Production for Management Consultants and Business Analysts

In this lecture I will share some info on who am I and what is my experience

Most treat production as a black-box but if you want to be a great consultant you  will have to get into details. In this lecture I will show you why it makes sense to go deeper into production and e I will talk about the important issues that you will master in this course

In this lecture I will talk about the important issues that you will master in this course

Here I will show you what to do if a blurry image appears

Here I will show you how to find additional resources attached to the coruse like Excel files, presentations, links etc.

Most treat production as a black-box but if you want to be a great consultant you  will have to get into details. In this chapter I will show you how to improve production results with simple methods and techniques and what it means in practice

Due to different of waste we only use 5% to create value. In this lecture I will show you 7 different types of waste that may occur at your business

In production, you will know far less than your customer’s team so you have to use smart ways to get to the bottom of things. The 5-Why method is one such method. In this lecture, I will show you how to use it in practice

We show here how to use the so called OEE (Overall Equipment Efficiency) Analysis that shows you how efficient you are in using your resources. It is very useful for checking whether you use well machines and equipment

In every company you have bottlenecks that limit your ability to go forward and deliver more goods and services. Here I will show you how to estimate what is the impact for the whole system and how you can remove improve them. 

Now imagine that you were asked to increase the production capacity of a factory. Try also to calculate the financial impact of the proposed scenarios. Before we look at specific scenarios we have to discuss 2 issues

• What the production capacity depends on?

• How to calculate monthly production capacity

First let’s see what the production depends on assuming there is just 1 production stage

We said that the production generally speaking depends on 3 drivers. Now let’s see how it looks like for the whole month

Here we will discuss the sceanarios that we will analyze later

Here we will discuss the available data that we will use to solve the case study

In every company you have bottlenecks that limit your ability to go forward and deliver more goods and services. Here I will show you how to estimate what is the impact for the whole system and how you can remove improve them. I will use simple production example to show you the effect on the whole system. You will see how the bottleneck can shift from 1 shift to another. You will also learn how to prioritize where it make sense to invest to get the best results.

Before doing this lecture I strongly encourage you first to take the OEE lecture – we use the OEE concept here so if you are not familiar with it please start with OEE lecture as a warm-up.

In this lecture we will see how you can present the result of the analysis in a for of graphs

You quite often have situation when people perform at different pace and with different results. You have to standardize them.

Here I will show you in Excel the effect on standarization

5S in short is about cleaning your working station, putting everything in order, and keeping it this way I will show you the stages, examples of 5S, and how to check whether the business has truly implemented 5S

Here I show how to calculate the impact of 5S on cost in Excel.

We are very fast to acquire, buy and collect because even if we do not use it know at some point (usually very distant in the future) specific things may prove to be lifesaving.  Most often, the staff we collect we do not use more than once (80/20 rules come into play. In this lecture, I will show you how to get rid of unused things in practice

Kanban is a way in which you can drastically limit work in progress. I will show you in this lecture what it is and what it looks like in practice.

I will show you how to calculate the impact of Kanban in Excel.

In this lecture, I will show you how to take advantage of periods of lower activities using the so-called Kanban

Zero defect rules are not about making zero mistakes. It is about finding mistakes as soon as possible and eliminating them. In this lecture, I will show what it is and how to use it in practice.

If you have specialized workers you end up not using most of the available resources. I will show you what you can achieve by having more universal workers.

I will show you how to calculate the impact of universal workers in Excel

Quite often you have one operator per machine. This is often not efficient as machines just need feeding in the goods. 

I will show you how to calculate in Excel the impact of making the workers operate on more than 2 machines at the same time 

The ideal in production is the so-called continuous flow - everything goes smoothly and fast. Products are being produced fast and cheaply. In this section, I will tell you how to achieve it.

Using a sandwich factory I will show you the mistakes people do when they try to create a continuous flow.

I will continue our example of a sandwich factory. I will show you what the continuous flow should look like.

I will continue our example of a sandwich factory. We add the Kanban to the continuous flow

I show here an example of continuous flow in services

Sometimes it makes sense to have instead of continuous flow the so called smart batching. Here we continue the previous example from service company to show how it could look like

I will show you how to use similar to OEE concept on people the so called Overall Labor Efficiency that shows you what is the potential for improving things done by people

Before you start analyzing the waste you have to somehow group it by stages of occurrence and type of waste. I will show you in this lecture how you can approach this subject

Imagine that you work for a plywood firm with 3 factories and you have to decrease waste. A few information about he firm:

They have 3 plants

• They have different waste level

• You can find waste: in too big level of wood usage or plywood quality

• Estimate the potential impact on profit and cash

  
  

In this lecture we will be solving the previously introduced case study

Set-ups are taking away a lot of time in production. We will discuss the definition of set-ups and how to minimize them

One of the ways to make the set-ups shorter is the so called SMED technique. I will show you how to use it

Imagine that you are in a fish factory.  How much money are you loosing and how you can improve it

In this lecture I show you the solution to the case you had to solve in the previous lecture

Apart from production people you will have a lot of so called maintenance guys that are fixing the machines. For this are we used the so called TPM

In more and more cases you have to find a way to replace or support people with machines to lower down production costs.

One of the biggest problems for efficiency is the so-called Parkinson’s Law – Work expand so as to fill the time available for its completion. People when asked to evaluate the time certain things will take build-in buffers. One of the ways to deal with it is the so-called Critical chain. Here I will show you what it is

Apart from optimizing the production you have to think strategically and know when you have to add a new capacity/factory. In this section, I will show you how you can do that

Here I will show you how to manage capacity depending on your industry and demand forecast. 

Locations of some factories depend on the so-called supplier catchment area. You are looking for an area where you have a sufficient amount of resources or suppliers. Here we will see how catchment area influences the decision on capacities

The customer catchment area is important in picking the right location for the factory. Both B2B as well as B2C. Here I will show you how to approach this subject

In this lecture, we show how you can measure and analyze what is the maximal reach of your B2B business having in mind transportation costs and markups. We will provide you with a fast way to identify potential customers and measure your targeted price on a specific foreign market

In this section we will cover more advanced issues. I will show you how to find the best place for the factory, how to allocate productio between different companies and how to estimate whether an investment makes sense or not

Let’s have a look at plywood producer that has 2 factories and is considering where to build the third one 

In this lecture we will compare the cost for 3 different spots for the plywood factories 

In this lecture we will calculate and compare the NPV for 3 different spots for the plywood factories 

Let’s have a look at car producer that is wandering which plant should supply to which country 

In this lecture I will show you how to use solver to find optimal solution to the case of planning the flow of finished goods between factories and markets 

We will start by sharing some general thoughts on investments, why we do them, and what we want to achieve. We will use this to, later on, define the way we calculate the expected returns and to check whether the investment makes sense or not

We will have a look at how to calculate whether an investment that replaces current assets makes sense. Here we will use the cases study of a sanding machine in the plywood

In this lecture we will solve previously introduced case study

Some investments are required by the customer. In such cases study, we will analyze in the next few lectures. Our customers asked us to invest in PET (plastic bottles) lines. In next lectures, we will analyze whether this investment makes sense

Different animals are investments in bottlenecks. Here we don't' look at cost savings but rather the greater impact we can make on the EBITDA. This is what we will analyze in the next few lectures

In this lecture, we will solve the previously introduced case study

In the next lectures, we will see how to calculate whether an investment that will help us save costs makes sense or not. This time around we will do it for a retailer and we will see whether an investment in LED bulbs makes economic sense

In the next lectures, we will see how to calculate whether an investment that will help us save costs makes sense or not. This time around we will do it for a ceramic tiles producer. We will see whether an investment in robots makes sense

Production planning is the brain of supply chain. If you get this wrong the other things won’t matter.  In this section I will show you: goals of production planning , production planning value drivers, typical problems in production planning

The primary goals of Production Planning is to efficiently produce, with low inventory and providing at the same time on time delivery. I will discuss what does it mean in practice

Several drivers related to production planning have impacts on value generation. In this lecture I will go over them so you know when to look for potential improvements 

There are a few typical problem that usually occur in production planning. I will go through the ones you should pay attention as well as I will show you  what analyses you should carry out to see whether they exist in your customer’s company

In this lecture, you will learn how to calculate optimal batches and how to estimate savings when comparing to actuals batches. We will use his example of juice producer