to ‘purchase’ your product vs. the existing option. (Again, the ‘unknown potential‘ is delivered from your ‘pitch’ about your ‘better’ solution).

The ‘Start-up’ is a ‘unique’ phase in business. It is a moment to ‘get it right’ and capture ‘market share’ before the inevitable ‘competitors’ see profit-potential and copy your idea. The ‘start-up’ phase allows development of ‘unique features’ and ‘market niche’. For companies that have reached the potential stagnation point at the ‘Plateau of Maturity’, this is the critical juncture to either develop (

or buy) new products and new market share. (or both!). (i.e. necessary new revenue and profits delivered from ‘Business Growth’).

Value and business development’ are not ‘easy’ achievements. It takes time, effort and wise investment strategies to deliver ‘Business Success’. Though, ‘lessons’ from ‘lack of development’ will spur ‘creation’ of ‘new products and systems’. Voyeursdo study and ‘learn’ from ‘business successes and failures’. So, again, in life, as in business to ‘re-invent’ is to live! Though it must be remembered, successful ‘Start-up’ businesses ‘Optimize Systems’ and deliver better ‘Customer Expectations’ with ‘New Technology, Novel Features and Relevant Applications’ which develops required ‘Business Growth’!

Todd Adams

OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.

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What is the ‘Greatest Constraint‘ holding your business from ‘Exponential Growth‘? Sales, Production, Expenses, Supply chain? Since the business ecosystem is all ‘Interconnected’, significant changes to one ‘area’ will require updates to ‘associated’ areas. As an example, increases in sales will require more production capacity or services rendered. Some questions must be considered: Can Production handle the ‘new’ rate? Can the increase in production occur without a detrimental effect on Quality? Can the ‘Efficiency Systems’ handle the production increase? The point being, if you solve your ‘Greatest Constraint(s)’, can your system adjust accordingly?

There is a ‘Theory of Thought’ on production constraints which has merit. Largely popularized by Eliyahu Goldratt’s ‘Theory of Constraints’ which theorizes that focusing ‘Improvement Efforts’ on the ‘greatest constraint(s)‘ can lead to ‘MassiveGains‘ in productivity. From this perspective, it is ‘worth the effort to consider the ‘list of constraints’ and constructively manage efforts at ‘prioritization and solutions‘.

Discovering your systems greatest constraint(s) works in conjunction with today’s LeanValue Stream Map’ (VSM) approach to systems optimization. A VSM plots out the ‘Process Steps’ from product request to customer delivery. Each Process Step identifies the metrics of ‘Lead Time’ (to include ‘queue time’ prior and post the ‘process step’), ‘Process Cycle Time’ (Time to complete the operation) and ‘Percent Correct and Accurate’ (Quality Level). Basically, with a Value Stream Map you are looking at the ‘efficiency’ and ‘quality’ of the entire system at each ‘step’ in ‘Production or Service delivery’.

A current ‘VSM view’ will uncover system constraints. The ‘VSM Team’ approach provides ‘insight’, ‘discovery’ and ‘agreement’ on system ‘hindrances’ (constraints). ‘Current system constraint’ solutions set up the creation of a ‘Future’ system’.

Time is always a ‘limiting factor’. It is the one constant constraint across all production. From this metric, additional constraint variables can be considered. Quality, automation, expenses, efficiency, supply chain, sales…. From the VSM view, the team can identify and prioritize ‘system constraint(s) with solutions’ in terms of ‘time and cost’ for implementation. Planning for improvement requires real time and cost calculations. The factors of ‘Low Cost’ and ‘Ease of Implementation’ raise the priority of improvements on the ‘to do list. Improvements can be divided into ‘Just do it’ (less than one day), ‘Kaizen Sprint’ (one week or less), ‘Project’ (three months or less) or ‘Parking Lot’ (beyond three months).

All conceivable production constraints can be categorized. Setting long-term company direction has a special top-level view and approach. It is important to consider company strategy development in a time frame of one to three years. Many ‘Lean’ practitioners use the ‘Hosin Kanry’ methodology to ‘hone in on’ current tasks required for delivery of company strategy. The constraint solutions discovered in the ‘Value Stream Analysis’ give credence to your business strategy.

Discovery and resolution of system ‘constraints’ ‘sets the stage’ for clarity on new business development with a ‘Blue Ocean’ view. (Create untapped markets for new product consideration). Discovery of current ‘production constraints’ leads to ‘Clarity of Thought’ and implementation of ‘solutions‘ to improve business systems. This improvement in operations and sales leads to ‘Business Growth’!

Todd Adams

OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.

As the Famous Sales Guru Grant Cardone says, 10X your OBSESSION!

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It may seem obvious to the logically trained that ‘Systems‘ are needed, but to the ‘Free Spirit‘, ‘rules and regulations’ seem only to ‘Stifle Innovation‘. Well, both viewpoints have merit! You must know your objective. The main ‘objective‘ of business is to be successful at Return on Investment. One important part of ROI success is ‘Business Growth‘. From a ‘Production‘ view, ‘Systems’ are ‘key‘ to develop processes which can be ‘honed‘ into efficiency and quality metrics that deliver available ‘Production Capacity‘. There are constraints, but from an ‘Arial View‘ properly ‘developed systems‘ deliver basic ‘Production Success‘.

The ‘take-away‘ is that ‘systems are necessary‘ to discover available ‘Production Capacity‘. Efficient systems will have been ‘iteratively‘ analyzed to deliver ‘better and better’ metrics. This may seem obvious to the ‘aficionado’ but when you are ‘in the trench’ with manual and semi-manual systems, ‘resistance and confusion‘ can be obstacles which circumvent improvement. (Quantitatively, ‘efficiency improvement‘ is defined by ‘Cycle-Time‘). The ‘rubber meets the road’ when ‘quantitative cycle-time metrics‘ set the ‘standard‘. Again, your ‘Systems’ will provide the ‘process’ and ‘cycle-time’ will set the ‘production rate’. Current ‘Capacity‘ can then be ‘utilized‘ before ‘costing for expansion‘ needs to be considered.

‘Innovative products‘ are the ‘main’ deliverable for ‘Research & Development‘. Though there are ‘Systems‘ for R&D, R&D builds random ‘think-time‘ into the development equation. It does take ‘time to think‘. Uniquely, ‘think-time’ cannot be defined by ground level ‘efficiency metrics’. (Trying and failing is part of the ‘Innovation’ process). Efficient ‘Production Systems‘ do not have obvious ‘think-time’ built into the process. Team-based operations allow associates ‘time to suggest‘ improvements in ‘Performance Huddles‘ prior and post to operations. That is the beauty of the ‘Efficient Production System’: A company culture of Feedback Communication‘.

Communication allows associates time to contribute ‘Improvement suggestions‘ which can be team and/or individually rewarded. It is difficult to motivate and keep motivated ‘manual’ and ‘semi-manual’ systems. One solution is to develop finite ‘tasks‘ at a ‘sustainable rate‘ with position ‘rotation‘ to alleviate ‘stress‘. Your ‘Company Culture‘ will reinforce the ‘why‘ for Continuous Improvement. (i.e. Business Survival!). ‘Time to Think‘ is part of the innovation process. It is important to develop ‘Feedback Periods‘ for ‘Systems Improvements‘ in both Production and R&D areas of operations.

The ‘Bottom-Line’ for ‘Systems Development‘ is that ‘Cycle-Time’ and ‘Quality Levels’ must be optimized to reach ‘Production Perfection‘. Discovery of the ‘right production process‘ is the challenge for ‘Optimization Engineering‘. The path to ‘Success‘ may vary but always involves ‘associates and stakeholders‘. This is where ‘Value Stream Maps, Kaizen Sprints, Plant Floor Layout, Automation, ERP System Development, Standard Work, New Equipment and System Integration Projects’….. can ‘enlighten ideas‘ for ‘innovative systems‘ to deliver required ‘Services and Products‘ plus ‘Customer Delight‘. There are always ‘constraints‘, but that is the ‘Optimization Challenge‘. (If Continuous Improvement was easy, everyone would figure it out!). ‘Continuous Improvement System Development‘ will lead to ‘Business Growth and Company Survival!

Todd Adams

OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.

As the Famous Sales Guru Grant Cardone says, 10X your OBSESSION!

An efficient ERP system (Enterprise Resource Planning) is the hidden software backbone in competitive organizations. The ‘value‘ of the ‘right‘ system cannot be overstated. There are many legacy names for these systems. MRP, MRP2 (Material Resource Planning) and POS (Point of Sale)….. These software products focus on one specific business area, though they can ‘expand‘ with add-on modules to cover additional essential business systems such as customer support, shipping/receiving, product, and manufacturing databases to include BOM (Bill of Materials) and Routers (Process Sequence).

The choice between ERP software systems can be derived from different ‘economic‘ and ‘ease of implementation‘ factors. The easiest and least costly option for ERP development is to install ERP software ‘as designed‘ within ‘user-configurable‘ parameters. The resulting database information can be a ‘gold mine’, though the software can be limited by ‘generic‘ data types. Another approach would be to develop ‘custom ERP software‘ to store specific data information. This focus is more costly, though this ‘developed‘ ERP software can deliver better efficiency results. The choice between the two ERP options is a combination of ‘capital improvement budgets‘ and ‘time required‘ for system implementation. Still, before a choice is made, a thought should be given to the amount of ‘clarity‘ which will be delivered from the ERP System and the resulting business decisions that can be derived from the ‘process data‘.

Many large organizations have the resources required to consider custom developed ERP system software. Though, small to midsize companies may have an advantage and a choice from a ‘wide-array‘ of ERP software systems on the market. (Luckily, the number of ERP software options from entrepreneurial developers is ‘robust‘!) Again, there are factors to consider. The advantage of a smaller less robust ERP software system is that it can be less costly, more easily installed and deliver 80% of desired data metrics. Plus, another advantage of a ‘smaller ERP system‘ is that the ‘faster‘ to ‘business self-sufficiency‘ likely increases the chance of business survival. Large ERP systems require ‘economic means‘ and ‘time‘ for investigation, development, integration, and training. Another factor is that the ‘required‘ data may be a ‘moving‘ target. As business develops and products change, ERP systems may need to adjust to deliver new data metrics. ‘Smaller’ ERP Systems may also have the advantage of ‘metric adjustment‘ as well.

The main ‘Lean‘ benefit of a well-defined ERP System is that the system needs to deliver ‘clarity‘ of ‘Key Performance Indicators‘. This clarity is a result of ‘mined‘ data which can deliver efficiency and quality insights. Though, it is important to know ‘What‘ data to acquire, ‘How‘ that data is ‘Interpreted‘ and then ‘Implemented‘ into your ‘business strategy‘. ERP System data is essential to deliver ‘expected’ customer ‘delight‘. (Why else would someone purchase your product?). ERP system development is the ‘hidden‘ Lean essential to a well-run ‘Lean‘ organization.

Normally, the focus of ‘Lean‘ is on the ‘Human Factor‘ side of organizational efficiency. This important ‘Human Factor View‘ of Lean is supported by the ‘Less-Visible’ ‘ERP System‘ backbone which allows ‘semi-automation‘ and retrieval of vital ‘process data‘. Lean ERP systems directly affect an organizations ‘Competitive Advantage‘. Efficient ‘business system data‘ is the ‘deliverable‘ of a well-developed ERP System and the main focus of BPI (Business Process Improvement) which leads to the ‘Holy Grail‘ of business: ‘Business Growth‘!

Todd Adams

OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.

As the Famous Sales Guru Grant Cardone says, 10X your OBSESSION!

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The term ‘Kanban’ is generic and describes two approaches to ‘Operations Management’. The first ‘Lean Tool‘ Kanban use involves a ‘Production Level‘ view where ‘Parts Replenishment’ occurs in a ‘Just in Time’ (JIT) ‘Supply Chain’ system. As ‘Parts’ are consumed in production, a ‘Trigger Point’ is reached and a ‘Kanban Card’ signals ‘Replenishment’ to resupply parts before the final ‘Buffer’ quantity is consumed. This system consists of a ‘Parts Bin’ in inventory that replenishes the ‘Production Floor’ resetting ‘Part Quantity’ until consumption signals another resupply. After the resupply, a ‘Vendor Activity’ is enacted to replenish the ‘Bin Inventory’. (This ‘Kanban’ operation is known as the ‘3-bin Kanban System’).

The main benefit of this JIT Kanban system focuses on aligning part inventory levels with the ‘Rate of Demand’ set by the customer which is translated into the ‘Heartbeat of Production’ and accompanying inventory ‘Part Levels’.

The second ‘Kanban’ approach involves an ‘Upper-Level’ operations view of the ‘Flow of Work’ which utilizes a ‘Kanban Board’ to visualize ‘Stages of Work’. ‘Service’ and ‘Knowledge’ (software development) work is often optimized with this type of Kanban system. (Also known as SCRUM Development using the ‘Agile’ production philosophy).

In this ‘Kanban’ system, a ‘Master Controller’ addresses ‘Production Issues’ at each stage of product development. This ‘Operations View’ optimizes ‘Work Flow’ with available ‘Work Capacity’ and allows the ‘Master Controller’ to ‘Spot Bottlenecks’ and adjust as required. The ‘Master Controller’ acts as the ‘Point-Man’ to optimize production of the ‘Development Team’. The ‘Customer’ is represented by a ‘Product Owner’ who represents ‘Stakeholders’ and the ‘Voice of the Customer’. A ‘Kanban Board’ allows a ‘Visual’ to schedule and deliver ‘Stages of Work‘ required for efficient product development.

Each of these Lean ‘Kanban’ approaches to ‘Optimization’ focuses on the efficient delivery of parts and products from Kanban systems which delivers ‘PRODUCTION CAPACITY‘ and ‘BUSINESS GROWTH’!

Todd Adams

OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.

As the Famous Sales Guru Grant Cardone says, 10X your OBSESSION!

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Overall Equipment Effectiveness (OEE) is often used as a production floor Key Performance Indicator (KPI). OEE is calculated with the formula as OEE = (Availability) * (Performance) * (Quality). As an example, if Availability = 82%, Performance = 89% and Quality = 93%, the OEE is calculated as 68%. Systems have ‘Norms’ and a specific reading measured against industry standards reveals the effectiveness of your process. (Although, an OEE of 85% is generally considered the ‘Target’!).

The OEE component ‘Availability’ is defined as the percentage of scheduled time that an operation is available to operate. This is a measurement of ‘Uptime’ and excludes the effects of ‘Quality’, ‘Performance’ and scheduled ‘Down Time’. ‘Performance’ (also known as ‘Production’) measures the ‘Speed’ of a work center as a percentage of the WC’s ‘Designed Speed’. Performance excludes the effects of ‘Quality’ and ‘Availability’. Performance can be calculated as (‘Parts Produced’ * ‘Ideal Cycle Time’/ ‘Operating Time’). The ‘Quality’ portion of OEE represents as a percentage of ‘Total Units Started’. This ‘Quality Yield’ excludes the effects of ‘Availability’ and ‘Performance’. As a calculation, ‘Quality’ = (‘Units Produced – ‘Defective Units)/ (‘Units Produced’).

What factors ‘Contribute’ to the three OEE areas of Availability, Performance, and Quality? For Availability, it is the ‘Planned Down Time’ and ‘Equipment Breakdown Time’. For Performance, the factors affecting OEE are ‘Minor Stops’and ‘Speed Loss’Quality is affected by ‘Production Rejects’ and ‘Rejects on Start-up’. An increased OEE score can be obtained from specific ‘Counter-Measures’ to reduce to ‘Effects’ of these factors.

‘Special Circumstances’ can make the OEE less ‘Valuable’ as a ‘Performance Metric’. One circumstance could be a variable cost in operation of the equipment. Another might be a significantly stringent ‘Quality’ metric which could skew the OEE score. (i.e. A system where the Quality cost of error is significantly more a factor of effectiveness than either ‘Performance’ or ‘Availability’).

Still, with these exceptions, the OEE metric as a Key Performance Indicator can deliver a better performance which leads to greater capacity. The innovation of products to fill that ‘Capacity Void’ leads to sector ‘Domination’ and BUSINESS GROWTH!

Todd Adams

OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.

As the Famous Sales Guru Grant Cardone says, 10X your OBSESSION!

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Pre-9/11 Military, (Service: Enlisted Active Duty, ROTC, Ohio Army National Guard (Artillery), (Then, Inactive Ready Reserve), Lieutenant, 10+ years ‘In Boots’). I don’t think it makes a difference if you are ‘Pre or Post’ 9/11 from a military ‘Leadership’ perspective. Why? The U.S. Military ‘Trains as it Fights’. True, there is a ‘Personal Perspective Difference’ when you land ‘Boots on the Ground’, but from a ‘Learned Leadership’ perspective, you must still ‘Deliver the Mission’ on what was trained (to include the ‘Unexpected’). What is the ‘Leadership Take-Away’ from my military experience? (i.e. Did you ‘Learn’ anything? (Yes)).

There is much talk about ‘Integrity’ which is a characteristic espoused as quite ‘Necessary’ as a leadership requirement. This is true. People do ‘Need Standards’ and integrity delivers ‘Required Transparency’. Leadership in the military and in business that ‘Adheres to Integrity’ can’t go far wrong.

There are ‘Traits’ that become apparent with ‘Successful Leadership’. At least from a military perspective, ‘How to Lead’ became a personal goal. It is ‘not’ something that I was ever specifically told or which I discovered in a book. Leadership is a very ‘well-worn’ word as there is much said and written on the subject. One expression that, I believe, is accurate in describing successful leadership would be the phrase ‘Servant Leader’. (i.e. ‘Give’ more than you ‘Get’!).

The ‘Best’ way to achieve mission success is to utilize the ‘Natural Leadership’ of the team. The same is true in business, you need to use the ‘Strength of the Team’ to accomplish the mission.

Team development is essential. One aspect of the military is that you don’t get to pick the team. At least initially. You must ‘Train’ the team you are ‘Given’. As in business, it is ‘Best’ to try and ‘Train-up’ the team you inherit. Still, it is essential (and ‘Fortuitous’) when a ‘Great Team Lead’ (Leaders) can deliver on team/mission goals.

Picking those team members who ‘Excel’ at knowledge, enthusiasm and proactive activities goes a long way towards ‘Delivery of the Mission’ (The only ‘Real’ result of which you are ‘Judged’). One benefit of ‘Lifting the ‘Team’ is that as the team ‘Rises’ so you will ‘Rise’. Business development (i.e. Growth), as in the military, starts with the delivery of ‘Today’s Goals’ so that ‘Clarity of Thought’ can plan and deliver ‘Tomorrow’s Goals’.

Todd Adams

OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.

As the Famous Sales Guru Grant Cardone says, 10X your OBSESSION!

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