Remanufacturing Operations: Managing Resources and Structure to Streamline Processes
Compare your company’s remanufacturing 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. This Best Practices Benchmarking® Report analyzes key remanufacturing processes and management issues, including: management structure and departmental organization, developing front-line supervisors, and tracking value-added measurements. After reading this report, you will be able to compare your company’s remanufacturing 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, your organization can gain a deeper understanding of how leading companies manage remanufacturing structure and performance.
Business Operations > Manufacturing d
Industries Profiled:
Manufacturing; Medical Device; Pharmaceutical; Financial Services; Service; Retail; Research; Computer Software; Diagnostic; Health Care; Transportation; Biotech; Consulting; Distribution; Insurance; Hospitality; Telecommunications; Technology; Professional Services; High Tech; Automobile; Utilities; Energy; Consumer Products; Chemical; Electronics; Entertainment; Internet; Computer Hardware; Aerospace; Academic; Media; Banking; Newspapers; Education; Shipping; Government; Office Supplies; Office Equipment; Cable; Computers; Defense; Diversified; Sports; Technology; Multiple; Logistics; Publishing; Legal
Study Snapshot
Leading remanufacturing organizations seek to establish an organizational structure and manage processes to streamline remanufacturing operations. The study analyzes the following remanufacturing issues:
- Management Structure: What are the optimal organizational depth and spans of control for management structures?
- Supervisor’s Duties: What are the key responsibilities of front-line supervisors?
- Tracking Value-Added Activities: What are the optimal processes and technologies used to track the value added through remanufacturing and repair activities?
The results of this benchmarking study address these challenges and are critical in helping companies identify the optimal remanufacturing structure, roles and responsibilities and management.
Metrics Included in the Study
Best Practices, LLC analysts collected and analyzed the following key metrics for remanufacturing operations:
- Staffing Resources
- Management Layers
- Spans of Control
- Man hours per Unit
- Production Levels
To ensure direct comparables, Best Practices, LLC analysts gathered these metrics from a benchmark class of companies with similar remanufacturing facilities. These facilities were characterized by:
- A remanufacturing focus on equipment with a combination of electronic and mechanical components
- A remanufacturing focus on equipment with medium-level complexity
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Key Findings
Best Practices, LLC has identified key insights drawn from the interviews of executives at leading manufacturing facilities.
The top three insights from this study are:
- Align department structure and span of control with production scope, employee specialization and workflow needs to drive productivity and encourage process improvements.
As remanufacturing continues to grow, these companies face the challenge of implementing strong yet flexible management structures that can expand to meet rising productivity expectations. Management span of control and departmental organization play critical roles in developing such a structure. Each company’s primary challenge will lie in scaling production up while maintaining an effective management structure. All partners emphasized the need for a management span of control that takes advantage of opportunities for economy of scale without sacrificing productivity or overtaxing line supervisors’ resources. Analysis shows that company organization and managers’ responsibilities play critically important roles in optimizing span of control, and must be considered when expanding or contracting operations.
- Focus front-line supervisors on production to maintain high output levels and efficient operations.
Each company must determine who performs tasks such as communicating with vendors, developing employees, and implementing process improvements. The report addresses how companies train front-line supervisors with a blend of programming to adequately prepare them for their responsibilities and dedicate line supervisors to key production responsibilities to focus resources on effective operations.
- Measure “value added” using automated systems to communicate ROI and performance throughout the organization.
Tracking the value added through the remanufacturing process is key for any remanufacturing operation. A company risks losing money if the estimated “value added” is below the actual “value added,” and pricing will not be competitive if the estimated “value added” is above the actual “value added.” The study covers how companies implement technology to adequately track “value added” in the remanufacturing process and Communicate throughout organization to ensure that “value added” measurements reach key stakeholders.
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