Productivity & Profitability

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Information about Productivity & Profitability
Business & Mgmt

Published on December 10, 2008

Author: mulkey

Source: slideshare.net

Description

Managing an Operations Environment
* Identify Inefficiencies within each System
* Optimize Strategic Decisions
* Optimize Resource Allocation

Quantré Group, LLC “making excellence achievable” Caren M. Courtney Scott Mulkey CEO & Partner COO & Partner 206-551-8570 404-275-2147 carenmcourtney@quantre group.com scottm [email_address] www.quantregroup.com Productivity & Profitability Managing an Operations Environment

Quantré Group, LLC “ making excellence achievable” Quantré Principles For Improving Productivity and Profitability Principle #1 - Identify Inefficiencies within each System - Definition: Maximize efficiency to use the minimal amount of inputs to achieve the desired results. Principle #2 - Optimize Strategic Decisions - Definition: The determination of a plan, method or series of actions designed to achieve a specific goal or effect. Principle #3 - Optimize Resource Allocation - Definition: To distribute monetary and non-monetary assets (e.g., cash, labor, equipment, materials, etc.) across various activities in such a way that you maximize total company output. A successful operations environment requires that all 3 principles be used in balance with one another to create a solid foundation for your company to grow from.

Principle #1 - Identify Inefficiencies within each System

- Definition: Maximize efficiency to use the minimal amount of inputs to achieve the desired results.

Principle #2 - Optimize Strategic Decisions

- Definition: The determination of a plan, method or series of actions designed to achieve a specific goal or effect.

Principle #3 - Optimize Resource Allocation

- Definition: To distribute monetary and non-monetary assets (e.g., cash, labor, equipment, materials, etc.) across various activities in such a way that you maximize total company output.

A successful operations environment requires that all 3 principles be used in balance with one another to create a solid foundation for your company to grow from.

Quantré Group, LLC “ making excellence achievable” Principle # 1 - Identifying Inefficiencies within each System Initiate Concept of “Ownership Program” with Operations Staff - strategy, train & educate Observe & Eliminate what Creates Inefficiencies - QC issues - lost time (distractions, reasons to leave area) - redundant workflows & procedures - logistics of equipment vs. personnel - non-existing or inadequate scheduling techniques for jobs, equipment & staff - improper staging of output, material & inventory techniques - shift startup & turnovers Create Bonus Program for New Concepts and Ideas to Gain Efficiencies - equate bonus to value of efficiency (time) gained examples : % of time saved X # of operators = 1 time bonus Flat Bonus “ Most Profitable Owner” Bonus Identify each Operator’s Skill-Sets and Capabilities Initiate PM Schedules and Diagnose Hardware/Software Problems

Initiate Concept of “Ownership Program” with Operations Staff

- strategy, train & educate

Observe & Eliminate what Creates Inefficiencies

- QC issues

- lost time (distractions, reasons to leave area)

- redundant workflows & procedures

- logistics of equipment vs. personnel

- non-existing or inadequate scheduling techniques for jobs, equipment & staff

- improper staging of output, material & inventory techniques

- shift startup & turnovers

Create Bonus Program for New Concepts and Ideas to Gain Efficiencies

- equate bonus to value of efficiency (time) gained

examples : % of time saved X # of operators = 1 time bonus

Flat Bonus

“ Most Profitable Owner” Bonus

Identify each Operator’s Skill-Sets and Capabilities

Initiate PM Schedules and Diagnose Hardware/Software Problems

Quantré Group, LLC “ making excellence achievable” Traditional Operational Metrics Grounded Operational Metrics Traditional concept of “Up Time” is not an accurate measurement of overall productivity. The largest opportunity to gain productivity is in decreasing “Unutilized Up Time” Up Time Unutilized Up Time Utilized Up Time Down Time Down Time Most Importantly……. Identify 100% Capability Based on all Variables Surrounding each System (If it moves, start measuring it!)

Most Importantly…….

Identify 100% Capability Based on all Variables Surrounding each System

(If it moves, start measuring it!)

Quantré Group, LLC “ making excellence achievable” Where does the day go? Administration 62% - 65% Productivity 35% - 38% Administrative expenses drive your unit costs up. Unutilized down time brings productivity down & creates loss of valuable momentum. QMPS Metrics Performance System in the hands of your operations staff will force improvements in machine utilization and overall productivity. Unutilized Up-Time…..

Administrative expenses drive your unit costs up.

Unutilized down time brings productivity down &

creates loss of valuable momentum.

QMPS Metrics Performance System in the hands of

your operations staff will force improvements in

machine utilization and overall productivity.

Quantré Group, LLC “ making excellence achievable” Principle # 2 - Optimizing Strategic Decisions Benchmark 100% capability based on all variables of your operation Implement QMPS Metrics - achieve minimal goal of 70% efficiency Create Team Based Problem Solving Skills & Methods - apply measured and deliberate methods towards problem solving Measure & Reinforce “Ownership Concept” - develop SOP’s to clarify and make operation’s staff accountable - reinforce successes & failures thru documentation of employee performance reviews Implement Plan to Eliminate Redundant Workflows and Lost Time - review all current workflows' & procedures for process improvements - thru statistical reporting, improve lost time while reducing operating costs Implement Bonus Program for new ideas to save time and money Implement Operator Training Program - develop for next operator level - develop or re-emphasize existing standard operating procedures - optimize all available capacity

Benchmark 100% capability based on all variables of your operation

Implement QMPS Metrics

- achieve minimal goal of 70% efficiency

Create Team Based Problem Solving Skills & Methods

- apply measured and deliberate methods towards problem solving

Measure & Reinforce “Ownership Concept”

- develop SOP’s to clarify and make operation’s staff accountable

- reinforce successes & failures thru documentation of employee performance reviews

Implement Plan to Eliminate Redundant Workflows and Lost Time

- review all current workflows' & procedures for process improvements

- thru statistical reporting, improve lost time while reducing operating

costs

Implement Bonus Program for new ideas to save time and money

Implement Operator Training Program

- develop for next operator level

- develop or re-emphasize existing standard operating procedures

- optimize all available capacity

Quantré Group, LLC “ making excellence achievable” Principle # 3 - Optimizing Resource Allocation Asking the Tough Questions - Is there a budget and is it carefully monitored? - Are costly overtime dollars spent randomly and without careful consideration? - Are client’s jobs performed on time and efficiently to optimize profitability? - Is there proper QC techniques & are they being enforced to avoid costly redos? - Are production staff cross-trained in multiple areas so personnel can be moved with flexibility? - Are we overstaffed or understaffed within each activity or system? - Are supervisors making immediate decisions to recover from lost time & dollars? - Are we teaching & developing good production staff? - Are we terminating production staff that are not meeting job requirements? Red Flagging Non-Profitable Areas - Front-end Supervisors & Leads need to be held accountable & responsible for knowing the cost of business within each activity . QMPS Metrics performed provides immediate notification & flexibility in decision making - perform hourly and move accordingly Startup and shift turnovers are a hidden treasure of lost time & dollars Daily monitoring through network software & spreadsheet analysis must occur.

Asking the Tough Questions

- Is there a budget and is it carefully monitored?

- Are costly overtime dollars spent randomly and without careful consideration?

- Are client’s jobs performed on time and efficiently to optimize profitability?

- Is there proper QC techniques & are they being enforced to avoid costly redos?

- Are production staff cross-trained in multiple areas so personnel can be moved with flexibility?

- Are we overstaffed or understaffed within each activity or system?

- Are supervisors making immediate decisions to recover from lost time & dollars?

- Are we teaching & developing good production staff?

- Are we terminating production staff that are not meeting job requirements?

Red Flagging Non-Profitable Areas

- Front-end Supervisors & Leads need to be held accountable & responsible for knowing the cost of business within each activity .

QMPS Metrics performed provides immediate notification &

flexibility in decision making

- perform hourly and move accordingly

Startup and shift turnovers are a hidden treasure of lost time

& dollars

Daily monitoring through network software & spreadsheet analysis

must occur.

Quantré Group, LLC “ making excellence achievable” Quantr é Solutions & Services Initial – Full Site Assessments Cost Reduction Solutions & Analysis Full Scope Project Management Services Mailing & Production Management QMPS Metric Performance System Operational Cost Analysis Capacity & Growth Analysis Equipment Capacity Management Training Equipment ROI Analysis Application Analysis Postage savings analysis Operator Training Programs Team Training Program /w business problem solving (DIcor) Standard Operating Procedures Best Practices Documentation of Existing Procedures Retool Workflows for Efficiencies Facility and Equipment Layout Planning SLA Tracking Programs Disaster Recovery Readiness Assessments

Quantré Group, LLC “ making excellence achievable” How The Quantré Initial Site Assessment Works Information Gathering Gathered in advance of site visit Statistical data System configurations Workflows Administrative functions Schematic layout Staffing levels Initial Site Assessment 1-2 day site assessment Observe your facility in action About 4-hours a day observing the production environment We document areas where improvements can be implemented Focus on improving operational efficiencies and overall effectiveness Recommendations Provide cost cutting and improved efficiencies recommendations on the spot We present our initial findings and recommendations on the final day of our assessment About 30 days after we present a formal write-up of our Observations and Recommendations Which can include vendor recommendations based on Quantré analysis Recommendations include a customized plan of action that can be executed by Quantré

Information Gathering

Gathered in advance of site visit

Statistical data

System configurations

Workflows

Administrative functions

Schematic layout

Staffing levels

Initial Site Assessment

1-2 day site assessment

Observe your facility in action

About 4-hours a day observing the production environment

We document areas where improvements can be implemented

Focus on improving operational efficiencies and overall effectiveness

Recommendations

Provide cost cutting and improved efficiencies recommendations on the spot

We present our initial findings and recommendations on the final day of our assessment

About 30 days after we present a formal write-up of our Observations and Recommendations

Which can include vendor recommendations based on Quantré analysis

Recommendations include a customized plan of action that can be executed by Quantré

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