Re-shore On-shore Right-shore. Some movement we are, don’t even have an accepted name yet. But the concept and message is loud and clear. Supply chain disruptions of 2022 after buying from a distant supplier awoke us to hazards which offset a lower manufacturing labor cost.
Moving offshore in the first place was pretty easy, just sign up and someone else took care of all of the detail to get the products into manufacturing, and then back to us. Plus we did receive advantages of just in time delivery, until
… it wasn’t.
To return manufacturing is a much more difficult proposition. It is we who have to deal with the formidable detail of reshoring, and it is a tall order.The G-7 gave us plenty of attention, added the word De-link, as opposed to De-couple, in May 2023.
Re-shore activities will be unique to each project,
as each will be designed for certain end products or components. A company will consider different manufacturing locations, prefer to make or buy, thoughtfully choose a specific location to build or rent, employ or contract qualified people to staff them, have a different budget and sense of urgency. You’ll want to write the script for this drama carefully, so as not to go through this again soon.
The Re-shore Playbook
JPR has prepared a written scope document, over 45,000 words and frequently adding, that defines typical issues. It can be used first to create and outline the scope that is likely for your specific situation, topic by topic. What, where, who, when. Continually you will update, add detail, and modify the script.
Considering your particular re-shore objectives, and resources to make it happen, how best to scope, manage, staff, schedule, budget?
We offer a scope document to provide hands-on, how-to guidance, ranging from theory to specific instruction on the multitude of topics which constitute re-shoring practices.
Is it complete, does our document tell you everything that you will need to know? No it certainly does not, re-shoring is just too complex to describe completely. And there are some topics, finance, legal, international exchange, regulatory that are well beyond the scope of this manufacturing-oriented document.
Judge for yourself, the curriculum outline is shown below. It extends from moving out of the present manufacturing location through start-up in your new digs, and all the points in between. The document will provide theory, alternatives, roadmap and how-to manual; it will equip your people with tools, mechanisms, and sequence to initiate, sequence, and accomplish re-shoring tasks. And, the topics apply to existing manufacturing just as well as to re-shoring. It is as modern as the section on Industry 4.0 and Artificial Intelligence, AI. That is in section 4, which also suggests how to identify which particular products to return first, to get the biggest bang for your buck.
We’ll cover the action of merely changing vendors, perhaps to source from more acceptable locations. There is a good chance that your own resources can do that, with their skills now.
JPR can assist to convert the playbook to your Re-shore Plan, in your choice of three methods,
1. Buy the Playbook, then proceed with your own resources to create a Re-shore Plan.
2. JPR provides the Playbook as well as remote guidance to convert it to your own Re-shore Plan, tailored for your objectives and timetable with your people.
3. JPR provides the Playbook as well as on site consulting, with your people, to convert it to the unique requirements of your re-shore.
With the Re-shore Playbook purchase, or by request even if you don’t buy, I’ll provide the names of terrific sources of information in Latin America, so you can contract with them directly to learn about location options there. They won’t necessarily help directly with the relocation, but are effective site search advisors and have many contacts.
Pricing and delivery, Re-shore Playbook
The price of the Re-shore Playbook is $800.The content is in Word files, and arranged by purpose so you can send pertinent sections to the different people who will implement them, according to the resources you have available.
You will receive the information by email, and have the right to use it within your corporation or subsidiaries. Use it later too, for re-shoring subsequent Skus. You are not authorized to copy or resell the information outside your organization, or to put it on the internet.
Order the Playbook alone, and select a payment method. I’ll respond with a non-disclosure form (I will also sign, not to disclose your corporate identity if I know it, and I don’t need to.)
Here is a suggestion to put the guidance into use quickly; have a knowledgeable person, perhaps your project manager, read and understand the concepts. Then separate into sections appropriate to your organization and terminology, send the sections to the appropriate people, in your org chart, for immediate research or implementation or project management.
I’ll send new re-shoring material to you for the next 6 months.
Remote or on-site assistance, in order to introduce re-shoring into your organization, and tailor a specific plan and timetable is available.
I am available for assistance, remotely or on-site, as a consultant on this or other productivity issues, at $1400 a day plus expenses. We will jointly understand enough of your objectives in advance to formulate a scope. This rate includes access to all of the written material in the JPR library.
For web readers all over the world, the site search marketplace in your country will not be exactly the same as in the USA, but the theory and steps required should be quite similar.
Thanks, and get your order off now. Jack Greene
Call 843-422-1298 or email jack@jacksonproductivity.com
Re-shore Playbook
a Re-shoring Guidance document from Jack Greene
1. Re-shoring and the international supply chain,
The international supply chain in a nutshell
A basic assumption
An ideal supply chain
Just In Time, JIT
Cause and effect, of remote vendors
Historical progression
How much do you save offshore?
Labor, a lot;
Not so much elsewhere, maybe a net loss. Equipment / Facilities, Materials, Shipping, Supply chain length, Product recalls, Health Issues, How will your U. S. operations change? What is the label “Made in the USA” worth to your company and to good will? Off-shore legal and political considerations, if your crystal ball is effective. Point out but not address, such as legal, tax and accounting issues, foreign exchange, regulatory.
2. Reshore: A tall order /p>
Reshoring is a long series of difficult tasks. The content offers a synopsis of the outcomes you will expect to achieve during the sequence of events.
First challenge, move out of the present source location. Then move successfully, on time, to the destination. Then find, equip, staff a production operation. The contents of this document guide you through these elements.
3. Total Cost of Ownership
An on line estimator of the true costs of all the elements of off-shore supply, free at the web site.
See https://www.reshorenow.org/tco-estimator/
4. Selective reshoring;select products with the best return,
1. Reshoring and Artificial Intelligence, AI, and Industry 4.0
2. What is an economic reason to reshore?
3. Practical concerns, before relocating a product line or SKU
4. Good candidates to manufacture here; “Made in the USA” is a boost to sales; problematic products now, and seven more categories.
5. The crappy stuff
6. Which products or services are the most profitable, which the least?
7. Continue to outsource
8. Options
9. To make it happen
5. Materials Control Options, for a reshore initiative About 5070 words
Inventory and Flow
A. Just In Time, The Toyota Production System
B. Just in Case
C. Hybrid systems
D. Just In Time operating detail, compared to Just In Case Inventory, Lot sizes, Work station set up, Queues, Incoming Quality, Equipment, Lead Times
E. Economic Order Quantity
F. Batch size, volume, mix, capacity
G. In summary
Make versus Buy
Hands-on care and feeding of the system.
Individual work station capacity
Plant capacity
Plant loading
Seasonal demand
New products
6. Where to?
Which continent, as a starter, if you choose to make parts or products as you re-shore.
Chapter 1 Overview, a facility instead of or in addition to
Chapter 2 Time to expand?? Time to relocate??
Chapter 3 Justification, both objective and subjective
Chapter 4 The marketplace which solicits business to locate in their areas.
Chapter 5 Relocation incentives and taxes
Chapter 6 The need for confidentiality
Chapter 7 Which locations are promising?
Chapter 8 Site search process
Chapter 9 Quality Of Life, and Culture Shock
Chapter 10 Red flags and warning signs
Chapter 11 Master Plan for a for a campus, of multiple facilities
7. Project Management
When? Right now
Project Management
Don’t reinvent the wheel
Reporting is an under-appreciated tool.
Last Century, but Effective
8. Create a destination property
Introduction
Lease or build decision. Now is the time to confirm the decision.
Which property?
Permits, and the fire marshal
Property actions to build
Chapter 1 If you only read one layout chapter
Chapter 2 Step one, to create a layout
Chapter 3 Block layout, and detailed layout
Chapter 4 What format, CAD or paper-dolls? Both, please.
Chapter 5 Relationships of layout components
Chapter 6 Create layouts, explore options
Chapter 7 Ownership in a layout
Chapter 8 Tools to apply, for successful layouts
9. Manufacturing and this applies as well to your company’s existing manufacturing as to new.
How long does the job take?
Many management tools are possible when you objectively define the time required.
Work measurement provides tools to manage your business better.
Work measurement provides current information to support multiple tools of good management.
Actions to initiate work measurement.
What comes first, methods or work measurement?
Work measurement techniques.
Capacity and Constraints
Introduction
Capacity, utilization, constraints
Constraints come in a wide variety of forms
There is always a constraint
Maximize capacity, manage constraints
Take out the wasteful activity, all across the organization chart.
A basic and effective plan to raise capacity.
Don’t overthink the challenge
Focus attention on the constraints
Use Reasonable Expectancies
To raise capacity for a specific operation
Study changeovers, Reduce the down time of transitions
Balance lines, balance workloads
Apply the capacity, constraint, and utilization data
Perhaps a department other than production constrains.
Warehouse and docks constraints
10. Productivity insights, for new or existing operations
1. Contradictions between labor productivity and other productivity measures
2. Prioritize
3. Typical actions to resolve constraints
4. Communication
5. Workplace instruction
6. What is the question?
7. The particular issue at hand
8. A specialized solution
11. To start up a manufacturing facility About3430 words.
A. How long does the job take?
Develop a “Rate”
Apply the rate, to determine operator performance
Apply the rate, use results to plan manpower requirements
Apply the rate, use results to set expectations
Apply the rate, build results into standard labor costs
Apply the rate, use results as part of operating performance variance analysis
Apply the rate, use results to plan equipment; and space
Apply the rate, use results to plan space
B. Individual operators or teamwork? Work and shift plans.
Individual or teams
Work and shift plans
Length of the shift
Fixed or Rotating
At work, off work
Overtime
Wage Administration
After all
C. Determine the crew size
Variables
Actions
E. Manning or staffing arithmetic
Determine the total group staffing requirements
F. Assign work
Assign work individually
Depend on other functions
Supply parts, take away finished
Load a constraint
Thanks, and get your order off now. Jack Greene
Order to jack@jacksonproductivity.com
