While no one in manufacturing would say that workflows have “returned to normal” in the post-COVID world, many agree that a “new normal” has taken hold heading toward the end of 2022. At Cass Precision Machining we’ve settled into our new normal as far as our workflow and our customers go. Several changes have emerged post pandemic across manufacturing as the fog has lifted and the new normal takes hold. Here are some of the changes we are seeing at Cass.
Customers are very focused on managing performance of their partners by providing key metrics on scorecards.
At Cass we receive metrics on a monthly basis with two main categories – OTD (on-time delivery) and PPM (parts per million). Essentially, these metrics track quality measurements and delivery time over periods of time to highlight trends. These metrics are very important to Cass. Even though we have our own internal metrics on quality and delivery it is very important to align with our customers to ensure accuracy and highlight opportunities. Partnering on metrics helps both Cass and its customers find success.
Today, businesses measure their success based on several key performance indicators (KPIs). A scorecard is an enterprise tool for the evaluation and communication of strategic objectives and these KPIs. The Manufacturing Scorecard implements the SCOR (Supply Chain Operations Reference) model within the Scorecard framework, and enables you to effectively monitor, analyze, and respond to those measures that characterize your manufacturing supply chain performance.
Manufacturing Scorecard enables the alignment of day-to-day management decisions with the overall corporate strategy by combining best practice key performance indicators to monitor and respond to performance changes in real time. The manufacturing Scorecard comprises the following metrics – measures defined by SCOR, supplier metrics, and customer metrics.
During the pandemic many manufacturing businesses struggled to keep up with demand. This led to some suppliers being unable to meet deadlines, which can have a serious impact on production schedules. To help manage this problem, some companies are using scorecards to track supplier performance.
Scorecards can be used to track a variety of supplier performance metrics, but on-time delivery is one of the most important for manufacturers. This metric lets companies know if their suppliers are meeting deadlines and helps them identify any potential problems.
There are a few different ways to score on-time delivery. One common method is to give each supplier a score based on the percentage of orders that they deliver on time. Another option is to give suppliers a point for each order that they deliver on time and deduct points for each order that is late.
As the world enters a new era of global trade, post-COVID, manufacturers are looking for ways to secure their supply chains and ensure they are getting the best quality products possible. One way to do this is by score carding suppliers on their parts per million (PPM).
What is PPM?
Parts per million (PPM) is a unit of measurement that indicates how many defects there are in a given product or manufacturing process. It is typically used to compare the relative quality of different suppliers or vendors.
PPM is important because it can help identify potential problem areas in the manufacturing process and help improve quality control. Additionally, score carding suppliers on their PPM can help encourage them to continually improve their quality.
There are several benefits to providing metrics to suppliers on their PPM, including:
- improved quality control
- identification of potential problem areas
- encouragement of supplier quality improvement
- increased transparency in the supply chain
- ability to compare different suppliers’ relative quality levels
Manufacturing scorecarding suppliers post COVID on parts per million is a great way to improve your manufacturing process and ensure you are getting the best quality products possible. Do not hesitate to implement this quality control measure in your own business.
Customers are looking at which vendors helped them with their manufacturing needs during COVID and are determining who they want to support in the future. While “normal” workflow has returned, you can be sure that companies have set mechanisms for future pandemic type situations. The last two years illustrated just how much disruption can happen to primary businesses, with the brunt of the impact felt by supply chain and logistics.
Supply Chain Disruption
The pandemic has also had a significant impact on manufacturing supply chains. In many cases, factories have had to find new suppliers or source materials from different parts of the world to keep production going. This has often meant making significant changes to the way that factories operate.
Anyone in manufacturing was forced to learn to have patience with the ongoing fluctuations in supply and demand. Companies learned how important it was to be agile in terms of production needs. Many businesses have adjusted by building a better onshore supply chain. Local sources are being added to the supply chain to supplement offshore production as a type of insurance policy against unexpected supply chain disruptions. The last two years have illustrated how much sense it makes to bring manufacturing back to the U.S.
The COVID-19 pandemic has also had a significant impact on manufacturing supply chains. In many cases, factories have had to find new suppliers or source materials from different parts of the world in order to keep production going. This has often meant making significant changes to the way that factories operate.
While Cass has gotten back to business development, we are more aware than ever of the importance of employee safety and employee health. Many of our pandemic protocols are still in place, we keep our machines and equipment as clean as possible and hand-washing protocols remain.
The changing trade landscape necessitates a change in the approach to manufacturing in the future. Automation, skilled labor, local US manufacturing facilities, and a robust supply chain will form the bedrock for the future of manufacturing in the post-pandemic world.