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Simplify! Parts Rationalization is One Step in That
Manage episode 338100400 series 2812913
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Most manufacturing businesses are much more complex than they need to be, simply from lack of focus on the value of keeping things simple.
If we're not paying strict attention, we find ourselves with more customers, suppliers, sku's, and part numbers than we need or that is best for our business.
Not all markets are good, not all customers are good, not all suppliers are good, not all products are good for your business. Conscious decisions must be made. The easiest way to implement that is through well thought out policies that are implemented effectively.
Parts rationalization is one simplification framework that usually doesn't elicit emotional response to be overcome.
There are two primary aspects to the process. (1) Define and enforce a policy of when and why new part numbers can be added, and (2) review and standardize existing bills of materials on the standards that are defined by the policy. Of course that 2nd step must be coordinated through your change management system.
A quick example using fasteners as the part category: Do you really need all the fastener part numbers you have in your master list? Typically standards can be set on material, diameter, length, connecting mechanism, and perhaps another one or two characteristics. Those standards would work just fine for the vast majority, if not all, of your products.
Use those standards in all new product development, and in every engineering change order to an existing sku. Simultaneously, have someone -- an intern can often do 90% of this project well -- review all "where used" items for each existing fastener part number to determine which ones should be changed to the standard.
By stating a date-certain that the project should be fully implemented, and coordinating with all involved parties like supply chain and material handling, you will have simplified aspects of your business in short order.
You will have simplified engineering design, materials management and handling, off site service, and spare parts inventory management in this one fairly straight-forward effort.
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