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Is the Glass Half-Full or Half-Empty?

Michael Roman - Wednesday, February 10, 2016

I am in the midst of a conundrum. Clients ask me to analyze, assess, and recommend changes for improvement opportunities in their company processes. My findings, at times, shock business owners and company managers.

I educated myself in the Body-of-Knowledge for my field. I trained to become a Management Consultant, tutored by the industry experts. I maintain credentials for my field (APICS Certification and now am on the APICS ECO Committee). I have been doing Management Consulting for thirty plus years. So, why are clients shocked by the findings? After all, they ask for the analysis. I muse about this conundrum daily, sometimes when I should be asleep.

I was reading a magazine recently called, Korn Ferry Briefings. An article on Optimists and Pessimists caught my eye. The article by David Berreby suggests that situationally people are either Optimistic or Pessimistic. It reminded me of a Graduate School conversation with my Major Professor, Dr. Kelly Wells. I was in the final weeks of my Masters Work, having passed my orals and written exams and was preparing to defend my thesis paper on eye blinks (we found high correlation between eye blinks and memory types).  After some discussions, Dr. Wells asked me, “Have you always been someone who sees three sides to a coin?” I said, “If you mean when someone asks me if the glass is half-full or half- empty and I reply, well, maybe the glass is just too big, then I guess so, you brought that out in me.” He smiled and rolled his eyes!

There is something at work, within the minds of clients, when I arrive on the scene. Maybe their Optimist-Pessimist tendencies appear. Maybe they see the glass as half full and my findings threaten their inner-peace. Maybe they see the glass as half-empty and my findings goes further to threaten their inner-peace. Why do people who ask for assistance become defensive when a report states, ‘improvements in these activities will contribute to the bottom line’?

Mr. Berreby’s article supports the “inside the mind” idea. Both Optimistic and Pessimistic approaches have benefits and drawbacks.  Where Optimists see the long-range benefits, Pessimists see many dangers in activities. Optimists often fail in careful planning; Pessimists often encounter analysis paralysis.  Optimists take the ‘damn the torpedoes, full speed ahead approach’ while Pessimists fear missteps. When Optimists succeed, the cost is sometimes detrimental to the organization. When Pessimists succeed, the chosen path is sometimes very stressful to those who execute the plan. Regardless of which personality type sits in the C-Suites, Management Consultants have the skill-sets and tool-sets to assist organizations pass the challenges of Change Management.

What are your thoughts?

ERPOrchestrationII

Michael Roman - Wednesday, January 13, 2016

Re-introduced from an old blog…

A long, long time ago, William Congreve, in The Mourning Bride, (1697) wrote:

Musick has Charms to sooth a savage Breast,
To soften Rocks, or bend a knotted Oak.
I've read, that things inanimate have mov'd,
And, as with living Souls, have been inform'd,
By Magick Numbers and persuasive Sound.
What then am I? Am I more senseless grown
Than Trees, or Flint? O force of constant Woe!
'Tis not in Harmony to calm my Griefs.
Anselmo sleeps, and is at Peace; last Night
The silent Tomb receiv'd the good Old King;
He and his Sorrows now are safely lodg'd
Within its cold, but hospitable Bosom.
Why am not I at Peace?

Three hundred and fifteen years after their penning, these soulful, pleading words have application today, even in consulting work.  I frequently work with small and mid-sized manufacturing and distribution organizations facing the lack of “Harmony to calm my (their) Griefs.”  I hear less poetic words from company owners and managers who are attempting to re-implement a business management system, but the sentiment is the same: Why am not I at Peace?

In my never-ending search to find the best way to describe the challenges of any ERP implementations, I have used comparisons as obscure and varied as death and dying or growing tomatoes. What would a successful stress-free implementation look like? My business adviser suggested we needed a better way to paint that picture, something that explains how there can be synergy and harmony among all the players. A couple of days later, when I was discussing analogies with a colleague of mine, I digressed by talking about the fact that when we weren’t fighting, my brother and I enjoyed a remarkable harmony when we played musical instruments together.

At an early age, when we were not fighting in the back yard, my brother Dan and I learned to play musical instruments. We practiced hard, and it did not take long for us to become skilled enough to play duets at the yearly church festival. Those duets were very intricate works, arranged by our father, and the experience taught Dan and me a lesson about how important learning your individual part is to the success of the group as a whole. Unlike playing in a band or an orchestra, having only two of us in the group meant there was no place to hide if one of us hit a dissonant note. Of course, even during an orchestral performance, a good conductor will recognize who hit the dissonant note. The lesson here is that, in any organization, everyone should learn, practice and perform their part without introducing dissonance into the mix of work. When we played well together, my brother and I found a peaceful harmony that was a sharp contrast to our tussles in the back yard. We made beautiful music.

Unfortunately, we don’t see that very often in many small and mid-size manufacturing operations. Dominant personalities (the squeaky wheel gets the oil), tend to rule the workplace, which leads to more disharmony through the organization.  What an organization facing that kind of challenge needs are:

  1. Leadership
  2. A business management tool that provides the leadership team with “state of the union” information

An ERP System is that proper business management tool, but just as an orchestra needs a good conductor, a properly managed ERP implementation needs a strong and capable leader, a conductor with a good ear who can identify where the dissonance originates. The orchestra conductor orchestrates playing of the notes, and at what tempo or volume. Likewise, the business owner needs to make sure his “musicians” are all well-informed, proficient with their “instruments,” and working in harmony with other departments and individuals in the organization.  The ERP System represents the notes on the sheet music.  Just as musicians play the notes written on the musical score, company employees must understand the roles defined by the ERP System, under the leadership of the conductor.

The benefits of a harmonious ERP system are numerous. Some of the specific successes I have witnessed include reducing the quote process time; increasing inventory turns; increasing plant throughput;  reducing the quote-to-cash cycle time; increasing percent-fill on customer shipments; and increasing the on-time customer shipments. In a properly implemented business management system, even the time given to creating management reports is reduced, simply because all the pieces are in place to get the reports directly from the ERP system instead of creating spreadsheets that pull data from various and independent sources into a reporting scheme.

So think of your organization as an orchestra, and know that regardless of personalities, internal squabbles, or tussles in the backyard, a well-orchestrated operation will flourish as long as leadership keeps everyone focused on their individual assignments and roots out any dissonance before it ruins the performance.

 

Dream Big

Michael Roman - Monday, September 07, 2015

Here is one from the archives...

We Stopped Dreaming

The driving force that led me to become a Management Consultant was a simple idea: Dream bigger. The big moment of realization for me happened at a rather comical lunch meeting with my boss at the time, the company’s owner, who wanted to discuss a problem we had with missing shipping dates for a new customer. The Chinese restaurant where we met was a favorite of mine and not far from the plant, and my boss had reluctantly agreed to go there even though he was leery of eating “different” food, especially Asian.

We arrived just as a supply truck passed by and pulled around to the back of the restaurant. We entered the establishment, and I introduced my boss to the owner. She directed us to a quiet area not far from the kitchen, and my boss was noticeably nervous about the place. I assured him not to worry because their food was fresh and delicious. We focused in on the discussion, and I explained the engineering problem that caused the order to ship late, as well as the best way to avoid the problem in the future. Satisfied with my assessment, he acknowledged how much he appreciated my ability to get to the point quickly and explain the situation in a simple and concise fashion. He then added that my work ethic was inspirational, especially in light of the fact that I was not really a part of the “wealth stream of the business.” I asked him to explain what that meant, and he replied, “You are not family or one of the company’s lifelong friends, so you will never get to share in the wealth that we have planned for our retirement years.”

I was speechless for a moment, and then said, “I thought there was enough opportunity to include all of the company’s employees in the wealth stream”. He replied that it was simply impossible to do so, that it was his mission to ensure that this small group of stakeholders had a comfortable future.

At that moment, the server came through the kitchen door with our meal, followed by the chef who was chasing a cat with a meat clever and shouting at it in Chinese. The look on my boss’ face was priceless. He immediately arose and said, “I’m leaving. Fresh cat is not in my diet.” He headed for the door, and I stifled my laughter as I left money to pay for the meal and followed him out. The owner stopped me to apologize and explain that the cat snuck in while they were unloading supplies from the delivery truck. I told her it was okay and suggested she may want to institute a policy not to accept supplies during the lunch or dinner rush.

I was reminded of this true story a few days ago while I was watching Neil deGrasse Tyson’s videos on YouTube. It is entitled “We Stopped Dreaming Part 1” and “We Stopped Dreaming Part 2”and is worth a few minutes of your time to watch and consider. I left that company shortly after that incident, because I realized that the owner’s dreams for his company were too small to include rewards for the very people who were most responsible for his success.

Today, my goal when working with companies is to help them dream big. The odds of properly implementing an ERP System increase proportionally with the commitment of C-Level people and with dedicated involvement of the user community. As my business adviser so often and simply states, “A company can't stop dreaming. It has to take bold steps. It has to become a team with a bold mission. It cannot rest on its laurels and wait to see what everybody else does before taking a new step forward.” And he is absolutely correct!

In my opinion, the best motivator is to help everyone see a bright future. Let them know that the future is brightest when the organization unites around a common goal and all the players are doing their part to focus the company around that goal. That is what ERP systems are all about, helping people in different departments of an organization come together to manage the business better and build the business to the point that everyone can reap the rewards.

Don’t stop dreaming, and don’t let your dreams be small. Dream big, and include everybody in that dream.

 

 

 

 

 

 

What Makes a Good Consultant

Michael Roman - Wednesday, July 15, 2015

By Jerry Tiarsmith VP Operations, Manufacturing Practices, Inc.

Peter Block, author of Flawless Consulting, describes consultant as “a person in a position to have some influence over an individual, a group, or an organization but has no direct power to make changes or implement programs.” I am relatively new to the world of consulting. I have over four decades of varied experience in a number of organizational settings and cannot recall one time when I actually used a consultant. However, in certain situations, due to my position within an organization, I acted as an internal consultant on matters related to the support of strategy and operations to the organizational management team. Too many clients and prospects with whom I interact often express negative sentiments about consultants. Even my mentor, with over thirty years in his field, describes his role as a Business Capabilities Architect, preferring that distinction to one of mere consultant.

At a recent breakfast meeting with my mentor, I began asking a series of questions to which he responded, “Excellent question! Now go write a blogpost.” So here I am.  Many blogs offer advice on methodologies, the importance of adopting new technologies or modernizing plant equipment. All of these represent a valuable exchange of ideas and foster significant discussion. I am writing to invite discussion but I offer no new insight or solutions to difficult themes. Simply put, I ask the question, “What makes a good consultant?” I would like to hear from experienced consultants but only those who operate in a similar space of working with closely held, small- to mid-sized manufacturing and distribution companies. By that, I mean companies with $35 - $500M in annual revenues. Business owners in that space can provide a unique (and much valued) perspective on what they think make a good consultant. Beauty, after all, is in the eye of the beholder.

In the interest of full disclosure, I am the Vice President of Operations of a small veteran owned and veteran staffed firm in the Greater Atlanta area. Our consultants hold APICS certifications in Production and Inventory Management (CPIM) or Supply Chain Professional (CSCP). The logic systems of ERP System platforms incorporate the APICS Body of Knowledge (BOK). With extensive understanding of that particular BOK, we help optimize client’s business management systems. It is a competitive, cluttered, and confusing space full of bogus claims and a trail of broken promises. We get it. Our prospects have spent countless dollars and hours in attempts to seek a competitive advantage by installing ERP Systems, the vast majority with little success. Of course, they remain skeptical and wary of consultants.

We remain very aware that these problems described above often prove self-inflicted. Clients focus too much on cost verses capabilities (and specific needs). They lack a strategic focus to their business and decision-making processes, and, all too often, they allocate inadequate resources to ensure the successful implementation of their business management systems. We certainly can help resolve those situations and, if not prevent such developments at least reduce the negative impact on the company. 

So, what makes a good consultant? Please respond to me at either my LinkedIn page (linkedin.com/in/jerrytiarsmith) or e-mail: jerry.tiarsmith@manufacturingpractices.com. 

But Your Duck is STILL DEAD

Michael Roman - Tuesday, May 19, 2015

There is a page on the Manufacturing Practices website that has been there for about five years. It tells the story of a company that called asking for an opinion about interfacing their "Job Management Tool" to an ERP System. Their goal was to use the accounting piece of that system. Here is the link: I'm Sorry But Your Duck Is Dead.

I won't drag out the issues involved, but suffice it to say that they contracted for remote custom education to help them better understand what an ERP System is and is not and what the ERP System will do for them and TO THEM. The effort was a success. The son and the feisty business owner who thought the proposal was "outrageous since I did not EVEN know their business" (his words, not mine) signed the note.

During the education, we explained why KPIs were more than Key Performance Indicators and why we refer to them as “Keeping People Involved®.” Many benefits were automatic outcomes of that education including, proper Forecasting, Forecast Error measurements, Cycle Counting efforts, On Time Shipments, Throughput Improvements, Project Management considerations, and Leadership requirements during and after the ERP Implementation. You know, those things that make manufacturing companies competitive in the marketplace instead of, “oh yes, by the way, we also make things.”

The thank you letter did not come immediately after the class; it was months after they started using that ERP System that the letter came. By sending the letter, they were saying that we truly helped make them successful.

I remember my first argument about the role of education; it came when I was a programmer at Control Data, writing an MRPII System for mini-computers. The education effort involved having other peers (programmers) review the LOGIC, produced before the code writing. What a stupid idea, I rationalized, I’ve been programming for more than 6 years, why should I have to think about what I am about to do before I do it. The ANSWER came when management asked us to write a program to put a Bill-of-Materials and put all the parts in a table arranged by Low-Level-Code.

Half of the group just wrote code for the request and half the group did it the “new way.” My program was 100+ lines of code long, which was about half way between the upper and lower number of lines of code for others in the first group. The ‘other group’, as a team, wrote the program in ten lines of code after creating the proper logic to deploy to write the code.

The real shocker really came with our tests. Where our group did not have a “successful” first run attempt with test data, the other group did. With that, both groups saw the reasoning behind management’s desire for us to think first, and only after that, act. Our “ready, fire, aim,” quickly became, “ready.., aim.., fire.” When Manufacturing Practices, suggests that companies understand what ERP is before they look for, implement or re-implement an ERP System, we teach them the lesson of “ready.., aim.., fire.”

Here is a take away. Business owners and C-Suites must constantly monitor the expense of education against an investment in their people. Businesses have no way to measure the accumulative costs of remaining complacent. However, by failing to invest in people, leaders assume absolute business risk and at best, the possible loss of any competitive advantages. As Ralph Waldo Emerson said, "The mind, once stretched by a new idea, never returns to its original dimensions." 


APICS News-May 5 2015

Michael Roman - Monday, May 04, 2015

I’m very pleased to share exciting news about our organization. APICS and American Society of Transportation and Logistics (AST&L) will announce tomorrow that the boards of directors of both organizations have approved an agreement under which AST&L will merge with APICS upon ratification by AST&L member vote.

The merger will expand, extend and deepen the end-to-end supply chain body of knowledge that fuels APICS global supply chain research, education and certification programs. Together, APICS and AST&L offer unmatched content and subject matter expertise that will enable individuals and organizations to meet key supply chain challenges.

This agreement acknowledges the importance of transportation and logistics, and the tremendous innovation impacting delivery processes today. It also reflects our commitment to keeping our content and capabilities at the forefront of our industry, providing our members, customers and the supply chain community at large the most up-to-date, relevant and complete body of knowledge. This is a strategic combination that paves the way for us to fortify supply chain education and certification in the areas of transportation and logistics.

If AST&L’s members vote to approve the merger, APICS intends to integrate AST&L with its existing operations. We anticipate the transaction to be complete in July.

While we are excited about the possibilities ahead, our main objective is to continue to provide excellent service to our members and customers. Thank you for your support as we prepare for these exciting changes.


Best regards,

Abe Eshkenazi
Chief Executive Officer

Save the Date!

Michael Roman - Monday, April 06, 2015

Assemble an Innovative Inventory of Business Tools and Processes

 A Three-Prong Approach to Operational Improvements

 

  

Save the date! 

You won't want to miss the opportunity to participate in this seminar that will cover multiple facets of operational excellence and efficiency for manufacturers. Presenters with various areas of expertise in working with manufacturers will share insights, tools, tips and takeaways that you can implement immediately for operational improvements. 

Mark your calendar for Thursday, May 7 and keep an eye out for more details
in the coming weeks.

 

Topics to Include:

 

Management as Leadership
Presented by John Purcell of Transform

If you've always heard that leadership and management are different, you will be interested in John's perspective that management is leadership. We'll also discuss getting results as you build relationships and why both are critical. We'll also paint a picture of what a healthy leadership team looks like.

 

Effective Accounting Processes: Grow Profits, Reduce Risks

Presented by Iliana Malinov, CPA of HLB Gross Collins, P.C.

Business leaders must continually identify opportunities to grow build upon existing profits. Often there are untapped resources and overlooked opportunities within a business that can be unleashed, creating the opportunity for increased profitability. Effective navigation of industry-specific regulations, documentation requirements, tax credits and deductions is critical for manufacturers. Improve your bottom line through some simple planning steps and available opportunities that are often overlooked.

 

Operations & Supply Chain Management
Presented by Mike Roman, CPIM of Manufacturing Practices, Inc.

Improving a company's bottom line does not happen magically. Companies earn it through smart improvements. Smart improvements come from smart people using smart technology in smart ways. ERP is smart technology and Operation Excellence fosters its smart use through KPIs (measuring results that keep people involved), and Operations and Supply Chain Management mastery which Manufacturing Practices calls planning for success. This presentation is a must see for C-Level people, interested in improving the value of their company and the value contributed by their employees.

Save the date: 

May 7, 2015

11:00 a.m.- 4:00 p.m.

At the Office of HLB Gross Collins, P.C.

More details will be forthcoming

Sponsored by:
HLB Gross Collins, P.C serves clients both locally and around the globe.    
  
  

Keep People Involved

Michael Roman - Wednesday, April 01, 2015

Keep People Involved™

Years ago, as Operations and IT Manager for a small company, I was charged with finding a consultant to help us through an improvement project. One thing we learned that was entirely counter-intuitive was how easy it was to change the corporate culture – in less than a year! The consultant implemented a process to measure individual performance within the company, and the positive transformation in the organization was truly remarkable.

The process was a deceptively simple, inexpensive, and powerful tool called Key Performance Indicators (KPI). KPI help change the way people do their jobs, approach their day, and deal with daily roadblocks. KPI help people focus on the BIG PICTURE. KPI help people distinguish the important from the trivial, the “must be done” from the “could be done”, and allow employees to set their own priorities. When the boss reviews performance charts, questions follow. People begin to learn the importance of those measures. When people focus on activities and apply what they learn from the KPI, good things happen.

KPI differ by industry; and KPI are not just for individuals.

  • Inventory Turns is a very important KPI for manufacturing and distribution companies
  • For telemarketers, the number of phones calls made is an important KPI
  • For retail, the average dollars per sale is a good KPI
  • For accounts payable departments, the number of AP Days outstanding is important
  • For accounts receivable departments, the number of AR Days outstanding is important
  • For managers, employee turnover is an important KPI

Using KPI reaps great rewards, and the secret lies in its focus on the business scorecard activities of revenue, costs, and cash.

Displaying KPI results is a vital part of the process. For example, some companies post the results of inventory accuracy counts with several positive results: 

  1. People understand that the activity is an important company function
  2. People take pride in their work, because everyone knows how they are measured
  3. KPI provide a level of control that is not apparent when those values are not measured

During our implementation, everyone including the president had KPI, and we posted performance to those KPI. The fact that the “person at the top” reported measurements had a unifying effect on the entire company. We all understood that everyone had a role to play and our measurement criteria. Everyone did! We felt that since the “BIG GUY” showed us his, we would show him ours, and we accepted the fact that things were changing. We wanted to join the crowd; consequently, the corporate culture changed almost overnight.

KPIs reflect the performance to company policy. The easiest way to implement KPI is to start slowly. Choose a couple of performance measurements that are important to your industry and make sure that they produce the desired outcome. You can always add additional KPIs after this simple tool demonstrates its value. The most important idea to remember about KPI is that they Keep People Involved™

COMPLACENCY KILLS

Michael Roman - Tuesday, January 27, 2015

COMPLACENCY KILLS  by Jerry Tiarsmith, VP Operations, Manufacturing Practices, Inc.

Complacency kills; a simple but true statement. One writer described complacency as “the enemy of intelligence.” The typical definition of complacency (a noun) often includes words such as a feeling of satisfaction or security, unaware of some potential danger, defect, or the like. My guess is that most manufacturing executives would not describe their business using the word complacency or complacent (an adjective). They are, after all, hardworking, caring, and concerned individuals trying to do right by their employees and families. We get it, we really do!

Are some company management teams complacent? Yes! Do they recognize the fact? Not some we see. So how do companies exhibit complacent tendencies? One of the best indicators is when a CEO acknowledges the company’s process problems and then dismisses any concerns with the statement, “But, we are making a profit!” On consulting engagements, we often hear CEOs and senior managers using the term, “tribal knowledge,” and doing so proudly. That makes us cringe. “Tribal knowledge” highlights a process, or design flaw, and maybe both! It indicates a probable out of control process. The resulting variations create an inability to calculate accurate product costs. At the very least, a reliance on “tribal knowledge” exposes a company to unnecessary risk and creates a competitive advantage for “the other guy.” By allowing front-line “tribal knowledge” to persist, a CEO (and his management team) remains complacent regarding the bottom line – just because they are “still making money.”

Another form of complacency involves companies that become reliant upon the use of technology in lieu of standard Operations and Supply Chain Management training & education. Creating additional work for employees, without enriching the work (i.e., gaining user buy-in), creates a complacent and demoralized workforce. Far from empowering employees, wrongly depending upon technology helps create or reinforces the impression of distrust. If employees are smart enough to figure out how to work around incomplete or ineffective processes and design flaws, they are smart enough to train to do the job you ask of them and to do it well. Good pay and benefits are a poor substitute for increased responsibility and participatory decision-making. Those ought to exist as employee satisfaction and engagement processes.

Manufacturing Practices, Inc. consultants assist small- to mid-sized manufacturing and distribution companies to unlock unrealized value in their businesses through the effective use of their Enterprise Resource Planning (ERP) system. We also see how complacency negatively affects ERP systems. Much like any business management system, garbage in, means garbage out, and ERP systems prove no different. As an example, failure to input an accurate Bill of Materials (BOM) to the ERP system results in a system that can do little to produce meaningful reports to help management make effective procurement and production decisions. The mere installation of an ERP system does not guarantee an improved decision-making process. It takes time and commitment throughout the organization to enter complete and correct data and transaction information. Technology does not replace the human factor, judgment, nor common sense. An ERP system is not an autopilot, a plug and play app, or a default management decision-making system. It is a management decision-making support system, a very capable tool when combined with proper understanding and deployment. Successful Management Teams create it upon the groundwork of Operations and Supply Chain education and procedure based ERP training. Such a deployment almost guarantees its proper use.

Complacency kills! Root it out of your business to improve your competitiveness and bottom line. Manufacturing Practices, Inc. can show you the way! 

Manufacturing and National Security

Michael Roman - Wednesday, December 24, 2014

By Jerry Tiarsmith, VP Operations, Manufacturing Practices, Inc.


I read an interesting article. It noted that for the first time China’s Gross Domestic Production (GDP) exceeded that of the United Sates. My strategic interest in China began in the mid-1970s. At that time, China ranked amongst the poorest of the world’s nations, but I believed then that China, a “sleeping dragon,” would emerge as a formidable foe in the near future.

 

China forcefully declared its interest in territorial expansion and regional dominance in 1979 when it invaded Vietnam. Despite overwhelming military superiority, the Chinese achieved little. If nothing else, the conflict highlighted problems in Chinese manufacturing: a lack of standardization, poor quality control, and little understanding of logistics, just to name a few. The Chinese worked hard to correct those problems. Since then, Chinese military technologies and capabilities have dramatically improved.

 

Today, Chinese companies account for three of the world’s top ten companies by annual revenue. In contrast, only Wal-Mart (2nd) and Exxon (5th) represent the US in that group. In 2007, GM led the list, once dominated by the likes of IBM, GM, and Ford. Apple, the technology darling, occupies the 16th position while GM slipped to number 23. Regarding trade, the US imports more than four times the goods from China than it exports. This generates a tremendous trade imbalance favoring China. China also holds more than $1.23T in US debt obligations on which it collects significant interest payments. These hard currency flows from the US help fuel China’s growth and tend to diminish US domestic growth.

 

Other reports note a slow-down in China’s growth rate from a 40-year average of 8% to 7.3%. America’s recent growth rate remains slightly above 2%. If these numbers continue, what could we expect in the next forty years? Using simple analytics (i.e.; the Rule of 72), we extrapolate trends that show China’s economy potentially doubling every ten years over the next forty years while the US economy doubles only once in that same time frame. That means that by the year 2054 the Chinese GDP could approach $240T, greatly dwarfing that of the United States at $30T.

 

While an unsavory thought for many, China already wages war against the United States. A war fought in the realm of intellectual property, on the battlefield of economics and in cyberspace, and one that the US is losing! Some wounds appear self-inflicted. American manufacturing suffers, in part, from poorly conceived governmental policies regarding taxation, trade, regulation, and education. As a result of those policies, the US hollowed out its manufacturing sector over the past forty (or more) years, businesses increased off-shoring activities, neglected the domestic development of critical skills and tradecrafts, and struggled under costly government-mandated burdens. American manufacturing became less competitive. This must change!

 

At Manufacturing Practices, Inc., we witnessed illiterate, low-wage Chinese workers taking great pride in the aesthetic quality of the work they produced. Their work ethic, enthusiasm, and dedication prove commendable. One only has to recall the mass choreographies of the Beijing Olympics; precision performances by thousands designed to impress (and, perhaps intimidate) the world. These performances proclaimed China’s arrival as a major force on the world’s stage, one that includes industrial production. China uses American universities to help educate the next generation of Chinese computer literate, techno-savvy, and highly competitive minded business leaders, the same ones who will ensure China’s global economic dominance, a position once enjoyed by the United States. Americans must relearn the lesson that a strong manufacturing base makes for a stronger, healthier economy and a wealthier, more productive middle class.

 

This is one reason why Manufacturing Practices, Inc. assists small- to mid-sized manufacturing and distribution companies. Our proprietary processes help C-level management understand and access the hidden value in their ERP systems. We help clients unlock the ability to enhance the speed and efficacy of management decision-making through better use of their ERP system. Our proven methods enable management to implement continuous improvement programs that refine processes, improve procedures, and empower employees through Lean and other methodologies. As a result, our clients gain a significant competitive advantage, leading to increased revenue growth, improved cash flow, and significant cost reductions. We believe that Operational Excellence comes first from an effective implementation and deployment of a business management system. We remain committed to our clients’ successes. This has been the hallmark of our company since its inception.