Manufacturing

Manufacturing is the production of goods for use or sale. This is a wealth-producing sector of the economy, and provides important material support for national infrastructure and for national defense. A collection of technologies and management methods are used to define how products are to be manufactured. From the plan, to the ordering of materials and other resources, set manufacturing schedules, and production cycles all require a central repository for the integration of all these tools and activities aids in the exploration of alternative production line scenarios; making assembly lines more efficient with the aim of reduced lead time to product launch, shorter product times and reduced work in progress (WIP) inventories as well as allowing rapid response to product or product changes.

 

 

Today, with the continued push towards globalization and governmental support to the world trade organization, local industries are witnessing the greatest competition in their history. Developing countries in South America and in East Asia continue to grow their exports, flooding the world markets with bigger, better, and cheaper goods. China is now the world's largest trading partner and has surpassed its US counterpart in both monetary value (2012) and quantity (2009). Today, the association of national emerging economies known as the BRICS (Brazil, Russia, India, China, South Africa) have become a major have become a powerful economic force to reckon with.

 

Critical Success Factors

1) Readily available low cost skilled and unskilled labour

2) National stability and a modern infrastructure

3) R&D Technology → this is slowly disappearing as they are now developing their own technological breakthrough. i.e. North America now sends some engineers and designers to China to learn

4) Management know how → this is slowly disappearing as they are draining worldwide brains

5) Capital → this is slowly disappearing as they are creating wealth

 

These developing countries have two out of the five key elements in hand that provides them with the opportunity to attain this status.

The GCC Region, with its vast resources has a competitive edge in this regard and can compete both locally and internationally. Out of the five key elements required, only R&D and management know have to be developed. CGR MENA can assist the region to acquire that specific knowledge and enable long term growth.

 

In order to achieve such growth, CGR MENA applies The Theory of Constraints and Lean - Six Sigma are mainly applied . The proven success of the three methodologies is a testament to their effectiveness in generating productivity gains with cost reductions and quality improvements. During this time, Lean and Six Sigma have proven not to be a fad, but rather a key to competitiveness in today's marketplace. When you implement it holistically and efficiently- this hybrid creates a powerful combination for implementing process improvement. Using CGR SystemsTM you will be a world class manufacturing organization that will make un-preceded growth.


Lean's strengths are to simplify processes and reduce manufacturing cycle times by removing steps from processes that do not add value to the product and providing tools to improve flow. In short, Lean means speed. Six Sigma handles more complex issues with a problem-solving tool that seeks out causes of defects with a powerful roadmap called DMAIC - define, measure, analyze, improve, control. Driving variation out of processes is the key to reducing defects. Ultimately, Six Sigma has a goal of achieving a near perfect 3.4 defects per million units. It has a strict approach to controlling and sustaining improvements. TOC focuses on identifying bottlenecks and constraints in order to optimize the system and increase throughput. TOC complements Deming's Holistic system tools of profound knowledge.
Together, these methodologies simultaneously achieve significantly reduced cycle times while ensuring the higher quality standards. For these reasons, CGR SystemsTM is the toolbox of choice among manufacturers who have a passion for continuous improvement.

 

Questions for you:

1. Did You Know your Manufacturing company system constraint is the replenishment process (Base industry) or the for High Tech companies, the speed of innovation which is R&D
2. Do you use the Drum Buffer Rope production Algorithm?
3. How fast is your demand variation response time?
4. Are your non-constraint processes fully subordinated to the speed of the production faucet?
5. Are replenishment, any feeding processes, or distribution slowing down or delaying your end client receipts?
7. Are you using T-put metrics through-out your system?
8. Did you know that if you are producing at capacity, any delays in production will mean a terminal sales and cash profit loss?
9. Do you simulate system changes for any project that makes changes to your system?
10. Did you know that with increasing Manufacturing competition, your optimization of cash profit require that you implement Lean Six Sigma coupled with the Theory of Constraints and Deming's TPK tools?

 

CGR MENA APPROACH

At CGR MENA, we can help you in finding the optimal solutions to all of the questions above. We apply a hybrid of scientific management tools that will align your organization for Optimal Cash levels and help you continue your transformation into a world class lean fast systemic organization.

This is achieved by reviewing and defining your local organization, your units of measurement and conversion factors with T-put accounting. We will introduce the concept of the Oil and Gas T-Put Value Critical Chain via CGR Systems, and examine its structure and functional relationships. We will look at your system holistically and drill down to specific processes such as the exploration processes and other sources of system delays or under optimized process dragging the system.

We will then review or create the deployment flow charts to ensure the processes have embedded Critical Chain process management with statistical monitoring controls, we will review your supply chain process, JIT, major areas of demand, pricing fundamentals, drivers of demand and future trends. Finally, we will train your management and give you our tools.

 

 

All of the above will transform your system resulting in a 10-30% NET CASH GROWTH. Our proven track record speaks for itself as any investment with our CGR Systems within the Oil & Gas Industry will YIELD A RETURN BETWEEN 40x and 120x investment in the first year.

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