Seven keys to manufacturing

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The Seven Keys to World Class Manufacturing

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TABLE OF CONTENTS:

PAGE

Reduce Lead Times ....................................................................................................3 Cut Operations Costs ..................................................................................................4 Speed Time-to-Market................................................................................................6 Exceed Customer Expectations ....................................................................................7 Streamline Outsourcing Processes ...............................................................................8 Manage the Global Enterprise .....................................................................................8Unlocking the Potential ............................................................................................10 About Infor .............................................................................................................11

Executive Overview
What does it mean to be a world-class competitor? It means being successful in your chosen market against any competition—regardless ofsize, country of origin or resources. It means matching or exceeding any competitor on quality, lead time, flexibility, cost/price, customer service and innovation. It means picking your battles—competing where and when you choose and on terms that you dictate. It means you are in control and your competitors struggle to emulate your success. What does it take to be world class? RichardSchonberger, a leading manufacturing consultant, created the term “world-class manufacturing.” According to Schonberger, “manufacturing is gained by marshalling the resources for continual rapid improvement.” To achieve world-class status, companies must change procedures and concepts, which in turn leads to transforming relations among suppliers, purchasers, producers and customers. Enterprise automationis indispensable to manufacturing innovators who aim to gain market share, operate at peak efficiency and exceed customer expectations so they can be world class in their industry. How can your company become and remain world class? There are seven keys to becoming a worldclass manufacturer that distill the broad concepts above into specific actions that can be addressed and accomplished in yourcompany. Each is presented with a brief discussion and examples of its impact on a manufacturing organization and its competitiveness. A more detailed discussion of each of the seven keys is available from Infor. The keys to success, in no particular order, are: 1 Reduce lead times 2 Speed time-to-market 3 Cut operations costs 4 Exceed customer expectations 5 Manage the global enterprise 6 Streamlineoutsourcing processes 7 Improve business performance visibility Each of these objectives is important in and of itself; however, taken together, they describe the focus of the activities and attitudes that define world class.

Reduce Lead Times
Shorter lead times are always a good thing. In many markets, the ability to deliver sooner will win business away from competitors with similar productfeatures, quality and price. In other markets, quick delivery can justify a premium price and will certainly enhance customer satisfaction. In all cases, shorter lead times increase flexibility and agility, reduce the need for inventory buffers and lowers obsolescence risk. Lead times are cumulative and bi-directional—that is, order handling, planning, procurement, inspection, manufacturing,handling, picking, packing, and delivery all contribute to the lead time; and the time it takes to get signals down the supply chain to initiate each activity adds to the overall time it takes to get the job done.

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Inflexible business rules and policies can drive undesired effects. Purchasing rules too focused on unit cost lead to large quantity buys that result in high inventory and long lead...
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