Graphic Arts Magazine October 2018 | Page 32

Management Be lean: reduce waste, improve margins, sell more Dan Sparrow How to make continuous improvement part of your business strategy This is the final article in our series on lean manufacturing for printers. This installment focuses on the structures and processes that reinforce production efficiency. In the first three articles we explored ways to identify and reduce some of the practical waste that occurs in manufacturing. We’ve seen that by developing ordering and ideation por- tals for our clients, we can drastically reduce errors and handling, while provid- ing a ser vice that customers will value. Then we explored the automation of repetitive tasks in prepress and project management, creating production ecosystems that ensure consistent results while minimizing processing time. Finally, we explored how implementing a 5S strategy can increase productivity and the quality of outputs. Now we’ll briefly explore what is arguably the most critical compon- ent of kaizen culture, which is the way we identify, monitor, and improve key performance indicators (KPIs) in our value stream. It’s not uncommon to discover that graphics shops have a wide variety of systems and paperwork supporting produc- tion. Some systems may be unique to a specific production area. Some paperwork is only used as an active tracking mechanism that is physically archived immediately after pro- duction. These conditions create opportunities for errors and eliminate an opportunity to easily generate valuable business intelligence. Single source of truth Data is one of any company’s most valuable competitive assets. Having it locked away in various physical archives or sitting on production-floor hard drives renders it impotent. Ideally, there should be a single source of truth for all data – that is, a centralized accessible digital master domain for any relevant set of data. For example, it’s not uncommon for customer data to be entered and stored by the sales, project management, accounting, and shipping departments. If each department manually enters this data into its own system, this creates four completely different data sets. If, instead, all systems draw the information from one centralized, accessible, digital customer-account record, then anytime there is an update, it’s available to every department. 32 | October 2018 | GRAPHIC ARTS MAGAZINE Likewise, production planning may publish a hard copy sched- ule which gets manually overridden due to a production issue that doesn’t get reported until the hard copy is reviewed well after the shift has ended. That data may never get introduced into a centralized, accessible, digital system – meaning that the reasons for the change and the performance implications can’t be tracked and measured. The most common reasons for not following this common- sense strategy are: “Our systems are incompatible.” “My team can’t do their jobs without hard copy and we don’t want to duplicate effort.” “The costs to integrate our systems are prohibitive.” “I can’t keep that information online! What if we got hacked?” Successful lean printers have made the investments into their digital infrastructure to ensure that they have a single source of truth that connects the entire value chain. Business intelligence Ideally your business systems incorporate your entire value stream. Several companies sell systems that provide ordering portals, customer relationship management, accounting, ordering, payroll, project management, and logistics modules. This can be very convenient, but even companies which have invested in these systems eventually find that there is some nuance to their business or some capability they seek that isn’t accounted for in the standard packages. Consequently, an important feature in these programs is a simple, well- developed application programming interface (API) that allows for custom integration. If, for example, you want to take advantage of the data gener- ated by a press through its internet of things (IOT) connection, it may be that your MIS solution doesn’t have the capability or fields to deal with the machine-generated data. So you can hire a programmer to develop a script that will convert that data into a form that can be used by the system, but without an API you can’t automate its entry. If for example you’re looking for real-time data on the productive uptime of a press as it relates to a particular type of work, or substrate, or cus- tomer, or operator—all of which might be useful business intelligence—it would be a labour-intensive project if that data capture wasn’t automated. If it can’t be measured, it can’t be improved If it is captured automatically, it can form part of a real-time dashboard, useful to both line managers and senior staff in understanding the production status. When the trend is under- stood, and all data is present, it’s possible to develop theories graphicartsmag.com