Tag Archives: competitive

Semi-Automation: Achieving Speed And Also Cost Reductions

At the beginning of the 20th century an innovator name Henry Ford revolutionised the auto industry and consequently the industrial world with the invention of the assembly line. Prior to that workers walked over to each product, carrying with them the add on parts and their tools.  Usually they made numerous trips, switching between parts and tools. A considerable amount of time was taken up by the workers travelling to and from the products.  The assembly line turned this concept around to the exact opposite, where the products move to the workers while the workers remain in one spot.  By having the workers, their tools, and parts in one place individual travel times are eliminated, thus speeding up the assembly process.  Additional, each worker would be responsible for attaching the same part(s) onto the product.  By specialising the functions of each worker the tasks become repetitive, therefore, reducing the chances of errors and speeding up the assembly process further.

The assembly line made it possible for more people to afford their own vehicle due to reduced costs and increased productivity; by having more products made over a period of time.  It would be advantageous to use those same principles in our work to raise our productivity but that is only possible if your work consists of only repetitive tasks.  Project work, for the most part, is not repetitive.  Every assignment is different or has varying degrees of differences from the next.  If your project does have some repetitive tasks within it or it has a task that is similar to a task in other project then some of the aspects of the assembly line could be incorporated into your project and others’.  This aspect I’m referring to is what I call ‘semi-automation’.  The repetitive or similar tasks could be off loaded to a process that doesn’t not require as many inputs compared to a fully manual operation.  That semi-automatic process isn’t necessarily a robot performing tasks.  It could be software used for number crunching or a jig / fixture for product alignment.

A friend owns a small business that designs and makes custom reflective products.  He told me that no two orders are the same.  All of the products are designed based on the individual customers’ requirements.  My friend told me that he spends a considerable amount of time manually quoting each proposed requirement and he said there are times when he finds it difficult to keep up when there is a surge in quotation requests. I suggested to him that he should make the quotation process semi-automatic.  He quickly dismissed the suggestion by saying each quotation is different.  He said the sizes and material combinations differ between the requests so it is impossible to do that.  I asked him if there were any common factors between the quotes for each product.  He thought about it for a few seconds and then said yes.  I told him those common factors could form the basis for making his quotation process semi-automatic.  I told him that the numbers for the common factors could be calculated by a computer programme while he manually calculates the values for the unique factors and then incorporate the two sets of numbers into the formal quotation.  A few weeks later I spoke with him.  He told me that he created a spreadsheet that has entry fields for both the common and unique factors.  He said he now spends one tenth the amount of time on the quotations compared to before.

Another friend who is an engineer mentioned to me a product his company has been making successfully for many years but now they’re finding it difficult to be competitive. He said the competition is offering their own product at a much lower price and they are not sure how to bring down their costs, in order to match the price.  He said there was one considerable difference with this order compared to the others.  That was the quantity. They had never received a quotation request for such a large quantity before.  I noted that they were fairly competitive with smaller orders but not with this large quote.  I asked him what processes were they using at his company to make this product.  As it turns out, their processes were very manual intensive.  For a small order, the number of manual inputs may not have that great of an impact as compared to a large order.  I told him that he could reduce the amount of manual inputs by using fixtures to position the components while they are being secured to one another.  Similar to the previous example, the time savings from reducing the number of manual inputs becomes greater with increased volumes. The greater the time savings, the lower the costs.

This approach of semi-automation can be used for any task or procedure that have repetitive or very similar actions.  These repetitive actions do not have to occur in the same project or task in order to have them semi-automated.  Think of it like there are two different products that need to be painted the same colour. Rather than painting them separately in their own production cells, they could be sent to a common paint booth to be painted at the same time.  The two separate steps would be combined into one step for both projects.

Until next time!

Innovation, No It’s Too Hard

Innovation isn’t hard; I believe it’s a trait we all have.  It’s just that most of us don’t recognise it in ourselves.  We tend to look at innovation as something that is brilliant, radical, ground-breaking; something only the very intelligent or the very creative are capable of doing.  The reasoning for this belief is that innovation is typically associated with the terms ‘thinking or acting outside the box’.  It is also generally viewed as a revolutionary idea, but is it necessary for an idea to be revolutionary in order for it to be innovative?  Not necessarily.  Can you be inside the box and still be innovative?  Absolutely.  In order to explain my answers we will need to cover the definition and impacts of being inside or outside the ‘box’.
The box represents defined rules, guidelines, policies, and history; also known as the norm.  When someone produces an idea or action that is outside the box, they are creating something that is not governed by those rules, guidelines, et cetera; away from the norm. That idea becomes something that is far from the expected; it is considered uncharted territory.  That is not a bad thing but it does come with risks.  The further away from the box the greater the risks.  As with any organisation, those risks need to be evaluated.  If you can evaluate the risks, you would in effect, move closer to the box.  If the risks cannot be evaluated then it would not be viable to innovate outside the box.

Conversely, when you act within the box your ideas are in conformance to those constraints, therefore, the risks would be minimal. Regardless of where you operate within the box the risks would be constant in the probability of occurrences.

You are probably wondering which is better, inside or outside the box?  It all comes down to the situation and available resources such as money, time, knowledge, et cetera.  Risk evaluation is the other essential requirement.  With higher risks one would need those resources to deal with any unforeseen issues.  If your organisation has an appreciable amount of those resources, and the risks can be evaluated, then outside the box would a viable option.  Conversely, if your company has a somewhat limited amount of those resources, and the risks cannot be evaluated, then inside the box would be a more appropriate option.
Even if a company has large cash reserves and knowledge base but limited time to complete the project then inside the box would be a better approach.
Consider this hypothetical example of a component that is designed to secure a second component to a third.  Let’s say there is a slight design oversight that allows this component to be incorrectly installed, resulting in an unsecure connection between the second and third components.  All of the components are in compliance to the design criteria in terms of form, fit, and function as long as the first component is installed properly.  Let’s add to the perspective that if the machine, in which these components were installed, was operating with an unsecure connection then the consequences could be very grave.  Now imagine there are hundreds of these machines in service worldwide.  Considering the interconnectivity of the three components and the seriousness of a potential situation; which would be the preferred approach to resolve this issue?  Inside or outside the box?

I will discuss it further in the next post.

Image Why bother with productivity?  The answer is really a given since we need to be productive in order for our businesses to survive.  The real question becomes, do we really need to be more productive?  The short answer is YES.  Now comes the explanation; globalisation.

With increasing globalisation in the industrial world there comes with it positive effects for business but also negative ones.  The positive effects are an increase in opportunities aboard in foreign markets and an increase in foreign investment in domestic products and services.  The negative effects are increased competition, sensitivity to those foreign markets, and changes to governing policies.
With the aspect of competition, think of globalisation as a two-way street.  If your company has access to those foreign markets then the companies in those foreign markets would have access to your market.
The opportunities are there for your company but the question is how does your company win those opportunities with increased competition?  One approach that should be considered is to increase your company’s productivity. There are several ways to increase productivity. Innovation is one way. Flexibility and speed in getting your product or service to market are another two ways. There are other answers to this problem but for now we will focus on innovation, flexibility, and speed.
How is innovation defined?  According to Dictionary.com, Innovation is something new or different introduced or the introduction of new things or methods.  For the longest time the typical buzz words for innovation has been ‘thinking or acting outside the box’.  Is it really necessary to be outside the box to be innovative?  Not necessarily; it all comes down to the situation or the immediate requirement.
The next facet for improving productivity and thus competitiveness is flexibility.  Flexibility by definition is the ability to modify or be adaptable.  This is not only a physical attribute but also psychological.  Sometimes the biggest obstacles to flexibility are individual mindset, stubbornness, or the corporate culture itself.  How does an individual or company overcome the tangible and the intangible obstacles?  The answers to that question are varied and will be covered in the consecutive posts.
The third concept what will be discussed is speed.  Speed is not always a concept of performing tasks and processes faster.  Usually it is considered how long one takes to achieve the required outcome while not necessarily looking at the steps to get there.  If the outcome is more pertinent than the steps then the time to achieve the outcome could be shortened by modifying the steps or devising a new step(s) to replace two or more.  The other approach could be a partial or complete revamp of the process path.  These methods will also be discussed in detail.
This post is an introduction to a series of posts that address these three concepts that could result in you and your organisation becoming more productive.  It is my desire that this blog helps your company to become more competitive in this era of globalisation.