Establishing the proper flow in the fabricating shop

The elimination of work-in-process in the aisles helps to keep orders from getting lost on the floor, allowing for optimized flow of jobs through the shop. yoh4nn/E+/Getty Images

Flow can be defined as the movement or passage of something. In industry, it might be the movement of liquids or gases in hydraulic and pneumatic equipment. In business and economics, flow refers to the movement of goods, information, or money through a system, such as the flow of products through a supply chain or the flow of capital through an investment portfolio.

Business Flow

Business flow in manufacturing refers to the series of steps or activities that a business follows to achieve a particular goal or objective. Flow ensures the business operates efficiently and effectively, with all its resources being used in the most optimal way.

Sales Flow. The sales flow involves the processes of marketing and selling the finished products to customers. There are two parts to this equation:

1. Demand generation - Sales professionals collaborate closely with marketing teams to generate demand for manufactured products. They conduct market research, identify target markets, promote products through various channels, and engage with potential customers. Sales efforts contribute to creating awareness, generating interest, and driving customer demand for manufactured goods.
2. Product distribution - In manufacturing industries, sales teams play a crucial role in distributing finished products to customers. They are responsible for identifying potential distribution channels, negotiating contracts with distributors, and ensuring that products reach the intended market. Sales efforts directly impact the availability and accessibility of products in the market.

Manufacturing Flow. In manufacturing plants, raw materials or components are converted into finished goods. These processes involve production planning, procurement, inventory management, assembly, quality control, and distribution.

Cash Flow. The financial process flow involves all the steps that a business takes to manage its finances. It typically includes activities such as budgeting, forecasting, accounting, billing, invoicing, and payment. Money moves in and out of the business, including the inflow of revenue from sales and the outflow of expenses related to manufacturing and other business activities.

The Cash Flow/Manufacturing Flow Relationship

To ensure a positive cash flow, a manufacturing business must manage its inventory effectively, optimize its production processes by eliminating waste (such as by using lean manufacturing techniques), and ensure timely collections from customers. This requires careful planning, forecasting, and monitoring of both the manufacturing and cash flow processes.

Manufacturing flow creates the efficiencies. There is a direct relationship between creating efficiencies that enhance overall business performance and increasing profitability. Manufacturing flow and cash flow are closely linked because manufacturing involves the conversion of raw materials into finished goods, which requires cash to purchase raw materials, pay for labor, and cover other expenses. A smooth manufacturing flow ensures that goods are produced efficiently, which can improve cash flow by reducing costs and increasing revenues.

For example, if a company has an efficient manufacturing process that minimizes waste and maximizes productivity, it can produce goods at a lower cost, which can lead to higher profit margins. Additionally, if the manufacturing process is efficient and streamlined, the company can produce and sell goods more quickly, which can improve cash flow by reducing the time between spending money on production and receiving revenue from sales.

On the other hand, if the manufacturing process is inefficient or prone to delays, it can tie up cash in inventory or cause delays in receiving revenue from sales. This can negatively impact cash flow, as the company may need to pay for materials, labor, and other expenses before receiving payment for the finished product.

In summary, the efficiency of the manufacturing flow has a direct impact on cash flow, as it affects both the cost of production and the timing of revenue from sales.

A key ingredient for smooth production flow is fabricating equipment that contributes to the efficient movement of materials or workpieces through the shop floor. Phuchit/iStock/Getty Images Plus

Types of Manufacturing Flows

In manufacturing, materials and products flow through a production system in several different ways.

Continuous. Materials and products move through the production system continuously, without interruption. This is often used for high-volume, low-mix products.

Batch. Materials and products are produced in batches or lots, which means that a specific quantity of items is produced at one time. This is often used for medium-volume, medium-mix products.

Job Shop. This type of manufacturing is characterized by a high degree of customization and low-volume production. Each product is unique and is produced in response to specific customer orders.

Cellular. Workstations are grouped together in cells, and each cell is responsible for producing a particular type of product or component. This allows for efficient production of low-volume, high-mix products.

Lean. Materials and products move through the production process quickly, with minimal waste and maximum efficiency. This is achieved using value stream mapping and just-in-time production.

Lean flow in manufacturing can help companies achieve many benefits, all of which lead to increased customer satisfaction:

• Reduced lead times - Optimizing the flow of materials and products through the production process reduces the time required to complete each step, resulting in shorter lead times.
• Improved quality - Reducing the number of steps in the production process minimizes the opportunities for defects to occur, leading to higher-quality products.
• Minimized waste - Eliminating non-value-added activities and streamlining the production process reduces waste and enhances overall efficiency.
• Increased flexibility - A well-designed flow enables manufacturers to respond quickly and efficiently to changes in customer demand or product requirements.

Seven Flows in Manufacturing

Regardless of the type of flow used in a manufacturing plant, there are seven main flows within the manufacturing process.

Raw Material. Raw materials are the basic components used to manufacture a product. They can be natural resources, such as metals, or processed materials such as components sourced from suppliers. The flow of raw materials typically involves procurement, receiving, inspection, storage, and production.

WIP. Work-in-process refers to products or components that have undergone some manufacturing operations but are not yet completed. The flow of WIP typically involves machining, assembly, painting, quality control, transportation, and storage.

Collaboration between engineers and shop floor production personnel help companies to avoid surprises and keep jobs moving along as scheduled. Gorodenkoff/iStock/Getty Images Plus

Finished Goods. These are the end products that have completed all manufacturing operations and are ready for distribution or sale. The flow of finished goods typically involves packaging, quality assurance, storage, and distribution.

Operator. The specific flow of an operator can vary depending on task and sequence of operations. However, operator flow typically involves understanding and being trained for the task; gathering information (such as manuals, tools, and materials); initializing the system or software; configuring the system and entering data; performing actions (such as loading parts, manipulating controls, and following specific procedures); monitoring the machine and feedback (visual indicators or status messages); handling unexpected issues or errors; concluding the task (saving data, generating reports, and cleaning up); shutting down the system; and documenting and signing off on the results obtained.

Machine. This is the smooth and efficient movement of materials or workpieces through various machines or workstations in a production line. It involves optimizing the sequence of operations, minimizing bottlenecks, and ensuring a continuous and streamlined flow of work.

Machine flow often is a key consideration in lean manufacturing and process improvement methodologies like Six Sigma. Machine flow also can refer to a specific software platform or tool designed to facilitate the management and automation of workflows in a machine learning or data science environment, especially using robotics and CNC machines. This type of machine flow platform helps streamline and standardize the end-to-end process of developing, deploying, and monitoring machine learning models. It typically includes features like data ingestion, preprocessing, model training, evaluation, deployment, and monitoring, with the goal of making the machine-learning workflow more efficient and reproducible.

Information. In today's digital age, technology plays a crucial role in facilitating information flow. Various communication tools, collaborative platforms, and information management systems are used to enhance the speed, accuracy, and accessibility of information. However, organizations need to ensure that their information flow systems are secure, reliable, and aligned and effective with their goals and values of manufacturing.

Engineering. This is the process of designing and optimizing the flow of materials, information, and activities within a production system. It involves analyzing and improving the movement of materials, equipment, and personnel through various stages of the manufacturing process to enhance efficiency, reduce waste, and increase productivity.

Tangible Barriers to Manufacturing Flow

Tangible barriers are the physical obstacles and constraints that hinder the smooth flow of production. These barriers can disrupt operational efficiency and limit overall performance.

Equipment Breakdown. When manufacturing equipment malfunctions or breaks down, it can disrupt the production flow and cause delays.

Limited Production Capacity. If a manufacturing facility has limited capacity to handle the demand, it can create a bottleneck in the production flow, resulting in delays, backlogs, or poor customer service.

Inadequate Infrastructure. Insufficient physical infrastructure, such as improper storage space or transportation facilities, can impede the smooth flow of materials and finished goods.

Supply Chain Disruptions. Delays in raw material delivery can directly impact manufacturing flow.

Physical Space Limitations. Limited physical space can restrict the efficient layout of manufacturing operations. This can lead to congestion, inefficient use of resources, or difficulty in expanding operations.

Inefficient Layout and Workflow Design. A manufacturing plant with an illogical flow of materials can lead to inefficiencies and delays.

Regulatory Compliance. Compliance with health and safety standards and environmental regulations can create tangible barriers if manufacturing processes need to be modified or if additional resources are needed to comply.

Addressing tangible barriers in the manufacturing flow requires careful planning, process optimization, investment in modern machinery and equipment, effective inventory management, efficient transportation and logistics practices, and compliance with relevant regulations. Continuous improvement efforts, lean manufacturing principles, and advanced technologies such as automation and data analytics also can help overcome tangible barriers and optimize the manufacturing flow for improved efficiency and productivity.

Intangible Barriers to Manufacturing Flow

Intangible barriers are obstacles or challenges that are not physical in nature but can impede the smooth operation and efficiency of manufacturing processes.

Communication Barriers. Poor communication between different departments or teams within the manufacturing process can lead to delays, errors, and misunderstandings. Lack of effective communication channels or language barriers can hinder the flow of information and coordination.

Cultural Barriers. In a global manufacturing environment, cultural differences can pose challenges. Different cultural norms, values, and practices may affect collaboration, decision-making, and problem-solving within the manufacturing process.

Lack of Collaboration. Manufacturing involves the coordination of multiple teams, such as production, supply chain, and quality control. Lack of collaboration and teamwork among these departments can lead to bottlenecks, delays, and inefficiencies.

Resistance to Change. Updates and improvements are sometimes needed in a manufacturing process to enhance efficiency and adapt to evolving market demands. Employees who resist these changes can create barriers to implementing new technologies, methodologies, or process improvements. This resistance might manifest in insubordination, persistent reduced output, passive aggressiveness, and increased employee requests for transfer or resignations.

Resistance to change can be addressed by setting up effective and continuous communication with employees based on three essential factors:

1. Engagement - Engaged employees have an emotional commitment to their work and the organization. They are motivated, enthusiastic, and dedicated to their roles. They feel a sense of purpose, connection, and satisfaction with their work, which leads to higher levels of productivity and creativity. To foster engagement, management must communicate a clear vision and purpose so that employees understand the organization's goals, reasons for change, results of change, values to be achieved, and how their work contributes to the overall mission. Establishing channels for feedback, recognition, and regular communication between employees and management also fosters trust and engagement.
2. Empowerment - Empowering employees means giving them the responsibility, authority, autonomy, and resources they need to make decisions and take ownership of their work. It also means helping them embrace calculated risk-taking and to view failures as opportunities for growth and learning. When employees feel empowered, they are more likely to be proactive, innovative, and accountable for their actions. Empowerment can lead to higher job satisfaction, increased productivity, and better problem-solving capabilities.
3. Enrichment - Employee enrichment involves providing opportunities for personal and professional growth beyond the scope of their current roles. Enrichment programs aim to enhance employees’ skills, knowledge, and overall well-being, which can lead to increased job satisfaction, motivation, and loyalty. Enrichment can be fostered through training and development programs (workshops, online courses), cross-training and job rotations, work-life balance initiatives (flexible work hours, wellness programs), and recognition and rewards.

By focusing on engagement, empowerment, and enrichment, organizations can create a work environment that fosters employee satisfaction, productivity, and long-term success with longer tenure.

Establishing Flow in Manufacturing

Ensuring consistent flow in the manufacturing process requires careful planning and execution. Here’s a general roadmap to follow.

Understand the Current State. Begin by analyzing the existing processes and identifying areas that can be improved. This includes mapping out the flow of materials, information, and activities involved in the production or service delivery.

Identify Bottlenecks. Determine the bottlenecks or constraints in the current process that hinder the smooth flow of work. These bottlenecks can be physical, such as machinery or resource limitations, or they can be related to the flow of information and decision-making.

Set Goals. Define clear and measurable goals for implementing consistent flow. These goals could include reducing lead times, improving quality, increasing productivity, or enhancing customer satisfaction.

Use Value Stream Mapping. Conduct a value stream mapping exercise to identify waste and non-value-added activities in the process. This helps to visualize the current state and identify opportunities for improvement.

Design the Future State. Based on the analysis and value stream mapping, design the desired future state of the process. This involves rearranging workstations, optimizing material flow, and eliminating non-value-added activities. Consider incorporating concepts like lean manufacturing or lean service principles to guide the design.

Implement Small-Scale Changes. Instead of attempting to implement the entire flow system at once, start with small-scale changes. This allows for testing and validation of the proposed improvements and reduces the risk of disruptions. Implement changes gradually, monitor their impact, and adjust as required.

Train and Empower Employees. Provide training and education to employees on the new processes and principles of manufacturing flow. Empower them to identify and solve problems as they arise and encourage a culture of continuous improvement.

Standardize Work Procedures. Establish standardized work procedures that define the sequence of steps, work instructions, and performance expectations for each task. Standardization helps to ensure consistency and facilitates the smooth workflow.

Monitor and Measure Performance. Implement performance metrics to monitor the effectiveness of the manufacturing flow. Key metrics may include cycle time, throughput, defect rates, customer satisfaction, and employee engagement. Regularly review these metrics and use the data to drive further improvements.

Foster Continuous Improvement. Foster a culture of continuous improvement by encouraging feedback and suggestions from employees at all levels. Continuously seek opportunities to optimize the process, eliminate waste, and enhance the flow.

Expand the Flow System. Once the initial changes have been successfully implemented and validated, gradually expand the flow system to other areas of the organization. Apply the lessons learned from the initial implementation to streamline the expansion process.

Sustainability of Flow

Sustaining information flow means maintaining the smooth and efficient exchange of information among individuals or within an organization. It involves ensuring that information is timely, accurate, relevant, and accessible to all stakeholders. Here are some tips:

• Establish clear communication channels to facilitate the flow of information, such as regular meetings, email, instant messaging, or project management tools.
• Encourage open communication to create an environment in which everyone feels comfortable expressing their ideas and opinions. Encourage questions, feedback, and suggestions.
• Use technology tools to streamline communication processes and ensure that information is shared in a timely and efficient manner.
• Practice active listening to help prevent misunderstandings and improve communication. Encourage individuals to listen actively to others, repeat back what they have heard, and ask clarifying questions.
• Share information proactively to ensure that everyone has access to the information they need to perform their jobs effectively. Share updates on projects, as well as changes in policies or procedures.
• Provide training in effective communication skills to help individuals communicate clearly, respectfully, and assertively.

Sustaining manufacturing flow involves a few main steps:

• Implement efficient processes to reduce bottlenecks and improve the flow of materials and products.
• Optimize inventory management to ensure that you have the right amount of inventory on hand to meet demand and avoid stockouts that can disrupt the flow of production.
• Use data analytics to identify and address areas where the flow of materials or products may be slowed down or disrupted.

Sustaining cash flow is essential for the financial health and stability of any business. To improve and maintain cash flow:

• Increase sales by improving marketing and sales efforts, exploring new markets or customer segments, and offering promotions and discounts to boost sales.
• Reduce expenses by negotiating better rates with suppliers, reducing overhead costs, and reviewing all expenses to identify areas where savings can be made.
• Manage inventory levels to reduce excess inventory and the associated costs while ensuring that you have enough stock to meet customer demand.
• Improve collection procedures by having clear customer payment terms and following up on overdue accounts. Consider offering incentives for early payment or charging late-payment fees to encourage timely payments.
• Increase efficiency in all areas of the business, including production, operations, and administration.
• Access financing such as a line of credit or business loan, but make sure the cost of financing doesn’t outweigh the benefits of improved cash flow.
• Eliminate waste as defined by the acronym DOWNTIME (defects, overproduction, waiting, nonutilized talent, transportation, inventory, motion, extra processing).
• Sustaining supply chain flow refers to the management of the entire process of producing and delivering products or services in an environmentally and socially responsible manner. It involves integrating sustainability principles into all aspects of the supply chain, including product design, raw material sourcing, manufacturing, transportation, distribution, consumption, and end-of-life disposal or recycling.

The goal of a sustainable supply chain is to minimize the negative environmental and social impacts of the supply chain while maximizing its economic benefits. This can be achieved through various strategies:

• Reduce waste by minimizing the use of resources and optimizing the use of materials.
• Increase energy efficiency by using energy-efficient technologies and renewable energy sources.
• Practice responsible sourcing by selecting suppliers who prioritize environmental and social sustainability in their operations and supply chain.
• Reduce the carbon footprint by reducing greenhouse gas emissions across the supply chain, including transportation and manufacturing processes.
• Practice a circular economy by designing products and processes that enable the reclamation, reuse, recycling, and repurposing of materials and resources.

By adopting sustainable supply chain practices, businesses can improve revenue and cash flow by reducing costs, improving efficiency, enhancing their reputation, and increasing customer loyalty. Additionally, sustainable supply chains can contribute to global efforts to address climate change, protect natural resources, and promote social equity.