In the Lean context, the approach of Shop Floor Management (SFM) as a term has long since become established. What was originally meant was management at the point of value creation, i.e. in the factory. In the meantime, not only the understanding of value creation has expanded, but also the application of Shopfloor Management.
Indirect or purely informational processes are also managed today with SFM instruments. The main objective is to ensure that a work system is efficient and free of interference. Here, the availability of relevant information is a crucial asset – it must be ensured across distances and in near real time. That alone suggests a digital solution. Today, we talk about digital Shop Floor Management (DSFM) as a leadership paradigm in organizations.
Technically, the core task of leadership is to ensure the performance and freedom from interference of a work system. In practice, this takes place across several management levels – along a so-called cascade. First and foremost, this means that information must be prepared, provided and visualized in such a way that the individual levels can perform their tasks optimally. A production team has different management responsibilities and different management information requirements than a company’s board of directors.
An essential principle of leadership is the definition and delegation of tasks. From the bottom up to make the right decisions, and from the top down to operationalize those decisions by initiating and implementing actions.
Today, high demands are placed on the cycle time of information. In the digital world, data is read out automatically, visualized and displayed in near real time at any user-friendly location.
Another key point at which the performance curve rises and the cost curve falls is when DSFM begins to connect with other data sources in the company. Keyword: ERP or MES. If the data available in it is made available as management information in an automated way, this means a quantum leap. If this connectivity is consistently expanded and additional business areas and data sources are tapped, the curves can be continuously changed. Costs go down, performance goes up.
This means: Leadership effectiveness and efficiency can be improved significantly and sustainably. Excellent leadership performance is also characterized by the fact that the manager is on site with the employees despite digital support – but is informed more quickly and is therefore able to make more precise decisions more quickly.
The bottom line
With the help of IT, crystal-clear transparency can be achieved. However, this is of little use if the information is not handled more efficiently and consistently. If you start digitalizing Shop Floor Management now, you won’t have to wait long for ROI. As a rule, it is achieved after three to six months.
Magazine Article about ValueStreamer
Digital shop floor management as a new paradigm
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