How Management Can Focus on Core Functions 2008-01-0552

Every second one spends managing operations the competition is working on improving their processes to use less labor while maintaining quality. While it is important to maintain smooth operations, strong leaders must also concentrate on improvements for their own product. This was the strategy of a Tier 1 global tire manufacturer when they decided to in-source the manufacture and supervision of their non-core processes. The result? Forty percent in labor cost savings and managers were able to move from non-core operations to core areas where they could concentrate on improving the core business. Meanwhile, the in-sourced manufacturing service successfully supports the production lines while implementing Six Sigma process improvements. In-sourcing the manufacture and supervision of non-core products can significantly change the way one is able to manage a plant.