Trimming the Fat and Enabling Dynamic Manufacturing Operations

What do supply chain processes, procurement, and effective metrics all have in common? Many things, but as of a few days ago, they have all taken on increased importance to food manufacturers that have historically used trans fat in production. The FDA officially banned the publicly condemned substance on Thursday, and has begun the phase-out process in the marketplace.

In this week's roundup, we explore more on this topic as well as actionable ways to cut procurement costs, enable a dynamic supply chain, and implement an optimal metrics program to continuously strive for a model of Operational Excellence.

4 Ways to Make Your Supply Chain More Dynamic

Managing a successful supply chain is always a challenge for executives and their departmental teams. The market is increasingly uncertain with shifting consumer demands, which makes flexibility the key requirement for an organization’s supply chain. Stephane Crosnier of Accenture discusses with GreenBiz how to successfully compete in the market with the development of  “dynamic operations” through four capabilities: turning data into action, adaptive structure, flexibility in innovation, and agile execution. Read more.

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Increase profitability by taking control of procurement costs

In order for procurement officers to take control of procurement costs, it is important for them to have full understanding of supplier costs, material costs, manufacturing costs, machining costs, labor, etc. This is no easy task, and the effort to successfully obtain this information varies by industry. Luckily, technology can aid in this process. Emilia Maier of Siemen’s Product Marketing discusses how Teamcenter Product Cost Management can effectively calculate costs and prices as well as compare against other production sites, developing a make-buy analysis. Learn more.

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No More Trans Fat: FDA Banning The Artery-Clogger

What does this mean for food manufacturers?

On Thursday, the FDA officially banned Trans Fat. In years past, the organization was successful at reducing its use during preparation, and therefore consumer intake as well. In 2003, the average daily consumption was 4.6 grams, which dwindled to 1 gram by 2012. While health risks are still apparent, the FDA has begun the complete phase out process. This isn’t going to be an overnight success due to being mindful of the market, and it hasn’t been disclosed as to what degree this ban will affect many well-known brands and manufacturing plants. We will be following this process and discussing the operational and quality management changes many organizations are implementing, but for now, read NPR’s article.

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1 Major Problem with Your Operational Excellence Model

87% of companies have instituted some type of Operational Excellence or Continuous Improvement initiative.

Unfortunately, it’s not uncommon for there to be difficulty in determining whether or not progress is being made toward those initiatives. So what’s one major thing standing between you and your Operational Excellence targets? There’s a good chance it’s an effective metrics program. This article examines the role that an effective metrics program can play in making your goals a reality. Read more.

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Operational Excellence Report

All entries in this Industrial Transformation blog represent the opinions of the authors based on their industry experience and their view of the information collected using the methods described in our Research Integrity. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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