November 8, 2024 Uncovering Hidden Issues on the Shop Floor

When key components are functioning well, hidden issues can arise that disrupt operations, and these could be hiding in plain sight.

By Stephen Dombroski, Director of Consumer Markets, QAD Inc.

Success hinges on much more than just getting the right ingredients and hitting production targets. Every part of the business—from demand planning and forecasting to production scheduling and procurement—must work seamlessly together. However, even when key components seem to be functioning well, hidden issues can arise that disrupt operations and lead to costly inefficiencies. What if I told you that the biggest problems in your business might be hiding in plain sight, disguised as everyday operations?

We will study four real-world scenarios where seemingly well-functioning aspects of a business can actually mask deeper problems. From an efficient shop floor that’s producing the wrong products to a chaotic procurement process that throws off the entire production plan, we’ll explore how manufacturers can uncover and address these hidden issues.

Scenario 1: The Chaotic Shop Floor

The Issue: Imagine this: you’ve done everything right—your forecast is solid, your production plan is aligned with your capacity, and yet the shop floor is in disarray. Workers are miscommunicating, tasks are getting lost, and production schedules are being missed. Orders aren’t being shipped on time, and the chaos on the shop floor is creating a ripple effect that you can’t afford to ignore.

The Ramification: Despite the planning efforts, your brand’s products aren’t making it to the store shelves. Consumers walk in, expecting to see your product, but it’s nowhere to be found. Not only do you lose sales, but your brand’s reputation also takes a hit, leading to long-term damage. The shop floor chaos is acting as a bottleneck, preventing you from delivering on your promise to consumers.

The Solution: The answer lies in better shop floor communication and real-time collaboration. A connected workforce platform can transform how your teams communicate and ensure that everyone is aligned on production schedules and tasks. By enabling real-time updates and fostering collaboration, these platforms help eliminate confusion and ensure that your production plan is executed on time. The result? Your products arrive where they need to be, when they need to be there, restoring your brand’s presence and keeping customers happy.

Scenario 2: The Misleading Forecast

The Issue: Your shop floor is running like a well-oiled machine. Efficiency has increased by 29%, and workers are hitting their stride. Yet, despite these improvements, something is still going wrong. You have inventories at every level from raw materials through finished goods piling up, yet customer service is well below where it should be. You are making your forecast but yet these problems are haunting you. The cause? You are producing the wrong products because your forecast is wrong.

The Ramification: When the forecast fails to align with actual market demand, your shop floor ends up producing products that aren’t needed, while the products that are in demand sit unmade. This creates a backlog of unsellable inventory, drains resources, and disrupts the entire supply chain. Your shop floor is efficient, but that efficiency is wasted if it’s being directed toward the wrong goals. Having an efficient manufacturing operation is fantastic. But, all other aspects of the business need to align.

The Solution: The key to resolving this issue is improving demand forecasting. Advanced forecasting tools that use real-time market data and predictive analytics can help ensure that your production aligns with actual consumer demand. And, the forecast has to be accurate to the location of sale level to prevent unnecessary redeployment of inventories and spoilage. By integrating these tools into your planning process, you can avoid the costly mistake of producing the wrong products and ensure that your shop floor’s efficiency translates into real results.

Scenario 3: The Disconnected Production Plan

The Issue: Your forecast is accurate, and the shop floor is humming along efficiently. You’re facing too many changeovers on the production line, and there’s a lack of synchronization between different stages of production. Even though your workers are efficient, the production process itself is disconnected, leading to unnecessary downtime and wasted resources. You are scheduling what you think you should and it is being produced efficiently. So, what is happening? You can’t schedule yourself out of a bad plan.

The Ramification: While an optimally sequenced production schedule is critical, it starts with a production plan. The production plan sets the framework for the schedule. Too many changeovers create production inefficiencies, increase costs, and reduce overall output. Your shop floor’s capacity is being underutilized, and the lack of synchronization is preventing you from achieving the full potential of your production capabilities. Despite having the right forecast and a capable workforce, your production plan is holding you back.

The Solution: Optimizing your production plan is key. By using production planning tools that manage all assets and balance capacity, you can produce what you need, when you need it, at the best location. These tools minimize downtime and maximize output by aligning production runs with your forecast. With capacity balanced, advanced scheduling can reduce changeovers and synchronize production stages, allowing your shop floor to operate at peak efficiency and meet demand effectively.

Scenario 4: The Disruptive Procurement Plan

The Issue: The shop floor is ready to go, the production plan is in place, and everything should be running smoothly. But there’s a problem: the materials you need aren’t arriving on time, or they’re arriving in the wrong quantities. This procurement issue is disrupting your entire operation, forcing the shop floor to produce items that aren’t part of the production plan or, worse, to halt production altogether.

The Ramification: Poor supplier performance and procurement mistakes lead to production delays, increased costs, and inefficiencies on the shop floor. When your shop floor isn’t producing what it’s supposed to because the materials aren’t available, it creates a domino effect that impacts every part of the supply chain. Costs spiral out of control, and your ability to meet demand is compromised.

The Solution: The key to solving this issue lies in improving supplier relationship management and procurement transparency. By implementing systems that provide real-time visibility into supplier performance and material availability, you can ensure that the right materials are delivered on time. This allows your shop floor to stick to the production plan, avoid costly disruptions, and maintain efficiency throughout the operation.

Uncovering the Hidden Issues in Your Manufacturing Business

Success in today’s environment is about more than just efficiency on the shop floor. Every part of the business—forecasting, production planning, procurement, and execution—must be well aligned for operations to run smoothly. As we’ve seen in these four scenarios, even when one part of the business is working well, hidden issues in another area can create major disruptions.

By taking a closer look at how these different elements of your business interact, you can identify and address the underlying problems that are holding you back. Whether it’s improving communication and collaboration on the shop floor, refining your demand forecasting, optimizing your production plan, or enhancing procurement transparency, the key to success lies in aligning all parts of your operation.

Manufacturers today need to synchronize their entire ecosystem. While a well-oiled production machine is a great achievement, it’s just one part of the bigger picture. You must consider all business functions and the role your trading partners play in your success. When everything works together, inefficiencies are eliminated, costs are reduced, and you can consistently deliver the right products on time. Optimizing your people, processes, and systems helps uncover hidden problems so you can become agile, efficient, and resilient to achieve your goals. So, where are you seeing problems in your business today? And more importantly, are you looking in the right place?

Stephen Dombroski is QAD’s Director for the Consumer Products and Food & Beverage vertical markets. Steve has over 30 year’s experience in manufacturing and supply chain, and has helped multiple companies in a number of industries to implement S&OP concepts and processes.

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