Global Manufacturing View

 Sustaining Edge Solutions, Inc. Newsletter

Performance Improvement Solutions for Your Business                                 July 2014


This Month
* Global Manufacturing View
* ISO/DIS 9001:2015
* Lean Improvement
* In the News
* Training Courses



23rd Annual Service Quality Conference   Sept 23-24, 2014 San Francisco, CA.      


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Our newsletters provide information on business management systems and process improvement methods.  These systems include ISO 9001 QMS, AS9100 Aviation, Space and Defense, ISO/TS 16949 Automotive, ISO 27001 Information Security, ISO 13485 Medical Devices, ISO 14001 Environmental Management Standard, and others.  Subjects include performance improvement methods such as Six Sigma, Lean Enterprise, and other topics of interest to our readers.

If you have any questions regarding content, or have a subject of interest for a future newsletter, please let us know.   


Global Manufacturing View


Manufacturers are entering into a new era of ‘disruptive complexity’ which is fundamentally changing the way they compete and succeed, according to the KPMG’s 2014 Global Manufacturing Outlook (GMO). Respondents and data used represented six industries: Aerospace and Defense, Automotive, Conglomerates, Consumer Products, Engineering and Industrial Products, and Metals.

In an attempt to capitalize on this environment, manufacturers say they will dramatically increase spending in R&D, pursue new collaborative business models and integrate new technologies to analyze and stimulate profitable.

The GMO report showed:


  • Only 12 percent of manufacturers are ‘very effective’ at determining product profitability;
  • 38 percent acknowledge limited visibility across the supply chain;
  • Almost half plan to double their R&D investment over the next 2 years;
  • 88 percent say partnerships will drive innovation;
  • 74 percent indicate they can achieve a globally integrated supply chain in 3-5 years.

A focus on Understanding Profitability

This year’s GMO reveals that only 12 percent of manufacturers would categorize themselves as being ‘very effective’ at determining product profitability. Further, 85 percent of respondents said they plan to make either “moderate” to “substantial” investments into systems for product or service cost improvement over the next 12-24 months. The report stated ” This isn’t simply about mining data and building spreadsheets; it’s about accessing the appropriate information, at the right level of granularity and – maybe most importantly – with the right speed and frequency to generate timely insights that help people make better business decisions”.

In terms of business models, 88 percent of respondents say partnerships over in-house efforts will shape manufacturers’ approach to innovation, up significantly from 51 percent in KPMG’s 2013 GMO. Additionally, 68 percent say they are adopting more collaborative business models with suppliers and customers.

Improving Supply Chain Visibility

Forty percent – versus 20 percent in KPMG’s 2013 GMO – say they lack information and material visibility across their supply base. Thirty eight percent say they lack critical details on supplier performance, and 36 percent lack adequate supply chain IT systems. According to half of respondents, the biggest obstacle to achieving more visibility is a lack of mature technology, followed by lack of governance (19 percent) and lack of strategy (14 percent).

For the most part, these gains in visibility have resulted from stronger relationships between manufacturers and their top tier suppliers. More than three quarters of respondents say that their relationship with top tier suppliers is now strong enough for them to share real-time capacity and demand data. The upward trend is promising given the fact that almost three quarters of our respondents think they can achieve a globally integrated supply chain within the next five years.

For more information on the 2014 Global Manufacturing Outlook visit the KPMG website.



 Call for Public Comments on  ISO/DIS 9001:2015                   


Many of us are aware that ISO 9001 is going through a major revision with the future revision being published in late 2015. The United States Technical Advisory Group to ISO TC176, is the responsible group for developing consensus positions on ISO 9001 and ISO 9000.  Currently they are collecting feedback from stakeholders in its continuing work on a national view.

Public Comments are Now Welcome!!


The American Society of Quality (ASQ) is providing the ISO/DIS 9001 documents Free to anyone, with the condition to review and provide comments to prepare the U.S. position.  You will receive two documents, the draft standard and the comments document for submission.   We have submitted our comments and suggestions on the draft.

Please remember this document is a Draft, don’t use it as the published standard and start making changes to your system (the new standard will be published next year, September 2015). To request a copy for review and submission of comments, please email

Comments will be accepted until July 15, 2015.  Let your voice be heard!!



Types of Lean Improvement Methods             

In our June newsletter we started a topic discussion on finding a lean method for your company situation. Last issue was – I have a problem, but don’t know what it is, a “process walk” method was defined.  


This month we have a type of problem – a messy, cluttered work area causing process delays and inefficiencies, oh no!   


One of the most successful and often considered a house cleaning chore (it’s much more) is the 5S Process.   


5S is a rapid improvement method that you can use to improve the efficiency of workstations by cleaning and organizing the manufacturing and office environment. Each “S” corresponds to a specific step in the implementation process: Sort, Set in Order, Shine, Standardize, and Sustain. Some organizations add a 6th “S” for Safety. 


Typical Duration: A 5S exercise can be conducted in less than one day.   


Follow these five steps to conduct a 5S in your workspace:  

  • Sort (organize tools and materials, retaining only what is essential).
  • Set in Order (arrange and label items in an order that maximizes workflow).
  • Shine (regularly straighten and tidy workspaces and restore items to their place).
  • Standardize (spread identified improvements to all workstations).
  • Sustain (maintain and review standards to ensure they continue to be implemented).   


The 5S methodology is typically implemented using a three-step process, which includes establishing a cross-functional team (including employees who work in the associated areas), touring all areas associated with the manufacturing process under review, and brainstorming ways to improve organization to reduce waste. For example, factories have more than their share of searching waste. It is not unusual for a three-hour changeover routine to include 30 minutes of searching. When attempting to reduce changeover time radically (for example, going from three hours to 10 minutes), there is clearly no room for 30 minutes of searching waste.


Value-stream mapping (more detail in a future newsletter) can be used in the 5S process to analyze the material, process, and information flow. The information is used to develop a current state map, which sets out how things have been done in the past. The team then analyzes the current state map to identify opportunities for workplace organization and housekeeping improvements. A wide range of ideas is considered, although all ideas won’t end up being viable, all are worthy of investigation. The key is to observe non value-added processes and create an environment to promote value-added work through waste elimination.


Interested in developing a 5S program in your organization?    Contact us for your 5S / Lean training  and onsite implementation needs.


In the News      

New Management Standards Collection

ISO is now offering the Management standards essential collection to help you achieve success on all of these systems. This new collection contains all ISO’s best-known management system standards, including: Quality, Environmental, Risk management, Business continuity, Energy management, Information security, Social responsibility, and Product management.

This bundling makes the collection indispensable for any organization, large or small, whatever its product or service and regardless of its sector of activity. For more information visit the ISO Website.

ISO 14001 Environmental Standard Future

ISO 14001 is one step closer to a new version following June meetings in Panama where experts discussed the environmental management system standard as well as other important documents dealing with greenhouse gas emissions and water footprint.

From May 23-28, international experts resolved comments and questions submitted during the revision process of ISO 14001 and the Draft International Standard is now expected to be published in July 2014.

Some of the major changes to the document include a more proactive commitment to protect the environment as well as requirements to illustrate visible commitment from top management.  For more information visit this ISO webpage.

Training Courses

To see the course description, schedule, and on-line registration click on the course title below. We deliver onsite training for all these courses and customized training to fit your specific needs.  We offer group discounts.  


View all our Courses

View Our Web Based E-Training Courses 

ISO 9001 Quality Management

Understanding and Implementing ISO9001:2008

ISO9001:2008 Process Based Internal Auditor

AS9100 Aviation, Space and Defense

Understanding and Implementing AS9100C (9110 &9120) Aviation, Space and Defense

AS9100C:2009 Process Based Internal Auditor

ISO/TS 16949 Automotive

Understanding and Implementing ISO/TS16949:2009 Automotive

ISO/TS16949:2009 Process Based Internal Auditor

ISO 14001 Environmental

Understanding and Implementing ISO14001:2004 Environmental
ISO14001:2004 Process Based Internal Auditor

Lean Enterprise and CI 

5S Five Pillars of a Lean Workplace Organization
Continuous Process Improvement

Lean Six Sigma

8 Disciplines (8D) of Problem Solving

ISO 13485 Medical Devices

Understanding and Implementing ISO 13485:2003 Medical Devices
ISO 13485 Process Based Internal Auditor 

ISO 27001 Information Security

Understanding and Implementing ISO 27001:2005 Information Security
ISO 27001 Process Based Internal Auditor

All courses can be delivered at your company. Don’t see a course, location, or date that fits your needs?

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