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It was due yesterday!" barked the man on the phone.
"I know, but...." I wasn't allowed to finish my sentence.
"Your supplier review is coming up next month, we'll discuss it then" was his statement.
"OK" I said feebly. I knew that the damage over the last six months was going to be hard to repair, assuming it could be repaired.....
As you are reading this short report I assume that you want to make your business work in a way that makes delivering on time simpler, less chaotic and more consistent.
'On time' is a commonly used phrase, but when you are faced with a complex relationship between a number of factors (sickness, suppliers, computer systems, habits etc..) then achieving on time delivery consistently can be a little bit harder than many people think.
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On the following pages I will share with you a handful of common mistakes that can be avoided. But, before we launch into these topics you might be wondering why I am offering this free report.
I help businesses to improve the way that they work, so that they can deliver on time (and make more profit whilst dealing with less chaos!). If you can relate to the problems we discuss in this document but need a hand to overcome them in
your business then at least you will know my name as someone you could turn to (and my contact details are at the end of this report should this be the case).
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The best way to improve your on-time delivery performance is to stop setting yourself up for failure in the first place.
Simply put, don't take on more than you can actually do.
Have you ever waited all day for a delivery?
And then it doesn't show up?
It's really annoying isn't it?
The point I am making is that when you fail in front of your customers you really fail. You can make all kinds of mistakes behind the scenes, but the ones you make in front of the customers really count.
Now, I'm not suggesting that you have really broken the hearts of your customers when you miss your delivery dates, but you have broken a promise you made to them in the first place.
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If you think in terms of promises being either kept or broken it can make your decision making a lot easier.
Manage your capacity more adeptly when you are considering accepting new orders.
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Most jobs within a business are there for a purpose. Sometimes this is not clearly visible when you find out what people are actually spending their time on.
Many jobs are also entwined with other tasks that take up considerable amounts of time.
Often the secondary tasks overtake the primary tasks and it's easy to get into a mess, always playing catch up when something goes wrong.
Match the person’s activities to the key points in the business’ processes. Make these activities happen like clockwork and witness a big (and often immediate) effect.
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Quite often being able to define the purpose of a job role in one sentence can bring a lot of clarity back to day to day working.
e.g. “I purchase materials”, “I design new products”, “I improve manufacturing”
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A contract review is a short meeting between departments, or a checklist used by the person who puts the orders onto your order book.
If we get the wrong decisions made at the start of the order then completing the delivery / project / service can become difficult, and expensive, near the end.
We have already touched upon the issue of ignoring the capacity available in the business and failing to consider other features that are important to your business can really trip you up.
Ensure that your planning is done at the start of an order entering your business and not at the end just before despatch. Create either a short meeting agenda, or a checklist, to help the people tasked with accepting new orders into the business to do it right each and every time.
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Very often the focus of a business that is struggling to achieve a consistent on time delivery performance is on the final output. However, at all stages of the process it is possible to ‘deliver on time’ to the next stage.
When we don’t consider how each part of our process passes its product (information or physical) to the next stage of the process problems can occur. Instead of fixing the problem it is easy to ignore it (creating delays possibly), or just to get on with it (re-work the product until it is right for your team).
It is much like dropping the baton in a relay race. To try and catch up in the race
you need to expend a lot of additional energy. Winning the race means smooth handovers conducted at speed.
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Create handovers like the relay race example above. Find out what happens at these interfaces and design a better way for the product to be passed. Whether this means the sequence of passing work, or the information that is included, create a slicker way to transition between the stages in the process.
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Many businesses can’t tell you where their performance will be, they aren’t looking at what their process tells them right now.
If a business is using Key Performance Indicators (KPIs) there is a good chance that they will be using ‘output’ KPIs. Output KPIs tell you what happened. They tell you the past.
Knowing how each part of the process is doing means that you can change the
performance at that stage and gives you a good opportunity to change the eventual outcome.
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The Solution
Similar to the dashboard of a car, you can create a small suite of KPIs that tell you how your process is doing, alongside keeping an eye on the outputs. Just as you would in your car, you can change the performance by focussing on one of the elements and adjusting it. In your car it may be changing gears or accelerating. In your business it may be the release of works orders or the movement of resource between work centres / departments.
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Time and time again I visit businesses that have a main system that they use to manage their business (such as an ERP or MRP II systems) and then a series of workaround tools. The data that is left in the main system is often incomplete and inaccurate, often referred to as ‘dirty data’.
A lack of discipline and understanding with the core system can lead to poor decision making if the dirty data is used. Additional work can also be required if secondary systems are put in place.
The number one cause I have come across for this problem is a lack of understanding of how their business’ system is meant to work. If they don’t know how to use it then they risk not using it properly. This leads to poor information that cannot be relied upon, and this can lead to re-inventing the wheel rather than fixing the problem (that they don’t understand in the first place).
Finding out where these workarounds exist, why they exist and then plugging the holes is the way out of this situation. Most business systems employed follow similar logic, and sometimes it is an educational issue that needs to be addressed. However, this does give you the opportunity to improve the instructions you have in your business as well as bolster the routines you have developed.
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Even a small team cannot rely upon telepathy! The routines we have discussed along with the various points in the process and KPIs need to be managed. Communication binds all of the last six points together.
You sit next to your colleague, or you oversee your team. Everyone is getting on with their work, but how do you periodically pull it all together to make sure that you are working as effectively as possible to achieve the performance targets of your business?
Even in small teams it is easy to become silos of one person.
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A short daily meeting is a great way to solve this problem. It only needs to take a few minutes and can help you to pull all of the information in this report together. The agenda is basically a checklist of ‘yes / no’ questions that can help you to manage your process, and possibly some KPIs to provide context.
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I hope that these seven mistakes can be avoided by your business, and by implementing some of these ideas you will see a fast improvement in your on time delivery performance.
If you want some powerful ideas to accelerate your on time delivery improvements, and a structured management approach, then check out The OTIF Improvement System.
This download comes with the templates, worksheets and guidance needed to put this effective operations management into place and can really drive up your on time delivery performance. The system includes a 30 day email coaching programme that supports the implementation.
As a thank you for signing up to my email updates, you can save £59 off the price of the system by using the button below.
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To help you get the most from this report you will receive three follow up emails. Each email is intended to help you apply the ideas and see tangible results in your business.
I want to make sure that you get the most from the ideas in this report, but if you don't want to hear any more from me please just unsubscribe when you wish.
Also, I share ongoing ideas and news each month. You can unsubscribe at any time from these too...
...but, you might just find a few good ideas in there!
Speak to you soon,
Giles Johnston
Smartspeed Consulting Limited
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Giles is a Chartered Engineer with a background in Operations Management, who has specialised in the areas of MRP Systems and improving on time delivery performance.
He has worked in a variety of different roles within manufacturing prior to working as a consultant for a prestigious university.
In 2005 Giles decided to forge his own path and created Smartspeed, which has been helping businesses to improve their delivery performance, along with their profits, ever since.
Giles can be contacted by:
Email - gilesjohnston@smartspeed.co.uk
Phone - 07738 466 724
LinkedIn - uk.linkedin.com/in/gilesjohnston
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