The hidden factory represents the untapped capacity of your manufacturing plant or more broadly in any business – “It could be defined as the maximum amount of additional production and revenues that can be unlocked without capital investments.”
Practically 40-50% of all your available and paid for Assets (Employees, Floor space, Inventory, Machines, Time, Opportunity) remain non-productive and underutilized.
The monies spend in the hidden factory has the greatest negative impact on the competitiveness and profitably of your organisation. The TRUE “Cost of the Hidden Factory” is usually underestimated in most companies.
Global research has proven that the costs associated with hidden factories could adversely affect revenues by up to 40%. We have enough case studies and empirical date to showcase that this works up to anything between 12-20% of your bottom line.
Everything that occupies space in your facility but doesn’t create products – limits your profitability. In essence the hidden factory are those undocumented processes that work against quality and efficiency, creating invisible roadblocks to strategic goals while driving up costs.
As a plant owner your Goal is to:
Maximize the space / assets you’re in for the best value.
Increase capacity with new efficiencies.
Get the most out of a new / existing space and assets.
How to uncover the Hidden Factory and help you see your plant in a New Light?
The basis of any facility design is rooted in the principles of Lean Manufacturing which enable organisations to:
Respond to customer requirements at a faster rate.
Reduce waste from Process and Operation.
Minimise distances between operations and reduce costly transport.
Shorten production lead times.
Saves space and removes clutter of excess WIP inventory.
Dramatically improve machines and asset utilisation.
The costs of the hidden factory run wide and deep in manufacturing organisations today, which may total billions of dollars just for the largest automotive and aerospace suppliers before we consider other manufacturers. Rooting out these processes take time, and there are no easy answers. Lean transformation tools are helping companies uncover and correct inefficiencies in the process, increasing awareness of the source of defects while fostering communication and sharing of ideas.
Our methodologies include but are not limited to:
Value Stream Mapping – Flow chart which identifies value and non-value-added activities within your operations.
Balanced Production – Improving productivity by providing optimal flow and balance through various manufacturing areas
Changeover – Process from converting a production line from one process to another.
Single-Piece Flow and Work – Reduce WiP and Eliminate wasteful exercises during production
Levelled Production – Systemically controlled productivity and steady production flow to improve on-time delivery and efficiency.
Inventory Management and Kanban – Systems to control the logistics of inventory.
We design and execute programs to bring culture of continuous improvements in all basic elements of business by creating a solid foundation of procedures and processes to improve business performance visibility (MIS), manufacturing operations (OEE, production, quality, delivery), operating costs (inventory, waste) and premises (5S, safety) that are aligned with world class standards
What opportunities are waiting to be uncovered under your roof?
Let’s have a discovery session and start envisioning the possibilities to achieve greatest co-ordination and efficiency of 4 M's (Men, Materials, Machines and Methods) in a plant.
With Lean regards
Nimish Dave
+91 9650733993 ♦ nimish@theideasmith.net