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Mats Gerschman [email protected]
Prac%cal Opera%ons Management Where to start to achieve Opera8onal
Excellence
Agenda 1. Define opera,onal excellence 2. Iden,fy your strategic direc,on 3. Acknowledge your weak spots 4. Find opportuni,es in missing systems 5. Consistently use a step-‐by-‐step methodology 6. Client case studies 7. Larger company challenges
Define opera%onal excellence What does it look like? ü The right systems are in place and
working together (people, processes, equipment etc.)
ü Strategy and execu,on aligned ü Employees work as a team and
know what needs to be done ü Your profitability is consistently
trending upwards and you know why
Iden%fy your strategic direc%on
“We are successful because _____________.”
(Consider: Company strengths, key success indicators and
measurement tools)
Acknowledge your weak spots
Warning flags × Customer complaints × Employee dissa,sfac,on × Results deteriora,ng × Output inconsistent × Employment terms and
condi,ons vague × Lack of cost consciousness × Bad cash flow
Are any of these key items missing? • Defined businesses processes • Standard opera,ng procedures (SOP) • Appropriate job defini,ons • Clear and relevant goals • Metrics, measurements, follow-‐up • Wri[en (and signed) employment
agreements • Understandable and correct financial
informa,on
Find opportuni%es in missing systems
Consistently use a step-‐by-‐step methodology
• Talk individually with your employees
• Review exis,ng contracts and documenta,on
• Observe behaviours • Talk to your customers
• Consult with suppliers • Review your financials
Discovery
• Review findings with employees
• Brainstorm about issues and future poten,al
Valida%on • Refine vision and strategy with your team
• Create SMART goals
• Define metrics for all levels in organiza,on
Development
• Ensure the Right people are in the Right place
• Provide training and educa,on
• Upgrade IT systems, equipment and facili,es as needed
• Pace yourself to ensure that most addi,onal costs are carried by profits
Results
Client Case Study Challenge: Employee disengagement over varying vacation allocations
and policies.
Discovery: No employment contracts written. No vacation tracking in place.
Solu%on: Formal vacation request form implemented. Face-to face negotiation to reset entitlements. Employment agreements put in place.
Client Case Study Challenge: P/L statements did not reflect true Cost of Goods Sold.
Discovery: Labour repor%ng lacking and financial soRware could not handle inventory movements.
Solu%on: Simple spread-‐sheet for labour cos%ng created. Time sheets implemented on factory floor. New add-‐on inventory module purchased.
Larger Company Challenges Poten%al Opportuni%es • Review/Refine processes • Iden,fy ques,ons to be asked to obtain
be[er informa,on ü Collect data ü Analyse data ü Display results
• Deploy appropriate goals to front line employees
• Implement a quality culture • Redefine project management
processes
ü Define strategy and strengths ü Look for warning flags ü Use a step-‐by-‐step methodology
to discover opportuni,es ü Implement changes that affect
employees and processes ü Always look for improvements
Increase your profitability through Opera8onal Excellence
