WATCHMAKING INDUSTRY
Watchmaking - The 6 key planning priorities and best practices to address them effectively.
15/05/2023
Reading time: 5min
Production planning in the watchmaking industry is a determining component. Between a maximal expected quality level of a luxury product and the optimal management of operational variability due to the multiple adjustments that are very often manual, its stakes are high.
Here is a summary of the 6 priorities of production planning in this complex industry.
1- Establish a touch-up management process
Issues
Quality is paramount in watchmaking; it is the very essence of the industry, therefore, any defect is absolutely prohibited.
In order to minimize defects, manufacturers multiply quality controls and send a very large number of pieces for retouching, pieces that then compete with other pieces in the production flow.
This consequently generates a multitude of small batches to manage and a high complexity in shipping (delays if the last pieces are awaited; otherwise, partial shipments).
Best practices
It is recommended to perform quality controls upstream of production bottlenecks in order to minimize the number of defective pieces at these stations.
It is also advisable to reduce the number of quality control points before over-capacity stations and observe the impact on the quality level during the final control.
2/ Mastering your work in progress level
Issue
The raw materials used and processed in watchmaking are often precious and expensive metals (e.g., gold, platinum).
Reducing the number of pieces in production at any given time in the workshop is therefore critical for the financial health of that workshop.
Best practices
Implement processes to control work in progress (e.g., Kanban, Conwip)
Allow rapid transport of the product between the end of step N and the provision at the start of step N+1. In other words, do whatever is necessary so that there are never completed operations remaining in a workshop for several hours.
3/ Closely monitor subcontracting
Issue
Most manufacturers subcontract a part of their production process or resort to subcontracting during peak load periods.
Poor communication or a lack of anticipation with subcontractors and/or logistics teams can quickly lead to several days or even weeks of delay.
Best practices
Establish contracts that secure the capacity and availability of your suppliers on critical steps/products. This often comes with a commitment in volume, duration, or price.
4/ Internally develop specialized skills that are bottlenecks
Issue
Some skills are currently in high demand and are sought after. It is not unusual for the recruitment of a finisher, for example, in Switzerland to take several months.
Best practices
Engage with a school and offer to train their students through internships.
Create an internal learning incubator.
Develop the skills of people internally.
Develop your employer brand.
Attract and unite your teams.
5/ Reduce variability in operations and cycle times
Issue
In watchmaking, many jobs are manual or require considerable setup time.
Thus, for the same operation, the execution time can vary greatly depending on the person performing it.
Best practices
Monitor the performance of each person based on the production stage, the reference worked, or the setup in place. This information can then be summarized in a two-dimensional table (people / piece or setup) which displays in green the most productive operators on certain pieces/setups and in orange those who need assistance.
Implement training among operators to homogenize performances as much as possible and allow the most experienced individuals to share their knowledge and good practices.
6/ Display clear production priorities to teams
Issue
Too often, the volume of operations carried out daily includes few priority operations due to a lack of communication.
Priorities always exist but are not displayed for everyone to see or easily accessed.
Alternatively, the progress information is not communicated quickly enough.
Best practices
Implement a dynamic scheduling system that allows:
To clearly display priorities throughout the workshop (more effective than a printed support placed at the workstation).
To quickly update production progress, available operations, unforeseen events, and priorities (more effective than a printed support or a solution that does not allow interconnection between different stations).
Conclusion
All of these issues can be addressed internally, either with rigorous methodology and processes, or through solutions like Oplit, which will help communicate your priorities to the field, up to the adherence of your objectives on your capacity load to your planning managers.