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Why culture trumps technology when it comes to continuous improvement

Fri, Jul 13, 2018 @ 09:39 AM / by David Berger

David Berger says shiny new tech won’t fix your process problems – but here's how your CMMS can help you address them more effectively.

By David Berger, Plant Services, Jun 04, 2018

No matter how much you think new technology will improve your ability to manage your physical assets, try to fight the impulse to buy. The hard work begins long before you purchase new software or hardware. This is true for any number of popular technology solutions, such as a CMMS, industrial internet of things (IIoT)-ready tools, or an asset tracking system.

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The key to improvement is changing processes to accommodate a new technology in a manner that maximizes benefits. The sooner you design new processes, the faster you will understand which technology will best enable them in the short- to longer-term. This puts you in a powerful position when shopping around for technology solutions, because you will have a much better appreciation of what technology you really need (if any) under the future-state processes proposed. Otherwise, you are far more likely to be wooed by the slickest vendor presentation or tempted by the latest technology.

Given that you are striving to get the most out of existing technology and are always on the lookout for new technology, implementing a continuous improvement program can help you optimize both pursuits. For example, you can use your current CMMS to generate reams of data and reports for managing assets and ultimately for making more-informed decisions. However, most companies require much work to design efficient and effective processes that use the data optimally. This starts before purchasing or upgrading new technology through future-state process design under a continuous improvement program, and it continues long after any new technology implementation.

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Take, for instance, the process by which maintenance work is requested. Is operations satisfied with the average response time? Is there a disproportionate percentage of rush orders, especially from a few individuals? Do you get multiple requests to fix the same root-cause problem? An existing CMMS or even manual data collection can be used to determine whether there is an improvement opportunity and provide clues as to how to exploit it.

Key drivers of process improvement
Committing to getting more out of your existing CMMS or, as need be, replacing it, is a good starting point for establishing a continuous improvement program. The CMMS will highlight many improvement opportunities. The difficulty, however, will be prioritizing improvements and finding time to implement the more-significant ones. In addition, cultural issues can be nasty roadblocks on the path of progress.

“Culture” refers to an organization’s values and rules and, in general, the way things are done. These are based on the paradigms or behavior models that company leadership has established. To drive significant process changes, you need to create a paradigm shift – a shift in the mental models of company leadership. This is no easy feat, as it may require a major change in attitude.

To overcome these barriers, the continuous improvement program must focus on a few simple and measurable drivers.

The three most effective are time, quality, and cost, as explained below.

Time.

How much time do you spend each day doing unproductive activities such as waiting for someone to respond or returning a defective item? In maintenance, reducing “cycle time,” i.e., the total time taken to complete a process, is an important way to improve productivity. The CMMS is an excellent tool for measuring components of cycle time, such as response time, service time, and downtime.

Cycle time of processes can be shortened as part of a continuous improvement program by using a CMMS to identify non-value-added activities. Wait time is usually the area of greatest opportunity for eliminating non-value-added activities, and in turn, reducing cycle time. Maintenance staff and management spend a good deal of time each day waiting for parts, waiting for approval, waiting for operations to release their equipment, and so on. Similarly, operations staff and management can waste time waiting for maintenance to respond to a work request or fix the problem.

By changing the process, you can sometimes reduce or even eliminate wait time. Suppose, for example, maintenance staff complain that they spend a lot of time assessing a problem, going to the stockroom and searching for parts that are in most cases not there, and then wasting time checking to see if the parts are in. Once the parts are finally picked, there is still no guarantee that the equipment will be available from Operations to do the work.

Using the work order status field on the CMMS you can assess just how much time is wasted for each stage described above. To reduce the overall cycle time an experienced maintenance supervisor or planner should assess the job and order the parts. Secondly, the planner should issue the work order only when all the parts are in and kitted and the equipment is available from operations.

Another good way to drive down cycle time using the CMMS is to compare actual with planned times for completing work orders, especially for PM or corrective tasks.

Quality.

For some companies, the biggest opportunity for improving processes is to “do it right the first time.” A CMMS can be used to highlight recurring problems, which, through root-cause analysis, can lead to significant improvement. For example, suppose recurring downtime on a piece of equipment is traced to improper lubrication. A process could be put in place to conduct a simple PM routine to lubricate the machine each day during setup.

Root-cause analysis of CMMS data could also highlight areas where further training is required for the operator and/or maintenance staff. Sometimes quality problems suggest the need for use of more-experienced maintenance personnel, contract specialists, or reliability engineers.

Cost.

The third key driver of a continuous improvement program is cost reductions through productivity gains. The CMMS can report on areas of high cost and drill down to the supporting cost detail, especially if activity-based costing is employed. New processes can then be established to cut high-cost areas.

Examples of possible cost-cutting improvements include reducing inventory levels through better control of obsolete inventory; identifying bad-actor assets through downtime analysis; and training equipment operators to perform simple PM routines, setups, changeovers, and minor adjustments. Once the changes have been implemented, the CMMS can be used to monitor whether expected benefits are achieved.


I shared this article because process improvement is very similar to industrial marketing improvement. Pay attention to time, quality and cost. Websites need to evolve and don't throw the baby out with the bathwater. It will take less time to improve your marketing if you spend the time to optimize what you have in place, first. Second, evolve the design to reflect the quality of your products and services. That quality today is reflected in how adaptive your site is to smartphones. You'd be surprised how much work is being done by engineers on their phone. Finally, the cost will be less because if you spent the time monitoring your marketing on a regular basis and continually add quality content, there won't be any extra cost!


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Topics: Industrial pr, Industrial Marketing, Process Equipment Marketing, Industrial Marketing Handbook, Marketing Communications, Public Relations PR

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Written by David Berger

David Berger, P.Eng. (AB), MBA, is president of The Lamus Group Inc., a consulting firm that provides advice and training to extract maximum performance, quality and value from your physical assets, processes, information systems and organizational design. Based in Toronto, Berger has held senior positions in industry, including for two large manufacturers, and senior roles in consulting. He has written more than 450 articles on a variety of topics such as asset management, operations management, information technology, e-commerce, organizational design, and strategy.