Perspectives
Next Generation Manufacturing...Defined
At the most basic level, Next Generation Manufacturing (NGM) is defined as collaboration with customers and suppliers. In reality, NGM needs to be seamless, with fully integrated, consistent and predictable interactions with customers, channel partners and suppliers. This can be accomplished only with smart technology to automate the data flow and exchange of information throughout the supply chain.

The ability to adapt will be critical for manufacturers to succeed in an increasingly competitive environment. External challenges that are economic, financial and competitive are only the beginning of the challenges that manufacturers are facing. Increasingly governmental regulations are changing, requiring careful monitoring of hiring practices, as well as environmental concerns such as energy use and waste-stream management. In addition to dealing with these external challenges, manufacturers need to take a serious look at the steps that will improve performance and movement towards best in class Next Generation Manufacturing companies.

To achieve NGM best in class status, there are five key areas that companies need to focus on.

Organizations without robust technology solutions will be unprepared for the changing requirements of meeting customer and supply chain partner demands. Managing by spreadsheets is no longer effective and being able to communicate through electronic data exchanges is required for consistent data exchange. Inability to communicate electronically will require supply chain partners with these capabilities to modify their processes resulting in inefficiencies and potential for errors.

Implementing and effectively utilizing technology has the power to create enormous efficiencies, reducing administrative burden, eliminating duplicate efforts, automating KPIs and providing consistent information from multiple parties. With real-time data availability, all departments and supply chain partners have access to the same information and have confirmation that information was transmitted. Today's web-based applications have significantly reduced the financial burden of implementing systems, from fees exceeding $200,000 in up-front implementation costs plus monthly maintenance fees to low implementation costs and access fees of only $2,000 per month. Web-based systems can act as an integrator for existing internal and external systems or replace out-dated systems.

Case Study - Office Supplier
Fully integrated companies not only improve their internal operations but also provide greatly increased customer service, resulting in increased revenues. Consider the case of an office supplier manufacturer/servicer that caters to medical offices and law firms. They are fully integrated and focused on 100% performance.

Client Results
Manufacturer of Precision Flow Meters Dramatically Increases Production, Reduces Annual Operating Costs and Improves Quality and Time-to-Market
A leading manufacturer of precision flow meters and components for the aerospace, semiconductor and medical device industries sought the advice of Manex to help them conduct a comprehensive review of its operations, and develop and implement a plan that would rapidly improve the company's cost structure. The company is a full-service manufacturer with in-house sales, engineering, manufacturing, quality assurance and customer service functions.

Situation
As the company continues to focus on providing high-quality products and solutions to its customers, the management team was proactively pursuing ISO certification to address customer demand and competitive pressures in the marketplace. The company was looking to prepare for ISO 9001:2008 certification.

Solution
Manex designed a custom solution for the client, consisting of a detailed process map of the operations from order entry through shipping, with a roadmap for improvement. The Manex team implemented two High-Impact Kaizen events following the DMAIC approach for Practical Problem Solving and Root Cause Corrective Action. Manex led and implemented the following initiatives:

• Creation of current state process maps to understand the flow of products from order entry through shipping
• Implementation of proven Lean Manufacturing principles to reduce costs and defects, and improve plant profitability to the shop floor
• Implementation of two Kaizen Events along with Practical Problem Solving & Root Cause Corrective Action (RCCA) training
• Application of 6-sigma DMAIC Process during the shop floor Kaizen events
• Implementation of "train the trainer" concept on Lean Manufacturing Principles and internal ISO 9001:2008 requirements
• Creation of the ISO 9001:2008 quality manual and supporting documentation in conjunction with the client team

Results
As a result of these continuous improvement activities, the company dramatically increased production levels, reduced annual operating costs, and improved quality and time to market. With improved operations flow and trained production team members, the company is positioned to exceed its operational requirements and achieve ISO 9001:2008 certification. Specific results include:

• 50% improvement projected in cycle time in the testing labs (approximately amounts to $20K/year in cost savings in the test lab)
• Approximately 30% improvement in on-time-delivery
• Approximately 22% improvement in first-pass-yield
• 30% reduction in rework (predominantly internal rework)
• 35% reduction in "over-processing" activities by eliminating redundant testing activities
• 40% reduction in front office cycle times identified
• Streamlined scheduling with potential benefits to improved quality (decrease in rework, rejects and scrap), and improved on-time delivery
• Freed capacity to enable sales to aggressively pitch for new orders
• Decreased cost of lost opportunity