A recent local newspaper article told the story of a small group of manufacturers in Athens, GA that has started getting together on a monthly basis to brainstorm how they can help each other improve in the areas of waste reduction, energy conservation, water conservation, carbon footprint, etc.

This is a really good idea. Because the companies are likely in different industries, they can approach the issues from different perspectives and bring new ideas to the table that will benefit the other participating companies.

Since they share a local presence, by joining together they can have more influence on government agencies and other resources (recycling contractors, trash collection and landfill, etc.) through their larger collective voice and buying power. There could be some common suppliers, especially for indirect materials and supplies that can be approached as a buying group or consortium. They could encourage carpooling or van pools among neighboring plants rather than just company-by-company. They might even share facilities that are not in constant use like conference rooms or meeting facilities.

It’s possible that they may find ways to more directly help each other. Scrap or by-products from one company might be useful to another. They may be able to share resources like waste water processing facilities or power/heat cogeneration.

By sharing ideas across different industries, energy and resource saving practices can ‘cross-pollinate’ much in the same way best-in-class benchmarking can bring innovative breakthroughs from one industry to another.

Not all of these ideas are strictly ‘green’ – some are just about saving money. But that’s another kind of green that companies are always interested in.

Plus it’s so easy – traveling from one local company to another for a face-to-face meeting is a short walk, not a plane ride.

Read similar articles at Lean + Green Manufacturing

Sometimes, it’s helpful to step back and ask the ‘big question’: Why do we have xxx?  Or why do we do yyy? It’s easy to get wrapped up in the details and lose sight of the overall objective. Let’s look at a couple of answers.

1.a.  Why do we have inventory?
The answer is not “because we have always had inventory” or “because everybody does” or even “It makes me feel more secure”. Inventory is a buffer against changing demand (forecast error), quality problems, late receipts, and production delays. Inventory also lets us shorten the effective lead time to deliver products to customers.  The follow-on question is …

1.b. Do we have the right amount of the right inventory to achieve those objectives?  You might also have inventory as a result of purchase price breaks or because of long lead times for parts and materials. Again, you should periodically reevaluate those inventory levels and those suppliers in light of carrying costs, transportation costs, obsolescence risk, and other factors that contribute to the overall cost of holding those items in stock. If left to themselves, inventories tend to grow. It takes an extra effort to revisit inventory and make new decisions about how much is really serving a purpose and how much just accumulated or is there for reasons that are no longer valid.

Consider these questions:
2.a. Why do we have computers systems and software?  Obviously, it is nearly impossible to operate a business today without basic computer support but I’m asking you to think back to the reasons and justifications you used when you made the system purchase(s). There was undoubtedly an ROI justification (hopefully documented) that specified certain benefits sufficient to reward the company beyond the costs incurred.
2.b. Did you achieve those benefits?
2.c. Are they still important to the company?
2.d. Have conditions changed such that there are different objectives that can be attained with the current system, additions to the system, or a replacement system?

Most companies did not reap the full measure of benefits anticipated when they bought their system(s). But they can almost always go ‘back to the well’ and recapture some of those savings and improvements with a modest investment in consultation, training and effort. Most companies already have systems in place that are adequate to deliver what the company needs to survive and prosper. Most could do a lot more with what they already have in place. In many cases, additional applications can multiply the benefit and provide a good return on this additional investment. In a minority of cases, the system no longer serves the company’s needs and should be replaced. But, wouldn’t it be good to know that, too?

Contact us if we can help you complete an objective evaluation of current system usage and make recommendations on how to get more out of your system investment.

While the software development business is focused on features and functions, and the hardware business understands that it is the software that provides value, marketing and sales must remember that companies buy systems for their ability to make money or save money.  The rest is just details.

Your marketing message will only resonate with prospects if it clearly shows how the system will increase sales (make money) or reduce costs (save money).  It is your job to translate ‘speeds and feeds’ that the hardware folks build into their boxes and the software’s ‘features and functions’ into dollars and cents for the user. Further, it’s better if there is a time factor – a reason to buy now (a call to action, in marketing speak).

That’s all. Sounds simple and obvious? Maybe so, but getting that message through is the essence of business technology marketing. Think about your current campaign, your current marketing slogans and headlines. Are they focused on how your clients can make money and/or save money? Do you have proof points – examples of your solution delivering on the make-money or save-money promise?

If your primary target is a replacement market (our solution delivers what your current solution cannot) then your task is to create a vision in the prospect’s mind of how much better off they will be once they replace their current solution with yours.

If you are selling something that they don’t already have, like a new application or a unique capability, then your task is to create a vision in the prospect’s mind of how much better off they will be once they add your solution to their current toolset.

Either way, they have to be able to see how they will get a return that exceeds the cost of buying and implementing your solution. So it all comes down to return on investment – how your solution will make enough money or save enough money to make them glad they spent money with you.

Everything else is just details.

* Suarez, Daniel. Daemon. Dutton, a member of Penguin Group (USA). 2009

Although the changing of the calendar is a relatively arbitrary event, it is nonetheless an opportunity many of us take to review the past year and make plans and resolutions for the coming twelve months. We just passed a very difficult period for manufacturing but all indicators are that it will likely be a long and slow recovery. Business is improving on almost all fronts but we are feeling chastened by the recent challenges and conservatism is the order of the day.  The point I’d like to make this month is — Don’t continue to fight last year’s war. Once burned, it is natural to feel ‘gun shy’. Nobody wants to be burned twice. So, if we were burned last year, the tendency is to hold back and try to avoid another scalding. Ironically, that makes it more likely that we’ll miss the next turn of the market.

Learn from the experience but put the past behind.  Follow these guidelines as we move into the new decade:

1.    Watch demand closely as it is likely to change rapidly (and probably fluctuate considerably) as the economy works its way back to health

2.    Tighten your forecast update cycle — that is, work harder at refining and updating the forecast more often

3.    Collaborate more closely with customers and prospects to better understand their plans and needs

4.    Reduce your reaction time (lead time) in order to reduce your dependency on longer range forecasts.   Once again, good forecasting emerges as a key factor in business success.

5.    Finally, remember that you don’t have to sit back and meekly accept demand as it may come. You can influence demand through aggressive marketing and sales actions in what the analysts call “demand shaping”. There’s an old saying that “it pays to advertise”. I’d say that’s true, but limited. In today’s world, it pays to focus on the customer – understand demand (forecast), shape demand (market and sell), and react to demand (shorten lead times).

What’s your opinion about the New Year …

Follow Dave on Twitter Dave’s Blog “Lean + Green Manufacturing”

Although the changing of the calendar is a relatively arbitrary event, it is nonetheless an opportunity many of us take to review the past year and make plans and resolutions for the coming twelve months. We just passed a very difficult period for manufacturing but all indicators are that it will likely be a long and slow recovery. Business is improving on almost all fronts but we are feeling chastened by the recent challenges and conservatism is the order of the day.  The point I’d like to make this month is — Don’t continue to fight last year’s war. Once burned, it is natural to feel ‘gun shy’. Nobody wants to be burned twice. So, if we were burned last year, the tendency is to hold back and try to avoid another scalding. Ironically, that makes it more likely that we’ll miss the next turn of the market.

Learn from the experience but put the past behind. It is especially important for manufacturers to focus on better forecasting and improved agility to avoid being caught either ahead of or behind the recovery. We offer the following 5 actions as the essence of that effort. The last point is particularly important. Marketing drives sales activity. If you market like there’s a recession, that lack of effort will likely generate (or perpetuate) a recession. Marketing is a leading activity. Sales lags marketing. So get out front and shape demand in your favor.

Here are the 5 actions we are recommending for manufacturers:

1.    Watch demand closely as it is likely to change rapidly (and probably fluctuate considerably) as the economy works its way back to health

2.    Tighten your forecast update cycle — that is, work harder at refining and updating the forecast more often

3.    Collaborate more closely with customers and prospects to better understand their plans and needs

4.    Reduce your reaction time (lead time) in order to reduce your dependency on longer range forecasts.   Once again, good forecasting emerges as a key factor in business success.

5.    Finally, remember that you don’t have to sit back and meekly accept demand as it may come. You can influence demand through aggressive marketing and sales actions in what the analysts call “demand shaping”. There’s an old saying that “it pays to advertise”. I’d say that’s true, but limited. In today’s world, it pays to focus on the customer – understand demand (forecast), shape demand (market and sell), and react to demand (shorten lead times).

What are your plans for the New Year …

Follow Dave on Twitter Dave’s Blog “Lean + Green Manufacturing”

An APICS certification makes you a more valued employee, and therefore enhances your prospects for career advancement. As it says in the APICS CPIM brochure, “(Certification is) a great way to boost your career potential (and) separate yourself from your coworkers.” Earning an APICS certification demonstrates your skills and knowledge to employers and colleagues. APICS CPIM (Certified in Production and Inventory Management) designees enjoy higher salaries and status within their organizations and rate their personal job satisfaction higher than non-certified individuals.

With the APICS CSCP (Certified Supply Chain Professional) program you can take your career and organization in a new and exciting direction. Shape your future, align your goals, and distinguish yourself from the competition.  By earning the APICS CSCP designation, you will demonstrate significant commitment to your profession and your career, distinguish yourself as an industry expert, and excel with your newly acquired specialized knowledge.

As with CPIM, CSCP enhances career potential and leads to greater job satisfaction. In this challenging global marketplace, only the most well-trained, well-educated professionals will be sought after by employers and valued by organizations. Join their ranks today by earning the APICS CSCP designation. Recent Web searches of monster.com, workopolis.com and careerbuilder.com show an increasing number of job ads referring to APICS CSCP, with some employers now requiring CSCP for job categories and as prerequisites for promotion. Move your resume to the top of the stack with APICS CSCP.

Establish yourself as an industry resource and show your commitment to excellence with CPIM and/or CSCP certification. APICS certification gives customers, peers, and employers confidence in your abilities, which can lead to new business, a promotion, career opportunities, and increased salary.

Contact us for more information about the APICS CSCP Program or to host a class at your company.

A big part of the “green” movement in manufacturing is the idea of sustainability, meaning “using methods, systems and materials that won’t deplete resources or harm natural cycles.” This is a particular subset of the general idea of waste reduction that is focused on the use of renewable resources and the whole realm of reuse, recycle, and responsible disposal.

Many ‘green’ efforts are also sustainability efforts. When you reduce energy requirements, you are reducing the use of fossil fuels and lowering emissions. When you eliminate or reduce packaging that contributes to sustainability as well. Using materials from renewable sources (soy-based instead of petrochemical, for example), is a very sustainability oriented action. Most of these changes also save money, many immediately and others over the long term.

Don’t forget, too, that the regulatory environment will become more and more stringent in this area. Laws and rules like RoHS and WEEE now in effect in Europe will be coming to the U.S. soon, as will new carbon regulations and economics. No matter what you think about global warming, you are not being given a choice. It might be a good idea to assess and document your carbon footprint now, as a baseline for upcoming rules and regulations.

My parents grew up during the depression and I was raised with traditional New England frugality – “use it up, wear it out, make it do or do without”. So, these ideas are all familiar and comfortable to me. As a nation, we seem to have forgotten about limited resources but we are becoming increasingly aware of it now. Much of the move to ‘green’ manufacturing is based on these simple principles and many of them save money while satisfying regulators and pleasing customers – a ‘win’ all around.

How do software and systems support these goals? Certainly engineering systems will play a role in design changes and ERP will be involved in tracking the configuration and cost changes. Warehouse and transportation system support intelligent routing, efficient space usage, and reverse logistics (returns of recyclables, tracking reusable containers, etc) “What if” and simulation capabilities will help you assess the impact of changes.

There are some interesting challenges ahead but the end result will be lower costs, new efficiencies, and smarter use of resources of all kinds. It’s an effort that would be worth pursuing even if it wasn’t being driven by regulations and consumer demand.  You can also follow Dave’s Blog Lean + Green Manufacturing.

A big part of the “green” movement in manufacturing is the idea of sustainability meaning “using methods, systems and materials that won’t deplete resources or harm natural cycles.” In reality this is a particular subset of the general idea of waste reduction that is focused on the use of renewable resources and the whole realm of reuse, recycle, and responsible disposal.

Many ‘green’ efforts are also sustainability efforts. When you reduce energy requirements, you are reducing the use of fossil fuels and lowering emissions. When you eliminate or reduce packaging that contributes to sustainability as well. Using materials from renewable sources (soy-based instead of petrochemical, for example), is a very sustainability oriented action. Most of these changes also save money, many immediately and others over the long term.

Don’t forget, too, that the regulatory environment will become more and more stringent in this area. Laws and rules like RoHS and WEEE now in effect in Europe will be coming to the U.S. soon, as will new carbon regulations and economics. No matter what you think about global warming, you are not being given a choice. It might be a good idea to assess and document your carbon footprint now, as a baseline for upcoming rules and regulations.

My parents grew up during the depression and I was raised with traditional New England frugality – “use it up, wear it out, make it do or do without”. So, these ideas are all familiar and comfortable to me. As a nation, we seem to have forgotten about limited resources but we are becoming increasingly aware of it now. Much of the move to ‘green’ manufacturing is based on these simple principles and many of them save money while satisfying regulators and pleasing customers – a ‘win’ all around.

How do software and systems support these goals? Certainly engineering systems will play a role in design changes and ERP will be involved in tracking the configuration and cost changes. Warehouse and transportation system support intelligent routing, efficient space usage, and reverse logistics (returns of recyclables, tracking reusable containers, etc) “What if” and simulation capabilities will help manufacturers assess the impact of changes.  There are some interesting challenges ahead but the end result will be lower costs, new efficiencies, and smarter use of resources of all kinds.

Having a resource that can create valuable content and credible “takeaways” about Sustainability can help your efforts to develop and nurture leads.  Contact us to discuss how we can help you position your products in support of your prospects’ interest in green manufacturing and sustainability.   You can also follow Dave’s Blog Lean + Green Manufacturing.