1Invigorate the Performance Planning, Reporting and Review process
We test, validate and lift performance standards by observing work in progress. We recover performance losses, including speed loss, downtime, quality defects, yield loss, and excess inventory. Tailored planning and reporting tools, together with powerful review disciplines are central to our approach. We work side by side with the management team, at all levels, until review discipline is established and continuous improvement efforts are fully focused.
2Create an Effective Pricing and Margin Management Process
We quantify the amount of production capacity lost to profitless products and services. We establish standard operating procedures and disciplines for systematically controlling price and margin. In conjunction with commercial managers, we review commercial contracts and assess the justification for sustaining weak or negative margins. We assist to revise/establish standard margins at the product/SKU and customer level.
3Optimize Capacity Utilization through Effective Sales and Operations Planning (S&OP)
We will introduce formal planning, reporting and review processes aimed at realizing the best match between profitable demand and productive capacity over time. This extends to labor, materials, property, plant, equipment and utilities. We will work with management to remove excess production capacity during the program or alternatively, to load it with new profitable demand.
4Integrate Operational and Financial Performance Objectives Across Function
We sustain clear line of sight between specific functional goals for improved speed, quality and productivity and financial goals for Return on Invested Capital (ROIC). Participants in the operational review process will understand the causal connection between operating performance goals and budgeted operating profit and capital efficiency outcomes. We establish the basis for organizational accountability and responsibility.
