Strategy Development
The core competency assessment (CCA) can be done taking the products and processes as the basis. Factors that are considered for the assessment are their importance to business, the USP’s as perceived by the market, effort needed by others to copy, degree of sustainability, possibilities for substitution and already known innovation potential both from the value addition as well as from the cost reduction perspective. The core competencies then serve as a very valuable input to the SWOT analysis that follows the CCA.
Purpose: Develop a robust basis for strategy.
Process Duration: SME – 1 to 2 weeks; LE – 4 to 6 weeks
Product Portfolio Management
It is necessary to have a mix of products/services that are very innovative in nature and products that compete due to a cost advantage. For the business to grow profitably, it is essential to maintain a rolling development plan of product portfolio. The future products and the further development needed can be planned systematically using the idea workshops. Idea workshops can be held typically once a year and the product needs and positioning examined from the perspective of market, cost, innovation and core competencies.
Purpose: Create a robust product portfolio to support sustainable growth.
Process Duration: SME – 1 to 2 weeks; LE – 4 to 6 weeks
Time-To-Market Process
The key success factor for timely launch of products is to identify risks that normally are underplayed in organizations due to collective (team) wisdom. Once clear gates are established with the “Must” factors and “Want” factors to be fulfilled to proceed to the next stage, the TTM not only becomes more efficient, but also ensures that the right resources are deployed upfront to ensure a smooth start-up and a good life cycle. Structured risk assessments followed by meaningful MIS will ensure the necessary management focus.
Purpose: Smooth and successful launch of new products and/or product variants.
Process Duration: SME 1 – 3 days; LE 1 – 2 weeks only to assess the improvement potentials. The actual implementation can run into months/years.
Capacity and Investment Planning
The most important aspect in manufacturing is to establish the correct installed capacity based on clear premises (Cycle Time, Line Balancing, Utilization, Working Hours, Defectives, Type-Mix, Set-ups, etc.). Once this is done, only then can the performance be measured to check if the installed capacity is being fully unitized. The investment planning then is done based on the sales forecast and the actual performance of the installed capacities. Therefore the sales forecasting accuracy also is very important to invest on a timely manner. Based on the past experience of the accuracies of the sales forecast, strategies can be developed for the investment planning to compensate the risk of having idling investments.
Purpose: Improve ROI with timely investments after ensure full utilization of already installed capacities.
Process Duration: SME 1 – 3 days; LE 1 – 2 weeks only to assess the improvement potentials. The actual implementation can run into weeks/months.
Supply Chain Development
A mix of outsourcing and in-house manufacturing based on the Core Competency Assessment is necessary to get the best benefit. Apart from this, the overall optimization of the logistics chain and centralization of only such components/products using core competencies will support the overall supply chain performance.
Purpose: Design/Optimize the supply chain based on core competencies and both within the organization and outside in the market.
Process Duration: SME 1 – 3 days; LE 1 – 2 weeks only to assess the improvement potentials. The actual implementation can run into weeks/months.
Target Deployment and Timely Standardized Reporting
As the organizations get bigger, the purpose often gets lost at the working level and compartmentalized attitude builds in resulting in slackness in the overall system. However, a thorough alignment of targets followed by a unique (single) deployment (top-down) and reporting (bottom-up) path across hierarchy will set the base for the entire organization to work towards a common purpose. Timely reporting after a thorough review at each hierarchy level in a cross functional team ensures that the accountability is established across the hierarchy.
Purpose: Better synchronization of all functions in an organization.
Process Duration: LE 6 – 8 months preferably starting 2 months prior to the annual target deployment time line. SME sector may not need this service due to the organization size and structure.
Business Process Management
Especially as the organizations get bigger and various functions are formed, the interdepartmental functioning becomes quite turbulent. Using swim lane diagrams the business processes can be mapped either top down or bottom up in cross functional teams. Followed by the process mapping, the process can be designed to eliminate waste and to add more value to mostly the customers. However the efficiency of these processes can only be improved with a top down cross functional approach with clearly defined KPIs for the monitoring purpose as well as KPIs for the control purpose, preferably at the shop floor level with appropriate visialization.
Purpose: Continuously optimize the business processes and establish role clarity of every function and every employee leading to motivation through a clear identity.
Process Duration: LE 2 – 6 months depending on the organization size.
Continuous Learning through structured SDCA/ PDCA
In the manufacturing industry as in other industries attrition and availability of the qualified and trained manpower is an issue. One way of addressing this concern is to put in systems in place that ensure organizational learning. The classic SDCA/PDCA (Standardize or Plan/Do/Check/Act) is a great tool to accomplish this goal.
In manufacturing discussion/review/check routines with appropriate visualization/documentation of results are extremely important to run the business in a sustainable and effective manner. For example starting from hourly routines of quality checks, shift wise routines of the attendance check, status check, etc, daily routines of shop floor QCD deviation management, weekly routines of meeting room review of Corrective and Preventive Actions (COPA), monthly routines of business performance check and quarterly routines of system audits can be so modified that the “Act” of the SDCA/PDCA becomes more effective, since this is truly the learning phase that is extremely important for sustained continuous improvement. Emphasising on the “Act” phase not only will the know-how and knowledge be available across the organization in a documented form but also the employees become more motivated with a continuous learning.
Purpose: Know-how enhancement, employee motivation and reliability of data/reports.
Process Duration: LE 2 – 6 months depending on the organization size.
Productivity Improvement
Productivity is the most essential KPI especially for the manufacturing wherein a relatively large number of people are employed and wherein the learning effect is almost continuous till the end of the product life cycle. Even after ramp-up the learning effect is significant resulting from quality improvements, machine downtime reduction, Kaizen activities, suggestion schemes, layout changes, make/buy decisions, etc. Therefore a payment/incentive model that supports continuous improvement in productivity is a must for sustained success. The choice of the correct measurement indicators (for example % increase in the ratio of “SVOP: Sales Value of Production” to the total input hours of all the employees could be one such indicator) is the key success factor. Linking this indicator to the payment incentive systems in a way that other inefficiencies (like inflexibility, limiting of output or abstaining to boost productivity, etc.) don’t creep in is the true challenge.
Apart from the manpower productivity, it is also essential to ensure increase in the overall business productivity (for example % increase in the ratio of SVOP to the total of operating expenses, difference between SVOP and material cost). Defining the key cost drivers to improve productivity and including them in the annual target deployment is necessary.
Purpose: Maintain the health and agility of an organization
Process Duration: LE 2 – 6 months depending on the organization size.
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