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Optimizing Manufacturing Operations: Structuring for Success

      
      

Features:
 25 Info Graphics
 26 Data Graphics
 112 Metrics
 41 Narratives
 34 Best Practices

Pages: 83

Delivery Format: Shipped


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Optimizing Manufacturing Operations: Structuring for Success

ID: OP-82

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Analyze key manufacturing structure and management issues, including: structuring management, empowering employees, reducing turnover, staffing for fluctuations and managing change. This Best Practices Benchmarking® Report analyzes key manufacturing structure and management issues, including: structuring management, empowering employees, reducing turnover, staffing for fluctuations and managing change. After reading this report, you will be able to compare your company’s manufacturing operations and management structure against those of the benchmark class, spot areas for improvement, and utilize the best practices in this report to develop a plan of action to implement performance-enhancing initiatives.  By studying these companies' operations, your organization can gain a deeper understanding of how leading companies manage manufacturing structure and performance issues.  
Industries Profiled:
Market Research; Manufacturing; Medical Device; Pharmaceutical; Financial Services; Service; Retail; Research; Computer Software; Diagnostic; Health Care; Transportation; Biotech; Clinical Research; Consulting; Distribution; Insurance; Hospitality; Telecommunications; Technology; Professional Services; High Tech; Automobile; Utilities; Energy; Consumer Products; Chemical; Medical; Electronics; Laboratories; Biopharmaceutical; Banking; Computers; Entertainment; Internet; Computer Hardware; Aerospace; Academic; Media; Education; Newspapers; Government; Shipping; Science; Office Supplies; Marketing; Office Equipment; Cable; Advertising; Defense; Military; Diversified; Sports; Technology; Multiple; Communications; Logistics; Publishing; Public Relations; Real Estate; Construction; Architecture; Engineering; Aviation; Legal; Test Industry; Non-Profit; Business; Orthopaedics

Study Snapshot

World-class production facilities are characterized by their relentless efforts to increase productivity and quality while reducing costs. Toward this end, leading facilities seek to establish an organizational structure that will enable them to provide effective leadership without swelling management ranks unnecessarily. This study examines three key factors facilities use to measure the effectiveness of their organizational structure: 
    1. Organizational Depth: What is the optimal number of management layers? 
    2. Span of Control: What is the optimal ratio of managers to hourly associates? 
    3. Supervisory Duties: What are the key responsibilities of individual managers within an empowered workforce?
The results of this benchmarking study address these challenges and are critical in helping companies identify the optimal structure for their facilities.


Metrics Included in the Study
Best Practices LLC analysts collected and analyzed the following key metrics for manufacturing structure at each of the companies benchmarked in the study:

  • Staffing Resources 
  • Management Layers
  • Spans of Control 

To ensure direct comparables, Best Practices LLC analysts gathered these metrics from a benchmark class of companies with similar manufacturing operations that include similarly complex equipment. Peer facilities are characterized by:
  • Rapid Delivery
  • Uncertain Demand 
  • Around-the-Clock Operations 

Key Findings

Best Practices, LLC has identified key insights drawn from the interviews of executives at seven leading manufacturing facilities. The key insights below summarize the more detailed key findings contained in the benchmarking report:
The top five insights from this study are:
  • Restructure positions that do not directly impact productivity to establish a lean management structure.
    Benchmark research has uncovered the following guidelines for designing a lean management structure: restructure positions that are accountable for productivity goals, but are not empowered to impact production, establish a lean management hierarchy to oversee facility operations, processes, shifts and production departments, and establish team-based management structures to increase accountability and cross-functional sharing of ideas.
  • Reduce management layers and establish a flat organizational structure through individual employee empowerment.
    Benchmark partners have found that a flatter organizational structure enables its leaders to react to problems more quickly, because they are closer to the problem. Benchmark interviews uncovered three critical success factors for training and empowering employees within a flat management structure, including cross-training, continuous process improvements and outsourcing complex tasks. 
  • Staff below expected demand and augment the workforce with part-time employees to optimize staffing levels during periods of fluctuating demand.
    Fluctuating demand is a challenge for managers since facilities are forced to increase or decrease its workforce in response to demand levels. Benchmarked companies manage uncertain demand by staffing their full time workforces below forecasted demand and having additional staff available to quickly support demand fluctuations.
  • Anticipate and respond to the impact of structural changes on the facility's culture and workflow.
    Structural changes are aimed at improving efficiencies and will likely result in a more productive workforce in the long run, but companies must also anticipate the short-term impact of structural reorganization on the culture and the workflow.

Table of Contents

Executive Summary
•  Project Background and Methodology
•  Key Insights
•  Report Structure and Organization
•  Lessons Learned Matrix

Benchmark Partner Profiles
•  Facility A - Newspaper Printing
•  Facility B - Line Haul Shipping
•  Facility C - Technology Distribution
•  Facility D - Retail Distribution
•  Facility E - Book Printing
•  Facility F - Online Retailer
•  Facility G - Photo Processing

Data Analysis
•  Consolidated Data Table 
•  Number of Production Employees
•  Line Workers Per Manager
•  Staffing Profile 
•  % of Managers
•  % of Leads 
•  % of Associates 
•  % of Quality Employees 
•  % of Maintenance Employees 
•  Number of Employment Layers
•  Number of Production Workers Per Layer
•  % of Layers with Budget 

Best Practices
•  Organizing Management Structures
•  Empowering Employees
•  Reducing Turnover 
•  Staffing During Demand Fluctuation
•  Managing Change


List of Charts & Exhibits

Operations Profiles
Management Structures
Staffing Profiles
Benchmark Partner Lesson Learned Matrix
Consolidated Data Table
Number of Production Employees
Line Workers Per Manager
Staffing Profile 
% of Managers
% of Leads 
% of Associates 
% of Quality Employees 
% of Maintenance Employees 
Number of Employment Layers
Number of Production Workers Per Layer
% of Layers with Budget 
Responsibility Without Authority
Effective Reorganization
Quality Autonomy
Team-based Structures
Productivity-enhancing Programs
Employee Survey Process
Tracking Turnover
Employing Part-time Workers
Flexible Workforce Mix
Organizational Effectiveness Group

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