Operations Improvement

The mission of our Operations Im- provement group is to help com- panies improve performance through the transformational use of organizational change tech- niques and enabling technology. Service offerings and Competen- cies include:

  • SupplyChainManagement (SCM)
  • ProcessImprovement(PI)
  • Outsourcing
  • StrategicCostReduction(SCR)
  • OperationsImprovementLeanTechniques
  • Virtual Community Transfor-mation (VCT)
  • StrategicSourcing&eProcure-ment
  • ProcessAnalysis
  • ProcessDesign

The Improvement Imperative

During the 1990s, companies implemented enterprise resource planning (ERP) systems to improve internal data flow and to control the demand volatility arising from upstream vari- ances in the supply network.

When business-to-business e-commerce emerged, companies began to use the Internet to communicate with their supply chain partners. A few companies soon realized that the key to fully leveraging supply chain capabilities lay in working smarter by increasing visibility across an entire value chain.

Some of these companies have begun to reach out to their suppliers and customers to pro- vide visibility through the chain. They are sharing forecasted demand information, working together to determine capacity constraints, and learning how to most effectively leverage that capacity to meet demand.

The global economic slowdown is increasing the pressure on companies to reduce their costs while retaining and maximizing the value of their existing customers. Under these economic conditions, businesses are being forced to look at supply chains operations as a critical en- abler of innovation and competitive advantage.

Recognizing the need for Operations Improvement

Healthy, integrated supply chains are characterized by the following attributes ….

  • Industry partners seek to drive out supply chain inefficiencies and costs, especially those that create no added wealth and offer no competitive advantage
  • Supply chain partners agree on common business processes and internet protocols to facilitate inter-enterprise business process and information exchange
  • As supply chain integration increases, process execution moves from time driven to event driven
  • Flow and storage of materials is optimized using multi-directional flow of information • Relevant information is selectively disseminated in parallel or made on-demand to authorized partners
  • Real time information, EFT, and the desire to achieve supply chain efficiencies movepartners to pay immediately on receipt of 100% filled order

Optimized enterprise processes get the most out of your resources (personnel, equipment, and inventory) simultaneously. Optimized operations are characterized by….

  • Having the ability to provide customers with the products they want, when they want them
  • Maintaining minimum inventory which is re-supplied in a just-in-time mode
  • Conducting regular sales and operations planning meetings and by counting produc-tion scheduling in days, not weeks
  • Balancing product lines or service programs to allow quick response to customer de-mands based on inventory or resource availability

Operations Improvement Services

Supply Chain Management (SCM) – Our SCM practitioners focus on lowering the total cost of delivering improved customer service by co- ordination and integration of all those activities associated with moving goods from the raw materials stage through to the end user.

Process Improvement (PI) – Use a toolbox of lean and other reengineering techniques to ensure product and data flows through all the value adding steps without interruption within the “4-walls” of the organization.

Outsourcing – Bundled solutions for application and process outsourcing assessment, value modeling, and integrated service delivery. Strategic Cost Reduction (SCR) – Suite of services designed to help companies manage costs in a down market. Includes procurement, inventory, telecommunications programs, among others.

Operations Improvement Core Competencies

Supply Chain Strategy – Many organizations are embarking on initiatives to address globalization, technological advances, legislative changes, infrastructure change s, labor mobility and, most significantly, more sophisticated and demanding customers. We conduct an in – depth analysis of the client’s capabilities, market, industry, and opportunities across their products, channels, and customers. Identify the internal and external strengths and weaknesses, and through designed, facilitated, scenario envisioning sessions, lead the management team through a decision making process to determine how the company should be positioned, and establish the change programs and metrics to help them realize their vision.

Virtual Community Transformation (VCT) – Using an extended-enterprise model, we assist key leadership in the design and transformation of all aspects of the customer value proposition from strategy to delivery. Integrating new technologies with proven process techniques, we can define production, capacity and supply planning and inventory management across multiple enterprises.

Operations Improvement Lean Techniques – We deploy an extensive toolkit (5S, Kaizen Breakthrough, Value Stream Mapping, and policy Deployment) of lean techniques to assist organizations to eliminate wasted time and effort throughout their enterprise processes.

Strategic Sourcing & eProcurement – Often, e-procurement provides the basic functionality to support collaborative supply chain activities. Our procurement solutions address e-procurement/collaborative value chain complications across all industries as well as inbound logistics, inventory management, strategic sourcing and supplier/customer collaboration.

Process Analysis -Using electronic mapping tools, our assessment creates an As-Is document encompassing existing processes. Final docu- mentation includes related aspects of current facilities, product, personnel and resources utilized, as well as data and financial flows. The assessment is used to identify opportunities for improvement through fact-based ROI modeling.

Process Design – Our facilitated design process assists key process and business leaders to define multiple solution scenarios. Completed process maps include process, data, and financial flows for the chosen process or for the entire enterprise. Each scenario will include the supporting costs, benefits, and risks. Our facilitation leaders then help the executives apply financial and operational criteria to chose the best strategic scenario.

Benefits & Case Studies

Example benefits of Operations Improvement programs include:

  • Reduced Scrap & Waste
  • Reduced Inventory Costs
  • Reduced Materials & Acquisition Costs
  • Lower Space/Facility Requirements
  • High Quality & Reliability
  • Lead Time Reduction
  • Improved Customer Satisfaction
  • Lower Inventories & Work In Process
  • Improved Vendor Support & QualityCase 1: Automotive ManufacturerChallenge: Reduce cost and improve operating cycle in assembly paint shop. Solution: Using lean techniques, eliminated banks of in-process inventory.Results: Reduction of in-process units – annual savings of $5.5 million. Reduced lead time by 2.5 hours, increasing daily production. Increased available floor space by 2000 square feet by eliminating work-in-process.