6 Back to Basics for Operational Excellence

In this post, we have combined the six most important ‘back to basics’ dedicated to empowering manufacturing professionals to rediscover the fundamental principles and practices that propel operational excellence in the industry: OEE, sustainability, short interval control, visual management, KPIs and 5s.

6 Reasons Why Manufacturers Need to Go Back to Basics?

1. Efficiency Improvement: OEE

Overall Equipment Effectiveness (OEE) helps manufacturers identify and eliminate losses in their production processes, increasing efficiency and productivity. Although it is fundamentally a straightforward concept aimed at enhancing productivity and identifying inefficiencies, its application often falls short in practice. By focusing on the basics of OEE, manufacturers can optimise equipment usage, minimise downtime, and improve overall performance.

2. Cost and Waste Reduction: Sustainability

The manufacturing industry stands as a colossal global business, generating four trillion dollars in revenue and employing over 20 million people directly and indirectly. It holds the distinction of being the largest industrial energy consumer and ranks as the third-largest contributor to direct CO2 emissions. Furthermore, sustainability initiatives not only benefit the environment but also help in reducing operational costs. By adopting sustainable practices such as energy and resource conservation, waste reduction, and recycling, manufacturers can lower their expenses while contributing to a cleaner environment. But first, you must understand WHY and HOW to become more sustainable.

3. Real-Time Monitoring and Control: Short Interval Control

Do you want your manufacturing organisation to respond rapidly to changes? Or to deliver on agreed targets, quickly identifying and solving issues as soon as they arise? Short Interval Control (SIC) methodology is a smart way to structure frontline decision-making to reach efficiency based on real-time data. It involves frequent monitoring and adjustment of production processes to ensure they stay on track and enables manufacturers to quickly identify deviations from the plan and take corrective actions, thereby improving quality and minimising waste.

4. Enhanced Communication and Decision Making: Visual Management

Visual tools are integral to the lean and continuous improvement philosophy within the industry. They create an environment where identifying problems is synonymous with uncovering opportunities. This mindset instils an awareness that problems are inevitable, and swift identification and resolution minimise their impact. Examples include Kanban boards, Andon systems, and Gemba walks.

5. Performance Measurement and Goal Setting: KPIs

Key Performance Indicators (KPIs) are essential metrics that help manufacturers gauge their performance against predefined objectives. By tracking KPIs related to productivity, quality, safety, and other key areas, manufacturers can identify areas for improvement and set realistic goals for continuous enhancement.

6. Workplace Organisation and Standardisation: 5S

Ever felt the frustration of searching endlessly for misplaced items, losing precious time in the process? 5s is a methodology focused on workplace organisation and standardisation. Often summarised as “a place for everything and everything in its place,” it aligns with the lean philosophy, aiding in waste elimination by focusing on what truly is needed. It comprises five principles: Sort, Set in order, Shine, Standardise, and Sustain. Implementing 5S fosters a clean, organised, and efficient work environment, which improves safety, morale, and overall operational effectiveness.

See more of our back-to-basics series here.

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