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Manufacturing Excellence Assessment - MCA...

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MCA Connect’s Manufacturing Excellence Assessment provides our clients with the ability to evaluate exactly where they are in their journey while identifying and ranking the strategic intents required to achieve competitive supremacy. The assessment serves as a short-cycle initiative and consists of three self-assessment surveys: an operational walkthrough, interviews with key leaders, and a pro forma statement of financial returns. Strategic initiatives and opportunities are identified in the final executive summary. Educational Assessment Our Manufacturing Excellence Education Assessment evaluates your team’s understanding of Lean concepts and techniques. We will evaluate areas of improvement and develop an educational plan to close any identified gaps, as shown in the following example: Manufacturing Excellence Assessment www.mcaconnect.com 1-866-622-0669
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Page 1: Manufacturing Excellence Assessment - MCA Connectmcaconnect.com/wp-content/uploads/2017/11/Manufacturing_Excelle… · Financial Benefits To complete the Manufacturing Excellence

MCA Connect’s Manufacturing Excellence Assessment provides our clients with the ability to evaluate exactly where they are in their journey while identifying and ranking the strategic intents required to achieve competitive supremacy.

The assessment serves as a short-cycle initiative and consists of three self-assessment surveys: an operational walkthrough, interviews with key leaders, and a pro forma statement of financial returns. Strategic initiatives and opportunities are identified in the final executive summary.

Educational Assessment

Our Manufacturing Excellence Education Assessment evaluates your team’s understanding of Lean concepts and techniques. We will evaluate areas of improvement and develop an educational plan to close any identified gaps, as shown in the following example:

Manufacturing Excellence Assessment

www.mcaconnect.com1-866-622-0669

Manufacturing Excellence Assessment

Manufacturing Excellence Assessment

mcaConnect’s Manufacturing Excellence Assessment provides our clients with the ability to evaluate exactly where they are in their journey while identifying and ranking the strategic intents required to achieve competitive supremacy.

The assessment serves as a short-cycle initiative and consists of three self-assessment surveys: an operational walkthrough, interviews with key leaders, and a pro forma statement of financial returns.Strategic initiatives and opportunities are identified in the final executive summary.

Educational Assessment

Our Manufacturing Excellence Education Assessment evaluates your team’s understanding of Lean concepts and techniques. We will evaluate areas of improvement and develop an educational plan to close any identified gaps, as shown in the following example:

www.mcaconnect.net

Page 2: Manufacturing Excellence Assessment - MCA Connectmcaconnect.com/wp-content/uploads/2017/11/Manufacturing_Excelle… · Financial Benefits To complete the Manufacturing Excellence

Lean Maturity Assessment

The next step in the Assessment methodology is the Manufacturing Excellence Maturity Assessment, which evaluates how deeply lean principles and concepts have been adopted and implemented in your organization, versus just being understood. Areas with low ratings reveal opportunities where you can reduce waste and improve operations.

The Maturity Assessment also provides deeper insight into the overarching corporate culture, leadership, and evaluation of specific lean practices. Input is targeted to senior leaders and key process owners across all functional areas.

Data Integrity AssessmentManufacturing Excellence requires a quantitative understanding of your business in addition to the qualitative side of cultural change and impact on people. Data must be timely and accurate in order to support good business decisions. It is essential in the future state design to ensure takt times, intervals, operator balance, and supermarkets are sized properly to support customer volume and mix requirements. This assessment focuses on items, bill of materials, routes, demand, and labor data to ensure that proper accuracy exists to develop a solid future state design. Counter measures will be identified where there are data integrity challenges.

Operations Walkthrough and Leadership InterviewsAs a key component of our assessment, we will walk through your operations to identify opportunities. The walkthrough is followed by a series of interviews with key maturity survey respondents. These interviews will surface the overarching themes and provide confirmation to what was observed in the walkthrough. The assessments, walkthrough, and interviews allow MCA Connect to make strategic recommendations on the changes necessary to vault your company forward in your competitive landscape.

Cont. Manufacturing Excellence Assessment 2

Lean Maturity Assessment

The next step in the Assessment methodology is the Manufacturing Excellence Maturity Assessment,which evaluates how deeply lean principles and concepts have been adopted and implemented in your organization, versus just being understood. Areas with low ratings reveal opportunities where you can reduce waste and improve operations.

The Maturity Assessment also provides deeper insight into the overarching corporate culture, leadership, and evaluation of specific lean practices. Input is targeted to senior leaders and keyprocess owners across all functional areas.

Data Integrity Assessment

Manufacturing Excellence requires a quantitative understanding of your business in addition to the qualitative side of cultural change and impact on people. Data must be timely and accurate in order to support good business decisions. It is essential in the future state design to ensure takt times, intervals, operator balance, and supermarkets are sized properly to support customer volume and mix requirements. This assessment focuses on items, bill of materials, routes, demand, and labor data to ensure that proper accuracy exists to develop a solid future state design. Counter measures will be identified where there are data integrity challenges.

Operations Walkthrough and Leadership Interviews

As a key component of our assessment, we will walk through your operations to identify opportunities. The walkthrough is followed by a series of interviews with key maturity survey respondents. These interviews will surface the overarching themes and provide confirmation to what was observed in the walkthrough. The assessments, walkthrough, and interviews allow mcaConnect to make strategic recommendations on the changes necessary to vault your company forward in your competitive landscape.

www.mcaconnect.net

Page 3: Manufacturing Excellence Assessment - MCA Connectmcaconnect.com/wp-content/uploads/2017/11/Manufacturing_Excelle… · Financial Benefits To complete the Manufacturing Excellence

Financial Benefits

To complete the Manufacturing Excellence Assessment, we will conduct an analysis of the key operational improvements that can be expected and their associated financial benefits. The financial evaluation begins with the opportunities identified from interviews and operations walkthroughs and links the opportunities identified to the potential bottom line impact resulting from more lean behaviors.

Examples include:

• Reduced Overtime – Result of fewer deviations, demand leveling, & better feeder area visibility

• Reduced Warranty Cost – Result of fewer deviations, better overall quality, & engineering standardization

• Reduced Cost of Manufacturing – Result of fewer deviations & engineering standardization

• Increased Inventory Turns – Result of better visibility to feeder area workload/demand, general 5S clean-out, focus on spares as end-to-end business, & engineering standardization

• Reduced Headcount – Less expediting, less manual manipulation of data, & duplication of effort

• Reduced E&O/Scrap – Result of engineering standardization

• General Productivity – Result of full visibility, full traceability, management/supervisory improvement beyond direct labor, and engineering standardization

• Increased Revenue – Result of improved quality (less pressure to discount) & focus on spares as an end-to-end business

• Increased OTD – Result of focus on spares as end-to-end business & control of spare inventory

Page 4: Manufacturing Excellence Assessment - MCA Connectmcaconnect.com/wp-content/uploads/2017/11/Manufacturing_Excelle… · Financial Benefits To complete the Manufacturing Excellence

Financial Benefits of Lean Transformation – Proforma Cash Flow

Once the assessment is complete and benefits have been quantified, MCA Connect will tailor a program to educate your management team on lean concepts, including identification of value and waste, definition of value streams, flow and pull, and kaizen and continuous improvement.

This assessment creates the foundation for a successful manufacturing excellence transformation in your organization.

Year 1 Year 2 Year 3 3 Yr TotalRevenue -$ 8,812$ 8,988$ 17,800$Cost of Goods Sold

Material (3,269)$ (64)$ (64)$ (3,397)$Labor & Overhead -$ -$ -$ -$

Total Cost of Goods Sold (3,269)$ (64)$ (64)$ (3,397)$Gross Margin 3,269$ 8,876$ 9,052$ 21,197$

LaborEmployee Attrition 1,298$ 1,259$ 1,221$ 3,777$Productivity 40$ 39$ 38$ 118$Reduction in Overtime 77$ 103$ 95$ 275$Reduction in Temporary Labor 17$ 25$ 24$ 65$

Total Labor 1,431$ 1,425$ 1,378$ 4,234$

FacilitiesConsolidation of facilities -$ -$ -$ -$

OtherScrap 5$ 6$ 7$ 18$Warranty Costs 464$ 601$ 721$ 1,786$Obsolete Inventory Write-Offs -$ 7$ 11$ 18$Unabsorbed Labor -$ -$ -$ -$Other 2,610$ (523)$ (533)$ 1,554$Administrative Productivity Improvements -$ -$ -$ -$

Total Other 3,079$ 91$ 206$ 3,376$

Total Expense Reductions 4,510$ 1,516$ 1,584$ 7,611$

Total Profit due to Lean Implementation 7,779$

Expense Reductions

Cash Flow

10,392$ 10,636$ 28,807$

Inventory reduction 7,970$ 2,359$ 1,972$ 12,302$

Total Cash Flow 15,749$ 12,751$ 12,609$ 41,109$

www.mcaconnect.com1-866-622-0669


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