Tag: production plans

This Year’s Production Challenge

The year has begun. There are several things to be considered when setting your strategic plan in place for the new year. What corrections did you need to make in the last quarter to bring in the previous year as a success. Did those corrections simply accommodate your metrics or did they change the business for the better? A simple example is waste control. At the end of the year, did you not scrap out hardware that you should have dispositioned to attain a cost of poor quality or financial number? Were you balancing your scrap rate against an inventory goal and abandoning better business practices to hit a metric? Did you push high dollar products in front of lower revenue ones that your customer desperately needed? All of these practices are a fault of your prior year’s execution of the strategic plan. The problem with the aforementioned is that you are probably having a very tough first quarter. With that being said, you must analyze what did not execute properly that you have to adjust in the upcoming year.

1. Were your goals too aggressive and based off a desire or ones that had a sound detailed plan that was executional? Many times we set our goals off a desire and not as a strategic plan for improvement. If you look at your projected sales for this year, have you detailed the inventory you will need to attain the increased sales goal? Drill down the data to assure that your year-end projections are based off a carrying inventory that will be required for success. Failure to do so will result in a starved inventory for production in the first month of 2023. Assure that material planning is accurate and that you realize the inventory you need for 2023 is in place that does not deficit the beginning of 2018. Realize that in the last quarter of 2022 you must execute your material properly and not delay material receipts again. Detailed and verified inventory plans are required for each year’s success.

2. Waste planning is essential to success. Whether it be productivity, effectively or scrap and rework levels, your strategic plan now has to be compared to what was executed in 2022. When you set your goals for 2023, you must ask whether they were too aggressive or too lax. Did the goals for scrap materialize or did you hold back execution burdening the upcoming year? If you let your business run and execute to normal practices at the end of the year, congratulations as you did not manage the business to metric attainment. Observe those practices that were successful and which ones required intervention. Determine what the product flow actualizes and understand that unless you have a level three plan that is aggressive for improvement, your goal cannot be aggressive for attainment. A detailed plan for improvement is necessary for any step change and that plan must be reviewed with the responsible managers and the executors of that improvement plan.

3. Plan your sales plan off customer demands. You cannot be overly optimistic in creating the annual operations plan. Base that plan and make adjustments off of the market indicators for the industry you are in, firm contracts that are in place, spares sales that are based off of previous years realizations and firm forecasts, and reasonably project any new product introductions. Being overly optimistic will realize a plan that fails and one that is too conservative will starve your business of resources.

4. Develop a production start plan. At the onset of the year, you will be able to project production starts and build in outsourcing and shared resources. You can also deliver a plan that executes the entire year. That plan will require a review and adjustments throughout the year, but you will be able to project resource and material shortages and the risks associated with them. You must finalize your start plan months in advance to set the demand for material, manpower and process capacities. The failure of many production systems is the inability to project a starts plan and executing it appropriately.

5. Review your plans with all levels of the organization. Include the quality, materials, planning, procurement, and production groups. If possible review that plan with the hourly associates that produce the product. They will either validate the plan and attempt to perform to it or they will point out shortages that you may not have realized. Communicate the entire production plan so that everyone in the organization understands where improvements must be made and when resources will be strained.

Make 2023 a business based off sound date and not from opinions or speculations. The success to you year is based off a strategic plan that executes and is measured so short term adjustments may be made accordingly.


As we continue to actualize our production or service, we tend to make every attempt to hit our commitments and goals. What makes us unique as leaders is the ability to manage success. There is always a pattern of accomplishing our goals during our careers but we need to reflect on just what we are doing to accomplish those goals. There are several ways of meeting our deliverables and unfortunately we grew up in a society where leadership was recognized for “block and tackle” techniques. This methodology worked in years past and still can yield results on a short term basis today, but there are several elements that limits the success of this management technique in our present culture.

If you haven’t noticed, the world has changed. The mentality of the worker, the philosophy or labor, and the expectations of human resources are different than in the baby boomer days. Today’s workers have evolved, especially with Generation Z . The baby boomers strong work ethic was rewarded by companies by giving lucrative pensions and benefits . Companies revered loyalty and long term employment with one company. As global competition evolved, companies have been forced to pull back on benefits and have learned that employees that switch jobs and companies bring forth new diversity into a workforce. Generation Z functions different as they are social creatures that are flexible in nature and expect flexibility from institutions and companies. They are so flexible that employers are challenged to retain them if demands are too high. They expect instantaneous rewards and recognition for performance. They cannot be intimidated and sometimes can feel entitled to their job. Therefore we cannot intimidate them or insist they work long hours to please the company or their boss. They are now flooding the job market and leaders need to change their style from micro management and a demand persona.

The philosophy of labor has changed. The labor market will soon have more jobs than people as the prior boom generation retires. Labor’s paradigm is changing to one where employees desire constant increases in salaries and benefits and they do not react to an environment where people are expected to be patient for recognition. This requires that management spend a significant amount of time on the recognition aspect of employee management. Leaders must also determine how they can bridge the gap between expectations and business restrictions. There is always a way of managing a company to meet the business’s needs and employee’s expectations. This does require creativity and good communication with the workforce to determine methods that satisfy both criterion. Most studies show that monetary recognition is not the only avenue to engaging and delighting your workforce. Honest description of the business conditions will help employees understand what restrictions exist and the performance necessary to embrace monetary improvements.

Finally, the next generation of workers have different expectations of human resources. In prior work generations, the worker did not engage human resources as deeply as they do today. Human resources was the element that defended them against unreasonable management demands and was a defender of worker’s rights. Seldom did people involve human resources in anything but these matters. Today, human resources is viewed as the element that helps workers remain in a safe, politically correct, and respected workplace. Workers expect that human resources will assure they are continually trained thereby allowing employees to grow in the organization. They are looked upon as the employee’s ally and employees use human resources as a sounding board for both work and personal issues. Human resources’ tasks have grown immensely in the last ten years as they have expectations from the workforce that assimilates both a counselor and personal carrier growth advisor.

In conclusion, our success as leaders is dependent on an engaged, self empowered workforce that is allowed to be creative and involved in determining the business’s future. This workforce is more highly educated and has characteristics that will not respond to older management styles. It is the leaders responsibility to change their tactics and embrace the new workforce’s personality. It is an enriching workforce that will guide us into a better workplace and one that self actualizes itself to a more productive society if we embrace them. Do not rely on the “Block and Tackle” micromanagement tactics as they will eventually fail. Leaders will be more successful if they accept this new generation’s philosophy and work with it to aspire the business to new heights of performance.