Issue - January/February 2006


Constraints on performance improvement
One of the key issues identified by the 942 respondent companies in the Canadian Manufacturers and Exporters (CME) annual Management Issues Survey was continuous improvement. The top five constraints firms experience in achieving measurable improvements in business performance are limited resources, lack of time, cost, lack of qualified personnel, and organizational culture—the same constraints that have been reported for the past six years.

Overcoming constraints on improvement
Manufacturers are taking a number of steps to overcome the constraints they face in improving performance. More than 30% are upgrading employee skill sets, improving operating efficiencies, investing in new technologies and strengthening the teamwork capabilities of their workforces.

Flexibility as a competitive advantage
Flexibility is viewed as a major strategic advantage by a majority of Canadian manufacturers and exporters. Many companies see their capacity for agile response to changing customer demands as ahead of their competitors’ capabilities, but most have to catch up to their competitors as well as to their own expectations.

Improving flexibility: challenges
Businesses face a number of challenges in improving flexibility. Challenges cited by 25% or more of firms are the seasonality of customer demand, long-lead times for components, workforce capabilities, capacity constraints and forecasting error.

The benefits of lean
Just under 60% of manufacturers report they are implementing business improvements based on lean principles. They’re reaping significant benefits including waste reduction, improved operating efficiencies, speedier product lead and delivery times, improved materials management, heightened customer and employee satisfaction, stronger cash flow and improved profit performance.

Objectives in supply chain management
Manufacturers are outsourcing more from domestic and foreign sources. Cost effective supply chain management is a business priority. The most important objectives for Canadian manufacturers and exporters include product quality, the reduction of operating costs and overall costs to customers, customer service and sourcing reliability.

Trends information is provided by Plant, Canada’s Industrial Newspaper. Source: Jayson Myers, chief economist with Canadian Manufacturers & Exporters. Purchasing b2b and Plant are both published by Rogers Media.