Mismatch of manufacturing structure and manufacturing task

O 5º capítulo "The Decline, Fall, and Renewal of Manufacturing Plants" do livro "Manufacturing in the Corporate Strategy" de Wickham Skinner devia ser lido por muito boa gente na indústria.

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"While there are many ways in which companies get into trouble in manufacturing, they may be grouped into four principal categories:

1. Mismatch of manufacturing structure and manufacturing task.
2. Multi-product, do-all general purpose plant.
3. Simplistic performance evaluation.
4. Inconsistent elements in the manufacturing structure.

Skinner faz uma narrativa que descreve como ocorre a falência de uma cultura produtiva, de forma perfeitamente normal, quando o exterior muda.

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"The manufacturing task may be defined as the unique manufacturing competence demanded by the combination of the firm's corporate strategy, its marketing policies, and any constraints imposed by the technology and financial resources.

The manufacturing task is clearly defined at the start-up. Usually, it consists of making particular products with specific technology and marketing requirements."

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Depois o mundo exterior muda.

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"What happens next in many instances is that the manufacturing task subtly changes. Market conditions change, and to be successful, a company may have to compete in quite different ways than in the past.

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How are these changes perceived by a strong, experienced, competent manufacturing team?Unfortunately, but not surprisingly, these changes are not always seen or their significance fully perceived. (Moi ici: Skinner não insulta, não diz que são burros, que só têm a quarta classe.) After all, such changes seldom take place dramatically. They take place gradually over a period of time. After a year or two, the task at which the plant must now excel may no longer be what it was. Most management groups naturally tend to continue to apply the successful "philosophy" and practices of manufacturing they have learned and proven over the past. The structure of the manufacturing operation tends to continue, with a kind of momentum of comfortable and satisfying familiarity with only relatively minor variations."

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O que aconteceu à nossa indústria na última década?

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O mundo mudou, passamos a ser alemães e a precisar de estratégias à alemão... com uma estrutura mental e produtiva forjada no passado.

Aprender com os outros...

Na semana passada falou-se muito de produtividade.

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Sexta à tarde deparei com este texto de Wickham Skinner retirado do capítulo "The Focused Factory" do livro "Manufacturing in the Corporate Strategy", preparem-se para esta leitura e para a sua comparabilidade com a nossa situação económica portuguesa actual:

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"The conventional wisdom of manufacturing management continues to be that the measure of success is productivity. Now that American companies in many industries are getting beaten hands down by overseas competitors with lower unit costs, we mistakenly cling to the old notion that “a good plant is a low-cost plant.” This is simply not so. A low-cost plant may be a disaster if the company has sacrificed too much in the way of quality, delivery, flexibility, and so forth, to get its costs down.

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Too many companies attempt to do too many things with one plant and one organization. In the name of low investment in facilities and spreading their overheads, they add products, markets, technologies, processes, quality levels, and supporting services that conflict and compete with each other and compound expense. They then hire more staff to regulate and control the unmanageable mixture of problems. In desperation, many companies are now “banging away” at anything to reduce the resulting high costs. But we can only regain competitive strength by stopping this process of increasing complexity and overstaffing."

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Como é que dizia Hill?

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As encomendas mais importantes são aquelas que rejeitamos.

Estratégia e organização produtiva

"Technology, competition, and social change have brought serious problems for manufacturing. Further technological and social changes will take place and, in combination with the natural competitive processes, will, I believe, continue to force an accelerating evolution in the factory.

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Mass production as we have known it is an outmoded concept. (Moi ici: Tanta gente a precisar de atingir isto, de perceber o sentido e significado desta afirmação. Não basta produzir, produzir, produzir... é preciso ir à procura da originação de valor.)Changes in production management are essential. The corporations and managers that lead in bringing about changes in manufacturing management will gain an important competitive advantage."

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When companies fail to recognize the relationship between manufacturing decisions and corporate strategy, they may become saddled with seriously noncompetitive production systems that are expensive and time-consuming to change.

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The mistake of considering low costs and high efficiencies as the key manufacturing objective ... is typical of the oversimplified concept of "a good manufacturing operation." Such criteria frequently get companies into trouble, or at least do not aid in the development of manufacturing into a competitive weapon. Manufacturing affects corporate strategy, and corporate strategy affects manufacturing. Even in an apparently routine operating area such as a production scheduling system, strategic considerations should outweigh technical and conventional industrial engineering factors invoked in the name of "productivity." (Moi ici: strategic considerations should outweigh technical and conventional industrial engineering factors. Só que isto pressupõe que exista uma estratégia... recordo logo aquela afirmação de Hill "the most important orders are the ones to which a company says 'no'." E quantas empresas têm definidos os seus clientes-alvo? A Lei de Gresham aplicada aos clientes.)

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Trechos retirados de "Manufacturing in the Corporate Strategy" de Wickham Skinner."

Um clássico (parte II)

"I became gradually aware of a new set of circumstances that were surrounding and invading the world of manufacturing and making a successful manufacturing operation increasingly difficult. The primary cause seemed to be a new environment – an environment in which there was more competition, more pressure from management, labor, stockholders, consumers, and the public. The environmental changes were characterized by growing foreign competition, an accelerating rate of technological change, and new modes of competition. Competition was resulting in more advertising, narrower profit margins, a flood of new products, pressures toward integrating forward and backward, and broadening product lines. (Moi ici: o que aconteceu aos americanos nas décadas de 70 e 80 do século passado, com o choque japonês, aconteceu-nos a nós portugueses com a conjugação da queda do Muro e a unificação económica do mundo; a adesão da China à OMC, a adesão da Europa de Leste à UE e a nossa entrada no pelotão da frente do euro. Aquilo que funcionava deixou de resultar.)

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Controlling the old, conventional problems – to produce at lower cost, to achieve satisfactory quality constantly, to meet delivery promises, to cut down the time necessary to deliver each order, to get new products into production more quickly, and to maintain investment, facilities, and inventories at low levels while adjusting flexibly to changes in volume – became even more difficult. This set of conflicting requirements intensified the fact that no matter what manufacturing managers attempt to do, they have always been easily susceptible to criticism by top management. This is inherent in the nature of the manufacturing world: The successful manufacturer must produce quickly and deliver on schedule a quality product at a minimum of cost and investment.
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In the middle of this research into what was going on in United States industry, of course I came across some companies whose manufacturing functions were extraordinarily well-managed. The outstanding feature of these companies seemed to be that in some way or another they had forged manufacturing into a major and formidable competitive weapon. They competed not only with new products, marketing, advertising, and skillful financing, but also with unique approaches to a competence in manufacturing. They competed with manufacturing because they had exceptionally short deliveries, or remarkably low costs, or could move fast in developing new products, or produced the same volume with much lower investment than their competitors."

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Com esta introdução o cenário fica montado para o que vem a seguir.

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Não misturarás alhos e bugalhos na mesma linha de produção! Não tentarás servir Deus e o Diabo em simultâneo!

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Trechos de retirados de "Manufacturing in the Corporate Strategy" de Wickham Skinner."

Paralelismos (parte III)

Continuado daqui e daqui.
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Mais uma vez chamamos a atenção para o artigo "The Focused Factory" publicado pela revista Harvard Business Review no primeiro de Maio de 1974 da autoria de Wickham Skinner.
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Skinner escreveu e reparem no paralelismo e na actualidade:
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"1. There are many ways to compete besides by producing at low cost.
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the persistent attitude that ways of competing other than on the basis of price are second best.(Moi ici: paralelismo perfeito) The other is that a company which starts out with higher manufacturing costs than its competitors is in trouble regardless of whatever else it does.
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2. A factory cannot perform well on every yardstick. There are a number of common standards for measuring manufacturing performance. Among these are short delivery cycles, superior product quality and reliability, dependable delivery promises, ability to produce new products quickly, flexibility in adjusting to volume changes, low investment and hence higher return on investment, and low costs.
These measures of manufacturing performance necessitate trade-offs—certain tasks must be compromised to meet others. They cannot all be accomplished equally well because of the inevitable limitations of equipment and process technology. Such trade-offs as costs versus quality or short delivery cycles versus low inventory investment are fairly obvious. Other trade-offs, while less obvious, are equally real. They involve implicit choices in establishing manufacturing policies.
Within the factory, managers can make the manufacturing function a competitive weapon by outstanding accomplishment of one or more of the measures of manufacturing performance. But managers need to know: “What must we be especially good at? Cost, quality, lead times, reliability, changing schedules, new-product introduction, or low investment?”
Focused manufacturing must be derived from an explicitly defined corporate strategy which has its roots in a corporate marketing plan. (Moi ici: e em quantas empresas existe reflexão estratégica?) Therefore, the choice of focus cannot be made independently by production people.
Instead, it has to be a result of a comprehensive analysis of the company’s resources, strengths and weaknesses, position in the industry, assessment of competitors’ moves, and forecast of future customer motives and behavior.
Conversely, the choice of focus cannot be made without considering the existing factory, because a given set of facilities, systems, and people skills can do only certain things well within a given time period.
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Paralelismos (parte II)

Continuado daqui.
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Nos tempos que correm é comum ouvir pessoas que defendem nos meios de comunicação social a redução dos salários, para que possamos ficar, como país, mais competitivos.
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Pedro Ferraz da Costa e Vítor Bento são dois dos habitualmente citados:

• Neste postal sobre a produtividade (parte V) escrevi: "O fundamental para o aumento da produtividade é a concentração no numerador da equação, é a concentração na criação de valor, ou como Larreche propõe, na originação de valor, no numerador da equação da produtividade."
• Neste outro postal produtividade (parte IV) descrevo a receita do Fórum para a Competitividade para aumentar a competitividade portuguesa... a redução dos salários.
• "Productivity improvement must now focus on value creation rather than on minimization of inputs"
• They don't get it

Nem quero imaginar o efeito viciante que teria para a economia apanhar o dopping da redução dos salários. No ano seguinte seria outra vez necessário baixar os mesmos. Seria um pouco como no tempo do crawling peg... ao aumentar a competitividade das empresas através de factores que não dependem das próprias empresas dispensa-as de fazer o esforço de melhoria e acomodam-se.
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Mais uma vez chamamos a atenção para o artigo "The Focused Factory" publicado pela revista Harvard Business Review no primeiro de Maio de 1974 da autoria de Wickham Skinner.
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Skinner escreveu e reparem no paralelismo e na actualidade:
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"A vermelho a minha adaptação e logo a seguir, entre parêntesis azul, o texto original:

“The conventional wisdom of manufacturing management has been and continues to be that the measure of success is productivity. Now that Portuguese (U.S.) companies in many industries are getting beaten hands down by overseas competitors with lower unit costs from China and East Europe, we mistakenly cling to the old notion that “a good plant is a low-cost plant.” This is simply not so. A low-cost plant may be a disaster if the company has sacrificed too much in the way of quality, delivery, flexibility, and so forth, in order to get its costs down.
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Too many companies attempt to do too many things with one plant and one organization. In the name of low investment in facilities and spreading their overheads, they add products, markets, technologies, processes, quality levels, and supporting services which conflict and compete with each other and compound expense. They then hire more staff to regulate and control the unmanageable mixture of problems.
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In desperation, many companies are now “banging away” at anything to reduce the resulting high costs. But we can only regain competitive strength by stopping this process of increasing complexity and overstaffing.

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In contrast, most of the manufacturing plants in my study attempted a complex, heterogeneous mixture of general and special-purpose equipment, long-and short-run operations, high and low tolerances, new and old products, off-the-shelf items and customer specials, stable and changing designs, markets with reliable forecasts and unpredictable ones, seasonal and non seasonal sales, short and long lead times, and high and low skills."
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Não precisamos de reduzir administrativamente os salários, precisamos de subir na escala de valor, precisamos de nos posicionar, precisamos de identificar os clientes-alvo, precisamos de desenvolver modelos de negócios assentes em outras propostas de valor além do preço mais baixo. 35 anos nos separam do artigo original mas a sua mensagem continua válida para nós.
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Continua.

Paralelismos (parte I)

Vivemos tempos difíceis, ninguém o nega.
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As empresas fecham o desemprego aumenta.
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O que é que o Fórum Português para a Competitividade propõe? Reduzir os salários!!!
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Lembram-se do dia da fotografia?
O dia primeiro de Maio de 1974!
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O que tem esse dia de particular?
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Nesse dia a revista Harvard Business Review publicou um artigo intitulado "The Focused Factory" de Wickham Skinner.
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Vou tentar traduzir o artigo para português adaptando-o à nossa realidade actual, para que possa ser feito o paralelismo entre a receita que Skinner propunha então, e a nossa actualidade onde as empresas portuguesas estão mergulhadas.
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A vermelho a minha adaptação e logo a seguir, entre parêntesis azul, o texto original:
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-->Assim, o pessimismo entranha-se nas perspectivas de muitos gestores e analistas da cena industrial portuguesa (dos Estados Unidos). O tema recorrente desta visão sombria é que (a) o trabalho em Portugal é muito caro (dos E.U. é o mais caro no mundo), (b) sua produtividade tem crescido a uma taxa mais lenta do que a da maioria dos seus concorrentes e, consequentemente (c) as nossas indústrias adoecem uma atrás da outra à medida que as importações crescem rapidamente e o desemprego torna-se um crónico nas zonas populacionais associadas à indústria.

Neste artigo, oferecerei uma visão mais optimista do dilema da produtividade, sugerindo que nós não precisamos de nos sentir impotentes na concorrência com o trabalho estrangeiro mais barato. Em vez disso, temos a oportunidade de efectuar mudanças básicas na gestão das indústrias, o que poderia deslocar a balança competitiva em nosso favor em muitas indústrias. Que mudanças básicas são estas? Posso identificar quatro:

1. Vendo o problema não como “como podemos aumentar a produtividade?” mas como “como podemos competir?”

2. Vendo o problema não como se circunscrevendo à eficiência da mão-de-obra directa mas abarcando toda a organização. (Na maioria das fábricas, a mão-de-obra directa e a força de trabalho representam somente uma pequena percentagem dos custos totais.)

3. Aprendendo a centrar cada unidade fabril num conjunto limitado, conciso, manejável dos produtos, tecnologias, volumes, e mercados.

4. Aprendendo a estruturar políticas básicas de fabricação e de serviços de apoio de modo a que se centrem numa tarefa explícita da fabricação em vez de muitas incompatíveis e conflituosas tarefas implícitas.

Uma fábrica que se concentre numa gama estreita de produtos para um dado nicho de mercado conseguirá suplantar qualquer fábrica convencional, que tente abraçar uma missão mais larga. Porque os seus equipamentos, os seus sistemas de apoio, e procedimentos podem-se concentrar numa tarefa específica para conjunto homogéneo de clientes, os seus custos e, sobretudo, as suas despesas gerais serão muito provavelmente mais baixos do que aqueles das fábricas convencionais. Mas, mais importante, tal fábrica pode transformar-se numa arma competitiva porque toda ela está focalizada em realizar a tarefa particular da fabricação exigida pela estratégia da empresa e pelos objectivos de marketing."

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Continua

The “plant within a plant” (PWP)

Nestes tempos de incerteza em que o middle-market traiçoeiro está a aumentar as suas fronteiras, as fronteiras de retornos financeiros medíocres, julgo que faz todo o sentido regressar aos clássicos e procurar paralelismos entre o que se vive hoje e o que se viveu no passado.
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Assim, recomendo vivamente a leitura do artigo de Wickham Skinner "The Focused Factory" publicado originalmente na revista Harvard Business Review em Maio de 1974.
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O artigo pode ser acedido aqui.
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Um trecho sobre como caminhar para a fábrica focada e dedicada:
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“In my experience, manufacturing managers are generally astounded at the internal inconsistencies and compromises they discover once they put the concept of focused manufacturing to work in analyzing their own plants.
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Then, when they begin to discern what the company strategy and market situation are implicitly demanding and to compare these implicit demands with what they have been trying to achieve, many submerged conflicts surface.
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Finally, when they ask themselves what a certain element of the structure or of the manufacturing policy was designed to maximize, the built-in cross-purposes become apparent.
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At the risk of seeming to take a cookbook approach to an inevitably complex set of issues, let me offer a recipe for the focused factory based on an actual but disguised example of an industrial manufacturing company which attempted to adapt its operations to this concept.
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Consider this four-step approach of, say, the WXY Company, a producer of mechanical equipment:
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1. Develop an explicit, brief statement of corporate objectives and strategy. The statement should cover the next three to five years, and it should have the substantial involvement of top management, including marketing, finance, and control executives.
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In its statement, the top management of the WXY Company agreed to the following:
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“Our corporate objective is directed toward increasing market share during the next five years via a strategy of (1) tailoring our product to individual customer needs, (2) offering advanced and special product features at a modest price increment, and (3) gaining competitive advantage via rapid product development and service orientation to customers of all sizes.” (esta abordagem de certa forma faz a empres voltar aos seus tempos de arranque em que tinha poucos clientes e poucos produtos e, por isso, era extremamente enfocada no essencial, a empresa não tinha recursos para desperdiçar em floreados)
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2. Translate the objectives-and-strategy statement into “what this means to manufacturing.” What must the factory do especially well in order to carry out and support this corporate strategy? What is going to be the most difficult task it will face? If the manufacturing function is not sharp and capable, where is the company most likely to fail? It may fail in any one of the elements of the production structure, but it will probably do so in a combination of some of them.
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3. Make a careful examination of each element of the production system. How is it now set up, organized, focused, and manned? What is it now especially good at? How must it be changed to implement the key manufacturing task?
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4. Reorganize the elements of structure to produce a congruent focus. This reorganization focuses on the ability to do those limited things well which are of utmost importance to the accomplishment of the manufacturing task.
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The reader may perceive a disturbing implication of the focused plant concept—namely, that it seems to call for major investments in new plants, new equipment, and new tooling, in order to break down the present complexity.
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For example, if the company is currently involved in five different products, technologies, markets, or volumes, does it need five plants, five sets of equipment, five processes, five technologies, and five organizational structures? The answer is probably yes. But the practical solution need not involve selling the big multipurpose facility and decentralizing into five small facilities.
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In fact, the few companies that have adopted the focused plant concept have approached the solution quite differently. There is no need to build five plants, which would involve unnecessary investment and overhead expenses.
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The more practical approach is the “plant within a plant” (PWP) notion in which the existing facility is divided both organizationally and physically into, in this case, five PWPs. Each PWP has its own facilities in which it can concentrate on its particular manufacturing task, using its own work-force management approaches, production control, organization structure, and so forth. Quality and volume levels are not mixed; worker training and incentives have a clear focus; and engineering of processes, equipment, and materials handling are specialized as needed.
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Each PWP gains experience readily by focusing and concentrating every element of its work on those limited essential objectives which constitute its manufacturing task. Since a manufacturing task is an offspring of a corporate strategy and marketing program, it is susceptible to either gradual or sweeping change. The PWP approach makes it easier to perform realignment of essential operations and system elements over time as the task changes.”