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Formatting Data for Collection Sheets Can be Broken Down into These Four Simple Steps, Making Analysis More Successful.

Formatting Data for Collection Sheets Can be Broken Down into These Four Simple Steps, Making Analysis More Successful.

 by Saul Bautista
formatting data

Our client partners often struggle with formatting data collection sheets. Without a solid structure, the analysis phase becomes tedious (or even impossible).

As we help clients dig into home-grown Excel data sheets, we find they have the best intentions of collecting performance data. However, when they attempt to analyze the data, they discover that the way they are formatting data limits their ability to create actionable intelligence and visualizations.

Common issues include using any text entry that the user chooses, keeping different time periods on separate tabs, and not standardizing reason codes for downtime or scrap.

Preparing Data for Analysis in Excel, Power BI, or Tableau

Excel, Power BI, Tableau, and Minitab are powerful tools for data analysis, but before you can get started with analysis, formatting data correctly becomes a priority. Proper data formatting is crucial to ensuring that you can work with your data accurately and efficiently.

You may be asking, Where do we start?

Here are 4 simple steps to take formatting data for Excel or Power BI to the next level:

Step 1Organize your data collection

To perform data analysis, your data collection must first be organized in a way that makes the analysis simple. We must think about how the software we use processes the data. For ease of computation, it is best to put all the data in one single table or database. Related data should be organized, with different types of data separated into columns.

It is best practice to format all data in the same table or database. Commonly, we see some managers practice storing weeks or months of data on separate Excel worksheets. This makes the analysis difficult due to having to amalgamate all the individual tables into one. In this scenario, the person who sets up the analysis will end up performing multiple moves with the data, and there will be an additional element of human error introduced. Additionally, someone will inevitably change the structure of one or more of the individual tabs, and then a simple copy and paste becomes tedious.

When we design our data table, we want to make it as simple as possible for the analysis phase.

For example, to format a table that contains machine production and downtime data, you could use a format that includes the following columns:

  • Data: The date of the production and downtime data.
  • Shift: The shift during which the production and downtime data were collected. For example, if you have a two-shift system, you might have a "Shift 1" and "Shift 2" column.
  • Machine: The machine or machines that are being monitored for production and downtime data.
  • Production Plan: The amount of product produced by each machine during the shift. This can be measured in units, pounds, or another appropriate unit of measure.
  • Production Actual: The amount of product produced by each machine during the shift. This can be measured in units, pounds, or another appropriate unit of measure.
  • Downtime: The amount of time each machine was down during the shift. This can be measured in minutes, hours, or another appropriate unit of time.
  • Reason for Downtime: The reason why each machine was down during the shift. This can include maintenance, repairs, material shortages, or other reasons. Note that formatting this into standardized reason codes is the proper approach. Specific wording allows for the summing of the data during analysis and unlocks the ability to perform pareto analysis.
  • Scrap: The number of scrap parts from the production run.
  • Reason for Scrap: Similar to the Reason for Downtime, using standard codes for the reason allows for simple data analysis.

This format allows you to easily track production and downtime data for each machine on each shift. You can use this data to identify trends and areas for improvement, such as machines that are frequently down or areas where production can be increased. You can also use this data to calculate key performance indicators (KPIs) such as overall equipment effectiveness (OEE) and downtime percentage.

Here is an example of what the table might look like:

Step 2Standardize data formats

Standardizing data refers to the process of using consistent formats for data types such as dates, currencies, and percentages. The goal is to make sure that the data is uniform and can be used consistently throughout your data set.

Standardizing your data is important for several reasons. First, it makes it easier to work with your data and reduces the risk of errors. Second, it can improve the accuracy of your analysis by making it easier to compare and combine data.

Here are some examples of how to standardize data:

  • Dates: Use a consistent format for all dates, such as "mm/dd/yyyy" or "yyyy-mm-dd". This will make it easier to sort and filter your data by date.
  • Currency: Use a consistent currency symbol and decimal point for all currency values. For example, you might use "$" for US dollars and "." as the decimal point. ($164,700.00).
  • Percentages: Use a consistent format for percentages, such as 50% or 0.5. This will make it easier to compare and analyze data that includes percentages.
  • Text: Use a consistent format for text values, such as using proper capitalization and avoiding abbreviations. This will make it easier to search and sort your data. Use drop-down boxes whenever possible to guarantee consistency.

When standardizing your data, it’s important to be consistent throughout your data set. If you use different formats for the same data type, it can lead to confusion and errors in your analysis.

Step 3Check for data accuracy and completeness

After you ensure that you have consistency in formatting your data, you need to make sure that it is accurate and complete. This means checking for errors, missing data, and inconsistencies. If your data is inaccurate or incomplete, it will be difficult to work with and could lead to inaccurate analysis results. Inaccurate analysis results could lead to a waste of your time, or they could risk your professional image and even damage working relationships.

Here are a few ways to identify incomplete data:

  • Check for missing values: One of the most obvious signs of incomplete data is missing values. Incomplete data may have blank cells or placeholders such as "N/A" or "Not available". Check your data to ensure that there are no missing values that could indicate incomplete data.
  • Compare data across sources: If you have data from multiple sources or time periods, compare the data to see if there are any discrepancies or missing data points. Incomplete data may be missing from one source but present in another.
  • Look for gaps in time periods: If your data covers a specific time period, check to see if there are any gaps in the data. Missing data for a particular day or week could indicate incomplete data.
  • Check the data for illogical relationships: If your data includes calculations or relationships between variables, check to see if they are consistent across the data set. Incomplete data may have inconsistent or illogical relationships between variables. Example: The normal person who collected the data was on vacation, and the backup entered the data in pounds instead of cases produced.
  • Consider the context: Sometimes context can provide clues to incomplete data. For example, if you have data on customer orders but there are no orders for a particular product or region, it could be a sign of incomplete data.

If you identify incomplete data, you may need to take steps to fill in the missing data or adjust your analysis accordingly. Depending on the nature and extent of the incomplete data, this may require additional data collection, analysis, or assumptions. It’s important to be transparent about any incomplete data and how it may affect your conclusions or recommendations. Always inform the audience if there are assumptions being made to fill in gaps from incomplete data sets.

Step 4Remove duplicates

Duplicate data can cause problems when analyzing it, so it is important to remove duplicates. Having categories or segments of the data repeat can skew the analysis significantly. You can do this manually or by using Excel’s built-in Remove Duplicates function or Power BI’s Remove Duplicates transformation.

Note that when removing duplicates, you can choose to keep the first occurrence of each duplicate value or the last occurrence. You can also use conditional formatting to highlight duplicate values instead of deleting them, allowing you to review them manually and decide whether to keep or remove them.

No matter how you perform the review and removal of duplicates, it’s important to review the data carefully after removing duplicates to ensure that the remaining data is still accurate and meaningful. In some cases, removing duplicates may have unintended consequences, such as making an error that leads to a gap in the data. Therefore, it’s important to be cautious when removing duplicates and to have a clear understanding of the data and how it will be used.

Next Steps

Once your data is cleaned and prepared, you can begin to analyze it. Microsoft Excel, Power BI, or Tableau can be used to create charts, tables, and other visualizations to help you understand patterns, trends, and relationships in the data. The goal is to identify any insights or trends that can help you make better decisions.

Remember that data cleaning and analysis are iterative processes. You may need to go back and repeat steps or perform additional cleaning and analysis as you uncover new insights and information. You may notice visual outliers in the charts and research that indicate some unusual special cause needs to be removed. However, by following the above steps, you can be confident that your data is accurate, consistent, and meaningful, and that you are able to use it to make informed decisions.

The POWERS Difference

We are a dedicated and results-driven management consulting firm uniquely positioned at the intersection of workplace culture and operational performance. We partner with growth-oriented organizations to cultivate a culture of excellence that fuels productivity, drives efficiency, and strengthens competitive advantage.

Leveraging our deep industry expertise and innovative methodologies, we build synergies between people and processes, creating holistic, sustainable change that translates into measurable business outcomes.

Our team has helped executive leadership across many industries operationalize their culture for rapid and sustained performance improvement, increased competitive advantage, greater value, and a stronger bottom line.

To put our experienced team and proven track record to work for you, schedule an initial discovery and analysis by calling +1 678-971-4711, or emailing us at info@thepowerscompany.com

manufacturing cost cutting measures

To Bolster Against Uncertain Economic Times, Manufacturers Should Implement Short-Term and Long-Term Cost Cutting Measures

 by POWERS
manufacturing cost cutting measures

As manufacturers face uncertain economic times, they must consider various short-term and long-term cost cutting strategies to increase efficiencies while improving productivity and the bottom line. Here's our take on what steps manufacturers can take now and over the long haul, to reduce costs.

Manufacturing is a crucial industry that drives economic growth, job creation, and innovation across the globe. However, manufacturing is also a highly competitive industry where businesses must continuously strive to reduce costs, increase efficiency, and remain competitive in a constantly evolving marketplace. 

This is particularly true in today’s world where supply chain disruptions, global trade uncertainties, and changing consumer demands are all contributing factors that make manufacturing cost-cutting an essential business strategy.

While short-term cost-cutting measures such as reducing labor costs or optimizing inventory management can provide immediate relief, they may not be sustainable in the long term. Sustainable cost-cutting requires a long-term strategic approach that focuses on developing a culture of continuous improvement, reducing waste, and improving efficiency across all aspects of the manufacturing process. 

This approach involves investing in advanced technologies such as automation, artificial intelligence, and the Internet of Things (IoT), optimizing supply chain management, and improving employee training and development.

As manufacturers face increasing pressure to reduce costs and improve efficiency, they must consider a variety of strategies to achieve these goals. In the short term, manufacturers can implement several cost-cutting measures to achieve immediate results. 

These strategies include implementing cost reduction measures, increasing workforce productivity, implementing lean manufacturing practices, and optimizing inventory management.

Short-Term Strategies for Reducing Manufacturing Costs 

Short-term strategies are essential for manufacturing companies to achieve immediate cost savings and improve their bottom line. Below, we will elaborate on each of the short-term strategies for manufacturing cost-cutting.

1 Implement Cost Reduction Measures

The first step in implementing cost reduction measures is to identify areas where costs can be cut without negatively impacting product quality or customer satisfaction. This can include reducing the cost of raw materials, identifying cost-saving opportunities in the supply chain, negotiating better pricing with suppliers, and reducing overhead costs.

To reduce the cost of raw materials, manufacturers can look for alternative suppliers or renegotiate pricing with existing suppliers. They can also explore alternative materials that are more cost-effective but still meet the same quality standards. 

Identifying cost-saving opportunities in the supply chain can involve optimizing transportation routes, reducing inventory levels, and streamlining logistics. Negotiating better pricing with suppliers can involve leveraging purchasing power, bundling orders, and developing long-term relationships. To reduce overhead costs, manufacturers can look for ways to streamline administrative functions, reduce energy consumption, and optimize production scheduling.

Once cost-saving opportunities have been identified, manufacturers can implement strategies to reduce costs. This can include optimizing production processes to reduce waste, implementing cost-effective inventory management practices, and improving labor productivity. 

For example, manufacturers can implement just-in-time inventory management practices to reduce inventory costs, or implement total productive maintenance (TPM) practices to reduce equipment downtime and maintenance costs.

2 Increase Workforce Productivity

To increase workforce productivity, manufacturers can implement a range of measures. One way is to provide regular training to employees to improve their skills and knowledge, which can enhance their performance and efficiency. This can include training in new manufacturing processes or equipment, as well as training in leadership skills, teamwork, problem-solving, and communication.

Another way to increase workforce productivity is to implement performance metrics and incentives. By setting clear performance targets for employees and incentivizing them to meet or exceed those targets, manufacturers can motivate employees to work more efficiently and productively. This can include providing bonuses, promotions, or other rewards for achieving targets, as well as providing feedback on employee performance and encouraging continuous improvement.

Manufacturers can also use technology to increase workforce productivity. For example, automation can help streamline production processes and reduce the need for manual labor, which can reduce labor costs and increase efficiency. Robotics and other forms of automation can be used to perform repetitive or dangerous tasks, freeing up employees to focus on higher value-added activities.

Lastly, manufacturers can improve workforce productivity by optimizing production scheduling and workflow. By identifying bottlenecks and inefficiencies in the production process, manufacturers can improve production flow and reduce idle time. This can include implementing lean manufacturing practices or using software tools to optimize production scheduling and sequencing.

3 Implement Lean Manufacturing Practices

There are several key principles of lean manufacturing that manufacturers can implement to achieve cost savings in the short term. One principle is to identify and eliminate non-value-added activities. Non-value-added activities are any activities that do not add value to the product or service and can include overproduction, waiting time, transportation, and excess inventory. By eliminating non-value-added activities, manufacturers can reduce waste and improve efficiency.

Another principle of lean manufacturing is to optimize the flow of materials and information. This involves identifying bottlenecks and inefficiencies in the production process and implementing strategies to improve the flow of materials and information. This can include using visual management tools, optimizing production scheduling, and improving communication between departments.

A third principle of lean manufacturing is to empower employees to identify and solve problems. This involves giving employees the tools and training they need to identify inefficiencies and waste in the production process and empowering them to come up with solutions. This can include using continuous improvement tools like Kaizen, which involves making small, incremental improvements to the production process over time.

Finally, lean manufacturing involves implementing a culture of continuous improvement. This involves creating a work environment where employees are encouraged to identify inefficiencies and waste in the production process and are given the tools and resources they need to make improvements. This can include regular training, feedback, and incentives for identifying and implementing cost-saving measures.

4 Optimize Inventory Management

To optimize inventory management, manufacturers can implement a range of measures. One way is to implement just-in-time (JIT) inventory management. JIT involves producing and delivering products just in time to meet customer demand, thereby reducing the need for excess inventory. By reducing inventory levels, manufacturers can reduce the cost of holding inventory, including the cost of storage, handling, and obsolescence.

Another way to optimize inventory management is to implement inventory control systems. Inventory control systems involve using software tools to monitor inventory levels and automatically reorder products when inventory levels fall below a certain threshold. This can help ensure that manufacturers have the right amount of inventory on hand to meet customer demand without holding excess inventory.

Manufacturers can also optimize inventory management by implementing effective forecasting and demand planning. By accurately forecasting demand, manufacturers can ensure that they have the right amount of inventory on hand to meet customer demand without holding excess inventory. This can include using data analytics and machine learning to analyze past sales data and forecast future demand.

Finally, manufacturers can optimize inventory management by improving supply chain management. By working closely with suppliers and customers to improve visibility and coordination in the supply chain, manufacturers can reduce lead times and inventory levels, which can lead to significant cost savings.

Short-term strategies are critical for manufacturing companies to achieve immediate cost savings and improve their bottom line. By implementing cost reduction measures, increasing workforce productivity, implementing lean manufacturing practices, and optimizing inventory management, manufacturers can achieve significant cost savings and increase efficiency over the short term.

Long-Term Strategies for Cost Reduction

While short-term strategies are effective for achieving immediate cost savings, long-term strategies are necessary for sustainable cost-cutting and growth. Below, we will elaborate on each of the long-term strategies for manufacturing cost-cutting.

1 Invest in Automation and Technology

There are several ways that manufacturers can invest in automation and technology to reduce costs. One way is to automate repetitive tasks in the production process. This can include using robots and other automated systems to handle tasks like assembly, packaging, and quality control. By automating these tasks, manufacturers can reduce labor costs, increase efficiency, and improve product quality.

Another way to invest in automation and technology is to implement data analytics and machine learning tools. These tools can help manufacturers analyze production data and identify inefficiencies in the production process. By identifying these inefficiencies, manufacturers can make targeted improvements that can help reduce costs and improve efficiency over time.

Manufacturers can also invest in advanced sensors and monitoring systems to improve quality control and reduce waste. These systems can help detect defects and other quality issues in real-time, allowing manufacturers to make corrections quickly and efficiently. By reducing waste and improving quality, manufacturers can achieve significant cost savings over the long term.

Finally, manufacturers can invest in technologies that enable them to produce more customized products. This can include using 3D printing and other advanced manufacturing technologies to produce products on demand, reducing the need for excess inventory and reducing the cost of holding inventory.

2 Implement Lean Manufacturing Practices

There are several principles of lean manufacturing that manufacturers can implement to reduce costs. One principle is to minimize inventory levels. By reducing inventory levels, manufacturers can reduce the cost of holding inventory, including the cost of storage, handling, and obsolescence. This can be achieved through just-in-time (JIT) inventory management, as discussed in the short-term strategy section.

Another principle of lean manufacturing is to optimize production flow. This involves eliminating bottlenecks and other inefficiencies in the production process to ensure that products move smoothly through the production process. By optimizing production flow, manufacturers can reduce lead times and increase efficiency, reducing costs and improving customer satisfaction.

Manufacturers can also implement continuous improvement programs to identify and eliminate waste in the production process. This can involve using tools like value stream mapping and root cause analysis to identify inefficiencies in the production process and make targeted improvements to reduce waste and improve efficiency over time.

Finally, manufacturers can implement a culture of continuous learning and improvement. This involves training employees on lean manufacturing principles and encouraging them to identify and implement improvements in their work processes. By empowering employees to take ownership of the production process and make improvements, manufacturers can achieve significant cost savings over the long term.

3 Improve Supply Chain Management

One way to improve supply chain management is to optimize supplier relationships. This involves working closely with suppliers to develop long-term partnerships and negotiate favorable terms for the purchase of raw materials and other inputs. By working with suppliers to reduce costs and improve efficiency, manufacturers can achieve significant cost savings over the long term.

Another way to improve supply chain management is to implement supply chain visibility tools. These tools enable manufacturers to track the movement of goods through the supply chain, identify bottlenecks and inefficiencies, and make targeted improvements to reduce costs and improve efficiency. 

Supply chain visibility tools can also help manufacturers respond quickly to disruptions in the supply chain, reducing the risk of delays and other disruptions that can increase costs.

Manufacturers can also implement demand forecasting tools to improve supply chain management. Demand forecasting involves using historical data and other information to predict future demand for products. By accurately predicting demand, manufacturers can optimize production schedules, reduce inventory levels, and improve efficiency, reducing costs and improving customer satisfaction.

Finally, manufacturers can implement sustainability practices to improve supply chain management. This can include using eco-friendly materials, reducing waste and energy consumption, and promoting ethical labor practices throughout the supply chain. By implementing sustainable practices, manufacturers can reduce costs, improve efficiency, and enhance their reputation with customers and other stakeholders.

4 Focus on Employee Training and Development

Manufacturers can implement training programs to improve employee skills and knowledge. This can include training on the latest manufacturing technologies and processes, safety procedures, quality control methods, and other areas relevant to the production process. By improving employee skills and knowledge, manufacturers can reduce errors, improve quality, and increase efficiency, reducing costs over time.

Another way to focus on employee training and development is to encourage continuous learning and improvement. Manufacturers can implement programs that encourage employees to identify areas for improvement in their work processes and develop solutions to address them. By empowering employees to take ownership of their work and make improvements, manufacturers can achieve significant cost savings and improve efficiency over time.

Manufacturers can also implement incentives and recognition programs to reward employees for their contributions to cost-cutting and efficiency improvement efforts. This can include bonuses, promotions, and other forms of recognition that motivate employees to work harder and smarter.

Finally, manufacturers can create a positive work environment that fosters teamwork, collaboration, and open communication. By creating a culture that values employee input and encourages innovation, manufacturers can create a workforce that is engaged, motivated, and committed to improving efficiency and reducing costs over the long term.

5 Implement Energy Efficiency Measures

One way to implement energy efficiency measures is to conduct an energy audit. This involves identifying areas of the production process where energy is being wasted and developing solutions to address them. Energy audits can help manufacturers identify opportunities for improvement and prioritize investments in energy efficiency measures that will deliver the greatest return on investment.

Another way to implement energy efficiency measures is to invest in energy-efficient equipment and technologies. This can include upgrading lighting systems, HVAC systems, and production equipment to more energy-efficient models. While these investments can be costly upfront, they can deliver significant cost savings over the long term through reduced energy consumption.

Manufacturers can also implement energy management systems to monitor and control energy consumption throughout the production process. These systems can help manufacturers identify energy-intensive processes and implement solutions to reduce energy consumption in those areas. Additionally, energy management systems can help manufacturers track energy usage over time and identify opportunities for further improvement.

Finally, manufacturers can implement renewable energy sources, such as solar or wind power, to generate energy on-site. While these investments can be costly upfront, they can deliver significant cost savings over the long term through reduced energy costs and improved sustainability.

Long-term strategies are essential for sustainable cost-cutting and growth in the manufacturing industry. By investing in automation and technology, implementing lean manufacturing practices, improving supply chain management, focusing on employee training and development, and implementing energy efficiency measures, manufacturers can achieve sustainable cost savings and improve efficiency over the long term.

Conclusions for Business Leaders

Cost-cutting is a critical business strategy for manufacturers looking to improve efficiency, reduce costs, and drive growth. While short-term measures can provide immediate relief, long-term strategies are necessary for sustained success.

By implementing short-term strategies such as cost reduction measures, increasing workforce productivity, and optimizing inventory management, manufacturers can achieve immediate cost savings.

However, to achieve long-term success, manufacturers must also invest in advanced technologies such as automation and the IoT, implement lean manufacturing practices, improve supply chain management, focus on employee training and development, and implement energy efficiency measures.

By adopting a strategic approach to cost-cutting that balances short-term needs with long-term sustainability, manufacturers can achieve sustainable success. Such an approach requires a focus on developing a culture of continuous improvement, reducing waste, and improving efficiency across all aspects of the manufacturing process.

By investing in advanced technologies, optimizing supply chain management, and focusing on employee training and development, manufacturers can not only reduce costs but also improve product quality, enhance customer satisfaction, and drive growth in a highly competitive marketplace.

The POWERS Difference

At POWERS, we focus on Leadership Engagement and Development to transform operational performance and prepare your leaders for the future. We help you build a performance culture that operates at peak levels to lower costs, increase productivity, build agility, and sustain that performance over the long haul.

Our team has helped executive leadership across many industries operationalize their culture for rapid and sustained performance improvement, increased competitive advantage, greater value, and a stronger bottom line.

Find out about our new AMP (Advanced Maintenance Performance) Program and put our experienced team and proven track record to work for you. Schedule an initial discovery and analysis by calling +1 678-971-4711 or emailing us at info@thepowerscompany.com.

5 Ways That Developing Leaders Among Your Frontline Personnel Impacts Productivity, Performance, and Profitability

5 Ways That Developing Leadership Skills Among Your Frontline Personnel Impacts Productivity, Performance, and Profitability

 by POWERS
5 Ways That Developing Leaders Among Your Frontline Personnel Impacts Productivity, Performance, and Profitability

Developing leaders that are effective can build better team communication and collaboration and foster a culture of innovation and continuous improvement. Effective frontline leaders can also help identify areas to operate more efficiently and lower costs.

Developing effective frontline leaders in manufacturing is crucial for companies looking to increase productivity, lower costs, and improve their bottom line. Frontline leaders, also known as “supervisors” or “team leaders,” are responsible for managing a team of employees and ensuring that production goals are met. They play a vital role in the success of a manufacturing operation and are often the first point of contact for employees, making them crucial in fostering a positive and productive work environment. Here, we examine how frontline leaders’ development impacts areas such as productivity, performance, and profitability.

1. Improved Team Communication and Cohesion

One way that developing frontline leaders can increase productivity is by improving communication and collaboration within the team. Effective leaders can clearly communicate expectations and goals, which helps to ensure that everyone is working towards the same objectives. They are also able to identify and address any issues that may be impacting productivity, such as equipment breakdowns or workflow bottlenecks. This helps to keep the team focused and on track, which in turn increases productivity.

2. Foster a Continuous Improvement Mindset

Developing frontline leaders can also increase productivity by fostering a culture of continuous improvement. Effective leaders are able to provide feedback and coaching to their team members, which helps to build their skills and knowledge, and allows them to take on more responsibility and contribute more to the team. They can also identify opportunities for improvement and work with their team to implement changes that will increase efficiency and productivity. Increased productivity and efficiency help drive down costs.

3. Lowers Costs and Improve Operational Efficiency

Developing frontline leaders can also contribute significantly to lower costs. Effective leaders can identify areas where costs can be reduced and take steps to implement changes that will lower expenses. For example, they may be able to identify ways to reduce waste and improve the use of resources, such as materials and energy. They may also be able to identify ways to streamline processes, which can lead to significant cost savings.

4. Increase Employee Engagement

Effective leaders are also able to improve employee engagement, which leads to reduced turnover rates, and lower recruitment and training costs. When employees are engaged, they feel valued and motivated to do their best work, which helps to increase productivity and lower costs. Increased employee engagement can also improve communication and innovation among the workforce, as well as between frontline leaders and workers.

5. Ultimately, Effective Frontline Leaders Improve the Bottom Line

Finally, developing frontline leaders can significantly improve the bottom line. By increasing productivity and lowering costs, companies can increase their output and revenue, which ultimately results in a stronger bottom line. In addition, effective leaders can create a positive and productive work environment, which leads to improved employee satisfaction and loyalty. This, in turn, leads to improved customer satisfaction and ultimately to increased revenue.

Investing in Developing Your Frontline Leaders Directly Improves the Business’ Performance

To develop effective frontline leaders in manufacturing, companies need to invest in leadership training and development programs. These programs should focus on building the skills and knowledge that leaders need to be effective, such as communication, problem-solving, and decision-making. They should also provide opportunities for leaders to practice what they have learned, through on-the-job training and mentoring.

Companies should also provide opportunities for leaders to develop their leadership skills through coaching and mentoring. This can be done through formal programs or through informal relationships with more experienced leaders.

In addition, companies should recognize and reward effective leaders. This can be done through performance evaluations, promotions, and bonuses. This helps to acknowledge the contributions of effective leaders and encourages others to strive to be as successful.

Conclusions for Business Leaders

Developing effective frontline leaders in manufacturing is crucial for companies looking to increase productivity, lower costs, and improve their bottom line. Effective leaders can communicate and collaborate with their team, foster a culture of continuous improvement, and identify areas where costs can be reduced. They also improve employee engagement and satisfaction, which leads to a more positive and productive work environment.

Companies can develop effective leaders by investing in training and development programs, providing opportunities for mentoring, and recognizing and rewarding effective leaders. By doing so, they can help to ensure that they have the leadership talent they need to drive success and growth for their business.

The POWERS Difference

At POWERS, we focus on Leadership Engagement and Development to transform operational performance and prepare your leaders for the future. We help you build a performance culture that operates at peak levels to lower costs, increase productivity, build agility, and sustain that performance over the long haul.

Our team has helped executive leadership across many industries operationalize their culture for rapid and sustained performance improvement, increased competitive advantage, greater value, and a stronger bottom line.

To put our experienced team and proven track record to work for you, schedule an initial discovery and analysis by calling +1 678-971-4711, or emailing us at info@thepowerscompany.com.

The Shortage of Skilled Maintenance Technicians in Manufacturing is Rapidly Eroding Productivity, Quality, and ROA

The Shortage of Skilled Maintenance Technicians in Manufacturing is Rapidly Eroding Productivity, Quality, and ROA

 by Sean Hart
The Shortage of Skilled Maintenance Technicians in Manufacturing is Rapidly Eroding Productivity, Quality, and ROA

Manufacturers must be proactive in addressing the scarcity of technically skilled maintenance technicians. Investing in training your people and providing the resources they need to be successful has never been more critical.

American manufacturers are becoming increasingly concerned about the lack of technically trained maintenance personnel. The shortage of well-trained, experienced maintenance technicians can seriously impact uptime, capacity, quality, and ROA (return on assets). According to Industry Today, the so-called ‘talent gap’ is due to technological advances, changing demographics, and new priorities for younger generations of workers. A survey in Manpower found that 69% of employers struggle to fill positions requiring technical skills such as maintenance.

What Role Does Maintenance Play in Creating Value

Maintenance is a vital area for manufacturers to produce at the highest value throughout their value chain. One of the most critical variables impacted by maintenance is uptime because it directly affects a manufacturer’s capacity to produce goods and satisfy client needs.

Equipment failures can result in expensive downtime if maintenance technicians don’t step in and fix them immediately. This unplanned downtime can result in missed production deadlines, lost revenue, and decreased customer satisfaction.

A lack of sufficiently trained and available maintenance technicians can also inhibit overall business growth and increased capacity. Inadequate or poorly executed maintenance can result in equipment breakdowns and decreased efficiency, eventually limiting a business’s capacity to satisfy client demands.

Another area where the lack of qualified technical maintenance professionals has a negative effect is quality. When equipment is not maintained correctly, it may not run as optimally as it should, resulting in low-quality output. This may result in expensive rework, or even product recalls, which can substantially harm the company’s brand and bottom line.

The lack of technically qualified maintenance technicians also impacts return on assets and OEE, two critical performance metrics in manufacturing. Equipment’s lifespan might be shortened, and repair costs can rise due to improper maintenance. Manufacturers may see a decline in their return on assets due to having to spend more money on equipment maintenance, parts, and more.

What Can You Do to Attract and Retain More Technically Skilled Workers?

Manufacturers must be proactive in addressing the scarcity of technically skilled maintenance technicians. Investing in training programs for current personnel is one way to ensure they have the abilities and knowledge required to maintain equipment properly. On-the-job training, apprenticeships, and technical schools are all viable options for achieving this.

Investing in technology and a robust MMOS (maintenance management operating system) that can help with planning, scheduling, and resource allocation for maintenance activities, such as predictive maintenance software, or a comprehensive CMMS system, is an additional approach. This technology can assist in predicting impending equipment breakdowns, saving downtime, increasing productivity, and OEE (overall equipment effectiveness).

Manufacturers want to think about collaborating with educational institutions to create initiatives that will aid in educating the upcoming generation of maintenance specialists. This can be accomplished through collaborations, sponsorships, or even the development of internal training programs.

Another option is to contract with outside service companies to perform maintenance work. As it eliminates the need for manufacturers to spend money on personnel training and hiring, this can be a cost-effective alternative. However, it’s crucial to confirm that the service provider possesses the abilities and knowledge required to properly maintain the machinery.

The role and obligations of the service provider must also be clearly understood, and a method must be in place for evaluating their performance.

Offering flexible hours, competitive pay, and benefit packages are additional methods manufacturers can use to solve the shortage of technically trained maintenance workers. As qualified technicians are more likely to stay with a company that values their expertise and offers them competitive pay and benefits, this can help attract and retain these skilled workers.

Finally, manufacturers ought to think about starting a mentoring program. This can aid new and inexperienced technicians by allowing more experienced technicians to mentor and support them.

Companies may consider coaxing retired maintenance workers back to establish a mentoring program and pass along their years of experience and skills to younger workers. This aids in fostering an organizational culture of learning and development as well as assisting new technicians in gaining the requisite skills and knowledge.

Manufacturers should make sure they have a strong recruitment plan in place in addition to the aforementioned fixes to attract the best people. Utilizing social media and professional networks, going to job fairs, and recruiting events, and providing internship and co-op programs are some examples of how to do this.

Conclusions for Business Leaders

American manufacturers are very concerned about the lack of highly qualified technical maintenance personnel since it has a lot of adverse effects on uptime, capacity, quality, and return on assets. Ultimately, if your maintenance department is understaffed, poorly trained, or underperforming, you’re going to take a hit on your bottom line.

Manufacturers must adopt a proactive strategy to address this issue by investing in training programs for the current maintenance workforce, technology that can help with maintenance tasks, collaborating with educational institutions to create programs that can train the upcoming generation of maintenance technicians, outsourcing maintenance tasks, providing competitive pay and benefits, putting a mentorship program in place, and having a strong recruitment strategy.

By doing this, businesses can ensure that they have the personnel that is qualified to satisfy consumer expectations, boost productivity, OEE, and boost return on assets.

POWERS AMP (Advanced Maintenance Performance) Program

Our POWERS AMP (Advanced Maintenance Performance) Program improves both the tactical and technical aspects of maintenance in your operation. On the tactical side, we focus on improving your strategic approach to maintenance and your Maintenance Management Operating System: how you manage the people and resources devoted to maintaining your assets and equipment.

We also focus on the technical aspects of maintenance and provide hands-on training in Maintenance Fundamentals, Mechanical Concepts, Electrical Power, and Electrical Control.

Nearly 60% of the current manufacturing maintenance workforce does not possess the skills and training necessary to keep the assets and equipment functioning at optimum levels. Improving your maintenance team’s skills unlocks OEE (Overall Equipment Effectiveness) bottlenecks in uptime, throughput, capacity, quality, and more.

The POWERS Difference

At POWERS, we focus on Leadership Engagement and Development to transform operational performance and prepare your leaders for the future. We help you build a performance culture that operates at peak levels to lower costs, increase productivity, build agility, and sustain that performance over the long haul.

Our team has helped executive leadership across many industries operationalize their culture for rapid and sustained performance improvement, increased competitive advantage, greater value, and a stronger bottom line.

Find out about our new AMP (Advanced Maintenance Performance) Training Program and put experienced team and proven track record to work for you. Schedule an initial discovery and analysis by calling +1 678-971-4711, or emailing us at info@thepowerscompany.com.

Top 10 Leadership Skills to Develop in Your Frontline Managers and Supervisors

The 10 Most Powerful Leadership Skills to Develop in Your Frontline Managers to Rapidly Improve Productivity and Resiliency in the Face of Economic Uncertainty. Plus 4 Often-Overlooked Skills that Can be Game Changers.

 by Sean Hart
Top 10 Leadership Skills to Develop in Your Frontline Managers and Supervisors
In the rapidly changing landscape of American manufacturing, leaders at all levels must adapt and develop their leadership skills to remain competitive, bolster against economic uncertainy, and improve the bottom line.

Over our many years working as manufacturing leaders to improve productivity, we’ve experienced firsthand the importance of strong frontline leadership in driving organizational success. That’s why at POWERS, it is a requirement to have been a frontline leader to work on our team and why frontline leadership development is one of our primary focus areas.

In the rapidly changing landscape of American manufacturing, leaders at all levels must adapt and develop their skills to remain competitive. As the economy continues to present challenges at many levels, American manufacturing will come up against new obstacles that will strain its resources and burden leaders out on the front line.

In this article, let’s look at ten of the frontline leadership skills that, in our experience, will be most important for US manufacturers to stay ahead of market stressors in the short term and over the long haul. We’ll also cover four skill areas that are often overlooked but can be the difference makers in increasing your value and improving the bottom line.

10 Essential Leadership Skills to Develop in Your Frontline Managers and Supervisors
  1. Adaptability and flexibility: The manufacturing industry constantly evolves, with new technologies, materials, and processes emerging rapidly. As such, leaders must be able to adapt to change and embrace new ways of doing things. This includes being open to new ideas and approaches, as well as being flexible in the face of challenges and setbacks. Leaders who are more adaptable to change increase their value to the organization and are more likely to be satisfied in their work and more productive.
  2. Collaboration and teamwork: In the modern manufacturing environment, it is increasingly common for organizations to work in cross-functional teams and with external partners. As such, leaders need to build and maintain strong relationships with team members and stakeholders and foster a culture of collaboration and teamwork.
  3. Communication and interpersonal skills: Effective communication is key to any leadership role, and this is especially true in manufacturing, where leaders may need to communicate with a diverse group of individuals, including team members, customers, and suppliers. This includes conveying information clearly, listening actively, and resolving conflicts effectively.
  4. Problem-solving and decision-making: Leaders in manufacturing are often faced with complex problems that require innovative solutions. Leaders need to be able to think critically and creatively and to be able to make sound decisions based on data and analysis.
  5. Emotional intelligence: Emotional intelligence is the ability to recognize and manage one’s own emotions, as well as the emotions of others. This is an essential skill for leaders in manufacturing, as it enables them to build strong relationships, communicate effectively, and resolve conflicts out on the shop floor that can stifle productivity.
  6. Leadership development: As the manufacturing industry continues to evolve, it is critical for leaders to develop their skills and knowledge continuously. This includes staying up-to-date on industry trends and best practices, as well as investing in the development of their team members.
  7. Innovation and creativity: Organizations must continuously innovate and differentiate themselves from their competitors in a competitive industry like manufacturing. Leaders who can encourage and support creativity and innovation within their teams will be well-positioned for success. A recent study cited in Forbes found this: as an organization’s creativity and innovation increases, so do critical performance metrics. 67% showed above-average revenue growth, 70% exhibited above-average returns to shareholders, and 74% scored above-average net enterprise values.
  8. Process improvement: Lean manufacturing principles have long been a staple of the manufacturing industry, and for good reason. Leaders who can identify and eliminate waste, and streamline processes, will be able to drive efficiency and improve the bottom line.
  9. Quality and continuous improvement: Ensuring high-quality products is essential for any manufacturing organization. Leaders who drive a continuous improvement and quality culture will be well-positioned for success.
  10. Safety: Ensuring the safety of team members is not only the right thing to do, but it is also essential for the success of any manufacturing organization. Leaders who can prioritize safety and implement effective safety programs will be able to reduce accidents and injuries and improve overall productivity.
4 Additional Frontline Leadership Skill Areas Often Overlooked But Vital to Manufacturing’s Future

But beyond the above ten essential skill areas to develop in your frontline leaders lies four more that can be real game changers. Fostering these skills can position your organization for the future, increase your competitive advantage, and help you adapt more quickly to rapidly changing market conditions like we’ve seen over the past few years. Readying your frontline leaders for the future of manufacturing is essential for your continued success and a healthy bottom line. 

  1. Digital literacy: With the increasing use of digital technologies in manufacturing processes, leaders need to be proficient in computer systems, software, and other digital tools. This skill set includes using these tools effectively and understanding how they can be used to improve processes and increase efficiency. Frontline leaders in manufacturing with a complete digital skill set are the new standard.
  2. Lead and manage diverse teams: As the manufacturing industry becomes more globalized, it is increasingly common for organizations to have team members from a variety of cultural backgrounds. This diversity can bring a wealth of knowledge and perspective to the organization, but it also requires leaders to communicate and manage a diverse group of individuals effectively. A recent HBR article shows that leaders that effectively manage diverse teams increase the creativity and innovation of the organization and be a significant competitive strength.
  3. Strong business acumen: In addition to technical skills, it is also essential for leaders in the manufacturing industry to have strong business acumen. This includes understanding financial principles, like budgeting and forecasting, and making strategic business decisions. The more your frontline leaders understand the business ramifications of their daily decision making, the stronger your organization becomes financially. 
  4. Building relationships with external stakeholders: Another essential leadership skill in manufacturing is building relationships with external stakeholders, such as customers, suppliers, and regulatory agencies. Strong relationships with these stakeholders can help an organization secure new business, negotiate favorable terms, and navigate regulatory challenges. Better supplier and vendor relationships lead to lower costs and improved efficiency. If the last few years have taught us anything, it’s that supply chain resiliency depends on solid supplier relations. 
Conclusions for Senior Leaders

The frontline leadership skills that will be most important for US manufacturers in the coming year and into the future include adaptability and flexibility, collaboration and teamwork, communication and interpersonal skills, problem-solving and decision-making, emotional intelligence, leadership development, innovation and creativity, process improvement, quality and continuous improvement, and safety. By developing and honing these skills, leaders in manufacturing will be well-equipped to drive organizational success in the years ahead. 

For future-proofing your organization, your frontline leaders will need digital literacy to gain every technological advantage. In addition, effectively leading a diverse group of people, strong business acumen, and the ability to build strong external stakeholder relationships will contribute heavily to the success of your organization and carry it into the coming years and through any economic conditions.

And yes, that is a long list of leadership skills to develop in your people. And there are certainly more. The key is to start. Assess where your leaders are in their development and where they may need the most training and support, and begin there. Being concise and surgical, rather than taking a shotgun approach to your leadership development, is critical to its success, sustainability, and scalability. You want a leadership development program that is strategic, ongoing, forward-looking, and perfectly suited to your values and purpose as a company. We can help you build that program. That’s what we do.

The POWERS Difference

At POWERS, we focus on Leadership Engagement and Development to transform operational performance and prepare your leaders for the future. We help you build a performance culture that operates at peak levels to lower costs, increase productivity, build agility, and sustain that performance over the long haul.

Our team has helped executive leadership across many industries operationalize their culture for rapid and sustained performance improvement, increased competitive advantage, greater value, and a stronger bottom line.

To put our experienced team and proven track record to work for you, schedule an initial discovery and analysis by calling +1 678-971-4711, or emailing us at info@thepowerscompany.com.

Too Many Tools, Too Much Data, and Not Enough Training: Let’s Take a Wrecking Ball to Those Communication Barriers!

Too Many Tools, Too Much Data, and Not Enough Training: Let’s Take a Wrecking Ball to Those Communication Barriers!

 by Sean Hart
Too Many Tools, Too Much Data, and Not Enough Training: Let’s Take a Wrecking Ball to Those Communication Barriers!

Instead of breaking under the strain of too many tools, techniques, technologies, and terminologies, let’s break down the communication barriers between the knowledge “haves” and “have nots.”

Continuing our conversation on identifying and breaking down communication silos in your organization, let’s dig a little deeper and implement some improvements. Let’s start breaking down those barriers to productivity and more positive business outcomes. In short, we may need to take a wrecking ball to those walls that have built up over time!

Like any business, there is no end to the insider terminology and jargon that make up the manufacturing industry language. Layer in some commonly used acronyms, and it gets far worse. MOS, MRO, CRM, WMS, APS, BI, ERP…the list is practically unending. The compilation of acronyms for Inventory Management alone is pretty staggering. 

One of the most challenging cultural barriers is language. When we travel to another country, we may need help understanding the ins and outs of the local culture simply because we do not speak the language. 

The same can be said of the “country” or “domain” of business and manufacturing. One of the significant barriers to entry and advancement in any industry is that new people simply do not understand the language.

Beyond the waves of insider jargon lies a sea of software applications and technologies and their oceans of data, flooding our systems and pouring out nonstop. We’re drowning in the stuff. We swim against the rip current of 24/7/365 information and struggle to tread water, let alone make progress. 

The learning curves for each new software tool and technology we implement are getting steeper and steeper. As a result, the ROI moves further away from the shore, off into the distance.

Instead of breaking under the strain of too many tools, techniques, technologies, and terminologies, let’s break down the barriers between the knowledge “haves” and “have nots.” If information is power, and the more you know, the more you grow, as they say, let’s share the wealth. 

As part of our business discovery process, we sit in on many meetings and work alongside a lot of people at differing levels in each organization—from Line Operators to Shift Supervisors to Maintenance Technicians to CEOs. 

The executive leadership team often looks at their data set and uses their own language to make sense of it and make decisions. Accordingly, so do the frontline supervisors, operators, and technicians. They have their own vernacular and understanding of what the job requires. And, of course, a giant chasm exists between what a CEO may know and what a line operator may know. 

Unfortunately, and all too often, we find that vital information, like daily KPI targets, is kept on computer dashboards or whiteboards in senior management offices and away from the workforce that must reliably perform to those standards. Why is that?

Sharing vital information with the employees responsible for performance should be a no-brainer. But unfortunately, critical information transparency is often overlooked or purposefully avoided.

Here are four ways that you can begin to break down communication barriers and inspire higher productivity and performance. 

1. Strip Away as Much Jargon, Acronyms, and Insider Terminology as Possible, Especially for New Hires

Insider jargon, terminology, and acronyms can become an easy shorthand for long-term employees in well-entrenched departments like maintenance. But for new hires, the ease and familiarity with that terminology may not be there yet.

So one of the most inclusive things a department head can do is break down the commonly used language for newcomers so that it’s clear and understood.

That new hire may be very experienced and eager to perform but may come from an organization, industry, or sector that uses different terminology to refer to the same job, task, or more.

Both parties can learn a lot by making no assumptions that acronyms and insider terminology are automatically understood and agreed upon. If you’re a new hire coming into an organization and don’t understand a term or acronym, ask what it means.  

2. Make Critical Performance KPIs Highly Visible

Nothing can undermine a business culture like unspoken or invisible performance standards. As a result, you don’t know how to perform to the target because no standards were ever agreed upon or made visible to you. 

If your plant needs a line to operate at a specific capacity each shift to meet customer orders and conform to ROA calculations, everyone who touches that line must know that number. And they need a real-time way to “see” if they are “in” or “out” of performing to that standard.

Without visible daily performance targets, it’s like running a race with no designated course and no finish line. No one wins, and work can become mundane and repetitive, like an endless treadmill, leading to burnout and high turnover. 

3. Clearly Communicate Expectations

Making performance metrics visible is a good start but making them viable requires clear communication and mutual agreement. Do your managers and frontline leaders know how to secure that agreement from their direct reports and inspire performance? Telling someone they need to hit a target number each shift is only part of it.

As a leader, you need to uncover whatever may be hindering that performance, bring it out in the light of day, and deal with it. Show them how to meet their targets by listening to their concerns and removing obstacles. Clearly set expectations are the basis for evaluating performance and the first step toward improving!

4. Train, Coach, Reinforce, Repeat

There is no such thing as “one and done” when it comes to training. Instead, training is all about delivering information critical to your organization’s success, whether it be operator training on a new piece of equipment or training and developing leadership skills to improve a manager’s capabilities working with their team. 

Training is about clear communication until the information is received and repeatable by the trainee. They must own the knowledge and have it committed to muscle memory. And you must transfer that ownership in a way that’s effective for them. 

And bear in mind that people learn through different techniques and at different paces. So beyond the one-and-done approach that doesn’t work, there is also no “one-size-fits-all” method to training and developing your people. You may have more visual or experiential learners, for example, so be sure to broaden your approach and training methods.

Conclusion

These may all seem like simple steps, but I can assure you, based on our experience, these fundamental communication barriers can really trip up an organization and impact productivity, performance, and profit. 

We see simple things like daily KPIs being kept from shift supervisors and line operators all the time, and as a result, there’s no goal for the production team to shoot for and no way to determine if production is on or off track. 

When it comes to people in a room working together, take basic communication practices seriously. Everyone is at different levels of capability. For example, millennials in the workforce may often struggle with face-to-face communication. Or you may have people on your team who don’t typically speak up in big group meetings. As a result, you may need to spend more time with them one-on-one.

It’s up to you, as a senior leader, to work with your frontline supervisors and managers to identify the communication methods that work best for your team members. If you want to remove obstacles to peak-level performance, begin with breaking down barriers to effective communication, it can pay immediate dividends in performance.

The POWERS Difference

At POWERS, we focus on Frontline Leadership Training and Development to connect the dots between exemplary leadership behaviors and your desired operational performance outcomes. We help you build a growth and performance culture that operates at peak levels to lower costs, increase productivity, build agility, and sustain that performance over the long haul.

Our team has helped executive leadership across many industries operationalize their culture for rapid and sustained performance improvement, increased competitive advantage, greater value, and a stronger bottom line.

To put our experienced team and proven track record to work for you, schedule an initial discovery and analysis by calling +1 678-971-4711, or emailing us at info@thepowerscompany.com.

4 Practical Advantages to Building a Winning Company Culture in Manufacturing or Any Business

4 Practical Advantages to Building a Winning Company Culture in Manufacturing (or Any Industry!)

 by POWERS
4 Practical Advantages to Building a Winning Company Culture in Manufacturing or Any Business

Your company can reap significant benefits from building a winning company culture. Your employees will thank you. Your customers will thank you. And your bottom line will thank you.

Focusing on improving your company culture can dramatically impact performance no matter what business you’re in. From our experience working with our manufacturing clients, we’re seeing paradigm shifts in productivity, efficiency, and savings across the board when company culture matters.

We’ve written extensively about how to build a winning company culture with our 7 Pillars of Culture Performance Management series and more. For this article, however, let’s look at some of the specific and practical benefits to focusing on improving your workplace culture.

1. Improved Operational Performance. In Other Words, the Numbers Will Improve. Dramatically.

Happier people perform at higher levels. It’s pretty much a universal truth. And in this instance, being happier at work means being valued, appreciated, engaged with, and heard by management. A recent Forbes article reported that “happy employees are up to 20% more productive than unhappy employees. When it comes to people in sales, happiness has an even greater impact, raising sales by 37%.”

But the benefits of building a winning company culture don’t end there. Those engaged and satisfied employees can significantly impact your overall company growth and the bottom line. According to Forbes, the stock prices of Fortune’s “100 Best Companies to Work for” rose 14% per year from 1998 to 2005, while companies not on the list only reported a 6% increase.

So how does it work? A winning culture improves the granular, departmental, daily, and shift-wise metrics like uptime, capacity, yield, maintenance performance, and throughput that roll up into the higher level KPIs such as overall productivity, efficiency, quality, cost reduction, ROA (Return on Assets), and profitability.

You can’t build a winning culture that performs at a high level without improving the daily performance numbers. And you can’t improve the daily metrics with an undervalued, unappreciated, and unempowered workforce.

If your employees are unhappy and underperform, a typical management response is to add overtime and more people, increasing labor costs. Simply throwing more hours and bodies at the problem.

This practice can make those unproductive hours even more costly and dramatically decrease profitability, especially with rising labor costs. It makes better sense to attack the problem at the root: improving employee satisfaction and engagement. In other words, improving your culture.

2. Improved Cohesion, Communication, and Connectedness Gets Everyone Pulling in the Same Direction.

A winning company culture creates a sense of purpose that is commonly understood across the organization at every level. The business’ values and purpose are clearly documented and communicated. And the employee attitudes and behaviors reflect and embody those core values, beginning with your company leaders. 

This shared “hive mentality” improves communication, connectedness, and cohesion at every level of your organization. We like to say that it turns “us and them” into “we.” Performance-wise, a business comprised of people with shared values, purpose, and mission is more agile in the marketplace, able to adapt to change, and outperform competitors.

One of the main reasons scores of people underperform at work (or simply quit) is a lack of feeling appreciated and valued by management. As a result, they do not feel connected to the business. This failure is often attributed to leadership failing to recognize and appreciate their performance. And often for simply not listening.

But in many instances, we find that leaders fail to embody the values and behaviors they expect from their employees. This disconnect not only sends mixed signals about the authenticity of the culture you’re trying to build but also undercuts its importance.

Training and developing your managers, supervisors, and frontline leaders empowers them to work better with their direct reports. Leaders who are invested and engaged with their company culture, and understand and exemplify its values, are more likely to be fully committed and accountable for its success. And ultimately, they are more likely to engender those same attitudes and behaviors to empower their employees. 

3. You Become Like a Magnet for Attracting and Retaining Talented People.

Finding the right people to fill critical roles (or, for many businesses, any roles!) is proving challenging right now. The labor market is extremely tight. So how does improving your culture help you solve this issue? People want to come to work in an organization with a thriving and robust company culture. It’s that simple.

Ask anyone in your HR department if an improved company culture would help them attract and land the right people for the job. It will be a resounding “yes!”

Gallup reports that companies with robust, thriving cultures and engaged employees enjoy a 41% reduction in absenteeism and a 24% reduction in turnover. These are colossal productivity advantages. In addition, the decrease in training costs and learning curves are massive boons to productivity and profitability alone.

A recent Business News Daily article cites these crucial statistics for your company culture’s impact on hiring and employee retention.

  • When searching for a new job, 77% of respondents said they would consider a company’s culture before applying.
  • 65% of American millennials are more likely to care about work culture over salary.
  • 89% of adults polled told researchers that it was important for employers to “have a clear mission and purpose.”


A great company culture builds employee trust, loyalty, and longevity. Recognizing individual accomplishments, coaching, mentoring, training, developing, and promoting from within are all signs of a company culture designed for the betterment of its people.

This type of commitment can truly reinvigorate long-time employees and attract and integrate new team members more easily. This type of company gets people excited to come to work.

4. Happier Customers. Period.

What business doesn’t want happier, more satisfied customers? As we’ve shown, improving your company culture improves your numbers and bottom line, leaving you in a far better position to satisfy your customers and respond to the marketplace.

Although supply issues and outright bottlenecks are improving somewhat, getting customers their goods as promised is still a challenge up and down the value chain. Your surest bet to continue satisfying your customers and retaining (and improving) your competitive advantage is to lower existing costs and improve productivity and efficiency. You simply can’t expect that kind of performance improvement without focusing on your people and your culture.

Beyond performance gains, your customers are increasingly aware of your company culture and its authenticity. If you have “we put our customers first” as any part of your core values, and you don’t deliver on that promise, it’s obvious, and your business may suffer.

Building a company culture wherein your people embody that “we put our customers first” commitment, but better yet, know how to connect the right attitudes and behaviors into daily performance outcomes is a winning combination. This is a winning culture your customers will notice.

The POWERS Difference

Our unique approach to improving operational performance by focusing on your people is the key to turning an “us and them” culture into a thriving “we” culture. For us, “WE” means Workforce Empowerment. That’s why “WE” is at the center of POWERS! 

Our proven Culture Performance Management™ (CPM) methodology connects the dots between optimized company culture and desired operational performance outcomes. It can help break down silos, and open lines of effective communication, collaboration, innovation, and help lower costs.

Our team has helped executive leadership across many industries implement CPM to operationalize their culture for rapid and sustained performance improvement, increased competitive advantage, greater value, and a stronger bottom line.

To put our experienced team and proven track record to work for you, schedule an initial discovery and analysis by calling +1 678-971-4711, or emailing us at info@thepowerscompany.com.

Change Your View, Change Your Results: Shop Floor Excellence Grows from the Shop Floor Not From the Boardroom

Change Your View, Change Your Results: Shop Floor Excellence Grows from the Shop Floor Not From the Boardroom

 by Sean Hart
Change Your View, Change Your Results: Shop Floor Excellence Grows from the Shop Floor Not From the Boardroom

Shop Floor Excellence can be a critical component in lowering costs, enhancing your competitive advantage, and shoring up your bottom line.

We really are having a tough time throwing off the generations-old, “Tayloristic” approach to management in the United States. Even the concept of Shop Floor Management has high-level executives huddled in conference rooms, looking at data and drawing out plans on whiteboards for their employees to carry out obediently. They are the thinkers—the others, the doers.

This chasm and disconnect between top management and the workforce have been identified as a strategic weakness so often that the citation list would be unending. But, in the fall of 1911, Frederick Winslow Taylor’s, Principles of Scientific Management, arrived on the scene and many United States businesses have been paying the price in competitive advantage ever since, especially in manufacturing.

During seasons of economic boom, it’s hard to see the price businesses have paid and the value lost. Financial success can have that effect and mask a myriad of underlying issues. But when the economy slows or threatens to constrict, the argument for addressing the gulf between management and workers resurfaces. This comprehensive article from November 1988’s Harvard Business Review, and Suzaki’s, The New Shop Floor Management, first published in 1993, are great examples.

Our goal is always to address these built-up “silos” and wide gaps in the business structure that result in poor communication, an increasingly disconnected and unengaged workforce, and ultimately poor performance. As business consultants addressing systems, processes, and behaviors, we contend that people come first. And nowhere is that more evident than the shop floor.

Value is Created (or Lost) on the Shop Floor

The shop floor is where value is created in your organization. Or, it’s where value can be lost. Shop Floor Management (SFM) deals with the day-to-day execution of creating that value most efficiently to serve customer needs. An effective shop floor management plan typically is one that:

  • Ensures proper routing of materials on the shop floor
  • Maximizes process and procedure efficiency
  • Schedules the materials, workforce, other resources, and operations
  • Identifies and corrects any communication issues
  • Monitors for any deviations from standard performance outcomes
  • Corrects any deviations quickly


But as you can see from that description, little attention is paid to the workers themselves. Although the processes and procedures of SFM are necessary for production, it’s a typical top-down approach. As a result, traditional Shop Floor Management can often leave your workforce feeling like easily replaceable cogs with little control over their destiny and unclear opportunity for advancement. 

Shop Floor Excellence Begins with Your People

Shop Floor Excellence, on the other hand, begins with the people on your shop floor—your frontline workers and leadership. Shop Floor Excellence, therefore, addresses one of the most significant areas of waste in any organization—the potential of your people. Let’s go beyond theory and present a more practical picture of what Shop Floor Excellence looks like and how to get there.

1. Tap into the Creative Problem-Solving Potential of Your Frontline Leaders and Workforce

That means involving your people in the issues you face and coming up with the solutions to address them. Most common opportunities for improvement in manufacturing performance occur in the startup, line changeovers, and shift changes. No one is more familiar with those areas than your frontline people. Enlist them in making improvements. Get them out of daily reactive firefighting and into creating proactive solutions. You’ll be surprised at what you’ll find that no one has bothered to ask!

2. Transparency is Critical

It’s incredible how often we see production lines running without any visible indicators showing adherence to performance standards. That data is usually kept on computer dashboards and whiteboards in offices that can be far removed from the shop floor. Suppose your frontline leaders and operators cannot see if something is functioning out of standard or what optimal performance or capacity targets look like. How can they alert anyone to any issues, let alone try to help solve them? Maintain an obvious and up-to-date production control board that anyone can understand. Everyone should be able to easily find goals for quality, cost, delivery, safety, and morale!

3. Operate With Open Knowledge of Plan, Actual, Variance, Action (PAVA)

That means your shop floor personnel are all aware of the daily or shift-wise goals and are actively engaged in meeting those targets and in the action planning any improvements necessary when they’re not met. This open level of engagement in the greater purpose and productivity of the business is the ultimate team building.

4. Poka-Yoke the Shop Floor!

Anyone can make a mistake. Mistakes in manufacturing can be very costly. Mistake-proofing your systems and processes, known as Poka-Yoke, involves two levels. First are elimination, prevention, replacement, and facilitation to avoid the occurrence of mistakes. The second is detection and mitigation to minimize the effects of errors once they occur.

5. Train, Cross Train, Job Shadow, Mentor, Coach, and Recognize Accomplishments

We can’t emphasize this enough. Build your people, and they will build your organization. Teach them new skills, how to be a leader, and the behaviors that align with your company’s vision, mission, and values. Show them the path to advancement in your organization and treat them like the value creators they are. Acknowledge and celebrate their accomplishments openly. The more engaged and involved your workforce, the more likely they are to commit to creating and maintaining an environment of excellence on the shop floor.

6. Sweat the Small Stuff

A shop floor that is disorganized, dirty, and poorly maintained sends the wrong message to your workforce. Allowing it to continue can set the tone for the whole organization and really undermine any improvements you’re trying to make. Get your shop floor in order and keep it that way.

Putting it All Together

The pursuit of Shop Floor Excellence is a commitment from, and to, every one of your people. Like many things in life, Shop Floor Excellence is a journey. It’s an objective with high ideals that translate directly into daily practicalities, behaviors, and purpose. And ultimately, Shop Floor Excellence can be a critical component in lowering costs, enhancing your competitive advantage, and shoring up your bottom line.

We’d love to talk with you more about identifying areas of improvement in your organization, such as Shop Floor Excellence, and how POWERS can optimize your company culture to transform performance. It can be the key to lowering costs, attracting, and retaining talented people and growing your bottom line.

The POWERS Difference

POWERS is a management consulting firm using our proven Culture Performance Management™ methodology to connect the dots between optimized company culture and desired operational performance outcomes. Shop Floor Excellence is one of our main areas of focus.

Our team has helped executive leadership across many industries operationalize their culture for rapid and sustained performance improvement, lowered costs, increased competitive advantage, greater value, and a stronger bottom line.

To put our experienced team and proven track record to work for you, schedule an initial discovery and analysis by calling +1 678-971-4711, or emailing us at info@thepowerscompany.com.

The Role of Technology in Food and Beverage Shop Floor Excellence

The Role of Technology in Food and Beverage Shop Floor Excellence

 by Randall Powers
The Role of Technology in Food and Beverage Shop Floor Excellence

If a food and beverage manufacturer is interested in improving their processes on the shop floor, the first step is to establish true workflow. 

Companies in the food and beverage industry have strict guidelines they need to follow in regards to cleanliness and organization. While in other industries, strict guidelines and procedures must also be followed, if they aren’t, only the company suffers. However, if employees in the food and beverage industry act carelessly on the shop floor, it can actually cause severe illness or even death to the consumers. 

In 2021, In the United States, there were a total of 270 food and beverage recalls, a 20% decline over the prior year as reported by the USDA Food Safety and Inspection Service (FSIS) and the Food and Drug Administration (FDA). A food recall is when a food producer removes a product from the marketplace because there is reason to believe that it may cause consumers to become ill. In some situations, government agencies may request a food recall. Food recalls may happen for many reasons including discovery of organisms such as illness-inducing bacteria or parasites, foreign objects such as glass or metal particles found in the product, or major allergens not properly labeled on the packaging.

Food Control

While shop floor excellence is important in every industry, the stakes are higher in the food and beverage industry. The food industry places importance on the concept of food control which includes factors such as:

Safety

Procedures and practices that prevent microbiological and toxicological hazards

Nutrition

Focusing on foods which have nutritional profiles that are beneficial to consumers

Quality

Characteristics like aroma, taste, palatability, and appearance

Value

Characteristics of economic advantage and consumer utility, involving packaging, convenience, and shelf-life

In order for a company to be able to focus on food control, they must have excellence on the shop floor. The key to shop floor excellence is having every employee commit to improving and enhancing the business. 

If a company is interested in improving their processes on the shop floor, the first step is to establish true workflow. Each operator should have a clear signal to begin and stop work. An understandable system should be put into place. If there are problems, they need to be resolved. It’s not enough to just put a bandage on the issue and hope it will resolve itself.

Technological Advances

Technology plays a critical role in the shop floor excellence in a food and beverage manufacturer. Staying updated on the latest technological advances is not high on the priority list for many manufacturers in the food and beverage industry, however. This is especially true for mid-sized companies that don’t have a lot of money to invest. The idea of implementing new technology can seem daunting, and it can be difficult to take such a significant step. Sometimes, however, it can make things easier, and it can greatly improve the processes on the shop floor. 

For manufacturers in the food and beverage industry, a manufacturing execution system (MES) could be useful when it comes to shifting the company culture towards continuous improvement. MES solutions can bring about positive changes for both small and large companies.

MES Solutions and the Shop Floor

For any manufacturing company, the shop floor is where all the action happens. This is especially true in the food and beverage industry. Human error, however, is common, and machines often break. The company will not perform in a way that’s necessary to turn a profit if the shop floor is not efficient. 

With the right MES (Manufacturing Execution System) solution, any manufacturing team can run the shop floor in a more productive way. The key to staying competitive is the ability to make confident, quick decisions. This can be quite difficult if a company is pulling data manually. 

MES software may be the perfect solution for any manufacturing company in the food and beverage industry. It can:

  • Advance the processes on the shop floor and contribute to shop floor excellence.
  • Identify potential problems before they actually occur.
  • Merge with any existing systems that are already in place.
  • Provide data and insights to employees who need to make decisions about how to be more productive and efficient. 

While it’s clear that there are many ways technology can make food and beverage companies more efficient and productive, unfortunately, many companies seem to be resistant to new ways of doing things. According to Food Engineering, more than half of food and beverage manufacturers in the United States still use spreadsheets for various applications.

The Need for Digitalization

In order to be more efficient, stay competitive, and see shop floor excellence, manufacturers in the food and beverage industry must embrace digitalization and new technology. This does not mean that a manufacturer needs to convert all of their systems and processes in one fell swoop, but they need to be open to upgrading small projects one by one with an understanding that technology advances constantly, and there may never be an end in sight when it comes to upgrading systems and processes.

The Industrial Internet of Things (IIoT)

The Industrial Internet of Things (IIoT) puts technologies like intelligent devices and networked sensors and puts them to use on the shop floor. It collects data that drives artificial intelligence as well as predictive analytics. Connecting sensors via IIoT eliminates the need for manual processes and greatly reduces the chance of human error. 

Matthew Hartman, PE, senior automation sales, of Blantech–a supplier of software and equipment for mixing, cooking, cooling, material handling, marinating, cryogenics, and custom and advanced solutions–recently spoke to Food Engineering about how the “industrial internet of thing” is a “journey–not a destination.” He said, “The process data removes the sometimes wrong ‘gut feel’ and moves to data-supported decisions. Many times, decisions are made with large safety factors, because you just don’t know what is happening in the process. However, with process data, such as temperature, pressure and flow, you know how to safely optimize your process to yield optimal culinary, safety and production requirements.”

Conclusion

In order to increase efficiency, productivity, and shop floor excellence–which is not only a desired outcome, but a necessary one for food and beverage manufacturers–technology must be embraced. However, there is only so much technology can do if the operators are still using inefficient processes. 

At POWERS, we implement our proven Culture Performance Management™ methodology to connect the dots between optimized company culture and desired operational performance outcomes to ensure an adherence to shop floor excellence. 

Our team has helped executive leadership across many industry verticals operationalize their culture for rapid and sustained performance improvement, increased competitive advantage, greater value, and a stronger bottom line.

To put our experienced team and proven track record to work for you, schedule an initial discovery and analysis by calling +1 678-971-4711, or emailing us at info@thepowerscompany.com.

Bolstering Your Shop Floor Against Market Pressures: Reduce Waste, Lower Costs, Increase Efficiency

Bolstering Your Shop Floor Against Market Pressures: Reduce Waste, Lower Costs, Increase Efficiency

 by Sean Hart
Bolstering Your Shop Floor Against Market Pressures: Reduce Waste, Lower Costs, Increase Efficiency

Uncovering shop floor waste and inefficiency can be the key to substantially lower costs, reduce waste, and boost profits to bolster against market pressures.

Supply chain issues, a still-tight labor market, strong consumer demand, the Fed’s aggressive monetary policy possibly cooling demand–a lot is going on in our country’s economy when you take the 30,000-foot view.

But down in the weeds of the shop floor, in the day-to-day world of making things happen—where manufacturers live—simple truths remain. Demand is still generally strong. Keeping up with that demand creates challenges in the supply chain and the labor market. Procuring the materials needed to satisfy customer orders means diversifying your supply chain, finding new sources, or risk overburdening your existing suppliers.

At the same time, as the older workforce increasingly chooses retirement, the younger workers coming onto the shop floor need significant investment in training and added incentives to choose manufacturing as a career altogether. So, costs are drastically increasing in the areas of raw materials and labor. And we haven’t even touched on transportation and logistics.

What can you do to bolster your operation in these challenging times and make the most with what you have? Let’s start on the shop floor, where value is created.

1. Find Every Way to Lower Costs and Reduce Waste 

Belt-tightening across your value chain should already be integral to your operational approach. Uncovering waste and rooting out inefficiency may seem like a luxury of time and resources on top of the often-daily firefighting necessary to satisfy your customers. Still, it’s one of the surest ways to increase profit and hedge against rising costs.

Waste is often categorized into the 7 Deadly Waste Areas associated with the Lean approach and is a great way to begin looking at gaining efficiency and reducing cost and waste.

  • Overproduction – Overproduction happens when workers produce something before it is needed. This misstep is one of the worst forms of waste because it can lead to excessive inventory and spoilage and mask other underlying issues.
  • Waiting – When employees are left waiting for the next step in production, no value is being added. Examining each step from the beginning to the end to evaluate how much time is being spent adding value and how much time is spent waiting can be very eye-opening.
  • Transport – Transport is waste caused by the unnecessary movement of uncompleted or finished products.
  • Motion – This step refers to all movement that doesn’t add value to the product and is usually caused by poor work standards.
  • Over-processing – happens when more time is spent on processing than is necessary to produce what the customer needs. This type of waste can be the hardest to eliminate but can lead to significant bottom-line savings.
  • Inventory – This type of waste occurs when the supply exceeds customer demands. Accurate forecasting is therefore critical to inventory control.
  • Defects – Defects are mistakes that will either need to be fixed or the process will have to be started over completely. In manufacturing, this means a part must either be scrapped or completely remade.

Underneath all this potential waste lies probably the most significant one—time. These wasteful areas can create substantial time management issues, resulting in higher labor costs and persistent overtime. They can also make those added hours the least productive as the excessive effort for little or no gain can be a morale killer and lead to high employee turnover.

2. Invest in Training Your People

Training and developing your people should be your ongoing mantra. It certainly is ours. Training not only in activities necessary for production but behaviors that embody your organization’s core values and lead to increased accountability and authority.

Training is much more than mastering the steps required to operate a piece of equipment or perform a specific job function. It must be about empowering your workforce to willingly participate in the success of your operation in its entirety. Training and development boost morale, increase employee commitment and engagement and retain workers. A comprehensive training and development track is also an attractive benefit in a highly competitive job market.

3. Get Maintenance in Gear

Nothing can impact your capacity like unforeseen maintenance issues leading to unplanned downtime. Unplanned downtime occurs unexpectedly or because of a failure (for example, an equipment failure or waiting for appropriate materials to complete a task).

Common categories of unplanned downtime in manufacturing include excessive tool changeover, excessive job changeover, lack of an operator, and unplanned machine maintenance.

According to a recent Forbes article, unplanned downtime costs industrial manufacturers as much as $50 billion annually. In addition, when unplanned downtime occurs, no value is produced, but the cost of overhead operations continues to grow, directly impacting a company’s bottom line.

It’s past time to shore up your approach to maintenance. As we’ve explored previously, maintenance can be the key to “found money” in your operation. Take the time to get the schedule, staffing, resources, and commitment right. 

4. Coach Up Your Frontline Leaders

There’s a lot of stress on frontline leadership right now in manufacturing. Keeping up with yield, capacity, and throughput while managing personnel and equipment issues puts a heavy burden on your leaders daily. Take the time to get out on the shop floor and live in their world for a bit. Work with them side by side and coach them through the challenges. But above all, listen to them. 

Your frontline leaders are the direct pipeline to the improvements necessary to reduce waste and lower costs. They are in the trenches daily dealing with the inefficiencies that are typically not of their making. Often, they are the best source for correcting those issues but have simply not been heard. Take the time now to listen. The last thing you want is your frontline leadership team to be frustrated, stressed out, and ready to leave because no one will listen to their ideas to improve things. 

There is No Magic—This is Hard Work

Although economic growth has been solid for the past several quarters, persistent supply chain and energy challenges stemming from global issues like the Russia-Ukraine conflict and the Chinese COVID response lockdowns, inflationary pressures are high in the United States. As a result, flagging demand is possible even if the economy doesn’t enter a full-blown recession.

We’ve touched on a few ways your organization can pursue a more efficient operation and lower costs. But there is no magic pill you can swallow to cure all the operational ills you may face.

Keeping your organization profitable will take knuckling down and doing the hard work from the top floor to the shop floor. For example, when was the last time you walked the shop floor as an executive leader? I hope the answer is today, yesterday, or just a few days ago.

Although, thanks to technology, access to data and daily key metrics reports is a mouse click away, that’s not where you’ll find the answers to increasing efficiency and lowering cost. You may see the planned, actual, and variance, but not the action plan to improve. That’s going to require involving and empowering your entire workforce.

The POWERS Difference

A healthy and thriving company culture is the key to an empowered workforce willing to dig in and help reduce waste and inefficiency on the shop floor and pursue Shop Floor Excellence. At POWERS, our proven Culture Performance Management™ (CPM) methodology connects the dots between optimized company culture and desired operational performance outcomes. It can help break down silos, and open lines of effective communication, collaboration, and innovation. Most importantly, it can help lower costs.

Our team has helped executive leadership across many industries implement CPM to operationalize their culture for rapid and sustained performance improvement, increased competitive advantage, greater value, and a stronger bottom line.

To put our experienced team and proven track record to work for you, schedule an initial discovery and analysis by calling +1 678-971-4711, or emailing us at info@thepowerscompany.com.