Volume As a Blocker

To conclude the series we’ve been working through, we’ll talk about volume. This is an often-hidden issue that teams must conquer, with or without the proper tools to do so. Let’s see if we can get you on-track for your volume challenges this year.

If you’ve been to the grocery store lately and you have seen some of the same things I have, you’ve been by the berry case in the produce department to find a sign that says there’s been a shortage of strawberries. Or that there’s a stocking issue with organic milk. In the US, these would have been rare prior to COVID – at least where we live. It’s not clear whether these are sourcing or manpower issues, and it really doesn’t matter because as a consumer, the result is the same. That cereal is cold, no milk, no fruit.

Grocery stores have set shelves, bins, freezers, and refrigerator cases. It is near impossible for them to shift food around to accommodate the spaces that they now must address. When there’s no organic milk at Kroger, they leave a hole in the case. I know that I’m in the right place. Just at the wrong time.

Production Operations

Volume issues for you might be seen differently. Perhaps you have a larger stack of orders sitting on your desk than usual. Or the number are the same but the quantity of shipped items is going through the roof (or floor). This is, by our account, one of the most difficult challenges to deal with. You build your team for the work you have, or you expect to have. Bold shifts in these needs – either up or down – require adjustments. And it’s increasingly difficult to determine what changes to make at the time.

Many manufacturers we speak to have a person that handles this. Whether it’s a supervisor, team lead, quality manager, or plant manager, this person has their hands full and are making split-second decisions all day long as things regularly unravel. It’s maddening and rarely under control.

While that might be just working for you today, that’s not the long-term strategy you can use going into this year. This year, we’re challenging you to take care of these issues for real. Get a tool that will help your team and, more specifically, your “fixer” do the work well.

Paperless Manufacturing

Your team needs to deal with variability in people, materials, jobs, work, speed, and quantities. Often, variability causes more problems than you even know. Let’s look at a simple increase in order quantities.

Last year, perhaps your standard order was for an average of 50 pieces and, good news, that has increased to 75 pieces this year. An increase of 50% is a lot to handle. Again, this is good news. More work, more profit, right? Only if you’re making money. Here’s a different view of what an increased order volume can do for you and your team.

• Your procurement team usually order materials to cover order averages of 50. That order volume goes up by 50%. So do your expenses. Cash flow tightens.
• Orders usually take a week to produce. Your team ships on Fridays and have worked the trucking channels to do pickups each week to accommodate that. Work now takes more time and you’re having shipments almost any day of the week.
• Shipping is used to a consistent order volume and have developed their processes around that volume and the boxes they have. What are their new challenges?
• You have staffed for your usual volume and now, as things take longer in some areas but not all, that schedule is What are you going to do?

Little changes in your workflow can cause great disruption. This can all be good – more volume is more work and more revenue. But if you’re not careful, it can also be the catalyst for empty bubbles on your schedule just like the empty spaces on those grocery shelves.  Need to find out more about how you can increase what's possible for your team?  Reach out and ask us how the right digital tools can help.