The acronym conundrum.

To some foundry CEOs, the blizzard of advanced manufacturing management programs (and their ubiquitous acronyms) are little more than fads that will, in time, pass. To others, programs such as TQM, DFT, ISO, QRM, TBM, Five S and so on are to be derided as nothing but smoke and mirrors. But to a few, these programs represent the key to their business' survival and bottom line success.

In a sense, each of these perspectives is correct. On the one hand, some foundries have failed in attempting to implement one or more of these programs. Their CEOs went

into it halfheartedly and, like all self-fulfilling prophecies, got exactly what they expected. Instead of profound changes for the better, these explorations have yielded frustration and cynicism, and likely have poisoned the well for future efforts.

On the other hand, many more foundries have diligently prepared the paperwork processing systems necessary to become "certified," but their CEOs hardly lifted a finger to ensure that the program's core principles and techniques were woven into the fabric of their organization. While they try to hide behind the idea that "certification is a good marketing tool," at bottom these programs are little more than smoke and mirrors.

Spearheading Change

But a few foundry CEOs have spearheaded real organizational change with these programs. These organizations have registered dramatic improvements, including productivity gains, reductions in scrap and reductions in total manufacturing cost. As a result, such foundries have remained profitable, assumed industry leadership positions and are assured a prominent place in the industry's future.

But what is it about these programs that makes them more than mere fads? It is their ability to transform the art of management into the science of management, and through that transformation ignite another revolution, this time in the effectiveness, productivity and accountability of white collar, management workers.

Today's advanced manufacturing management programs can transform what is an informal, everyone-do-the-best-they-can-in-the-way-that-worksbest-for-them style of management into a more effective disciplined, formal approach. These approaches are rooted in a common, organization-wide language, set of measurable goals and set of tools and techniques that work together to convert traditional, informal managing into a formal discipline and methodology. This can allow for ad hoc experience to improve systems and convert anecdotes into meaningful information. When this happens, a baseline for and path to continuous improvement in the effectiveness, accountability, and productivity of management is created.

Few foundry CEOs would object to the notion that management needs to be more effective, productive and accountable for results. However, fewer still have been willing to do what it takes to create those conditions in their own companies.

Embracing Acronyms

Embracing the acronyms can be difficult, time consuming and expensive. It begins with CEOs admitting that the way they and their management teams have always managed can, and should, be improved. Beyond that, it involves organization-wide learning, relearning, and adopting new behaviors over years and at the cost of tens of thousands of dollars. And it means continuing to study, refine, invest and improve the work of management.

Further, in today's knowledge-based economy, continuous improvement can only be fueled by applying knowledge to work. The implication of this fact is that neither machines (computers) nor capital can make meaningful and lasting improvements in white-collar productivity. Experience shows that if applied alone, these programs are as likely to impede productivity as create it.

Advanced manufacturing management programs are indeed more than fads or illusions. They are the difference between becoming a highly successful foundry or becoming a statistic. Therefore, the conundrum for today's foundry CEO must not be whether or not to embrace one of these programs, but which one to embrace and how to create the organization-wide cultural change necessary for its successful application.

Dan Marcus

TDC Consulting, Inc., Amherst, Wisconsin