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Hunter Allen
Hunter Allen

Achieve World-Class Performance with Ron Moore's Models for Manufacturing Excellence



Making Common Sense Common Practice, Third Edition: Models for Manufacturing Excellence Ron Moore




Introduction




Common sense is the ability to make sound judgments based on practical experience and knowledge. It is often said that common sense is not so common, especially in the complex and dynamic world of manufacturing. Many manufacturing organizations struggle with inefficiencies, defects, breakdowns, accidents, delays, waste, and customer complaints. These problems not only affect their performance and profitability, but also their reputation and sustainability.




Making Common Sense Common Practice, Third Edition: Models for Manufacturing Excellence Ron Moore



How can manufacturing organizations overcome these challenges and achieve excellence in their operations? The answer lies in making common sense common practice. This means applying proven models, methods, tools, and techniques that can help them optimize their strategy, asset reliability, organization effectiveness, and process quality. These are the four key elements of manufacturing excellence that Ron Moore has identified and explained in his book "Making Common Sense Common Practice, Third Edition: Models for Manufacturing Excellence".


Who is Ron Moore? He is a recognized expert in operational excellence, asset management, reliability engineering, lean manufacturing, six sigma, quality management, and leadership development. He has over 40 years of experience in consulting, teaching, writing, and speaking on these topics. He has worked with hundreds of manufacturing organizations around the world, helping them improve their performance and profitability. He has also authored several books and articles on manufacturing excellence, including "What Tool? When?", "Selecting the Right Manufacturing Improvement Tools", "Business Focused Maintenance", "Making Common Sense Common Practice", "Improving Performance Through Statistical Thinking", "Reliability Technology", "The Quality Improvement Handbook", "The Maintenance Scorecard", "Lean Six Sigma", "The Reliability Engineering Handbook", "The TPM Process", "The RCM Solution", "The Asset Management Handbook", "The Lean Enterprise Memory Jogger", "The Six Sigma Memory Jogger II", "The Quality Toolbox", "The Root Cause Analysis Handbook", "The Failure Mode Effects Analysis Handbook", "The Measurement Systems Analysis Reference Manual", "The Statistical Process Control Reference Manual", "The Design for Six Sigma Reference Manual", "The Lean Six Sigma Pocket Toolbook", "The Lean Six Sigma Project Execution Guide", "The Lean Six Sigma Deployment Memory Jogger", "The Lean Six Sigma for Service Handbook", "The Lean Six Sigma for Healthcare Handbook", and "The Lean Six Sigma for Manufacturing Handbook".


In this article, we will summarize the main points and recommendations from Ron Moore's book "Making Common Sense Common Practice, Third Edition: Models for Manufacturing Excellence". We will also provide some examples and case studies to illustrate how manufacturing organizations can apply these models to their own operations. We hope that this article will inspire you to read the book and learn more from Ron Moore's insights and experience.


The Four Key Elements of Manufacturing Excellence




Strategy and Leadership




The first element of manufacturing excellence is strategy and leadership. This means having a clear vision, mission, values, and goals for your organization, and aligning them with your operations. It also means developing and empowering your leaders at all levels, and measuring and communicating your performance and progress.


How to align your vision, mission, values, and goals with your operations




A vision is a statement of what you want to achieve in the long term. A mission is a statement of why you exist and what you do. Values are the principles that guide your behavior and decisions. Goals are the specific, measurable, achievable, relevant, and time-bound objectives that you want to accomplish in the short term.


To align your vision, mission, values, and goals with your operations, you need to involve your stakeholders, such as your customers, employees, suppliers, shareholders, regulators, and community. You need to understand their needs, expectations, and feedback, and incorporate them into your strategy. You also need to communicate your strategy clearly and consistently to your stakeholders, and ensure that they understand and support it.


For example, Toyota's vision is "to lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people". Its mission is "to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been one of the core principles of Toyota since its foundation. Furthermore, Toyota strives to provide the society with safe automobiles while giving full attention to the global environment". Its values are "customer first", "respect for people", "continuous improvement", "challenge", "kaizen", "genchi genbutsu", "teamwork", and "go & see". Its goals are based on its Toyota Environmental Challenge 2050, which aims to reduce its environmental impact by 90% by 2050 compared to 2010 levels.


How to develop and empower your leaders at all levels




A leader is someone who influences others to achieve a common goal. Leaders can be found at all levels of an organization, from the top executives to the frontline workers. Leaders need to have certain skills and competencies, such as vision, communication, motivation, delegation, coaching, problem solving, decision making, innovation, collaboration, accountability, integrity, and ethics.


To develop and empower your leaders at all levels, you need to provide them with training, coaching, mentoring, feedback, recognition, rewards, resources, authority, responsibility, and accountability. You also need to create a culture of trust, respect, empowerment, and learning in your organization, where leaders can grow and thrive.


For example, General Electric (GE) has a renowned leadership development program called Crotonville, which offers various courses and workshops for its leaders and potential leaders at different stages of their careers. GE also has a culture of candor, where leaders are encouraged to speak their minds, challenge assumptions, and learn from mistakes.


How to measure and communicate your performance and progress




Performance is the degree to which you achieve your goals. Progress is the movement toward your goals. To measure and communicate your performance and progress, you need to have key performance indicators (KPIs), which are quantifiable measures of how well you are doing in relation to your goals. You also need to have dashboards, which are visual displays of your KPIs that show your current status, trends, and targets.


To measure and communicate your performance and progress effectively, you need to ensure that your KPIs are SMART (specific, measurable, achievable, relevant, and time-bound), aligned with your strategy, balanced across different perspectives (such as financial, customer, internal process, and learning and growth), and cascaded down to different levels of your organization. You also need to ensure that your dashboards are simple, clear, accurate, timely, actionable, and accessible to your stakeholders.


For example, Southwest Airlines uses a balanced scorecard approach Asset Reliability




The second element of manufacturing excellence is asset reliability. This means having equipment that is available, efficient, and effective for your operations. It also means implementing reliability-centered maintenance and total productive maintenance, and using data and analytics to improve your decision making and problem solving.


How to design and maintain your equipment for optimal availability and efficiency




Availability is the proportion of time that your equipment is ready to perform its intended function. Efficiency is the ratio of output to input for your equipment. To design and maintain your equipment for optimal availability and efficiency, you need to consider the following factors:



  • The design specifications and standards of your equipment, such as capacity, speed, accuracy, quality, safety, and environmental impact.



  • The operating conditions and requirements of your equipment, such as temperature, pressure, humidity, vibration, noise, and load.



  • The maintenance strategies and practices of your equipment, such as preventive, predictive, corrective, and proactive maintenance.



  • The spare parts and materials management of your equipment, such as inventory, procurement, storage, distribution, and disposal.



  • The skills and competencies of your equipment operators and maintainers, such as training, certification, licensing, and authorization.



For example, Coca-Cola uses a design for reliability (DFR) approach to ensure that its equipment is reliable, available, and efficient from the start. It involves identifying and eliminating potential failure modes and causes during the design phase, using tools such as failure mode and effects analysis (FMEA), fault tree analysis (FTA), and reliability block diagram (RBD).


How to implement reliability-centered maintenance and total productive maintenance




Reliability-centered maintenance (RCM) is a systematic process of determining the optimal maintenance requirements for each asset in your organization. It involves analyzing the functions, failures, consequences, and preventive measures of each asset, using tools such as FMEA, FTA, RBD, and decision logic tree. The goal of RCM is to ensure that each asset performs its intended function in a safe, reliable, and cost-effective manner.


quality maintenance, focused improvement, early equipment management, training and education, safety and environment, and TPM in administration. The goal of TPM is to achieve zero breakdowns, zero defects, zero accidents, and zero waste.


For example, DuPont uses a combination of RCM and TPM to optimize its asset reliability and performance. It involves conducting RCM analyses on its critical assets, and implementing TPM activities on its non-critical assets. It also involves engaging its employees in identifying and solving problems, and recognizing and rewarding their contributions.


How to use data and analytics to improve your decision making and problem solving




Data is the raw information that you collect from your assets, such as measurements, readings, signals, codes, and events. Analytics is the process of transforming data into insights that can help you make better decisions and solve problems. To use data and analytics to improve your decision making and problem solving, you need to consider the following steps:



  • Define your problem or opportunity, and determine your objectives and criteria.



  • Collect and validate your data from various sources, such as sensors, meters, gauges, cameras, scanners, databases, and reports.



  • Analyze and visualize your data using various methods, such as descriptive, diagnostic, predictive, and prescriptive analytics.



  • Interpret and communicate your findings and recommendations to your stakeholders, using tools such as dashboards, reports, charts, graphs, tables, and stories.



  • Implement and monitor your actions and outcomes, and adjust as needed.



For example, Amazon uses data and analytics to improve its decision making and problem solving in various aspects of its operations, such as inventory management, demand forecasting, pricing optimization, product recommendation, customer service, and delivery optimization. It uses advanced technologies, such as artificial intelligence (AI), machine learning (ML), big data, cloud computing, and internet of things (IoT), to collect, analyze, and act on its data.


Organization Effectiveness




The third element of manufacturing excellence is organization effectiveness. This means having a structure, culture, and people that support your operations. It also means managing your human resources for competence and engagement, and fostering a culture of continuous improvement and innovation.


How to structure your organization for agility and collaboration




A structure is the way you organize your people and resources into units and roles. A culture is the shared values, beliefs, norms, and behaviors that shape your organization. To structure your organization for agility and collaboration, you need to consider the following factors:



  • The size and complexity of your organization, such as the number of employees, locations, products, customers, and suppliers.



such as the vision, mission, values, and objectives that you want to achieve.


  • The environment and market of your organization, such as the opportunities, threats, competitors, and regulations that you face.



  • The processes and systems of your organization, such as the core activities, functions, and workflows that you perform.



  • The people and skills of your organization, such as the capabilities, competencies, and preferences of your employees.



To structure your organization for agility and collaboration effectively, you need to ensure that your structure is flexible, adaptable, responsive, and customer-oriented. You also need to ensure that your culture is open, transparent, inclusive, and supportive. You can use various models and frameworks to design your structure and culture, such as functional, divisional, matrix, network, team-based, flat, hierarchical, organic, mechanistic, clan, adhocracy, market, and hierarchy.


For example, Netflix has a structure and culture that enables it to be agile and collaborative in its operations. It has a flat and team-based structure, where employees are organized into small, cross-functional, and autonomous teams that focus on specific projects or products. It also has a culture of freedom and responsibility, where employees are empowered to make decisions, take risks, and learn from failures.


How to manage your human resources for competence and engagement




Human resources are the people who work in your organization. Competence is the ability of your people to perform their tasks effectively and efficiently. Engagement is the degree of commitment and involvement of your people in your organization. To manage your human resources for competence and engagement, you need to consider the following factors:



  • The recruitment and selection of your people, such as the sources, methods, criteria, and tools that you use to attract and hire the best talent for your organization.



  • The training and development of your people, such as the programs, courses, workshops, and coaching that you provide to enhance their skills, knowledge, and abilities.



  • The performance and appraisal of your people, such as the goals, standards, measures, and feedback that you use to evaluate and improve their work outcomes.



  • The compensation and benefits of your people, such as the salary, bonus, incentive, and reward that you offer to recognize and motivate their work contributions.



  • The retention and turnover of your people, such as the factors, strategies, and actions that you use to retain and reduce the loss of your valuable employees.



To manage your human resources for competence and engagement effectively, satisfied with their work, and loyal to your organization. You also need to ensure that your people are diverse, inclusive, and respectful in your organization. You can use various models and frameworks to manage your human resources, such as the human resource management (HRM) model, the strategic human resource management (SHRM) model, the high-performance work system (HPWS) model, the employee engagement model, and the employee lifecycle model.


For example, Google has a reputation of being one of the best employers in the world. It manages its human resources for competence and engagement by using various practices, such as hiring for fit, providing generous perks and benefits, offering continuous learning and development opportunities, encouraging innovation and creativity, giving autonomy and flexibility, and fostering a fun and collaborative culture.


How to foster a culture of continuous improvement and innovation




Continuous improvement is the process of making incremental and ongoing changes to your operations to enhance their quality and efficiency. Innovation is the process of making radical and breakthrough changes to your operations to create new value and differentiation. To foster a culture of continuous improvement and innovation, you need to consider the following factors:



  • The vision and mission of your organization, such as the purpose and direction that you want to pursue and achieve.



  • The values and norms of your organization, such as the principles and expectations that guide your behavior and decisions.



  • The processes and systems of your organization, such as the methods and tools that you use to generate, evaluate, implement, and monitor your ideas and solutions.



  • The people and skills of your organization, such as the capabilities, competencies, and mindsets that you need to innovate and improve.



To foster a culture of continuous improvement and innovation effectively, you need to ensure that your organization is customer-centric, data-driven, agile, experimental, collaborative, learning-oriented, and risk-tolerant. You also need to ensure that your organization is supportive, rewarding, and empowering for your innovators and improvers. You can use various models and frameworks to foster a culture of continuous improvement and innovation, such as the plan-do-check-act (PDCA) cycle, the lean startup methodology, the design thinking approach, the agile scrum framework, the stage-gate process, the TRIZ method, the six thinking hats technique, and the brainstorming method.


For example, Apple has a culture of continuous improvement and innovation that enables it to create products and services that delight its customers and disrupt its markets. It fosters this culture by using various practices, such as having a clear vision and mission, embracing simplicity and elegance, focusing on user experience and design, encouraging experimentation and prototyping, collaborating across functions and disciplines, learning from failures and successes, and rewarding creativity and excellence.


Process Quality




The fourth element of manufacturing excellence is process quality. This means having processes that produce outputs that meet or exceed your customer requirements. It also means defining and standardizing your core processes and best practices, and applying lean and six sigma principles to eliminate waste and variation.


How to define and standardize your core processes and best practices




A process is a set of activities that transform inputs into outputs. A core process is a process that directly adds value to your customer. A best practice is a process that has been proven to deliver superior results. To define and standardize your core processes and best practices, you need to consider the following steps:



  • Identify your core processes and their inputs, outputs, customers, suppliers, and stakeholders.



  • Document your core processes using tools such as flowcharts, diagrams, maps, charts, tables, checklists, forms, manuals, procedures, policies, and standards.



Analyze your core


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