Learning to Change Opportunities to Improve the Performance of Smaller Manufacturers (1993) / Chapter Skim
Currently Skimming:
2 IMPROVING MANUFACTURING PERFORMANCE IN SMALLER FIRMS
2 IMPROVING MANUFACTURING PERFORMANCE IN SMALLER FIRMS
Pages 29-50
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 29... ...
The idiosyncrasies Tat come from He . The quotations interspersed throughout this chapter are taken from the committeets conversations with owners and managers of smaller manufacturing firms who participated in the eight workshops hosted by the committee throughout the United States during the period of this study.
|
From page 30... ...
In addition to discussing barriers facing smaller manufacturers, both company representatives and assistance providers discussed opportunities to help firms overcome these barriers and significantly improve the cost, quality, and market responsiveness of their manufacturing operations. The following sections describe the ideas raised in these discussions.
|
From page 31... ...
" Despite efforts to lessen the impact of regulatory actions for small businesses,2 the amount of time and effort required to stay abreast of and to comply with regulations has become a disproportionate hardship for smaller organizations. A fundamental reason that We regulatory problem is so difficult for smaller firms is that its sources are so numerous and diverse.
|
From page 32... ...
Their concerns, however, are with He overwhelming increase in complexity and specificity, what they perceive to be capricious enforcement, and the crushing economic burden they represent for small companies struggling against foreign competitors that are not subject to equivalent constraints. Opportunities to improve the circumstances for smaller manufacturers to contend with regulatory burdens arise primarily through increased awareness of technological means for meeting compliance standards and better coordination among companies and regulation promulgating agencies.
|
From page 33... ...
As a consequence Pose companies are less likely to be aware of best manufacturing practices, irmovative application of new technologies, and fresh approaches to improved production efficiency. With less relevant experience and expertise, their expectations for successfully selecting and effectively assimilating new technology are not high, and so they are less likely to risk investment in new ways of doing things or in major changes to the management structure and relationships within the business.
|
From page 34... ...
I-hey need help translating the abstract language of global competition into best manufacturing practices and state-of-the-market technology. "We know we have to change, but we struggle with implementation.
|
From page 35... ...
"It's impossible to introduce greater worker responsibility or teach modern problem solving saris when so many of my employees have insufficient math and reading skills. n Manufacturers increasingly must deal with workers that have insufficient reading skills and are unable to perform simple arithmetic.
|
From page 36... ...
Therefore, the problems of gaining access to appropriate information and instilling appropriate knowledge and skills in managers and workers create many opportunities for industrial assistance providers of all types to offer education and information-sharing programs. Key considerations are ease of access and tailoring for smaller firms' needs because smaller company employees have limited time for education programs and may not have appropriate expertise to gain much from programs developed for larger firms.
|
From page 37... ...
Providing smaller firms with greater access to video tape libraries that illustrate technologies and implementation problems is a means of increasing knowledge in He manufacturing community. · Local and regional forums and workshops can introduce and demonstrate new technology, management methods, and market opportunities.
|
From page 38... ...
Therefore, they have insufficient opportunity to trade information about service providers, new practices, and technologies, or to learn from Me experiences of companies in similar circumstances. They need to see principles at work in other factories and production settings to better understand operational aspects of implementation.
|
From page 39... ...
In fact, one principle of supplier relations Hat He larger firms are adopting is a radical reduction in number of suppliers from whom Hey purchase materials, parts, assemblies, and so forth. This furler reduces He number of smaller manufacturers that are likely to obtain help from major customers (Wall Street Journal, March 29, 1993b)
|
From page 40... ...
They felt strongly that the chance for owners and managers to have face-to-face discussions, to exchange inflation about new methods and technologies, and to hear first-hand how others handled similar business crises was invaluable.7 Talking with other executives about problems in common is the best way to find out "what works, and what doesn't." Suggested topics included work force training, demographic changes, regulatory compliance, and access to investment capital; sharing stories about solutions attempted and approaches that worked; and comparing ways to respond to so many of the problems facing manufacturers today. For some companies this kind of interaction is sufficient motivation for them to begin significantly attacking their competitiveness problems.
|
From page 41... ...
Particularly as He technology becomes more readily accessible, video conferences among owners and managers within a region or industry sector could be arranged to share experiences and lessons learned. · Electronic networks that provide bulletin boards for direct exchange of information and sharing of approaches to common problems will be increasingly valuable as the needed technologies penetrate into smaller companies.
|
From page 42... ...
Searching for help in the public sector often reveals a confusing, uncoordinated array of services universities, economic development groups, technical schools, government agencies "competing" for clients. "We didn't1mow where to begin when we started [oo~ngfora CAD system.
|
From page 43... ...
If they aren't able to convince my people out there on the floor that they know what they're doing, they're sure not going to convince me." Smaller manufacturers are often insecure about locating and selecting the correct assistance and service providers to help them make decisions that will involve expenditure of Funds. They want to develop personal relationships and see demonstrated credibility of He individual service providers (field agents)
|
From page 44... ...
~ Insuring "technology awareness," increasing understanding of how to improve product quality, meeting international standards of excellence, and raising the level of worker talents are difficult issues for smaller firms. Most recognize He importance of tackling these objectives, but the costs of gathering the right information, providing appropriate training, and getting certification to standards such as ISO 9000 are often prohibitive.
|
From page 45... ...
A number of mechanisms could be developed to help companies connect with highquality assistance by knowledgeably linking private and public sector resources with manufacturing clients. These include maintaining databases of consultants with relevant references and qualifications, establishing toll-free telephone numbers to provide a single initial point of contact for firms seeking assistance, and supporting electronic bulletin boards to notify service providers of opportunities in the manufacturing community.
|
From page 46... ...
Examples include courses on ISO 9000 certification, CAD-CAM integration, and electronic exchange of business documents and product engineering specifications. Industrial assistance providers could identify and assess available programs, spur creation of new courses to satisfy company needs, and provide courses in cases where no other source is available, perhaps because of specific technical content.
|
From page 47... ...
" The investment in worker training and upgrading skills and talents is seen by many manufacturers as an extremely risky venture. Other companies, generally larger businesses, are likely to hire the most highly skilled worker because they offer better benefits and sometimes higher salaries that smaller companies are unable to match (Wall Street Journal, April 19, 1993)
|
From page 48... ...
The workshop attendees thought the role of assistance providers in this area to be one of facilitating better understanding and stronger relationships between providers and users of capital. Specific ideas included: · Educational programs for manufacturers could help build their understanding of the requirements of financial institutions and help them develop justification for their capital improvements in the format and language understood by the financial community.
|
From page 49... ...
IMPLICATIONS FOR MANUFACTURING ASSISTANCE This set of barriers to improved manufacturing performance and the ideas raised to help firms overcome them are familiar to the many organizations and companies striving to provide assistance to smaller manufacturers. The efforts of many assistance organizations, including the MTCs, educational institutions, and businesses have demonstrated ways to help companies successfully contend with most of these obstacles.
|
From page 50... ...
so fFARN7NG TO CHANGE Over concerns, such as regulatory burdens and access to capital, can be addressed to only a limited extent by manufacturing assistance organizations. Effective solutions to these barriers will require participation by government and regulatory agencies, constituencies that have not historically perceived their role as contributing to the improved performance of smaller American industrial firms.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.