· Staffing levels and hours worked remains one of key factors affecting output
o Meeting higher seasonal demand means excessive overtime or an increase in the workforce by recruiting temporary staff
o Staffing must be set at economic levels to meet underlying demand patterns, whilst contingency plans are in place to manage peaks and troughs
o Train the workforce to be able to perform a wide range of tasks and agree flexibility terms with them.
o Rather than keeping your production volume proportional to available working hours, consider introducing annualised hours with holiday restrictions at times of peak demand
· Components should be classified as:
o core components – made in-house because they protecting your knowledge and provide competitive advantage
o non-core items - made in house through slack periods and bought out at times of peak demand, therefore can be made in or bought out
o purchased items – always bought out
· Standard or existing components should be used wherever possible and bespoke items consistently reviewed and replaced with standard items
· Where possible, suppliers should be involved in your product design process in order to plan for variants and allow their knowledge and facilities to be exploited
· You should hold regular management supply chain review meetings to agree actions with your suppliers.
· You should also develop contingency plans and detailed risk assessments to mitigate against unplanned events and / or disasters disrupting deliveries.
· All manufacturing information must be accurate, current and made readily available to everyone who needs it, using electronic communications.
· Planning rules must be established governing the magnitude of changes allowed within specific time frames
· Your and your suppliers’ manufacturing operations should be encouraged where volumes permit, to introduce focussed modules with multi-skilled teams responsible for delivering particular product families on time