performance appraisal is a critical issue for any organisation. While appraisals are a necessary part of the system, the sad truth remains that it is a process that more than often leaves both sides unhappy. The mismatch between expectations and delivery, combined with the formality of the process leads to dissatisfaction for the appraiser and the appraisee. There are even a few who question the effectiveness of a formal appraisal system, considering the many complications that arise. Constant feedback to the employee about his performance and expectations is more effective in meeting organisational and individual goals, instead of a day or two in a year to apprise him of the expectations.
Few organisations are able to understand the flaws in the appraisal system and do something to rectify the problems. It is a known fact that few line managers are good appraisers, they need training in how to do the job well and handle the situation with sensitivity. It is this lack of understanding which sometimes leads to bad blood during the appraisal process. There should be no nasty surprises for the employee.
The problem stems from mis-match of expectations, from both sides. “It is all about expectation setting and continuous communication. If the manager and the employee are continuously monitoring the progress, a performance appraisal discussion should not be a surprise to either party.” He believes that it only becomes a more formal way to document these conversations and if these interactions are not happening, then there is a surprise element which many times lead to unhappiness on both sides. Furthermore, many times it ends up becoming a defensive conversation—a manager defending their appraisal, and the employee defending their contributions and so the positive elements are never discussed and over-looked.
This constant communication is to a large extent depended on individual personalities in how openly and honestly they are providing feedback and how an individual is accepting and listening to the feedback. Consequently, if both parties are not coming to an appraisal with a positive attitude and willing to listen to each other, there will be unhappiness. Focussing on the achievements and concentrating on the positive elements is very important. Objective assessment needs to happen with real examples to avoid emotionalising of this discussion. Ongoing feedback is essential to help monitor progress on goals and to reinforce or adjust them as realities change,”
There are many reasons why managing people performance and measuring productivity is a complex process.
The question is: if an ongoing dialogue with an employee is more effective in improving his performance than a six-monthly or yearly appraisal? “. one of the weaknesses of any appraisal system is the lack of frequency with which progress and success are measured and tracked. you ou are most likely to accomplish the goals you set if you review them at regular and frequent intervals as a part of your normal planning process. The discipline of the daily review is a powerful goal accomplishment tool and if you do it daily, it will take just a few minutes and will have much more positive results.
It is debatable if a formal appraisal process is really needed, or is it better to do away with the system. This apart, a formal appraisal system allows an organisation to clearly define expectations that it has from an employee and helps analyse an individual against those expectations. In fact, it still is one of the most-used methods to appraise an employee on the basis of the objectives laid down by the employer.
the ongoing dialogue ensures that any issue, concern or problem is dealt with at the right time with the right approach instead of waiting for the dissatisfaction and distress levels reaching greater heights. However, a six-monthly or annual appraisal is a formal process of recognising employee efforts and contribution to the organisation. it is a combination of a regular dialogue and formal appraisals which we feel work the best and help in maximising an employee’s potential to his best.
((Appraisals: best practices
Individuals involved in this activity are required to move from a ‘defensive-reactive’ position to a ‘problem-solving’ orientation
With a performance enhancement momentum setting in, the review, feedback, diagnosis, constructive feedback, development planning, ideally should be undertaken during the appraisals
A reinforcement of desired behaviours and plan to correct unwanted behaviours is essential
At the end of the day the best practice is also about making a system purposeful, complimentary and mutually supportive while ensuring that the individual’s self esteem is preserved
As it is process that requires a great deal of emotional intelligence, all managers must undergo a ‘sensitisation session’ which includes role play and a special film on the dos and don’ts before they start the appraisal activity ))
(Source: Rapidigm)
Tuesday, January 29, 2008
Saturday, January 26, 2008
learnings of life.
The first thing I have learnt is that we have to be able to identify our core competencies and our weaknesses. identify your core competency and then change the playing field to suityour core competency., if you are a good speaker, make sureyou create opportunities to give presentations that enable the senior managementto notice you. If your strength is analysis, make sure you do some sort ofresearch, make a report and send it upstairs. Working to your strengths will notonly get you noticed, but will also create opportunities for growth andadvancement. but always remember “ ability without dependability is a liability.”
The second lesson I have learnt is that nothing in this life is permanent but change. There is only one person who likes a change: the wet baby. Change is an ongoing fact of life. It changes us as we have to move away from our “ zone of comfort” and makes our life difficult for a while. Change brings with it a lot of stress as our paradigms are constantly being challenged. To bring about a change one has to change the “BAT”.
BEHAVIOUR
ATTITUDE
THINKING.
ATTITIUDE: are changes that happen from within oneself.
One has to take responsibility for
What one is
What one does
What one has
The only thing that is truly yours -- that no one can control or take from you- is your attitude, so if you can take care of that, everything else in life becomes much easier.
THINKING: comes from “logically” observing every situation in life.
One has to manage “self talk”. You think you can or cannot you are right. Positive thinking with" effort” increases the probability of success. Negative thinking with “effort” decreases the probability of success. Positive thinking backed with positive actions comes with positive believing. If u believe u cannot do it then you do justify that you cant do it & vice versa. You have two choices –either you think you can do it or you think you cannot do it.
The third lesson I have learnt is whatever goes up has to come down and this is cyclic in nature.
Life has many challenging situations . You win some and lose some. You enjoy winning. But do not let it go to the head. The moment it does, you are already on your way to failure. And if you do encounter failure along the way, treat it as an equally natural phenomenon. Don’t beat yourself for it or any one else for that matter! Accept it, look at your own share in the problem and learn from it .The important thing is, when you lose, do not lose the lesson or the moral of the story.
The fourth lesson I learnt is that we must always strive for perfection. In our quest for perfection we end up in achieving excellence. One way of achieving excellence is by looking at those individuals much better than ourselves. Keep learning what they do differently, why they do it and why is it ,what they do?. Emulate it and bring into every day situations these different effective methods.
The fifth lesson I have learnt is to have a” never say die approach in times of adversities It comes on you suddenly without warning and surely without an announcement. .we must remember that “tough times don’t last but tough men do”. it is only the test of fire that makes fine steel. My 5 year old daughter taught me an important thing . I was playing Captain Claw on the computer and despite my very best effort ,could not beat La Roca so I shut down the game. I did this at least 3 times in half an hour. I told myself in a loud and irritating tone of voice "Look, why don’t you just give up? I don’t think you will beat him tonight. Look at it another day." The daughter looked with a strange look in her eyes, "But, dad, why should you give up? All the weapons are available you have just got to use them effectively " If we try hard & long enough, we can put any problem into its perspective. Sometimes we have to work very hard ,sometimes we need to change the strategy and some times we need a combination of both. But it is our attitude which will sail us through these adversities.
The sixth lesson I have learnt is leadership is not a popularity contest. As a matter of fact parenting teaching and leadership are not popularity contests. It is hard enough for leaders to take out what is left in individuals. A true leader will gauge the individual before he tries to put in anything because beyond a certain point it is worthless trying to put in and mould an individual.
And this goes on
The second lesson I have learnt is that nothing in this life is permanent but change. There is only one person who likes a change: the wet baby. Change is an ongoing fact of life. It changes us as we have to move away from our “ zone of comfort” and makes our life difficult for a while. Change brings with it a lot of stress as our paradigms are constantly being challenged. To bring about a change one has to change the “BAT”.
BEHAVIOUR
ATTITUDE
THINKING.
ATTITIUDE: are changes that happen from within oneself.
One has to take responsibility for
What one is
What one does
What one has
The only thing that is truly yours -- that no one can control or take from you- is your attitude, so if you can take care of that, everything else in life becomes much easier.
THINKING: comes from “logically” observing every situation in life.
One has to manage “self talk”. You think you can or cannot you are right. Positive thinking with" effort” increases the probability of success. Negative thinking with “effort” decreases the probability of success. Positive thinking backed with positive actions comes with positive believing. If u believe u cannot do it then you do justify that you cant do it & vice versa. You have two choices –either you think you can do it or you think you cannot do it.
The third lesson I have learnt is whatever goes up has to come down and this is cyclic in nature.
Life has many challenging situations . You win some and lose some. You enjoy winning. But do not let it go to the head. The moment it does, you are already on your way to failure. And if you do encounter failure along the way, treat it as an equally natural phenomenon. Don’t beat yourself for it or any one else for that matter! Accept it, look at your own share in the problem and learn from it .The important thing is, when you lose, do not lose the lesson or the moral of the story.
The fourth lesson I learnt is that we must always strive for perfection. In our quest for perfection we end up in achieving excellence. One way of achieving excellence is by looking at those individuals much better than ourselves. Keep learning what they do differently, why they do it and why is it ,what they do?. Emulate it and bring into every day situations these different effective methods.
The fifth lesson I have learnt is to have a” never say die approach in times of adversities It comes on you suddenly without warning and surely without an announcement. .we must remember that “tough times don’t last but tough men do”. it is only the test of fire that makes fine steel. My 5 year old daughter taught me an important thing . I was playing Captain Claw on the computer and despite my very best effort ,could not beat La Roca so I shut down the game. I did this at least 3 times in half an hour. I told myself in a loud and irritating tone of voice "Look, why don’t you just give up? I don’t think you will beat him tonight. Look at it another day." The daughter looked with a strange look in her eyes, "But, dad, why should you give up? All the weapons are available you have just got to use them effectively " If we try hard & long enough, we can put any problem into its perspective. Sometimes we have to work very hard ,sometimes we need to change the strategy and some times we need a combination of both. But it is our attitude which will sail us through these adversities.
The sixth lesson I have learnt is leadership is not a popularity contest. As a matter of fact parenting teaching and leadership are not popularity contests. It is hard enough for leaders to take out what is left in individuals. A true leader will gauge the individual before he tries to put in anything because beyond a certain point it is worthless trying to put in and mould an individual.
And this goes on
Friday, January 25, 2008
documentation
Documentation can be one the most effective tools you have in your ready kit. It’s also most likely the you never make time for. You’re not being fair to yourself or your team. There are so many varied reasons managers choose not to document; the most popular are negativity and laziness.
Many people see documentation as a negative. They have a belief if something warrants documentation it must be a bad thing. Documentation is a tool, a teaching tool if used properly. Many times we find ourselves following up with our people on multiple occasions regarding the same behavior, or lack thereof. Our feedback is much more effective if we can show them the various times you’ve spoken to them concerning the issue. It makes it a more serious conversation when someone realizes they’ve had the same conversation any number of times. Not necessarily more serious in a negative way. To be fair, hasn’t someone spoken to you regarding a matter and you didn’t see the severity of the situation? You didn’t recall they’d spoken to you at least six times about the same thing? You didn’t share their frustration because it just didn’t seem like a big deal to you? By documenting we’re being fair to our people. They can begin to understand the frustration associated with repetitive conversations. I’ve found many people see documentation as a necessary reminder in the course to change behaviors.
Then there are those of us who are just too lazy to document. All I can say is a mighty shame on us. I was one of these people for a long time. I would run myself in circles following up with my reports, revisiting matters, retraining and never seeming to get anywhere. It was not fun for me. I was never able to get past the initial conversations because I was having them everyday. Then one day I committed to making the time. The initial documentation was the worst, but once you get it down, the rest are so much easier. I would simply talk to a report and make notes on a piece of paper. I would let the report read those notes and agree on accuracy and a course of action. Later I would type it up and have them sign it, agreeing on the wording, etc. Then subsequent conversations involved simply adding a date and time at the bottom, along with their signature. Once I’d shown the same sheet of paper to one of my collegues three times, she took notice. She didn’t even realize what a problem her action was. She quickly moved toward correcting the behavior. To get to this point, I had to make the commitment to document.
Now this goes beyond being a manager of people. You can use this tool being a manager of life, finance, etc. I had a habit I wanted to break. I would document each time I went to the fridge. Initially, it didn’t change. But once I saw the pattern of my behavior, I was able to limit not eliminate. I also am taking this course of action with my debit card spending. I am the worst at not recording my spending.
Documentation helps me see the pattern.
Many people see documentation as a negative. They have a belief if something warrants documentation it must be a bad thing. Documentation is a tool, a teaching tool if used properly. Many times we find ourselves following up with our people on multiple occasions regarding the same behavior, or lack thereof. Our feedback is much more effective if we can show them the various times you’ve spoken to them concerning the issue. It makes it a more serious conversation when someone realizes they’ve had the same conversation any number of times. Not necessarily more serious in a negative way. To be fair, hasn’t someone spoken to you regarding a matter and you didn’t see the severity of the situation? You didn’t recall they’d spoken to you at least six times about the same thing? You didn’t share their frustration because it just didn’t seem like a big deal to you? By documenting we’re being fair to our people. They can begin to understand the frustration associated with repetitive conversations. I’ve found many people see documentation as a necessary reminder in the course to change behaviors.
Then there are those of us who are just too lazy to document. All I can say is a mighty shame on us. I was one of these people for a long time. I would run myself in circles following up with my reports, revisiting matters, retraining and never seeming to get anywhere. It was not fun for me. I was never able to get past the initial conversations because I was having them everyday. Then one day I committed to making the time. The initial documentation was the worst, but once you get it down, the rest are so much easier. I would simply talk to a report and make notes on a piece of paper. I would let the report read those notes and agree on accuracy and a course of action. Later I would type it up and have them sign it, agreeing on the wording, etc. Then subsequent conversations involved simply adding a date and time at the bottom, along with their signature. Once I’d shown the same sheet of paper to one of my collegues three times, she took notice. She didn’t even realize what a problem her action was. She quickly moved toward correcting the behavior. To get to this point, I had to make the commitment to document.
Now this goes beyond being a manager of people. You can use this tool being a manager of life, finance, etc. I had a habit I wanted to break. I would document each time I went to the fridge. Initially, it didn’t change. But once I saw the pattern of my behavior, I was able to limit not eliminate. I also am taking this course of action with my debit card spending. I am the worst at not recording my spending.
Documentation helps me see the pattern.
Thursday, January 24, 2008
COLIN POWELL' S LEADERSHIP PRINCIPLES.
Colin Powell’s principles of leadership include the following:
Being responsible sometimes means pissing people off without really caring about the intensity but being able to convey the message loud & clear. Leaders should remember that they are not in popularity contests & have a mission to deliver consistently high quality results each time & every time.
The day soldiers stop bringing you their problems & concerns is the day you stopped leading them. They have either lost confidence that you can help them or concluded that you do not care. Either which way is a sign is a failure of leadership.
Don’t be bullied by experts and elites. Experts often possess more data than judgment. Elites can become so inbred that they produce hemophiliacs who bleed to death as soon as they are nicked by the real world.
Never be afraid to challenge the so called “experts”, even in their own backyard.
Never ever neglect details. Keep the mind’s eye open. When everyone’s mind is dulled or distracted the leader must be doubly vigilant.
You really are not aware what you can get away with until you try.
Keep looking below surface appearances. Don’t shrink from doing so because you might not like what you find. Remember that the iceberg you see is 1/9 of the actual size. The problems always almost lie below a niggle.
Organization doesn’t really accomplish anything. Plans don’t accomplish anything, either. Theories of management don’t much matter. Endeavors succeed or fall because of the people involved. Only by attracting and making the best people will you accomplish great deeds.
Organization charts and fancy titles count for next to nothing.
Never let your ego gets so close to your position that when your position goes, your ego goes with it.
Fit no stereotypes. Don’t chase the latest management fads. The situation dictates which approach best accomplishes the team’s mission. Just because it is the in thing don’t grab the concept and try to apply it . be wise enough to customize it.
Perpetual optimism is a force multiplier.
Powell’s Rules for Picking People: Look for intelligence and judgment, and most critically, a capacity to anticipate, to see around corners. Also look for loyalty, integrity, a high energy drive, a balanced ego, and the drive to get things done.
Great leaders are almost always great simplifiers, who can cut through argument, debate and doubt, to offer a solution everybody can understand.
Part I: Use the formula P=40 to 70, in which P stands for the probability of success and the numbers indicate the percentage of information acquired. Part II: “Once the information is in the 40 to 70 range, go with your gut.
The commander in the field is always right and the rear echelon is wrong, unless proved otherwise.
Have fun in your command. Don’t always run at a breakneck pace. Take leave when you’ve earned it: Spend time with your families. Corollary: surround yourself with people who take their work seriously, but not themselves, those who work hard and play hard.
Command is very lonely.
Being responsible sometimes means pissing people off without really caring about the intensity but being able to convey the message loud & clear. Leaders should remember that they are not in popularity contests & have a mission to deliver consistently high quality results each time & every time.
The day soldiers stop bringing you their problems & concerns is the day you stopped leading them. They have either lost confidence that you can help them or concluded that you do not care. Either which way is a sign is a failure of leadership.
Don’t be bullied by experts and elites. Experts often possess more data than judgment. Elites can become so inbred that they produce hemophiliacs who bleed to death as soon as they are nicked by the real world.
Never be afraid to challenge the so called “experts”, even in their own backyard.
Never ever neglect details. Keep the mind’s eye open. When everyone’s mind is dulled or distracted the leader must be doubly vigilant.
You really are not aware what you can get away with until you try.
Keep looking below surface appearances. Don’t shrink from doing so because you might not like what you find. Remember that the iceberg you see is 1/9 of the actual size. The problems always almost lie below a niggle.
Organization doesn’t really accomplish anything. Plans don’t accomplish anything, either. Theories of management don’t much matter. Endeavors succeed or fall because of the people involved. Only by attracting and making the best people will you accomplish great deeds.
Organization charts and fancy titles count for next to nothing.
Never let your ego gets so close to your position that when your position goes, your ego goes with it.
Fit no stereotypes. Don’t chase the latest management fads. The situation dictates which approach best accomplishes the team’s mission. Just because it is the in thing don’t grab the concept and try to apply it . be wise enough to customize it.
Perpetual optimism is a force multiplier.
Powell’s Rules for Picking People: Look for intelligence and judgment, and most critically, a capacity to anticipate, to see around corners. Also look for loyalty, integrity, a high energy drive, a balanced ego, and the drive to get things done.
Great leaders are almost always great simplifiers, who can cut through argument, debate and doubt, to offer a solution everybody can understand.
Part I: Use the formula P=40 to 70, in which P stands for the probability of success and the numbers indicate the percentage of information acquired. Part II: “Once the information is in the 40 to 70 range, go with your gut.
The commander in the field is always right and the rear echelon is wrong, unless proved otherwise.
Have fun in your command. Don’t always run at a breakneck pace. Take leave when you’ve earned it: Spend time with your families. Corollary: surround yourself with people who take their work seriously, but not themselves, those who work hard and play hard.
Command is very lonely.
Tuesday, January 22, 2008
16 rule to live by(i guess so)there could be more
1. Get and stay out of your comfort zone. I believe that not much happens of any significance when we’re in our comfort zone.
2. Never give up. Almost nothing works the first time it’s attempted. Just because what you’re doing does not seem to be working, doesn’t mean it won’t work.
3. When you’re ready to quit, you’re closer than you think. There’s an old Chinese saying that I just love, and I believe it is so true. It goes like this: “The temptation to quit will be greatest just before you are about to succeed.”
4. With regard to whatever worries you, not only accept the worst thing that could happen, but make it a point to quantify what the worst thing could be.
5. Focus on what you want to have happen.
6. Take things a day at a time.
7. Always be moving forward. Never stop investing. Never stop improving. Never stop doing something new. Make it your goal to be better each and every day, in some small way
8. Be quick to decide. Remember what General George S. Patton said: “A good plan violently executed today is far and away better than a perfect plan tomorrow.”
9. Measure everything of significance.
10. Anything that is not managed will deteriorate.
11. Pay attention to your competitors, but pay more attention to what you’re doing.
12. Never let anybody push you around.
13. Never expect life to be fair. Life isn’t fair. You make your own breaks.
14. Solve your own problems.
15. Don’t take yourself too seriously.
16. There’s always a reason to smile. Find it. After all, you’re really lucky just to be alive. Life is short. More and more, I agree with my little brother. He always reminds me: “We’re not here for a long time; we’re here for a good time.”
2. Never give up. Almost nothing works the first time it’s attempted. Just because what you’re doing does not seem to be working, doesn’t mean it won’t work.
3. When you’re ready to quit, you’re closer than you think. There’s an old Chinese saying that I just love, and I believe it is so true. It goes like this: “The temptation to quit will be greatest just before you are about to succeed.”
4. With regard to whatever worries you, not only accept the worst thing that could happen, but make it a point to quantify what the worst thing could be.
5. Focus on what you want to have happen.
6. Take things a day at a time.
7. Always be moving forward. Never stop investing. Never stop improving. Never stop doing something new. Make it your goal to be better each and every day, in some small way
8. Be quick to decide. Remember what General George S. Patton said: “A good plan violently executed today is far and away better than a perfect plan tomorrow.”
9. Measure everything of significance.
10. Anything that is not managed will deteriorate.
11. Pay attention to your competitors, but pay more attention to what you’re doing.
12. Never let anybody push you around.
13. Never expect life to be fair. Life isn’t fair. You make your own breaks.
14. Solve your own problems.
15. Don’t take yourself too seriously.
16. There’s always a reason to smile. Find it. After all, you’re really lucky just to be alive. Life is short. More and more, I agree with my little brother. He always reminds me: “We’re not here for a long time; we’re here for a good time.”
what things do leaders do?
Personal Responsibility. - “Enron and 9/11 marked the end of an era of individual freedom and the beginning of personal responsibility. You lead today by building teams and placing others first. It’s not about you.”
Simplify Constantly. “I use Jack [Welch] as my example here. Every leader needs to clearly explain the top three things the organization is working on. If you can’t, then you’re not leading well.”
Understand Breadth, Depth, and Context. “The most important thing I’ve learned since becoming a manager is context. It’s how your company fits in with the world and how you respond to it.”
The importance of alignment and time management. “There is no real magic to being a good leader. But at the end of every week, you have to spend your time around the things that are really important: setting priorities, measuring outcomes, and rewarding them.”
Leaders learn constantly and also have to learn how to teach. “A leader’s primary role is to teach. People who work with you don’t have to agree with you, but they have to feel you’re willing to share what you’ve learned.”
Stay true to your own style. “Leadership is an intense journey into yourself. You can use your own style to get anything done. It’s about being self-aware. Every morning, I look in the mirror and say, ‘I could have done three things better yesterday.’ “
Manage by setting boundaries with freedom in the middle. “The boundaries are commitment, passion, trust, and teamwork. Within those guidelines, there’s plenty of freedom. But no one can cross those four boundaries.”
Stay disciplined and detailed. “Good leaders are never afraid to intervene personally on things that are important. Michael Dell can tell you how many computers were shipped from Singapore yesterday.”
Leave a few things unsaid. “I may know an answer, but I’ll often let the team find its own way. Sometimes, being an active listener is much more effective than ending a meeting with me enumerating 17 actions.”
Like people. “Today, it’s employment at will. Nobody’s here who doesn’t want to be here. So it’s critical to understand people, to always be fair, and to want the best in them. And when it doesn’t work, they need to know it’s not personal.”
Simplify Constantly. “I use Jack [Welch] as my example here. Every leader needs to clearly explain the top three things the organization is working on. If you can’t, then you’re not leading well.”
Understand Breadth, Depth, and Context. “The most important thing I’ve learned since becoming a manager is context. It’s how your company fits in with the world and how you respond to it.”
The importance of alignment and time management. “There is no real magic to being a good leader. But at the end of every week, you have to spend your time around the things that are really important: setting priorities, measuring outcomes, and rewarding them.”
Leaders learn constantly and also have to learn how to teach. “A leader’s primary role is to teach. People who work with you don’t have to agree with you, but they have to feel you’re willing to share what you’ve learned.”
Stay true to your own style. “Leadership is an intense journey into yourself. You can use your own style to get anything done. It’s about being self-aware. Every morning, I look in the mirror and say, ‘I could have done three things better yesterday.’ “
Manage by setting boundaries with freedom in the middle. “The boundaries are commitment, passion, trust, and teamwork. Within those guidelines, there’s plenty of freedom. But no one can cross those four boundaries.”
Stay disciplined and detailed. “Good leaders are never afraid to intervene personally on things that are important. Michael Dell can tell you how many computers were shipped from Singapore yesterday.”
Leave a few things unsaid. “I may know an answer, but I’ll often let the team find its own way. Sometimes, being an active listener is much more effective than ending a meeting with me enumerating 17 actions.”
Like people. “Today, it’s employment at will. Nobody’s here who doesn’t want to be here. So it’s critical to understand people, to always be fair, and to want the best in them. And when it doesn’t work, they need to know it’s not personal.”
Ten Habits of Incompetent Managers"
1. Bias against action: "There are always plenty of reasons not to take a decision, reasons to wait for more information, more options, more opinions. But real leaders display a consistent bias for action. People who don’t make mistakes generally don’t make anything."
2. Secrecy: "….If you treat employees like children, they will behave that way — which means trouble. If you treat them like adults, they may just respond likewise. Very few matters in business must remain confidential and good managers can identify those easily…. Secrets make companies political, anxious and full of distrust."
3. Over-sensitivity: "An inability to be direct and honest with staff is a critical warning sign. Can your manager see a problem, address it headlong and move on? If not, problems won’t get resolved, they’ll grow…… Interestingly, secrecy and over-sensitivity almost always travel together. They are a bias against honesty."
4. Love of procedure: "Managers who cleave to the rule book, to points of order and who refer to colleagues by their titles have forgotten that rules and processes exist to expedite business, not ritualize it."
5. Preference for weak candidates: "…Who did our manager want to hire? The junior. She felt threatened by the super-competent manager and hadn’t the confidence to know that you must always hire people smarter than yourself."
6. Focus on small tasks
7. Allergy to deadlines: "A deadline is a commitment. The manager who cannot set, and stick to deadlines, cannot honor commitments. A failure to set and meet deadlines also means that no one can ever feel a true sense of achievement."
8. Inability to hire former employees: "… Every good manager has alumni, eager to join the team again; if they don’t, smell a rat."
9. Addiction to consultants: "A common — but expensive — way to put off making decisions is to hire consultants who can recommend several alternatives."
10. Long hours: "In my experience, bad managers work very long hours. They think this is a brand of heroism but it is probably the single biggest hallmark of incompetence. To work effectively, you must prioritize and you must pace yourself. The manager who boasts of late nights, early mornings and no time off cannot manage himself so you’d better not let him manage anyone else
2. Secrecy: "….If you treat employees like children, they will behave that way — which means trouble. If you treat them like adults, they may just respond likewise. Very few matters in business must remain confidential and good managers can identify those easily…. Secrets make companies political, anxious and full of distrust."
3. Over-sensitivity: "An inability to be direct and honest with staff is a critical warning sign. Can your manager see a problem, address it headlong and move on? If not, problems won’t get resolved, they’ll grow…… Interestingly, secrecy and over-sensitivity almost always travel together. They are a bias against honesty."
4. Love of procedure: "Managers who cleave to the rule book, to points of order and who refer to colleagues by their titles have forgotten that rules and processes exist to expedite business, not ritualize it."
5. Preference for weak candidates: "…Who did our manager want to hire? The junior. She felt threatened by the super-competent manager and hadn’t the confidence to know that you must always hire people smarter than yourself."
6. Focus on small tasks
7. Allergy to deadlines: "A deadline is a commitment. The manager who cannot set, and stick to deadlines, cannot honor commitments. A failure to set and meet deadlines also means that no one can ever feel a true sense of achievement."
8. Inability to hire former employees: "… Every good manager has alumni, eager to join the team again; if they don’t, smell a rat."
9. Addiction to consultants: "A common — but expensive — way to put off making decisions is to hire consultants who can recommend several alternatives."
10. Long hours: "In my experience, bad managers work very long hours. They think this is a brand of heroism but it is probably the single biggest hallmark of incompetence. To work effectively, you must prioritize and you must pace yourself. The manager who boasts of late nights, early mornings and no time off cannot manage himself so you’d better not let him manage anyone else
self destruct
Some people will not allow themselves to succeed
It’s a very real situation. I initially had the notion, “I can teach anyone!” I would take even the most difficult people and I would find a way to turn them around. I would find ways to reach even the most unreachable people. I’ve said many times, “I can reach this manager, I can turn them around, and I can make the difference.” This is not a realistic view. You are not going to succeed in training everyone. The simple truth is, not everyone will succeed. Those who do not succeed will fail because they simply did not want to succeed.
Realizing and accepting that some managers cannot be trained and will not succeed can be very difficult, especially if you’re a trainer first and a people manager second. It can be very difficult to accept. Knowing “when to say when” is the key. Once you give a manager the tools, explain how to us them, and provide feedback and follow-up, you have done your part. It is the manager’s responsibility to take these tools and use them. At least ninety percent of a manager’s development is the responsibility of that manager. As the trainer/developer you are only responsible for the initial five percent (the explanation of expectations and the tools) and the continued training accounting for approximately an additional five percent. The development in-between is that manager’s responsibility.
What do you do when someone is not succeeding? Some of us go back and retrain, we rethink ourselves, and we do more work than we should trying to salvage what we can. We believe we can take anyone and turn them into a success. It is entirely possible if that person wants to succeed; they must be willing to do what needs to be done to succeed. If they will not, they will not succeed. And you can either continue to frustrate yourself and others within your organization, or you can realize their lack of commitment and focus your energies on other matters.
Discovering someone is not going to make it within an organization is not a failure. It’s a success. The moment you finally say to yourself, “I’ve done what I can,” can be a moment of relief. Freeing yourself from the draining task of retraining individuals that were not committed in the beginning is a great success. The simple fact that person did not succeed is not your failure. It is your success to realize your energies are worth much more invested in those who will take you and your organization to the next level.
It’s a very real situation. I initially had the notion, “I can teach anyone!” I would take even the most difficult people and I would find a way to turn them around. I would find ways to reach even the most unreachable people. I’ve said many times, “I can reach this manager, I can turn them around, and I can make the difference.” This is not a realistic view. You are not going to succeed in training everyone. The simple truth is, not everyone will succeed. Those who do not succeed will fail because they simply did not want to succeed.
Realizing and accepting that some managers cannot be trained and will not succeed can be very difficult, especially if you’re a trainer first and a people manager second. It can be very difficult to accept. Knowing “when to say when” is the key. Once you give a manager the tools, explain how to us them, and provide feedback and follow-up, you have done your part. It is the manager’s responsibility to take these tools and use them. At least ninety percent of a manager’s development is the responsibility of that manager. As the trainer/developer you are only responsible for the initial five percent (the explanation of expectations and the tools) and the continued training accounting for approximately an additional five percent. The development in-between is that manager’s responsibility.
What do you do when someone is not succeeding? Some of us go back and retrain, we rethink ourselves, and we do more work than we should trying to salvage what we can. We believe we can take anyone and turn them into a success. It is entirely possible if that person wants to succeed; they must be willing to do what needs to be done to succeed. If they will not, they will not succeed. And you can either continue to frustrate yourself and others within your organization, or you can realize their lack of commitment and focus your energies on other matters.
Discovering someone is not going to make it within an organization is not a failure. It’s a success. The moment you finally say to yourself, “I’ve done what I can,” can be a moment of relief. Freeing yourself from the draining task of retraining individuals that were not committed in the beginning is a great success. The simple fact that person did not succeed is not your failure. It is your success to realize your energies are worth much more invested in those who will take you and your organization to the next level.
care continued.
Most managers miss a very important opportunity to build their team. If you ask the average employee what is important to him, he will probably start with his family, his interests, things outside of work. His job will definitely be one of the things he mentions but pay attention to what else is said. If you know your employee’s daughter, husband, or wife is the most important thing in his or her life, do you know that person’s name? Do you know some interesting fact about that person? How can you convince your people to care about your ideas, your work, your initiatives, if you cannot take the time to care about what is most important to them? If Ratna’s daughter had an incredibly important talent test, did you take the time to ask how it went?
Take the time to care about your people and they’ll pay you back ten fold.
Take the time to care about your people and they’ll pay you back ten fold.
accoutability at work
One of the biggest mistakes managers can make is to continuously frustrate their employees by not holding them accountable.
Believe it or not, it can frustrate your employees as much as it does to you. Accountability is the key to achieving results and helping identify the opportunities in your organization. Holding employees accountable helps them to know the satisfaction of achieving a goal and performing to standard (or above!)
If you find yourself addressing the same issues in the same manner time and time again, you might have an issue with accountability.
The same is true if you don’t see your employees and your organization moving forward. The first step is to identify in which areas you find yourself and your team stagnant. Everyone will easily choose at least one area in which they would like to see improvement. To master accountability, choose this one area and focus on it first. Once you see the results, you’ll be inspired to approach all performance issues with a keen focus on accountability.
The Hallmarks of Accountability
Understood Goals - the employee must understand what the team is trying to achieve
Buy in - employees must believe in the goal and be a part of the success
Benchmarks and a Quantifiable Result - employees need milestones and a result that can be measured
Dual Feedback - feedback from the supervisor to the employee and from the employee to the supervisor
Evaluation - once a goal is accomplished, celebrate the success
To be successful, the manager must also hold themselves accountable to following through with accountability. One of the biggest failures is to start the process and not follow through with it. This causes the employee to lose respect for the process and to question a supervisor’s commitment, which can undermine the entire organization. Once accountability becomes a part of your management style and organization, you will see improved results and more satisfied employees.
Believe it or not, it can frustrate your employees as much as it does to you. Accountability is the key to achieving results and helping identify the opportunities in your organization. Holding employees accountable helps them to know the satisfaction of achieving a goal and performing to standard (or above!)
If you find yourself addressing the same issues in the same manner time and time again, you might have an issue with accountability.
The same is true if you don’t see your employees and your organization moving forward. The first step is to identify in which areas you find yourself and your team stagnant. Everyone will easily choose at least one area in which they would like to see improvement. To master accountability, choose this one area and focus on it first. Once you see the results, you’ll be inspired to approach all performance issues with a keen focus on accountability.
The Hallmarks of Accountability
Understood Goals - the employee must understand what the team is trying to achieve
Buy in - employees must believe in the goal and be a part of the success
Benchmarks and a Quantifiable Result - employees need milestones and a result that can be measured
Dual Feedback - feedback from the supervisor to the employee and from the employee to the supervisor
Evaluation - once a goal is accomplished, celebrate the success
To be successful, the manager must also hold themselves accountable to following through with accountability. One of the biggest failures is to start the process and not follow through with it. This causes the employee to lose respect for the process and to question a supervisor’s commitment, which can undermine the entire organization. Once accountability becomes a part of your management style and organization, you will see improved results and more satisfied employees.
care
It is critical for your people to feel you connect with them on more than a professional level, and before I get you concerned about what’s appropriate, let me explain. Every good manager knows employees want to feel valued. Many management courses teach the importance of ‘knowing you people’. What’s important to your people? What motivates them outside the workplace? Is it a desire to their children get into a good college? To finish a couse ? What excites and motivates your people?
This is the perfect time of year to find this out. To ask your people about their goals for 2008 in their own lives. What do they hope to achieve? To accomplish? Take this knowledge and let it help you to be a better manager. Let your people you know you care about them not only as employees but as people. Find a way to help them achieve these goals. A book on training?
What can you do to show your peopleyou care about the things that matter to them?
This is the perfect time of year to find this out. To ask your people about their goals for 2008 in their own lives. What do they hope to achieve? To accomplish? Take this knowledge and let it help you to be a better manager. Let your people you know you care about them not only as employees but as people. Find a way to help them achieve these goals. A book on training?
What can you do to show your peopleyou care about the things that matter to them?
situational leadership???????
Those of us who propogate situational leadership will no doubt know one of the biggest and most often made mistakes is to consider someones commitment and directional level in one situation to be the same across all situations. I made this mistake very recently. And I made it with myself. My commitment to managing my time and my skill set managing my time are both exceptional. I require little direction and I have a great enthusiasm. However, I don’t have the same level of skill or commitment to managing others’ time.
I discovered I wasn’t committed, I wasn’t enthusiastic, and I didn’t have the skill set I thought I did. I had made the mistake of assuming I was great at managing others’ time since I was an excellent manager of my time. I was wrong. I immediately began seeking insight into my opportunity. And a side product of being a learner (has anyone discovered that strength?), my side product was my increased excitement as I learned more.
The lesson is to remember it’s “situational” leadership and “in every instance” leadership. (ha ha)
I discovered I wasn’t committed, I wasn’t enthusiastic, and I didn’t have the skill set I thought I did. I had made the mistake of assuming I was great at managing others’ time since I was an excellent manager of my time. I was wrong. I immediately began seeking insight into my opportunity. And a side product of being a learner (has anyone discovered that strength?), my side product was my increased excitement as I learned more.
The lesson is to remember it’s “situational” leadership and “in every instance” leadership. (ha ha)
success: a thought that flashed & i penned.
Success breeds success. Nothing is as sweet as success. It is the journey through pain, agony, hard work, planning, strategy and bits of luck that cultivates what is known as success.
The difference between success and failure is wafer thin.
The greatest success principle I have come across is “learn from the experts”. Don’t reinvent the wheel. If you want to succeed find out what other successful people are doing and do the same things until you commence to reap similar results. Most successful people have on comman trait i.e. they are “very well organized” and in order to be so they use their time very well. They are highly productive and get more work done than average people for a similar period of time. These successful people are high performers with qualities to be both capable and efficient. They do things right in the right way at the right time with the right approach having the right attitude and aptitude. As a result their contributions in the spheres of work are far more than an average individuals .
The difference between success and failure is wafer thin.
The greatest success principle I have come across is “learn from the experts”. Don’t reinvent the wheel. If you want to succeed find out what other successful people are doing and do the same things until you commence to reap similar results. Most successful people have on comman trait i.e. they are “very well organized” and in order to be so they use their time very well. They are highly productive and get more work done than average people for a similar period of time. These successful people are high performers with qualities to be both capable and efficient. They do things right in the right way at the right time with the right approach having the right attitude and aptitude. As a result their contributions in the spheres of work are far more than an average individuals .
Monday, January 21, 2008
what it takes to win
World-class performance requires a company strategy that will encompass both quality and productivity improvements that don't stop until perfection is reached or at least there is a pursuit in the direction of excellence benchmarking “Best in Class”. As this can be achieved when people work together, it can't be automated or programmed. It is a continuous process that feeds on the synergism of human teamwork focused on satisfying all of the pie that encompasses customer’s price, quality, delivery and service want.
To a large number of misinformed professionals today, JIT is a quick delivery system thriving on an unsuspecting supply base or an inventory management system.
Quality is promoted under various TQM banners, which completely ignores productivity concerns. The goodness of quality will not win customers at noncompetitive prices. Team building has been promoted as a way to create a mystical problem solving, money-saving force that can operate in a near vacuum. (Such programs usually die in a few years/months for lack of leadership from disappointed/not-interested leaders in the management chain.) Many of the JIT productivity elements, like group technology cells, setup reduction and pull system, have been implemented in isolation of one another, resulting in partially effective islands of change. In fact, it's been fouled up so completely that I've started calling the original strategy REAL JIT to differentiate it from the smorgasbord that's out there today. It’s a real SNAFU for all present proponents of the concept. One needs to see what’s boiling in the pot to really comprehend the status of JIT.
Whatever you call it the most important thing to remember is that the winning process is like a good recipe. All of the proper ingredients in the right proportions, properly blended and nurtured in the right environment are necessary. If you decide to omit something that doesn't appeal to you or that you're afraid to try (Our volumes are much too low to try mixed-model scheduling.), then you won't get what you expected. But, whose fault is that?
The REAL JIT Recipe
First, you need a strategic envelope that will guide all of the tactical decisions that will be necessary as you move to world-class performance. That strategy must simultaneously encompass the essence of customer satisfaction: best quality, lowest prices, fastest delivery and regal service. While tactical elements can be implemented sequentially, the biggest mistake most companies make is failure to adopt the total strategy up front. That's why I use a coin to describe the JIT Strategy. It has two facets, the productivity and quality sides, but the two are part of the same whole and cannot be separated.
Productivity Principles
The productivity strategy requires that we abandon the traditional approach of trying to out-guess the customer to compensate for a slow manufacturing process and replace it with an immediate response, build-to-order process. To do that, we have to eliminate every wasteful, time-consuming practice and investment in the business that doesn't add value for the customer to get truly lean and mean. The ultimate goal is to produce one-at-a-time, in any flavor with near-zero lead-time. Obviously, this cannot be achieved in one step, so the guiding principle for this strategy is one of continuous improvement, which, in turn, can only be accomplished by the nurturing of all the human brainpower in the company. These improvements will lead to the elimination of all the contingency investments we've made, just in case something might go wrong. Finally, because so much of our traditional approach to business has been short-term oriented (as demonstrated by the instant-return and break-through schools of wishful thinking), we must recognize that this is a major cultural change, which can only be achieved as part of an evolutionary, long-term strategy.
To a large number of misinformed professionals today, JIT is a quick delivery system thriving on an unsuspecting supply base or an inventory management system.
Quality is promoted under various TQM banners, which completely ignores productivity concerns. The goodness of quality will not win customers at noncompetitive prices. Team building has been promoted as a way to create a mystical problem solving, money-saving force that can operate in a near vacuum. (Such programs usually die in a few years/months for lack of leadership from disappointed/not-interested leaders in the management chain.) Many of the JIT productivity elements, like group technology cells, setup reduction and pull system, have been implemented in isolation of one another, resulting in partially effective islands of change. In fact, it's been fouled up so completely that I've started calling the original strategy REAL JIT to differentiate it from the smorgasbord that's out there today. It’s a real SNAFU for all present proponents of the concept. One needs to see what’s boiling in the pot to really comprehend the status of JIT.
Whatever you call it the most important thing to remember is that the winning process is like a good recipe. All of the proper ingredients in the right proportions, properly blended and nurtured in the right environment are necessary. If you decide to omit something that doesn't appeal to you or that you're afraid to try (Our volumes are much too low to try mixed-model scheduling.), then you won't get what you expected. But, whose fault is that?
The REAL JIT Recipe
First, you need a strategic envelope that will guide all of the tactical decisions that will be necessary as you move to world-class performance. That strategy must simultaneously encompass the essence of customer satisfaction: best quality, lowest prices, fastest delivery and regal service. While tactical elements can be implemented sequentially, the biggest mistake most companies make is failure to adopt the total strategy up front. That's why I use a coin to describe the JIT Strategy. It has two facets, the productivity and quality sides, but the two are part of the same whole and cannot be separated.
Productivity Principles
The productivity strategy requires that we abandon the traditional approach of trying to out-guess the customer to compensate for a slow manufacturing process and replace it with an immediate response, build-to-order process. To do that, we have to eliminate every wasteful, time-consuming practice and investment in the business that doesn't add value for the customer to get truly lean and mean. The ultimate goal is to produce one-at-a-time, in any flavor with near-zero lead-time. Obviously, this cannot be achieved in one step, so the guiding principle for this strategy is one of continuous improvement, which, in turn, can only be accomplished by the nurturing of all the human brainpower in the company. These improvements will lead to the elimination of all the contingency investments we've made, just in case something might go wrong. Finally, because so much of our traditional approach to business has been short-term oriented (as demonstrated by the instant-return and break-through schools of wishful thinking), we must recognize that this is a major cultural change, which can only be achieved as part of an evolutionary, long-term strategy.
AGILE MANUFACTURING
1. Introduction
Manufacturing sector is on the verge of a major paradigm shift. This shift will move us away from mass production, way beyond lean manufacturing, into a world of Agile Manufacturing. Furthermore, at this point in time, Agile Manufacturing is not well understood and the conceptual aspects are still being defined. Agile Manufacturing is viewed as another programme of the month, and to use the term Agile Manufacturing as just another way of describing lean production, flexible manufacturing .
Many companies today are under going transformations - reengineering business processes, flattening hierarchies, empowering people, implementing lean production concepts, etc. The laundry list is almost endless. But none of these massive transformations, on their own or taken collectively, constitutes the implementation of Agile Manufacturing. What Agile Manufacturing really represents is the potential for a quantum leap forward in manufacturing. Instead of just chasing after the Japanese by copying their techniques in a prescriptive fashion, or implementing our own prescriptions, in Agile Manufacturing we should be trying to achieve a competitive lead by doing something that our competitors are not doing or intending to do in the near future. This I believe is will be our cutting edge…………………
Agile Manufacturing is something that many of our business houses have yet to fully comprehend, never mind implement. Agile Manufacturing is likely to be the way business will be conducted in the next century. It is not yet a reality. Our challenge is to make it a reality, first by more fully defining the conceptual aspects, and secondly by venturing into the frontier of sucessfull implementation.
In this paper we will examine some of the key issues relevant to the development of Agile Manufacturing. Owing to space limitations a very brief overview of Agile Manufacturing.
2. Definition and Concepts
The problem with a new idea such as Agile Manufacturing is the lack of a good sound definition and a set of concepts that most people would agree upon.
Agile Manufacturing should primarily be seen as a business concept. Its aim is quite simple - to put our company way ahead of our primary competitors. In Agile Manufacturing our aim is to develop agile properties. We will then use this agility for competitive advantage, by being able to rapidly respond to changes occurring in the market environment and through our ability to use and exploit a fundamental resource -knowledge.
One fundamental idea in the exploitation of this resource is the idea of using technologies to lever the skills and knowledge of our people. We need to bring our people together, in dynamic teams formed around clearly identified market opportunities, so that it becomes possible to lever one another's knowledge. Through these processes we should seek to achieve the transformation of knowledge and ideas into new products and services, as well as improvements to our existing products and services.
The concept of Agile Manufacturing is also built around the synthesis of a number of enterprises that each have some core skills or competencies which they bring to a joint venturing operation, which is based on using each partners facilities and resources. For this reason, these joint venture enterprises are called virtual corporations, because they do not own significant capital resources of their own. This, it is believed, will help them to be agile, as they can be formed and changed very rapidly.
Central to the ability to form these joint ventures is the deployment of advanced information technologies and the development of highly nimble organisational structures to support highly skilled, knowledgeable and empowered people.
Agile Manufacturing enterprises are expected to be capable of rapidly responding to changes in customer demand. They should be able to take advantage of the windows of opportunities that, from time to time, appear in the market place. With Agile Manufacturing we should also develop new ways of interacting with our customers and suppliers. Our customers will not only be able to gain access to our products and services, but will also be able to easily assess and exploit our competencies, so enabling them to use these competencies to achieve the things that they are seeking.
3. Some Key Issues in Agile Manufacturing
3.1 The "I am a Horse" Syndrome
There is an old saying that hanging a sign on a cow that says "I am a horse" does not make it a horse. There is a real danger that Agile Manufacturing will fall prey to the unfortunate tendency in manufacturing circles to follow fashion and to relabel everything with a new fashionable label. The dangers in this are two fold. First, it will give Agile Manufacturing a bad reputation. Second, instead of getting to grips with the profound implications and issues raised by Agile Manufacturing, management will only acquire a superficial understanding, which leaves them vulnerable to those competitors that take Agile Manufacturing seriously. Of course this is good news for the competitors!
One sure way to fail with Agile Manufacturing is to hang a new sign up. Get smart, resist the temptation, and put the paint brush away.
3.2 The Existing Culture of Manufacturing
One of the important things that is likely to hold us back from making a quantum leap forward and exploring this new frontier of Agile Manufacturing, is the baggage of our traditions, conventions and our accepted values and beliefs. A key success factor is, without any doubt, the ability to master both the soft and hard issues in change management. However, if we are to achieve agility in our manufacturing enterprises, we should first try to fully understand the nature of our existing cultures, values, and traditions. We need to achieve this understanding, because we need to begin to recognise and come to terms with the fact that much of what we have taken for granted, probably no longer applies in the world of Agile Manufacturing. Achieving this understanding is the first step in facing up to the pain of consigning our existing culture to the garbage can of historically redundant ideas.
3.3 Understanding Agility
Agility is defined in dictionaries as quick moving, nimble and active. This is clearly not the same as flexibility which implies adaptability and versatility. Agility and flexibility are therefore different things.
Leanness (as in lean manufacturing ) is also a different concept to agility. Sometimes the terms lean and agile are used interchangeably, but this is not appropriate. The term lean is used because lean manufacturing is concerned with doing everything with less . In other words, the excess of wasteful activities, unnecessary inventory, long lead times, etc are cut away through the application of just-in-time manufacturing, concurrent engineering, overhead cost reduction, improved supplier and customer relationships, total quality management, etc.
We can also consider CIM in the same light. When we link computers across applications, across functions and across enterprises we do not achieve agility. We might achieve a necessary condition for agility, that is, rapid communications and the exchange and reuse use of data, but we do not achieve agility.
Thus agility is not the same as flexibility, leanness or CIM. Understanding this point is very important. But if agility is none of these things, then what is it? This is a good question, and not one easily answered. Yet most of us would recognise agility if we saw it.
For example, we would not say the a Sumo wrestler was agile. Nor would we think that 50 Sumo wrestlers, tied together by a complex web of chains and ropes, all pulling in different directions, as agile. Quite the contrary. We would see them as lumbering, slow and unresponsive. However, we would all recognise a ballet dancer as agile. We would also think of a stage full of ballet dancers as agile, because what binds them together is something quite different.
This analogy between Sumo wrestlers and ballet dancers is very relevant to understanding the property of agility. Many of our corporations, to varying degrees, resemble Sumo wrestlers, tied together, but all pulling in different directions. If we want to develop agile properties, we need to understand what causes agility and what hinders agility. Only when we have developed this understanding can we begin to think about designing an agile enterprise. For, when we have such an understanding of the causes of agility, we can start to audit out current situation, and identify what needs to be changed.
4. Remarks
We have spent much time copying the Japanese. Now we may be about to teach the Japanese something. For a change, Indian manufacturing industry is realising that it has very little to gain, in the long term, by copying what other people are doing. There is now a growing realisation that global preeminence in manufacturing can only be achieved through innovation. We can learn from others, but in a highly competitive world we can only become world leaders if we develop new ideas that take us beyond the state-of-the-art. Basically, the issue is, should we adopt lean manufacturing in our own enterprises, i.e. should we mimic the Japanese, or should we do something different and better?
Without doubt there are a significant number of people who believe that we have to adopt lean manufacturing. But in adopting this approach we run the risk of forever chasing after a moving target. The Japanese will keep innovating. Thus, adopting lean manufacturing can only be a short term measure aimed doing something to close the competitive gap. In the longer term, if we want to catch up with and overtake the Japanese, lean manufacturing is not the answer. What we need to do, is something which the Japanese cannot do. That something may well be Agile Manufacturing.
Manufacturing sector is on the verge of a major paradigm shift. This shift will move us away from mass production, way beyond lean manufacturing, into a world of Agile Manufacturing. Furthermore, at this point in time, Agile Manufacturing is not well understood and the conceptual aspects are still being defined. Agile Manufacturing is viewed as another programme of the month, and to use the term Agile Manufacturing as just another way of describing lean production, flexible manufacturing .
Many companies today are under going transformations - reengineering business processes, flattening hierarchies, empowering people, implementing lean production concepts, etc. The laundry list is almost endless. But none of these massive transformations, on their own or taken collectively, constitutes the implementation of Agile Manufacturing. What Agile Manufacturing really represents is the potential for a quantum leap forward in manufacturing. Instead of just chasing after the Japanese by copying their techniques in a prescriptive fashion, or implementing our own prescriptions, in Agile Manufacturing we should be trying to achieve a competitive lead by doing something that our competitors are not doing or intending to do in the near future. This I believe is will be our cutting edge…………………
Agile Manufacturing is something that many of our business houses have yet to fully comprehend, never mind implement. Agile Manufacturing is likely to be the way business will be conducted in the next century. It is not yet a reality. Our challenge is to make it a reality, first by more fully defining the conceptual aspects, and secondly by venturing into the frontier of sucessfull implementation.
In this paper we will examine some of the key issues relevant to the development of Agile Manufacturing. Owing to space limitations a very brief overview of Agile Manufacturing.
2. Definition and Concepts
The problem with a new idea such as Agile Manufacturing is the lack of a good sound definition and a set of concepts that most people would agree upon.
Agile Manufacturing should primarily be seen as a business concept. Its aim is quite simple - to put our company way ahead of our primary competitors. In Agile Manufacturing our aim is to develop agile properties. We will then use this agility for competitive advantage, by being able to rapidly respond to changes occurring in the market environment and through our ability to use and exploit a fundamental resource -knowledge.
One fundamental idea in the exploitation of this resource is the idea of using technologies to lever the skills and knowledge of our people. We need to bring our people together, in dynamic teams formed around clearly identified market opportunities, so that it becomes possible to lever one another's knowledge. Through these processes we should seek to achieve the transformation of knowledge and ideas into new products and services, as well as improvements to our existing products and services.
The concept of Agile Manufacturing is also built around the synthesis of a number of enterprises that each have some core skills or competencies which they bring to a joint venturing operation, which is based on using each partners facilities and resources. For this reason, these joint venture enterprises are called virtual corporations, because they do not own significant capital resources of their own. This, it is believed, will help them to be agile, as they can be formed and changed very rapidly.
Central to the ability to form these joint ventures is the deployment of advanced information technologies and the development of highly nimble organisational structures to support highly skilled, knowledgeable and empowered people.
Agile Manufacturing enterprises are expected to be capable of rapidly responding to changes in customer demand. They should be able to take advantage of the windows of opportunities that, from time to time, appear in the market place. With Agile Manufacturing we should also develop new ways of interacting with our customers and suppliers. Our customers will not only be able to gain access to our products and services, but will also be able to easily assess and exploit our competencies, so enabling them to use these competencies to achieve the things that they are seeking.
3. Some Key Issues in Agile Manufacturing
3.1 The "I am a Horse" Syndrome
There is an old saying that hanging a sign on a cow that says "I am a horse" does not make it a horse. There is a real danger that Agile Manufacturing will fall prey to the unfortunate tendency in manufacturing circles to follow fashion and to relabel everything with a new fashionable label. The dangers in this are two fold. First, it will give Agile Manufacturing a bad reputation. Second, instead of getting to grips with the profound implications and issues raised by Agile Manufacturing, management will only acquire a superficial understanding, which leaves them vulnerable to those competitors that take Agile Manufacturing seriously. Of course this is good news for the competitors!
One sure way to fail with Agile Manufacturing is to hang a new sign up. Get smart, resist the temptation, and put the paint brush away.
3.2 The Existing Culture of Manufacturing
One of the important things that is likely to hold us back from making a quantum leap forward and exploring this new frontier of Agile Manufacturing, is the baggage of our traditions, conventions and our accepted values and beliefs. A key success factor is, without any doubt, the ability to master both the soft and hard issues in change management. However, if we are to achieve agility in our manufacturing enterprises, we should first try to fully understand the nature of our existing cultures, values, and traditions. We need to achieve this understanding, because we need to begin to recognise and come to terms with the fact that much of what we have taken for granted, probably no longer applies in the world of Agile Manufacturing. Achieving this understanding is the first step in facing up to the pain of consigning our existing culture to the garbage can of historically redundant ideas.
3.3 Understanding Agility
Agility is defined in dictionaries as quick moving, nimble and active. This is clearly not the same as flexibility which implies adaptability and versatility. Agility and flexibility are therefore different things.
Leanness (as in lean manufacturing ) is also a different concept to agility. Sometimes the terms lean and agile are used interchangeably, but this is not appropriate. The term lean is used because lean manufacturing is concerned with doing everything with less . In other words, the excess of wasteful activities, unnecessary inventory, long lead times, etc are cut away through the application of just-in-time manufacturing, concurrent engineering, overhead cost reduction, improved supplier and customer relationships, total quality management, etc.
We can also consider CIM in the same light. When we link computers across applications, across functions and across enterprises we do not achieve agility. We might achieve a necessary condition for agility, that is, rapid communications and the exchange and reuse use of data, but we do not achieve agility.
Thus agility is not the same as flexibility, leanness or CIM. Understanding this point is very important. But if agility is none of these things, then what is it? This is a good question, and not one easily answered. Yet most of us would recognise agility if we saw it.
For example, we would not say the a Sumo wrestler was agile. Nor would we think that 50 Sumo wrestlers, tied together by a complex web of chains and ropes, all pulling in different directions, as agile. Quite the contrary. We would see them as lumbering, slow and unresponsive. However, we would all recognise a ballet dancer as agile. We would also think of a stage full of ballet dancers as agile, because what binds them together is something quite different.
This analogy between Sumo wrestlers and ballet dancers is very relevant to understanding the property of agility. Many of our corporations, to varying degrees, resemble Sumo wrestlers, tied together, but all pulling in different directions. If we want to develop agile properties, we need to understand what causes agility and what hinders agility. Only when we have developed this understanding can we begin to think about designing an agile enterprise. For, when we have such an understanding of the causes of agility, we can start to audit out current situation, and identify what needs to be changed.
4. Remarks
We have spent much time copying the Japanese. Now we may be about to teach the Japanese something. For a change, Indian manufacturing industry is realising that it has very little to gain, in the long term, by copying what other people are doing. There is now a growing realisation that global preeminence in manufacturing can only be achieved through innovation. We can learn from others, but in a highly competitive world we can only become world leaders if we develop new ideas that take us beyond the state-of-the-art. Basically, the issue is, should we adopt lean manufacturing in our own enterprises, i.e. should we mimic the Japanese, or should we do something different and better?
Without doubt there are a significant number of people who believe that we have to adopt lean manufacturing. But in adopting this approach we run the risk of forever chasing after a moving target. The Japanese will keep innovating. Thus, adopting lean manufacturing can only be a short term measure aimed doing something to close the competitive gap. In the longer term, if we want to catch up with and overtake the Japanese, lean manufacturing is not the answer. What we need to do, is something which the Japanese cannot do. That something may well be Agile Manufacturing.
Sunday, January 20, 2008
THE COACHING PROCESS
I. Before The Coaching Session
A. Step One: Define expectations for the job.
• Is there a job description?
• Have expectations of good performance been communicated? How? When?
• Are you confident that the employee knows what is expected?
B. Step Two: Observe performance. Have you conferred with other managers or operations personnel with whom this person is likely to work? Do you have specific behaviors to support the ratings and agrees on the appraisal form?
C. Step Three: Review goals established from previous coaching sessions, if applicable. Were the goals achieved? Were goals not achieved? Are there any developmental areas established in the last review? Remember that the coaching process is ongoing; performance is reviewed daily, weekly, quarterly. There should be no surprises during the review. One should not save all the problems occurring in the previous 12 months and unload them during the coaching session. It is hoped that most problems are addressed when they occur.
D. Step Four: Allow the employee to prepare a self-appraisal. Meet with the employee one or two weeks prior to the coaching session. The following communication is suggested:
“Ganesh, we have scheduled your coaching session for next week. I would like you to complete an appraisal of how you see your performance as it relates to the skill areas on the form. I’d also like you to identify skill areas that you feel identify your major strengths plus any skill areas where you feel additional development may be necessary. Be prepared to discuss the progress in previous goals or developmental areas established in our last review. Finally, identify at least two goals for the coming 12-month period. We will also be talking about your career development. Please complete the form I will provide. Our goal is to compare our forms so that I can objectively discuss your performance.” (Ensure form is understood and how skill ratings are evaluated—clear up perceptions from the beginning).
II. Opening The Appraisal Meeting
A. Step Five: The following verbal and nonverbal skills are important when setting the proper climate factors for the evaluation.
1. The goal of the coaching session is to maintain a relaxed mood so that proper communication and trust will occur. This relaxed mood is related to how you present your communication in both the verbal and nonverbal sense. It is important to realize that this is not a “military inquisition.” You are conducting a business meeting to provide feedback to your employee on job performance. Above all, be yourself.
2. The following nonverbals are important:
a. Eye Contact. Look directly at the employee when speaking; nod your head; smile when appropriate; display interest.
b. Nearness. Sit at a close, comfortable distance. Avoid sitting behind large desks.
c. Posture. Sit straight; be attentive; maintain a symmetrical posture with employee.
3. The following verbals are important:
a. Small Talk. “Break the ice” initially; talk about family, a recent happening. Each employee is different; use whatever approach will build rapport and reduce nervousness. Some employees prefer a direct “strictly business approach.”
b. Prods. Acknowledge listening. “Uh huh…I see…Hmmm…Go on…Tell me more about that.” Use open-ended questions like why, how, when, where; get employee to talk.
c. Speak Positively. Compliment; show appreciation; acknowledge where appropriate.
III. The Coaching Session Begins
A. Step Six: State purpose and objectives of the appraisal.
1. The primary purpose of a coaching session is four-fold:
• Provide feedback on performance
• Increase job satisfaction and productivity
• Help strengthen the employee’s skill areas
• Develop a career plan
The following open communication is suggested:
“Gnesh, we have both had an opportunity to complete our appraisal forms.”
“The best way to conduct this meeting is to have you present your self-appraisal first by reviewing each skill area one at a time. Once you have done this, I would like you to identify the skill areas you feel may need additional development. While you are doing this, I will be listening and recording some notes. Where appropriate, I may ask you question to clarify your responses.”
“After you present your assessment, I will present my assessment of the skill areas. We will address the skill areas where we have agreement first, followed by the skill rating where we differ. We will openly discuss these areas in an effort to reach consensus.”
“Finally, We will review previous accomplishments/goals established during the last review. We will then set the necessary goals to strengthen any developmental areas. Do you have any questions, Mary? (Allow time for response). Okay, let’s proceed…”
Note: You will find this approach to be quite effective. There is a higher level of commitment when the employee is allowed to participate. They will generally identify developmental areas first and tend to underrate their skills.
B. Step Seven: Techniques for presenting information
The following techniques may prove helpful in presenting information during the performance appraisal. You may reference the attachment entitled “Cause and Effect Relations in Three Types of Appraisal Interviews.” (C.O.R.E. Corp., 1987)
At this point of the appraisal, the employee has presented his or her assessment. There will be areas of agreement and (perhaps) disagreement. The areas of agreement are easy; the challenge comes in communicating areas of disagreement in such a way that the employee will accept your recommendations. The following approaches, or combinations thereof, may be helpful:
1. The Tell-and-Sell Technique. This is used to persuade an employee to improve. This may be used nicely in skill areas where both parties have agreement. The employee is aware of developmental areas and wishes to correct them. You provide evidence and counsel on how the employee can change behavior for the better.
2. The Tell-and Listen Technique. The employee is defensive and may disagree with an aspect of the evaluation. Use listening rather than selling skills. People will change if defensive feelings are released. Make a statement to the employee about the behavior; allow employee to comment; ask probing questions; summarize feelings. Once both parties understand each other, then agree on a way to correct.
3. The Problem Solving Technique. A helper of sorts. The employee does not recognize a problem in behavior or asks for your assistance in correcting. You will jointly analyze the problem together; probe for reasons; ask questions; make and ask for suggestions. Essentially, you jointly solve the problems together and develop an action plan to correct it.
Note: These techniques may work in tandem; that is, a tell-and-listen technique may work into problem solving. Or, a tell-and-listen may work into a tell-and-sell if there is no agreement. It all depends. (See attachment 3)
D. Step Eight: Discuss Career Development Goals
This is perhaps the most important part of the coaching session. It is time to focus on the person and their career needs and aspirations. Before you move to pure goal setting, ask these questions of the employee.
How can I improve my effectiveness of a supervisor in helping you be successful in the job?
How would you describe success in your current role?
What part of your job do you enjoy most and why?
What part of your job are your struggling with the most and why?
What skills, knowledge or abilities do we need to strengthen?
Looking down the road, let’s say three years or so, what do you think would be the perfect role for you? Why?
Given you stated desires and growth objectives, what steps can we take today and what resources can we provide to you to your personal and professional objectives with the company?
How do you suggest we approach this process from here? Let me suggest you capture these ideas we just discussed and let’s establish a personal development plan for you moving forward.
It is important to close the interview on a positive note. Set the date for the next review and set up a monitoring system for goal achievement. Advise the employee that you will be transferring information to a new form, and they will be allowed to offer comments.
C. Step Nine: Set goals and develop action plan
You have now reviewed the forms, discussed ratings, agreed on some initial action and hopefully engaged in some career discussions. Once you have reviewed each skill area and reached some form of consensus, you are ready to establish developmental goals. Do not be disappointed if the employee does not agree with your recommendations despite all of these wonderful strategies. You may have to change the focus and simply provide direction on what you expect. Try and turn things into a positive format by demonstrating your sincere willingness to help them strengthen any developmental areas. (See constructive Conversation Catalysts in attachment 1).
1. Allow the employee to discuss the goals they had set prior to the evaluation. Have the employee explain:
• What is their goal (in specific terms)?
• How can it be achieved?
• When do they expect to achieve it?
• Why it is important to their continued success?
2. Once the employee identifies the goals (some may not), then proceed with an explanation of your goals. Avoid directive phrases such as “you will.” Use phrases like “I would like,” “How do you feel about?” “What is your best estimate, Mary, on when we can achieve this?” If they agree, terrific. If not, present your goals. (Refer to attachment 2 entitled “Checklist for Setting Good Objectives.” All goals should satisfy the four-step criteria established above, see attachment 5).
E. Step Ten: Set date for next review and Deliver what you promise
Monitor performance regularly to ensure goals are achieved. Don’t wait until next year. Performance is evaluated daily. It has been said that feedback is the breakfast of champions!
A. Step One: Define expectations for the job.
• Is there a job description?
• Have expectations of good performance been communicated? How? When?
• Are you confident that the employee knows what is expected?
B. Step Two: Observe performance. Have you conferred with other managers or operations personnel with whom this person is likely to work? Do you have specific behaviors to support the ratings and agrees on the appraisal form?
C. Step Three: Review goals established from previous coaching sessions, if applicable. Were the goals achieved? Were goals not achieved? Are there any developmental areas established in the last review? Remember that the coaching process is ongoing; performance is reviewed daily, weekly, quarterly. There should be no surprises during the review. One should not save all the problems occurring in the previous 12 months and unload them during the coaching session. It is hoped that most problems are addressed when they occur.
D. Step Four: Allow the employee to prepare a self-appraisal. Meet with the employee one or two weeks prior to the coaching session. The following communication is suggested:
“Ganesh, we have scheduled your coaching session for next week. I would like you to complete an appraisal of how you see your performance as it relates to the skill areas on the form. I’d also like you to identify skill areas that you feel identify your major strengths plus any skill areas where you feel additional development may be necessary. Be prepared to discuss the progress in previous goals or developmental areas established in our last review. Finally, identify at least two goals for the coming 12-month period. We will also be talking about your career development. Please complete the form I will provide. Our goal is to compare our forms so that I can objectively discuss your performance.” (Ensure form is understood and how skill ratings are evaluated—clear up perceptions from the beginning).
II. Opening The Appraisal Meeting
A. Step Five: The following verbal and nonverbal skills are important when setting the proper climate factors for the evaluation.
1. The goal of the coaching session is to maintain a relaxed mood so that proper communication and trust will occur. This relaxed mood is related to how you present your communication in both the verbal and nonverbal sense. It is important to realize that this is not a “military inquisition.” You are conducting a business meeting to provide feedback to your employee on job performance. Above all, be yourself.
2. The following nonverbals are important:
a. Eye Contact. Look directly at the employee when speaking; nod your head; smile when appropriate; display interest.
b. Nearness. Sit at a close, comfortable distance. Avoid sitting behind large desks.
c. Posture. Sit straight; be attentive; maintain a symmetrical posture with employee.
3. The following verbals are important:
a. Small Talk. “Break the ice” initially; talk about family, a recent happening. Each employee is different; use whatever approach will build rapport and reduce nervousness. Some employees prefer a direct “strictly business approach.”
b. Prods. Acknowledge listening. “Uh huh…I see…Hmmm…Go on…Tell me more about that.” Use open-ended questions like why, how, when, where; get employee to talk.
c. Speak Positively. Compliment; show appreciation; acknowledge where appropriate.
III. The Coaching Session Begins
A. Step Six: State purpose and objectives of the appraisal.
1. The primary purpose of a coaching session is four-fold:
• Provide feedback on performance
• Increase job satisfaction and productivity
• Help strengthen the employee’s skill areas
• Develop a career plan
The following open communication is suggested:
“Gnesh, we have both had an opportunity to complete our appraisal forms.”
“The best way to conduct this meeting is to have you present your self-appraisal first by reviewing each skill area one at a time. Once you have done this, I would like you to identify the skill areas you feel may need additional development. While you are doing this, I will be listening and recording some notes. Where appropriate, I may ask you question to clarify your responses.”
“After you present your assessment, I will present my assessment of the skill areas. We will address the skill areas where we have agreement first, followed by the skill rating where we differ. We will openly discuss these areas in an effort to reach consensus.”
“Finally, We will review previous accomplishments/goals established during the last review. We will then set the necessary goals to strengthen any developmental areas. Do you have any questions, Mary? (Allow time for response). Okay, let’s proceed…”
Note: You will find this approach to be quite effective. There is a higher level of commitment when the employee is allowed to participate. They will generally identify developmental areas first and tend to underrate their skills.
B. Step Seven: Techniques for presenting information
The following techniques may prove helpful in presenting information during the performance appraisal. You may reference the attachment entitled “Cause and Effect Relations in Three Types of Appraisal Interviews.” (C.O.R.E. Corp., 1987)
At this point of the appraisal, the employee has presented his or her assessment. There will be areas of agreement and (perhaps) disagreement. The areas of agreement are easy; the challenge comes in communicating areas of disagreement in such a way that the employee will accept your recommendations. The following approaches, or combinations thereof, may be helpful:
1. The Tell-and-Sell Technique. This is used to persuade an employee to improve. This may be used nicely in skill areas where both parties have agreement. The employee is aware of developmental areas and wishes to correct them. You provide evidence and counsel on how the employee can change behavior for the better.
2. The Tell-and Listen Technique. The employee is defensive and may disagree with an aspect of the evaluation. Use listening rather than selling skills. People will change if defensive feelings are released. Make a statement to the employee about the behavior; allow employee to comment; ask probing questions; summarize feelings. Once both parties understand each other, then agree on a way to correct.
3. The Problem Solving Technique. A helper of sorts. The employee does not recognize a problem in behavior or asks for your assistance in correcting. You will jointly analyze the problem together; probe for reasons; ask questions; make and ask for suggestions. Essentially, you jointly solve the problems together and develop an action plan to correct it.
Note: These techniques may work in tandem; that is, a tell-and-listen technique may work into problem solving. Or, a tell-and-listen may work into a tell-and-sell if there is no agreement. It all depends. (See attachment 3)
D. Step Eight: Discuss Career Development Goals
This is perhaps the most important part of the coaching session. It is time to focus on the person and their career needs and aspirations. Before you move to pure goal setting, ask these questions of the employee.
How can I improve my effectiveness of a supervisor in helping you be successful in the job?
How would you describe success in your current role?
What part of your job do you enjoy most and why?
What part of your job are your struggling with the most and why?
What skills, knowledge or abilities do we need to strengthen?
Looking down the road, let’s say three years or so, what do you think would be the perfect role for you? Why?
Given you stated desires and growth objectives, what steps can we take today and what resources can we provide to you to your personal and professional objectives with the company?
How do you suggest we approach this process from here? Let me suggest you capture these ideas we just discussed and let’s establish a personal development plan for you moving forward.
It is important to close the interview on a positive note. Set the date for the next review and set up a monitoring system for goal achievement. Advise the employee that you will be transferring information to a new form, and they will be allowed to offer comments.
C. Step Nine: Set goals and develop action plan
You have now reviewed the forms, discussed ratings, agreed on some initial action and hopefully engaged in some career discussions. Once you have reviewed each skill area and reached some form of consensus, you are ready to establish developmental goals. Do not be disappointed if the employee does not agree with your recommendations despite all of these wonderful strategies. You may have to change the focus and simply provide direction on what you expect. Try and turn things into a positive format by demonstrating your sincere willingness to help them strengthen any developmental areas. (See constructive Conversation Catalysts in attachment 1).
1. Allow the employee to discuss the goals they had set prior to the evaluation. Have the employee explain:
• What is their goal (in specific terms)?
• How can it be achieved?
• When do they expect to achieve it?
• Why it is important to their continued success?
2. Once the employee identifies the goals (some may not), then proceed with an explanation of your goals. Avoid directive phrases such as “you will.” Use phrases like “I would like,” “How do you feel about?” “What is your best estimate, Mary, on when we can achieve this?” If they agree, terrific. If not, present your goals. (Refer to attachment 2 entitled “Checklist for Setting Good Objectives.” All goals should satisfy the four-step criteria established above, see attachment 5).
E. Step Ten: Set date for next review and Deliver what you promise
Monitor performance regularly to ensure goals are achieved. Don’t wait until next year. Performance is evaluated daily. It has been said that feedback is the breakfast of champions!
reflections
failures in life are people who don’t try
Success is how well we do compared to what we are capable of.
Positive thinking with" effort” increases the probability of success.
Negative thinking with “effort” decreases the probability of success
Positive thinking backed with positive actions comes with positive believing.
Good leaders look to create more good leaders unlike leaders with inferiority Complexes who are afraid that they may loose the chair&position
. People with high self esteem & self confidence create more leaders.
Synergy is greater than energy.
Can v motivate people ? No. bcos it is an action
Why do people get demotivated?
Who motivates the motivator?
The greatest motivator is “ belief”
If u believe u cannot do it then you do justify that you can’t do it & vice versa.
Losers don’t like to do things, winners too don’t like to do things but do it.
Winners always put in the extra effort even when it hurts
Winners always put in 200%.
Winners always compete against themselves.
Values are taught in the formative years.
Culture in an organization goes –TOP DOWN.
We need to turn our weakness into our strengths.
Losers always rationalize.
Bigger the problem bigger the opportunity.
Ability without dependability is a liability.
Only crackpots watch out for Jackpots.
Parenting & Leadership are not popularity contest.
People who never learn to obey can never learn to command.
Empathy is –I feel what u feel, sympathy is-I understand what u feel.
ps of power
Position power
Personality power
Power that comes based on principles & character.
Leader has to make Decisions.
3CS OF Decision
Decision of command
Decision of consultation
Decision of consensus
Communication -3levels of communication.
Physical-appearance
Intellectual
Emotional-unsaid.
Never laugh at anyone’s dreams; people who don’t have dreams don’t have much
Talk slow but think quickly
When u lose don’t lose the lesson
Remember the 3RS:
RESPECT FOR SELF
RESPECT FOR OTHERS
RESPONSIBILITY FOR YOUR ACTIONS.
THE KEY TO EVERTYTHING IS PATIENCE: U GET THE CHICKEN BY HATCHING
NOT SMASHING IT
LIFE IS A JOURNEY NOT A GUIDED TOUR.
NEVER LET FEAR OF STRIKING OUT GET IN UR WAY.
TO HANDLE UR SELF USE UR HEAD TO HANDLE OTHERS USE UR HEART.
Success is how well we do compared to what we are capable of.
Positive thinking with" effort” increases the probability of success.
Negative thinking with “effort” decreases the probability of success
Positive thinking backed with positive actions comes with positive believing.
Good leaders look to create more good leaders unlike leaders with inferiority Complexes who are afraid that they may loose the chair&position
. People with high self esteem & self confidence create more leaders.
Synergy is greater than energy.
Can v motivate people ? No. bcos it is an action
Why do people get demotivated?
Who motivates the motivator?
The greatest motivator is “ belief”
If u believe u cannot do it then you do justify that you can’t do it & vice versa.
Losers don’t like to do things, winners too don’t like to do things but do it.
Winners always put in the extra effort even when it hurts
Winners always put in 200%.
Winners always compete against themselves.
Values are taught in the formative years.
Culture in an organization goes –TOP DOWN.
We need to turn our weakness into our strengths.
Losers always rationalize.
Bigger the problem bigger the opportunity.
Ability without dependability is a liability.
Only crackpots watch out for Jackpots.
Parenting & Leadership are not popularity contest.
People who never learn to obey can never learn to command.
Empathy is –I feel what u feel, sympathy is-I understand what u feel.
ps of power
Position power
Personality power
Power that comes based on principles & character.
Leader has to make Decisions.
3CS OF Decision
Decision of command
Decision of consultation
Decision of consensus
Communication -3levels of communication.
Physical-appearance
Intellectual
Emotional-unsaid.
Never laugh at anyone’s dreams; people who don’t have dreams don’t have much
Talk slow but think quickly
When u lose don’t lose the lesson
Remember the 3RS:
RESPECT FOR SELF
RESPECT FOR OTHERS
RESPONSIBILITY FOR YOUR ACTIONS.
THE KEY TO EVERTYTHING IS PATIENCE: U GET THE CHICKEN BY HATCHING
NOT SMASHING IT
LIFE IS A JOURNEY NOT A GUIDED TOUR.
NEVER LET FEAR OF STRIKING OUT GET IN UR WAY.
TO HANDLE UR SELF USE UR HEAD TO HANDLE OTHERS USE UR HEART.
transition
“ The number one charecteristic of students who later become
heads of companies is the ability to withstand uncertainty”
The transition from college to your first professional job can be an exciting yet emotional and stressful experience. You will be required to meet challenges, make adaptations, and deal with a number of decisions and frustrations during this process. Understanding the transition process itself can help reduce the stress you experience and hopefully enable you to feel a greater sense of control over your life as a new professional.
As you make your transition, keep in mind that there are two transitions occurring at the same time.
• Your professional transition - learning the ropes of your new job.
• Your personal transition - adjusting to life out of school and on your own.
The Transition Process
There are three basic stages in any transition.
Separation: End of college and end of being a college student
The first stage of transition is marked by some type of ending. In your case, it is the completion of college marked by the ritual of graduation. During this stage you may:
• Experience reality
• Feel a need to reflect on your college years in order to make sense of it all
• Resist letting go of this phase of your life that you have come to know so well
• Experience how to cope with the changes that are implicit in professional life
Temporary Disorientation: Beginning full-time employment and becoming a new professional
In this second stage, the process of letting go may bring feelings of disorientation. You know that you are on the threshold of something new but have little or no idea what it looks like. The good news is that this disorientation is only temporary. Being aware of this can enable you manage it better. Included in this stage is your first year on the job where you must:
• Learn the norms of your employer's culture
• Shift your own perceptions and behaviors as you adapt to your new work environment
• Fine tune your adaptation strategies so that you begin to feel you fit in
• Begin to gain a feeling of competence as one of the group
Connection: Completing your first year on the job and becoming a fully integrated professional
In the final stage of transition, you will feel increasingly comfortable in your new environment. The newness and strangeness wears off and you experience the feeling of having more control again. During this stage you will:
• Continue to settle-in with purposeful intention
• Feel less resistive and more accepting to additional changes
• Take more control of how you accommodate the demands of your work
• Be better able to seek balance between all aspects of your life
It Takes More Than Book Learning
No matter what your field, the transition from college to work involves moving into a new culture where people will dress, communicate differently and be recognized for behaviors unlike those expected of you while in college. Just as you had to develop new skills and strategies for being successful at College life, you will again have to discover new skills and strategies for being successful in your new work and living environments.
Acceptance into your new work environment has to be earned and evolves over time. This is why the first year on the job can be a critical one. Unfortunately, employers of new graduates often complain that their new professionals are naive and immature. Why? Because they are perceived to:
• Hang on to their college behaviors too long
• Try to behave like a seasoned professional too soon
While college generally prepares you for many of the task-related aspects required for your job, it may not prepare you for the non-task related aspects such as how to:
• Fit into the new culture
• Earn respect and credibility
• Learn the informal structure
• Understand the policies and practices of the organization
• Discover the unwritten expectations
• Build effective working relationships
• Become accepted as a team member
• Understand the power and reward structures
• Learn how to accomplish things
Basic First Year Strategies
Be aware of your first year tasks.
The first step to success is an understanding of the big picture that provides you with tasks typical of your first year.
Learn the culture.
Every organization has a unique culture and set of rules and norms about how things are done and how people behave. Take time to learn about and understand the culture and politics of your organization. What is the basic mission and philosophy? What do people expect of you? Observe how people communicate with each other. Find ways to fit in to the existing culture. You can't begin to make changes in the culture until you have been accepted into it.
Maintain a good impression.
In the beginning you may feel like you are in a fishbowl and all eyes are on you. They may well be! People will watch you and try to assess your skills and abilities. Everything you do early will be more visible and its impact. Be aware of your attitude and keep your "best self" forward as much as possible.
Learn the art of being new.
Being new requires different ways of thinking. Instead of thinking you have to stop being "new" as soon as possible, understand that being new is an important part of your transition process. Your primary tasks are to learn about the organization and become accepted by your colleagues.
Manage your expectations.
Identify and understand your own expectations. Often a new graduate's expectations do not match their new reality and then disappointment can result. Regularly give your expectations a reality check and adjust them as needed.
Become a savvy subordinate.
The most important person is your boss. The boss-subordinate relationship is likely to be different from any you have had before. It is your boss that sets your agenda and supporting him or her should be a primary task.
Seek out mentors.
Whether a mentoring relationship develops informally or formally, mentors can be a big help during your first year.
Making a successful transition is your responsibility. Awareness of the three transition stages, Separation, Temporary Disorientation, and Connection will help you recognize where you are, accept it as part of the process and manage it more successfully.
heads of companies is the ability to withstand uncertainty”
The transition from college to your first professional job can be an exciting yet emotional and stressful experience. You will be required to meet challenges, make adaptations, and deal with a number of decisions and frustrations during this process. Understanding the transition process itself can help reduce the stress you experience and hopefully enable you to feel a greater sense of control over your life as a new professional.
As you make your transition, keep in mind that there are two transitions occurring at the same time.
• Your professional transition - learning the ropes of your new job.
• Your personal transition - adjusting to life out of school and on your own.
The Transition Process
There are three basic stages in any transition.
Separation: End of college and end of being a college student
The first stage of transition is marked by some type of ending. In your case, it is the completion of college marked by the ritual of graduation. During this stage you may:
• Experience reality
• Feel a need to reflect on your college years in order to make sense of it all
• Resist letting go of this phase of your life that you have come to know so well
• Experience how to cope with the changes that are implicit in professional life
Temporary Disorientation: Beginning full-time employment and becoming a new professional
In this second stage, the process of letting go may bring feelings of disorientation. You know that you are on the threshold of something new but have little or no idea what it looks like. The good news is that this disorientation is only temporary. Being aware of this can enable you manage it better. Included in this stage is your first year on the job where you must:
• Learn the norms of your employer's culture
• Shift your own perceptions and behaviors as you adapt to your new work environment
• Fine tune your adaptation strategies so that you begin to feel you fit in
• Begin to gain a feeling of competence as one of the group
Connection: Completing your first year on the job and becoming a fully integrated professional
In the final stage of transition, you will feel increasingly comfortable in your new environment. The newness and strangeness wears off and you experience the feeling of having more control again. During this stage you will:
• Continue to settle-in with purposeful intention
• Feel less resistive and more accepting to additional changes
• Take more control of how you accommodate the demands of your work
• Be better able to seek balance between all aspects of your life
It Takes More Than Book Learning
No matter what your field, the transition from college to work involves moving into a new culture where people will dress, communicate differently and be recognized for behaviors unlike those expected of you while in college. Just as you had to develop new skills and strategies for being successful at College life, you will again have to discover new skills and strategies for being successful in your new work and living environments.
Acceptance into your new work environment has to be earned and evolves over time. This is why the first year on the job can be a critical one. Unfortunately, employers of new graduates often complain that their new professionals are naive and immature. Why? Because they are perceived to:
• Hang on to their college behaviors too long
• Try to behave like a seasoned professional too soon
While college generally prepares you for many of the task-related aspects required for your job, it may not prepare you for the non-task related aspects such as how to:
• Fit into the new culture
• Earn respect and credibility
• Learn the informal structure
• Understand the policies and practices of the organization
• Discover the unwritten expectations
• Build effective working relationships
• Become accepted as a team member
• Understand the power and reward structures
• Learn how to accomplish things
Basic First Year Strategies
Be aware of your first year tasks.
The first step to success is an understanding of the big picture that provides you with tasks typical of your first year.
Learn the culture.
Every organization has a unique culture and set of rules and norms about how things are done and how people behave. Take time to learn about and understand the culture and politics of your organization. What is the basic mission and philosophy? What do people expect of you? Observe how people communicate with each other. Find ways to fit in to the existing culture. You can't begin to make changes in the culture until you have been accepted into it.
Maintain a good impression.
In the beginning you may feel like you are in a fishbowl and all eyes are on you. They may well be! People will watch you and try to assess your skills and abilities. Everything you do early will be more visible and its impact. Be aware of your attitude and keep your "best self" forward as much as possible.
Learn the art of being new.
Being new requires different ways of thinking. Instead of thinking you have to stop being "new" as soon as possible, understand that being new is an important part of your transition process. Your primary tasks are to learn about the organization and become accepted by your colleagues.
Manage your expectations.
Identify and understand your own expectations. Often a new graduate's expectations do not match their new reality and then disappointment can result. Regularly give your expectations a reality check and adjust them as needed.
Become a savvy subordinate.
The most important person is your boss. The boss-subordinate relationship is likely to be different from any you have had before. It is your boss that sets your agenda and supporting him or her should be a primary task.
Seek out mentors.
Whether a mentoring relationship develops informally or formally, mentors can be a big help during your first year.
Making a successful transition is your responsibility. Awareness of the three transition stages, Separation, Temporary Disorientation, and Connection will help you recognize where you are, accept it as part of the process and manage it more successfully.
Friday, January 18, 2008
manufacturing - dull, dirty & with no glamour
. It is tough for manufacturing to compete for talent because of this smokestack stereotype. Although most of us were neophytes regarding advanced manufacturing, we expected to see wonders rather than drudgery. After all, this was advanced manufacturing. And in many respects our expectations were fulfilled. We saw chip fabrication lines - as antiseptic as operating rooms - whose life cycle is four years. We saw auto plants as clean as cafeterias where robots outnumbered human workers. So much for dirty. We repeatedly saw production runs of single units . We also saw long production runs in process, but the trend was clearly toward rapidly reconfigurable production and shorter, customer-responsive runs. The dull stereotype is therefore also outdated. We saw plants where the latest technology is hand fitted in buildings that are not much altered from fifty years ago. So our preconceptions of what ‘advanced’ means were challenged, too.
Opportunities for increasing profit are deeply explored. The relentless way in which profit incentives drive technological innovation in the private manufacturing sector explains much of the widening gap between that sector and the defense sector, in the use of automation technology and best management practices. Enterprise resource planning, lean manufacturing practices, just-in-time inventory control models, and the outsourcing of non-core capabilities were commonplace in the firms visited. Reliance on web-based capabilities, some which link manufacturers with their customers and suppliers, and others uniting global networks of production units, was a notable trend.
and an understanding that successful manufacturers integrate people, processes and technology to rapidly turn materials into finished products that address customer needs.
As problematic as manufacturing is, we report rapid consolidation of advances in materials, processing, management and information. We see renewed productivity and new marvels. That is the ascending baseline.
DEFINITION.
Advanced manufacturing is not an industry but a series of processes. ‘manufacturing’ has been defined as “science and technology, process development and production, to make a component and manage it through its life cycle,” while their definition of ‘advanced manufacturing’ excludes ‘production.’ It’s a reasonable research view. What’s left?
• Materials organization
• Computational organization
• Research and development prototyping: Hardware, Models, Processes
• Process development, including unique production equipment
One could argue that science and technology plus process development is undeniably advanced but not (at least not necessarily) manufacturing. Laboratory researchers acknowledge the fact that what they mean by ‘production’ is traditional industrial ‘manufacturing’. On the other hand, the third and fourth ‘advanced’ subcategories - prototyping and process development - can be accomplished on factory floors as well as in laboratories. Costs of such research can then more readily be recovered from revenues associated with products, leading to greater economic efficiency.
In the perspective of industrial consultants, what is ‘advanced’ has everything to do with production, but focuses outside of milling, joining and assembly processes traditionally associated with the term ‘manufacturing’. In this view, ‘advanced’ manufacturing leverages information technology in the supply chain by generating an integrated approach toward supply chain ‘synthesis’ (vice ‘management’) oriented to developing positive ‘flow’ rather than ‘links.’ ‘Warehousing’ gives way to ‘materials handling integration.’
Of course, from fabrication managers in high technology industries, one also hears that manufacturing applications and technology come down to the unchanging two basic components for production--people and materials.
CURRENT CONDITIONS. Advanced manufacturing occurs in many widely differentiated sectors of the economy. We observed manufacturing management and production practices in the auto, pharmaceutical, electronics and electrical equipment assembly, jet engine, construction equipment, and semiconductor sectors. In the defense sector, we observed manufacture of helicopters, munitions, aircraft and ships.
The behavior and strategy of the observed companies varied greatly. Some were clearly struggling to make any revenue and profit, while a few were expanding and producing at near capacity. Most were looking for new products or product differentiation, strategic alliances and partnerships, or novel marketing strategies to pull ahead in the current economy. Additionally, all were focused on cost-cutting efficiencies to improve their ability to compete. Such endeavors include out-sourcing or alternatively increased vertical integration, supply chain integration and Enterprise Resource Planning (ERP), and just-in-time and lean manufacturing.
.
Manufacturing employment consists of almost entirely high-skill, technology-intensive jobs with wages well above the service sector. The notion of poorly educated blue-collar workers laboring in dangerous jobs in dank, smoke-belching factories is a bygone image. Reality is more likely to be clean rooms and pharmaceutical laboratories, and brightly lit, clean, environmentally friendly production facilities employing advanced automation, robotics, and information technology. This is particularly evident in companies’ efforts to acquire both ISO 9000 (quality) and 14000 (environmental) certifications. Today approximately 72% of U.S. exports are manufactured goods. Manufacturing leads all industry sectors with e-commerce shipments that account for 12% ($485 billion) of the total value of all manufacturing shipments.
In 2000, manufacturers performed 75% of U.S. R&D activities, while providing 66% of the funding. Many companies reduced R&D investments in 2001 due to the soft economy. However, a few recognized the opportunity by increasing investment in new technologies and facilities to be positioned for the recovery.
productivity and Information Technology. Information technology and information management systems are credited with the strong economy-wide growth and high productivity (> 3% per annum) of the mid and late 1990s. High productivity was especially important to the manufacturing industry where it generally equated to lower unit costs in production, and therefore, increased revenues and profits. In fact, manufacturing productivity averaged a 4.3% growth rate over the period 1996-1999. Although productivity had fallen precipitously during 2000, data from the fourth quarter of 2001 and the first quarter of 2002 indicate that productivity is rebounding.
Availability of Skilled Labor. The majority of companies visited expressed concern with their ability to hire skilled labor. Given the recession, none noted any shortage of applicants. However, almost without exception they were frustrated by applicants’ lack of specific skills required for their industry. Most stated that applicants lacked the mechanical aptitude, knowledge, and technical background in basic math and sciences to propel their company in this highly competitive globalized economy. In the case of defense companies, the pool of qualified applicants was further reduced by drug testing and security requirements. A few companies placed equal emphasis on an applicant’s ability to perform in a team environment or alternatively, with minimal supervision. Job tender statistics such as 2 in 30, 1 in 60 or even 1 in 100 were commonplace among the companies visited.
To address the skills shortage, many companies developed targeted education and training outreach programs to improve basic skills and enlarge the pool of potential applicants. Partnerships, to include internships, were developed with local high schools, trade schools, and colleges and universities to educate and train students for employment. In some cases, companies developed their own in-house training and certification programs for specific skills, such as welding and pipefitting. These companies screened initial applicants for “employability” and then placed them into in-house training programs prior to assigning them to a manufacturing activity. No statistics were offered to validate the success of these initiatives, nor was there any quantification of return on investment, but all felt these managerial practices were both necessary and profitable in terms of “growing” the basic employee skills for their industry.
Automation and Robotics. Many companies sought to mitigate manpower shortfalls while simultaneously improving productivity and reducing costs by increasing the levels of automation and robotics in their manufacturing processes. High-speed machine tools under computer numerical control (CNC) continue to revolutionize manufacturing. More capable bits and cutters, and multi-axial machines, allow machining of ever larger components without repositioning. Variability continues to drop and quality and labor productivity to rise. Linked by the web, quality can be remotely controlled, which leverages engineering expertise. We saw robotics commonly employed for repetitive tasks such as auto body welding. This did substantially reduce manpower requirements on the floor as one or a few employees could operate and oversee several robotic manufacturing cells. However, the remaining employees needed even greater technical knowledge and skill. Not only were they expected to set-up and oversee robotic cells, but in many cases they were the first line of maintenance should the robots break down or the line stop. Employees who were capable of meeting these new challenges became that much more valuable to the companies and in return, could command higher levels of compensation.
Aging Workforce. Many of the companies visited faced the related issue of an aging workforce. The situation was particularly acute in defense and unionized facilities. Managers at one defense aircraft company quoted the average age of their manufacturing workforce to be 55 years; those at a defense munitions plant quoted their workforce at between 48-52 years. By contrast, those at a commercial, non-union semiconductor facility estimated their manufacturing workforce to be between 26-30 years.
The effects of aging are compounded when companies outsource their personnel surge requirements. U.S. firms often obtain surge workers as temps through manpower companies. In Japan, expatriate third generation Japanese descendents, recruited abroad for the purpose, can fill the gap. In both systems, a cohort of young, second-class workers are cycled in and out, and trained, yet are not expected to count on a career, advancement, or even a permanent position.
An aging workforce is a very experienced and skilled group of employees with comparatively higher levels of pay and benefits. This two-edged sword engenders higher relative levels of productivity with concomitant higher direct labor costs. An even greater concern is that their knowledge will be lost when they retire. Without the ability to systematically transfer knowledge to younger employees and facing the difficulty in hiring skilled labor, these companies may soon be facing a shortfall in their manufacturing capabilities.
All of this places a fundamental limitation on a company’s ability to surge production. Most of the companies visited had significant excess capacity with facilities that could accommodate expanded production if required. However, to surge with a new manufacturing line or extra shifts would require an increase in manufacturing personnel which for the reasons cited above would not appear practicable in the short term.
CHALLENGES AND RESPONSES. manufacturers need to address several challenges in order to maintain competitive advantage. Adapting to the increasing effects of globalization and commercializing advanced technology requires constant fine-tuning. Adaptability is the key to generating and sustaining a competitive advantage in a global market. “Manufacturing in the information age will bring new ideas and innovations to the marketplace rapidly and effectively. Individuals and teams will learn new skills rapidly because of advanced network-based learning, computer-based communication across extended enterprises, enhanced communications between people and machines, and improvements in the transaction and alliance infrastructure.”
The National Research Council (NRC) report from which this quote is drawn noted several grand challenges to the future of advanced manufacturing, which we used as a baseline for our study. The following paragraphs discuss our view of the challenges facing advanced manufacturing based on our domestic and international travel. In this new age, one key to the success of an advanced manufacturing firm is the ability of its senior leadership to leverage information to maintain a competitive advantage.
Concurrency. The first challenge is to achieve concurrency in all operations. That is, manufacturers should plan, develop, and implement in parallel, vice sequentially. Concurrent processing will bring together all elements of a product process from “cradle-to-grave.” Increased use of networked processes and equipment will be required to transfer information and experience. This will make it possible to reduce product time to market, promote innovation, and improve quality. In order to meet this challenge and realize these improvements, U.S. manufacturing industries should address several items:
(1) Development or purchase of intelligent collaboration systems. Information sharing is the biggest priority if companies want to plan, develop, and implement in parallel. Without real-time information flow, successful concurrency is not possible. Collaboration hardware and software is an enabling tool to meet this challenge.
(2) Identification and acquisition of technologies to convert information into knowledge for effective decision-making. The vast quantities of information available now and in the future are becoming overwhelming for decision makers. Firms should use technology to assist in converting information to knowledge for management use.
(3) System synthesis, modeling, and simulation for all manufacturing operations should be accomplished. In order to achieve concurrency, it is necessary for all operations to peacefully coexist and to share information on a timely and accurate basis. However, some tradeoffs may have to occur. Understanding each system process and being able to model and simulate the process allows for understanding the existing complex interactions. Use of models and simulations would allow management to try new proposed operations to improve efficiency and competitive advantage.
(4) System development to provide the ability to achieve concurrency (once the processes and interactions between them are understood). Companies should identify, develop, and/or acquire adaptable, readily reconfigurable, integrated equipment, processes, and systems. Flexibility will be the key to maintaining competitive advantage in the future for advanced manufacturers. Flexible systems and processes, designed for rapid change, will provide advanced manufacturers the edge they need to rapidly respond to a changing market while maintaining concurrency in their processes.
Human/Technical Integration. A second challenge is to integrate human and technical resources to enhance workforce performance and satisfaction. Even though technology is rapidly improving and automation is becoming increasingly popular, firms cannot fully remove humans from manufacturing. During both domestic and international company visits, we saw that humans still do some tasks that machines cannot (usually that require specific dexterity), while machines handled tasks that humans cannot (movement of heavy objects – although usually with human guidance). However, we also viewed several processes where humans performed routine and often repetitive tasks where the use of technical resources could have improved the process. Therefore, better integration of human and technical resources is necessary to further improve manufacturing operations. In order to meet this challenge, manufacturers should address:
(1) Development and/or acquisition of intelligent collaboration systems. Similar to the concurrency challenge, information sharing is the biggest priority. Without real-time information flow, successful human-technical integration is not possible. Collaboration hardware and software is an enabling tool to meet this challenge.
(2) Identification and acquisition of technologies to convert information into knowledge for effective decision-making. Both human and technological systems require information to operate. Machines are becoming increasingly able to learn by action. Providing a capability for both human and machine to convert information to knowledge will provide tremendous benefits to the company.
(3) Synthesis, modeling, and simulation of human-machine interfaces for all manufacturing operations. Once a firm defines, models, and simulates tasks, they can develop various options for improving the human-technical interface. The models and simulations allow for evaluating those options for determination of whether human or technological improvements are the best solution.
(4) Development of new educational and training methods to enable rapid assimilation of knowledge. As previously stated, the quantity of information available to workers is increasing tremendously. However, we constantly heard that industry has been hard-hit to find labor with the required knowledge and skills. For example, owing to the need for specific knowledge and skills, the semiconductor industry has thousands of jobs that are going unfilled. Workers must be educated and trained to use information systems in order to rapidly assimilate information and transform it into useful knowledge. Industry must take on this challenge to educate and train, or there will be an increasing shortage of qualified workers.
(5) Knowledge transfer from an aging work force. One of the recurring trends encountered during our industry visits was the increasing age of the workforce. As noted above, some companies had average workforce ages of over 55 years old. As these older workers finally retire, the loss of knowledge could be high. The manufacturing industry must anticipate this occurrence, and take action to retrieve that knowledge from the older workers and transfer it to a younger work force when required.
Information into Knowledge. Advanced manufacturers are dependent on information technology already, and will become more so in the future. This third challenge addresses the need to value, capture, and "instantaneously" transform information gathered from a vast array of diverse sources into useful knowledge for making effective decisions. For organizations to be truly successful in the information era and maintain their competitive advantage, they will have to learn how to “develop knowledge, procure knowledge, protect knowledge, and manage people with knowledge.” In order to accomplish this, manufacturers should provide for:
(1) Synthesis, modeling, and simulation for all manufacturing operations. Once a firm understands all operations and models them, effects of changes to any process or operation can be easily determined and disseminated quickly to all users.
(2) Identification and acquisition of technologies to convert information into knowledge for effective decision-making. As seen by the overwhelming effects of electronic mail on some workers, workers need technology to help deal with the vast amounts of information now available to them. Management must identify technology to collate information from different sources, deconflict that information, and transform it into knowledge useful to a company’s workers.
(3) Development of new educational and training methods that enable the rapid assimilation of knowledge. Once a firm uses technology to transform information into knowledge, workers must be educated and trained to rapidly respond to what this tells them. That is, the workers need to be educated and trained on how to act rapidly on the knowledge transferred to them in order to take advantage of the technology. If workers cannot react rapidly, the investment in the technology may be wasted.
Rapidly Reconfigurable Systems. A fourth challenge to advanced manufacturing is to design, develop, and implement reconfigurable manufacturing enterprises to rapidly respond to changing needs and opportunities. The globalized marketplace changes rapidly. Manufacturers must be able to quickly and efficiently reconfigure their products and processes to take advantage of the changing marketplace and attain or maintain their competitive advantage. In order to do this, manufacturers should address:
(1) Synthesis, modeling, and simulation for all manufacturing operations. Once a company understands and models all operations, effects of changes to any process or operation can be quickly and easily determined. When operations must change, companies can use the models and simulations to determine the optimum reconfiguration for the new process.
(2) Design, development and acquisition of readily reconfigurable, adaptable, and integrated equipment, processes, and systems. Rapidly changing customer needs, market opportunities, and information technologies drive the need for a company to be able to rapidly reconfigure and respond to changes. It is too costly in terms of both time and money to develop, design, and acquire new equipment, processes, and systems for every change. However, as seen during our industry visits, particularly to machine tool manufacturers, systems and equipment now exist that firms use interchangeably in a process. Flexible fixturing is one example of where interconnected equipment can be rapidly changed out (mixed and matched) to accommodate changing requirements. This equipment can then be immediately reprogrammed via its connectivity to the other machines and be fully ready for the new task.
Environmental. Manufacturing of products generally requires transforming of raw materials into some intermediate or finished product. This process also typically produces some form and quantity of waste. With the growing world population and increase in manufacturing products, the strain on the global ecosystem is increasing. Therefore, reduction of production waste and minimization of product environmental impact to "near zero" are big long-term challenges for manufacturing. Manufacturers are striving to develop cost-effective, competitive products and processes that don’t harm the environment. Recycling and reduction of waste were the two most often cited examples of process improvements during our industry visits. However, manufacturers still face significant environmental challenges and should address the following:
(1) Synthesis, modeling, and simulation for all manufacturing operations. Modeling of manufacturing processes would provide a cost-effective method on analyzing risks and benefits to the environment of possible process/product changes. A goal would be to create and maintain a database of useful and accurate environmental assessments. This database could prove useful and cost-beneficial for further product/process developments as well as for regulatory defense.
(2) Production with Near-Zero Waste. In order to manufacture products with near-zero waste, it will be necessary to understand the product process from “cradle-to-grave.” Only after understanding the entire process can an environmental evaluation be truly creditable. Manufacturers should consider use of advanced technologies in recycling and waste production. Additionally, recycling should be addressed to the maximum extent. The most environmentally successful firms visited were those who had developed recycling programs to use their production waste as resource materials for additional products and processes. The most common application was the use of production waste for energy. This not only reduced required waste disposal, but also provided for reduction of energy consumption from outside sources.
(3) Environmentally Friendly Production. A growing trend among visited companies was for meeting ISO 14000 standards for environmental processes. Manufacturers with a environmentally friendly attitude tend to make more efficient use of their resources through product waste re-use, recycling, and more efficient processes that reduce waste generation. One good example is the use of powdered-coat painting of parts. One particular company’s use of powder-coating versus liquid painting of products reduced product waste from seventy-seven 55-gallon drums of hazardous waste per year to five 55-gallon drums of waste per year. Manufacturers with an environmentally friendly production process and attitude are more likely to have a competitive advantage over their competitors by reducing the environmental costs associated with their products.
OUTLOOK
Economic. Since 1969, “there have been six economic downturns in manufacturing that have lasted, on average, about 10 months. Output fell about 9 percent and employment declined 7.5 percent (employment declined by about 1.5 million) during the typical economic downturn.” One of the most interesting observations made is that every economic downturn since 1969 was preceded by a surge in energy prices. Examples include: the Arab oil embargo—1973, turmoil in the Middle East, Iranian revolution—1980s, Iraq’s invasion of Kuwait—1990, and the energy price spike in 2000.
While all sectors of the economy are affected by rising energy costs, the manufacturing sector is particularly vulnerable to surges in energy costs. “Manufacturing makes up 28 percent of the nation’s overall energy demand, more than any other sector.”
Fluctuations in oil and natural gas prices create serious challenges in U.S. manufacturing. One such challenge is the difficulty manufacturers face in adjusting pricing strategies to compensate for spikes in energy costs. This challenge generates a rippling effect for employment, overall production, and economic growth in general. The manufacturing sector will remain vulnerable to fluctuations in energy prices in the foreseeable future unless alternative, price-stable, forms of energy become available industry-wide.
“Globalization has greatly increased the range and intensity of international political, economic, and social interactions.” Generally speaking, manufacturers are more connected to the international economy than the rest of the U.S. economy—65 percent of U.S. manufacturing output produced in 1999 was for international trade. This is significant in that if the U.S. dollar is strong, the price of U.S. exports in markets overseas will be more expensive, resulting in decreased international demand for U.S. output. “Manufacturing operates in a global marketplace where prices are determined by supply and demand relationships and firms are price takers, not price setters.” This truism will have more severe ramifications in the future as more and more newly developed countries gain economic power.
“The nature of manufacturing enterprises will evolve in response to changes in the technological, political, and economic climate.” Most of the executives we spoke with during our visits would agree that companies providing goods and services to consumers in the future must continue to emphasize the relationship between quality, service, and price. This means that companies must continue pursuing innovative ways to customize products (being agile), reduce product delivery time, and reduce costs consistent with consumer expectations.
Human Resources. The manufacturing workforce will be as diverse as the global economy.” People will continue to play a vital role in shaping the future of manufacturing. Competition will be fierce globally and firms able to adapt to meet the rapidly changing needs of the market will prosper. “Expanding productivity growth in the U.S. economy will require workers with higher levels of skills and knowledge to keep pace with the rapid technological changes.”
In the future, “sustaining competitive advantages will depend on a company’s ability to value and capture practical know-how or knowledge.” Capturing practical know-how involves capturing the constant parameters used to make decisions. This involves developing knowledge management systems that give a company’s workforce a wide range of capabilities in their manufacturing sector. The primary issues with knowledge systems will be related to a firm’s current and future capabilities. Knowledge management systems will be seen as methods of creating organizational synergy that cannot be easily duplicated by competitors.
Processes. The future of manufacturing is moving toward concurrent engineering. Manufacturing is different from other industries (for example, the service sector) in that, generally speaking, there is not a lot of personal contact between the consumer of the product and the people actually producing or assembling the product. And “despite the rapid growth of information technology, firms still spend more money on old-fashioned capital equipment, such as drills and welding machines, than they do on computers, telephones, and other information gadgets.” Information technology will have its biggest future impact for manufacturing in the areas of planning, developing, and organizing. Technological advances in these areas should generate sufficient efficiencies allowing companies to respond to consumer needs, while at the same time reducing production delivery time and costs.
GOVERNMENT GOALS AND ROLES. The health of the. advanced manufacturing industry affects both the economic and military elements of national power, and is therefore a national security issue. Consequently, the Government should assume an appropriate role supporting the stability and vitality of this industry. The government should establish and enforce manufacturing policies in three key areas that directly affect the health of the industry: promoting the availability of skilled labor, encouraging manufacturing process improvements, and stimulating the research and development technology base.
Success in manufacturing largely depends on the quality and skill of the workforce. A common concern expressed by managers of both domestic and international firms is the shortage of personnel trained in science and engineering disciplines. To ensure an adequate pool of science and engineering workers in the., government policies need to provide better incentives for students to enter the science and engineering areas of study. Given that the. must increase the skilled labor supply, several policies can help relieve the skilled labor shortage. More. students simply must graduate from science and technology (S&T) programs. The government should provide targeted incentives such as tax breaks or interest-free loans to entice domestic students to seek S&T education and training. S&T education is an investment in human capital and is essential to the vitality of a networked economy. The government should work in close partnership with industry to identify emerging skills that merit targeted financial incentives. Furthermore, manufacturers should be rewarded for providing internships to science and engineering graduate students.Government policies should also encourage highly qualified foreign graduate students to stay in the. after graduation. Immigration policies should provide more flexibility for. industry to recruit the best and brightest from other nations. . companies can help to identify and sponsor outstanding foreign undergraduate, graduate and doctoral students. Exemplary foreign students should be given preferred consideration for. citizenship after graduation. The government would have several years prior to graduation to complete any required background checks on foreign students.
Another. workforce issue is aging, particularly among union manufacturers. The aging trend will create a major knowledge and leadership void in the next decade as the workforce enters retirement. Young skilled workers are seeking employment in other industries. This demographic trend will make. manufacturers more dependent on immigrants to supplement the shortage of domestic workers. To ensure the. has a sufficient labor force, immigration policies need to provide. firms with greater flexibility to draw from the global workforce.
Manufacturing process improvements enhance competitiveness, but they often require significant capital investments. Government policies should provide economic incentives to encourage these investments. Fiscal policies, such as tax breaks for efficient processes or faster capital equipment depreciation schedules, can energize companies to implement process improvements and capital upgrades. Promoting international free trade agreements also gives manufacturers the ability to leverage market forces to improve manufacturing posture. Potential leverage areas are foreign research and development (R&D) efforts and the available pool of well-trained, skilled workers overseas.
R&D is the fuel for technology innovation. Since advanced research requires tremendous resources and time before yielding useful products, only governments and large multinational companies have the financial resources to support meaningful advanced research. Government has the greatest influence in this area through policies that sponsor advanced research across a broad spectrum of science and technology areas. Organizations such as the National Institutes of Science and Technology (NIST), National Science Foundation (NSF), and Defense Advanced Research Projects Agency (DARPA) should expand their efforts to develop advanced manufacturing processes.
One R&D area in need of government support is flexible manufacturing. Flexible manufacturing will enable the mass customization of products and create new market opportunities in the commercial sector. Flexible manufacturing processes can provide the. advanced manufacturing sector with continued world leadership, while providing DoD with assured access to affordable, customized war fighting systems.
Opportunities for increasing profit are deeply explored. The relentless way in which profit incentives drive technological innovation in the private manufacturing sector explains much of the widening gap between that sector and the defense sector, in the use of automation technology and best management practices. Enterprise resource planning, lean manufacturing practices, just-in-time inventory control models, and the outsourcing of non-core capabilities were commonplace in the firms visited. Reliance on web-based capabilities, some which link manufacturers with their customers and suppliers, and others uniting global networks of production units, was a notable trend.
and an understanding that successful manufacturers integrate people, processes and technology to rapidly turn materials into finished products that address customer needs.
As problematic as manufacturing is, we report rapid consolidation of advances in materials, processing, management and information. We see renewed productivity and new marvels. That is the ascending baseline.
DEFINITION.
Advanced manufacturing is not an industry but a series of processes. ‘manufacturing’ has been defined as “science and technology, process development and production, to make a component and manage it through its life cycle,” while their definition of ‘advanced manufacturing’ excludes ‘production.’ It’s a reasonable research view. What’s left?
• Materials organization
• Computational organization
• Research and development prototyping: Hardware, Models, Processes
• Process development, including unique production equipment
One could argue that science and technology plus process development is undeniably advanced but not (at least not necessarily) manufacturing. Laboratory researchers acknowledge the fact that what they mean by ‘production’ is traditional industrial ‘manufacturing’. On the other hand, the third and fourth ‘advanced’ subcategories - prototyping and process development - can be accomplished on factory floors as well as in laboratories. Costs of such research can then more readily be recovered from revenues associated with products, leading to greater economic efficiency.
In the perspective of industrial consultants, what is ‘advanced’ has everything to do with production, but focuses outside of milling, joining and assembly processes traditionally associated with the term ‘manufacturing’. In this view, ‘advanced’ manufacturing leverages information technology in the supply chain by generating an integrated approach toward supply chain ‘synthesis’ (vice ‘management’) oriented to developing positive ‘flow’ rather than ‘links.’ ‘Warehousing’ gives way to ‘materials handling integration.’
Of course, from fabrication managers in high technology industries, one also hears that manufacturing applications and technology come down to the unchanging two basic components for production--people and materials.
CURRENT CONDITIONS. Advanced manufacturing occurs in many widely differentiated sectors of the economy. We observed manufacturing management and production practices in the auto, pharmaceutical, electronics and electrical equipment assembly, jet engine, construction equipment, and semiconductor sectors. In the defense sector, we observed manufacture of helicopters, munitions, aircraft and ships.
The behavior and strategy of the observed companies varied greatly. Some were clearly struggling to make any revenue and profit, while a few were expanding and producing at near capacity. Most were looking for new products or product differentiation, strategic alliances and partnerships, or novel marketing strategies to pull ahead in the current economy. Additionally, all were focused on cost-cutting efficiencies to improve their ability to compete. Such endeavors include out-sourcing or alternatively increased vertical integration, supply chain integration and Enterprise Resource Planning (ERP), and just-in-time and lean manufacturing.
.
Manufacturing employment consists of almost entirely high-skill, technology-intensive jobs with wages well above the service sector. The notion of poorly educated blue-collar workers laboring in dangerous jobs in dank, smoke-belching factories is a bygone image. Reality is more likely to be clean rooms and pharmaceutical laboratories, and brightly lit, clean, environmentally friendly production facilities employing advanced automation, robotics, and information technology. This is particularly evident in companies’ efforts to acquire both ISO 9000 (quality) and 14000 (environmental) certifications. Today approximately 72% of U.S. exports are manufactured goods. Manufacturing leads all industry sectors with e-commerce shipments that account for 12% ($485 billion) of the total value of all manufacturing shipments.
In 2000, manufacturers performed 75% of U.S. R&D activities, while providing 66% of the funding. Many companies reduced R&D investments in 2001 due to the soft economy. However, a few recognized the opportunity by increasing investment in new technologies and facilities to be positioned for the recovery.
productivity and Information Technology. Information technology and information management systems are credited with the strong economy-wide growth and high productivity (> 3% per annum) of the mid and late 1990s. High productivity was especially important to the manufacturing industry where it generally equated to lower unit costs in production, and therefore, increased revenues and profits. In fact, manufacturing productivity averaged a 4.3% growth rate over the period 1996-1999. Although productivity had fallen precipitously during 2000, data from the fourth quarter of 2001 and the first quarter of 2002 indicate that productivity is rebounding.
Availability of Skilled Labor. The majority of companies visited expressed concern with their ability to hire skilled labor. Given the recession, none noted any shortage of applicants. However, almost without exception they were frustrated by applicants’ lack of specific skills required for their industry. Most stated that applicants lacked the mechanical aptitude, knowledge, and technical background in basic math and sciences to propel their company in this highly competitive globalized economy. In the case of defense companies, the pool of qualified applicants was further reduced by drug testing and security requirements. A few companies placed equal emphasis on an applicant’s ability to perform in a team environment or alternatively, with minimal supervision. Job tender statistics such as 2 in 30, 1 in 60 or even 1 in 100 were commonplace among the companies visited.
To address the skills shortage, many companies developed targeted education and training outreach programs to improve basic skills and enlarge the pool of potential applicants. Partnerships, to include internships, were developed with local high schools, trade schools, and colleges and universities to educate and train students for employment. In some cases, companies developed their own in-house training and certification programs for specific skills, such as welding and pipefitting. These companies screened initial applicants for “employability” and then placed them into in-house training programs prior to assigning them to a manufacturing activity. No statistics were offered to validate the success of these initiatives, nor was there any quantification of return on investment, but all felt these managerial practices were both necessary and profitable in terms of “growing” the basic employee skills for their industry.
Automation and Robotics. Many companies sought to mitigate manpower shortfalls while simultaneously improving productivity and reducing costs by increasing the levels of automation and robotics in their manufacturing processes. High-speed machine tools under computer numerical control (CNC) continue to revolutionize manufacturing. More capable bits and cutters, and multi-axial machines, allow machining of ever larger components without repositioning. Variability continues to drop and quality and labor productivity to rise. Linked by the web, quality can be remotely controlled, which leverages engineering expertise. We saw robotics commonly employed for repetitive tasks such as auto body welding. This did substantially reduce manpower requirements on the floor as one or a few employees could operate and oversee several robotic manufacturing cells. However, the remaining employees needed even greater technical knowledge and skill. Not only were they expected to set-up and oversee robotic cells, but in many cases they were the first line of maintenance should the robots break down or the line stop. Employees who were capable of meeting these new challenges became that much more valuable to the companies and in return, could command higher levels of compensation.
Aging Workforce. Many of the companies visited faced the related issue of an aging workforce. The situation was particularly acute in defense and unionized facilities. Managers at one defense aircraft company quoted the average age of their manufacturing workforce to be 55 years; those at a defense munitions plant quoted their workforce at between 48-52 years. By contrast, those at a commercial, non-union semiconductor facility estimated their manufacturing workforce to be between 26-30 years.
The effects of aging are compounded when companies outsource their personnel surge requirements. U.S. firms often obtain surge workers as temps through manpower companies. In Japan, expatriate third generation Japanese descendents, recruited abroad for the purpose, can fill the gap. In both systems, a cohort of young, second-class workers are cycled in and out, and trained, yet are not expected to count on a career, advancement, or even a permanent position.
An aging workforce is a very experienced and skilled group of employees with comparatively higher levels of pay and benefits. This two-edged sword engenders higher relative levels of productivity with concomitant higher direct labor costs. An even greater concern is that their knowledge will be lost when they retire. Without the ability to systematically transfer knowledge to younger employees and facing the difficulty in hiring skilled labor, these companies may soon be facing a shortfall in their manufacturing capabilities.
All of this places a fundamental limitation on a company’s ability to surge production. Most of the companies visited had significant excess capacity with facilities that could accommodate expanded production if required. However, to surge with a new manufacturing line or extra shifts would require an increase in manufacturing personnel which for the reasons cited above would not appear practicable in the short term.
CHALLENGES AND RESPONSES. manufacturers need to address several challenges in order to maintain competitive advantage. Adapting to the increasing effects of globalization and commercializing advanced technology requires constant fine-tuning. Adaptability is the key to generating and sustaining a competitive advantage in a global market. “Manufacturing in the information age will bring new ideas and innovations to the marketplace rapidly and effectively. Individuals and teams will learn new skills rapidly because of advanced network-based learning, computer-based communication across extended enterprises, enhanced communications between people and machines, and improvements in the transaction and alliance infrastructure.”
The National Research Council (NRC) report from which this quote is drawn noted several grand challenges to the future of advanced manufacturing, which we used as a baseline for our study. The following paragraphs discuss our view of the challenges facing advanced manufacturing based on our domestic and international travel. In this new age, one key to the success of an advanced manufacturing firm is the ability of its senior leadership to leverage information to maintain a competitive advantage.
Concurrency. The first challenge is to achieve concurrency in all operations. That is, manufacturers should plan, develop, and implement in parallel, vice sequentially. Concurrent processing will bring together all elements of a product process from “cradle-to-grave.” Increased use of networked processes and equipment will be required to transfer information and experience. This will make it possible to reduce product time to market, promote innovation, and improve quality. In order to meet this challenge and realize these improvements, U.S. manufacturing industries should address several items:
(1) Development or purchase of intelligent collaboration systems. Information sharing is the biggest priority if companies want to plan, develop, and implement in parallel. Without real-time information flow, successful concurrency is not possible. Collaboration hardware and software is an enabling tool to meet this challenge.
(2) Identification and acquisition of technologies to convert information into knowledge for effective decision-making. The vast quantities of information available now and in the future are becoming overwhelming for decision makers. Firms should use technology to assist in converting information to knowledge for management use.
(3) System synthesis, modeling, and simulation for all manufacturing operations should be accomplished. In order to achieve concurrency, it is necessary for all operations to peacefully coexist and to share information on a timely and accurate basis. However, some tradeoffs may have to occur. Understanding each system process and being able to model and simulate the process allows for understanding the existing complex interactions. Use of models and simulations would allow management to try new proposed operations to improve efficiency and competitive advantage.
(4) System development to provide the ability to achieve concurrency (once the processes and interactions between them are understood). Companies should identify, develop, and/or acquire adaptable, readily reconfigurable, integrated equipment, processes, and systems. Flexibility will be the key to maintaining competitive advantage in the future for advanced manufacturers. Flexible systems and processes, designed for rapid change, will provide advanced manufacturers the edge they need to rapidly respond to a changing market while maintaining concurrency in their processes.
Human/Technical Integration. A second challenge is to integrate human and technical resources to enhance workforce performance and satisfaction. Even though technology is rapidly improving and automation is becoming increasingly popular, firms cannot fully remove humans from manufacturing. During both domestic and international company visits, we saw that humans still do some tasks that machines cannot (usually that require specific dexterity), while machines handled tasks that humans cannot (movement of heavy objects – although usually with human guidance). However, we also viewed several processes where humans performed routine and often repetitive tasks where the use of technical resources could have improved the process. Therefore, better integration of human and technical resources is necessary to further improve manufacturing operations. In order to meet this challenge, manufacturers should address:
(1) Development and/or acquisition of intelligent collaboration systems. Similar to the concurrency challenge, information sharing is the biggest priority. Without real-time information flow, successful human-technical integration is not possible. Collaboration hardware and software is an enabling tool to meet this challenge.
(2) Identification and acquisition of technologies to convert information into knowledge for effective decision-making. Both human and technological systems require information to operate. Machines are becoming increasingly able to learn by action. Providing a capability for both human and machine to convert information to knowledge will provide tremendous benefits to the company.
(3) Synthesis, modeling, and simulation of human-machine interfaces for all manufacturing operations. Once a firm defines, models, and simulates tasks, they can develop various options for improving the human-technical interface. The models and simulations allow for evaluating those options for determination of whether human or technological improvements are the best solution.
(4) Development of new educational and training methods to enable rapid assimilation of knowledge. As previously stated, the quantity of information available to workers is increasing tremendously. However, we constantly heard that industry has been hard-hit to find labor with the required knowledge and skills. For example, owing to the need for specific knowledge and skills, the semiconductor industry has thousands of jobs that are going unfilled. Workers must be educated and trained to use information systems in order to rapidly assimilate information and transform it into useful knowledge. Industry must take on this challenge to educate and train, or there will be an increasing shortage of qualified workers.
(5) Knowledge transfer from an aging work force. One of the recurring trends encountered during our industry visits was the increasing age of the workforce. As noted above, some companies had average workforce ages of over 55 years old. As these older workers finally retire, the loss of knowledge could be high. The manufacturing industry must anticipate this occurrence, and take action to retrieve that knowledge from the older workers and transfer it to a younger work force when required.
Information into Knowledge. Advanced manufacturers are dependent on information technology already, and will become more so in the future. This third challenge addresses the need to value, capture, and "instantaneously" transform information gathered from a vast array of diverse sources into useful knowledge for making effective decisions. For organizations to be truly successful in the information era and maintain their competitive advantage, they will have to learn how to “develop knowledge, procure knowledge, protect knowledge, and manage people with knowledge.” In order to accomplish this, manufacturers should provide for:
(1) Synthesis, modeling, and simulation for all manufacturing operations. Once a firm understands all operations and models them, effects of changes to any process or operation can be easily determined and disseminated quickly to all users.
(2) Identification and acquisition of technologies to convert information into knowledge for effective decision-making. As seen by the overwhelming effects of electronic mail on some workers, workers need technology to help deal with the vast amounts of information now available to them. Management must identify technology to collate information from different sources, deconflict that information, and transform it into knowledge useful to a company’s workers.
(3) Development of new educational and training methods that enable the rapid assimilation of knowledge. Once a firm uses technology to transform information into knowledge, workers must be educated and trained to rapidly respond to what this tells them. That is, the workers need to be educated and trained on how to act rapidly on the knowledge transferred to them in order to take advantage of the technology. If workers cannot react rapidly, the investment in the technology may be wasted.
Rapidly Reconfigurable Systems. A fourth challenge to advanced manufacturing is to design, develop, and implement reconfigurable manufacturing enterprises to rapidly respond to changing needs and opportunities. The globalized marketplace changes rapidly. Manufacturers must be able to quickly and efficiently reconfigure their products and processes to take advantage of the changing marketplace and attain or maintain their competitive advantage. In order to do this, manufacturers should address:
(1) Synthesis, modeling, and simulation for all manufacturing operations. Once a company understands and models all operations, effects of changes to any process or operation can be quickly and easily determined. When operations must change, companies can use the models and simulations to determine the optimum reconfiguration for the new process.
(2) Design, development and acquisition of readily reconfigurable, adaptable, and integrated equipment, processes, and systems. Rapidly changing customer needs, market opportunities, and information technologies drive the need for a company to be able to rapidly reconfigure and respond to changes. It is too costly in terms of both time and money to develop, design, and acquire new equipment, processes, and systems for every change. However, as seen during our industry visits, particularly to machine tool manufacturers, systems and equipment now exist that firms use interchangeably in a process. Flexible fixturing is one example of where interconnected equipment can be rapidly changed out (mixed and matched) to accommodate changing requirements. This equipment can then be immediately reprogrammed via its connectivity to the other machines and be fully ready for the new task.
Environmental. Manufacturing of products generally requires transforming of raw materials into some intermediate or finished product. This process also typically produces some form and quantity of waste. With the growing world population and increase in manufacturing products, the strain on the global ecosystem is increasing. Therefore, reduction of production waste and minimization of product environmental impact to "near zero" are big long-term challenges for manufacturing. Manufacturers are striving to develop cost-effective, competitive products and processes that don’t harm the environment. Recycling and reduction of waste were the two most often cited examples of process improvements during our industry visits. However, manufacturers still face significant environmental challenges and should address the following:
(1) Synthesis, modeling, and simulation for all manufacturing operations. Modeling of manufacturing processes would provide a cost-effective method on analyzing risks and benefits to the environment of possible process/product changes. A goal would be to create and maintain a database of useful and accurate environmental assessments. This database could prove useful and cost-beneficial for further product/process developments as well as for regulatory defense.
(2) Production with Near-Zero Waste. In order to manufacture products with near-zero waste, it will be necessary to understand the product process from “cradle-to-grave.” Only after understanding the entire process can an environmental evaluation be truly creditable. Manufacturers should consider use of advanced technologies in recycling and waste production. Additionally, recycling should be addressed to the maximum extent. The most environmentally successful firms visited were those who had developed recycling programs to use their production waste as resource materials for additional products and processes. The most common application was the use of production waste for energy. This not only reduced required waste disposal, but also provided for reduction of energy consumption from outside sources.
(3) Environmentally Friendly Production. A growing trend among visited companies was for meeting ISO 14000 standards for environmental processes. Manufacturers with a environmentally friendly attitude tend to make more efficient use of their resources through product waste re-use, recycling, and more efficient processes that reduce waste generation. One good example is the use of powdered-coat painting of parts. One particular company’s use of powder-coating versus liquid painting of products reduced product waste from seventy-seven 55-gallon drums of hazardous waste per year to five 55-gallon drums of waste per year. Manufacturers with an environmentally friendly production process and attitude are more likely to have a competitive advantage over their competitors by reducing the environmental costs associated with their products.
OUTLOOK
Economic. Since 1969, “there have been six economic downturns in manufacturing that have lasted, on average, about 10 months. Output fell about 9 percent and employment declined 7.5 percent (employment declined by about 1.5 million) during the typical economic downturn.” One of the most interesting observations made is that every economic downturn since 1969 was preceded by a surge in energy prices. Examples include: the Arab oil embargo—1973, turmoil in the Middle East, Iranian revolution—1980s, Iraq’s invasion of Kuwait—1990, and the energy price spike in 2000.
While all sectors of the economy are affected by rising energy costs, the manufacturing sector is particularly vulnerable to surges in energy costs. “Manufacturing makes up 28 percent of the nation’s overall energy demand, more than any other sector.”
Fluctuations in oil and natural gas prices create serious challenges in U.S. manufacturing. One such challenge is the difficulty manufacturers face in adjusting pricing strategies to compensate for spikes in energy costs. This challenge generates a rippling effect for employment, overall production, and economic growth in general. The manufacturing sector will remain vulnerable to fluctuations in energy prices in the foreseeable future unless alternative, price-stable, forms of energy become available industry-wide.
“Globalization has greatly increased the range and intensity of international political, economic, and social interactions.” Generally speaking, manufacturers are more connected to the international economy than the rest of the U.S. economy—65 percent of U.S. manufacturing output produced in 1999 was for international trade. This is significant in that if the U.S. dollar is strong, the price of U.S. exports in markets overseas will be more expensive, resulting in decreased international demand for U.S. output. “Manufacturing operates in a global marketplace where prices are determined by supply and demand relationships and firms are price takers, not price setters.” This truism will have more severe ramifications in the future as more and more newly developed countries gain economic power.
“The nature of manufacturing enterprises will evolve in response to changes in the technological, political, and economic climate.” Most of the executives we spoke with during our visits would agree that companies providing goods and services to consumers in the future must continue to emphasize the relationship between quality, service, and price. This means that companies must continue pursuing innovative ways to customize products (being agile), reduce product delivery time, and reduce costs consistent with consumer expectations.
Human Resources. The manufacturing workforce will be as diverse as the global economy.” People will continue to play a vital role in shaping the future of manufacturing. Competition will be fierce globally and firms able to adapt to meet the rapidly changing needs of the market will prosper. “Expanding productivity growth in the U.S. economy will require workers with higher levels of skills and knowledge to keep pace with the rapid technological changes.”
In the future, “sustaining competitive advantages will depend on a company’s ability to value and capture practical know-how or knowledge.” Capturing practical know-how involves capturing the constant parameters used to make decisions. This involves developing knowledge management systems that give a company’s workforce a wide range of capabilities in their manufacturing sector. The primary issues with knowledge systems will be related to a firm’s current and future capabilities. Knowledge management systems will be seen as methods of creating organizational synergy that cannot be easily duplicated by competitors.
Processes. The future of manufacturing is moving toward concurrent engineering. Manufacturing is different from other industries (for example, the service sector) in that, generally speaking, there is not a lot of personal contact between the consumer of the product and the people actually producing or assembling the product. And “despite the rapid growth of information technology, firms still spend more money on old-fashioned capital equipment, such as drills and welding machines, than they do on computers, telephones, and other information gadgets.” Information technology will have its biggest future impact for manufacturing in the areas of planning, developing, and organizing. Technological advances in these areas should generate sufficient efficiencies allowing companies to respond to consumer needs, while at the same time reducing production delivery time and costs.
GOVERNMENT GOALS AND ROLES. The health of the. advanced manufacturing industry affects both the economic and military elements of national power, and is therefore a national security issue. Consequently, the Government should assume an appropriate role supporting the stability and vitality of this industry. The government should establish and enforce manufacturing policies in three key areas that directly affect the health of the industry: promoting the availability of skilled labor, encouraging manufacturing process improvements, and stimulating the research and development technology base.
Success in manufacturing largely depends on the quality and skill of the workforce. A common concern expressed by managers of both domestic and international firms is the shortage of personnel trained in science and engineering disciplines. To ensure an adequate pool of science and engineering workers in the., government policies need to provide better incentives for students to enter the science and engineering areas of study. Given that the. must increase the skilled labor supply, several policies can help relieve the skilled labor shortage. More. students simply must graduate from science and technology (S&T) programs. The government should provide targeted incentives such as tax breaks or interest-free loans to entice domestic students to seek S&T education and training. S&T education is an investment in human capital and is essential to the vitality of a networked economy. The government should work in close partnership with industry to identify emerging skills that merit targeted financial incentives. Furthermore, manufacturers should be rewarded for providing internships to science and engineering graduate students.Government policies should also encourage highly qualified foreign graduate students to stay in the. after graduation. Immigration policies should provide more flexibility for. industry to recruit the best and brightest from other nations. . companies can help to identify and sponsor outstanding foreign undergraduate, graduate and doctoral students. Exemplary foreign students should be given preferred consideration for. citizenship after graduation. The government would have several years prior to graduation to complete any required background checks on foreign students.
Another. workforce issue is aging, particularly among union manufacturers. The aging trend will create a major knowledge and leadership void in the next decade as the workforce enters retirement. Young skilled workers are seeking employment in other industries. This demographic trend will make. manufacturers more dependent on immigrants to supplement the shortage of domestic workers. To ensure the. has a sufficient labor force, immigration policies need to provide. firms with greater flexibility to draw from the global workforce.
Manufacturing process improvements enhance competitiveness, but they often require significant capital investments. Government policies should provide economic incentives to encourage these investments. Fiscal policies, such as tax breaks for efficient processes or faster capital equipment depreciation schedules, can energize companies to implement process improvements and capital upgrades. Promoting international free trade agreements also gives manufacturers the ability to leverage market forces to improve manufacturing posture. Potential leverage areas are foreign research and development (R&D) efforts and the available pool of well-trained, skilled workers overseas.
R&D is the fuel for technology innovation. Since advanced research requires tremendous resources and time before yielding useful products, only governments and large multinational companies have the financial resources to support meaningful advanced research. Government has the greatest influence in this area through policies that sponsor advanced research across a broad spectrum of science and technology areas. Organizations such as the National Institutes of Science and Technology (NIST), National Science Foundation (NSF), and Defense Advanced Research Projects Agency (DARPA) should expand their efforts to develop advanced manufacturing processes.
One R&D area in need of government support is flexible manufacturing. Flexible manufacturing will enable the mass customization of products and create new market opportunities in the commercial sector. Flexible manufacturing processes can provide the. advanced manufacturing sector with continued world leadership, while providing DoD with assured access to affordable, customized war fighting systems.
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