Based on the diagnosis and identified focus areas in product manufacturing lines, SSA took a three pronged approach to deploy Operational cost reduction initiative at ABC. The basic focus was to deploy process improvement techniques to achieve the financial goals using these three methodologies – Lean Manufacturing, DMAIC problem solving and Total Productive Maintenance (TPM).
Based on the diagnosis and identified focus areas in product manufacturing lines, SSA took a three pronged approach to deploy Operational cost reduction initiative at ABC. The basic focus was to deploy process improvement techniques to achieve the financial goals using these three methodologies – Lean Manufacturing, DMAIC problem solving and Total Productive Maintenance (TPM).
CAM-I methods and applications - march 2014Ashok Vadgama
CAM-I work in the areas of methods, applications and guideliines by working with their members, strategic partners and academia and subject matter experts.
CAM-I methods and applications - march 2014Ashok Vadgama
CAM-I work in the areas of methods, applications and guideliines by working with their members, strategic partners and academia and subject matter experts.
The objective of this study is to examine the effect of cost reduction techniques on profitability of manufacturing firms.
To achieve this objective, the study adopted survey design. Data were collected from the primary source. A total of
120 copies of questionnaire were administered out of which only 100were retrieved. The returned copies of
questionnaire were utilized in the data analysis of the study. Simple regression model was established and the
findings of the study indicate that there is a significant relationship between cost reduction techniques and
organizational profitability. The study concludes that the application of cost reduction techniques has improved
organizational profitability. Based on this, the study recommended that company should employ linear programming
(LP) techniques so that there would be timely purchase of raw material and component to meet production and sales
requirement. With the above recommendation, the company can achieve its goal of being ‘Low cost management’
Profitiviti - New Product Development Case Study ExampleSteve Raack
The New Product Development (NPD) process is a critical enterprise process for most product / service related companies. Understanding the true costs and talent associated with the NPD process can improve operational efficiencies and profitability. Let us know what you think.
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*Strategy: A corporate strategy department function as a coordinating body, developing and implementing strategies that satisfy the objectives of individual department as well as promoting overall corporate goals.
(Development, Implementation, Coordination, Evaluation.)
*Lean: Lean Six Sigma (LSS) helps to improve the productivity and quality of product when it is implemented in proper way in pharmaceutical manufacturing facilities. Some of the pharmaceutical manufacturing companies have implemented it.
*History:
1920’s: Henry Ford, Automatic Industry Through 1st Mass Production Techniques.
1930’s: Toyota Production, Motor Vehicles Forced for Profitability Resource to Adopt the Just in Time (JIT) For the Supply of Component In 1946.
1950’s: Production Engineer, Tall chi Ohno Develops; Toyota Production Techniques Become Later Toyota Production System (TPS).
1970’s: Oil Crisis →Concept of Waste.
1980’s: Western world taken notice of TNP.
1990’s: Adoption→ Lean Manufacturing Concept. [MIT Researcher→ Published Machine.
2000’s: Expanded→ into “NON” Automotive Industries.
2010’s: Expanded → Service activities & Industries e.g. Back Office Functions, Insurances, Banking.
*Benefits are huge:
• Better Quality.
• More Space.
• More Security.
• Better Comfort & Safety.
• Less Stock.
• Fewer Delays.
• Fewer Defects.
*Costs:
Only Major Investment.
Internal resource required to implement.
*Risks:
Forgetting to assess the impact of changes on health and safety.
*Cycle of Changes:
A Cycle of models to help understand change management.
Traditional Organisation Lean Organization:
*GEMBA
Where Work In Done & Where Value Is Created & Where Problems Are Solved
• Key roles: Leadership main role is to assist the GEMBA operators
Remove Obstacles.
Provide Systems.
Training.
Resources & Tools.
• Support Departments → Role → is to assist operations managers & GEMBA `Operators.
• Manufacturing World.
• Laboratory World.
• Transactional World.
• e World.
Running Head: Strategic plan 1
Strategic plan 2
Strategic Plan
David Greenfield
BUS/ 475
August 10, 2015
Susan Horvat
Strategic Plan
Introduction
This paper is going to describe the methods of balanced scorecard which is currently being used more often by small and big companies. In elaboration of this concept, this document is going to use the idea of the business design of Waterboard’s new division known as Cargo Shipping Division. After the division’s importance, objectives, perception as well as profits have been evaluated, the strategic plan of the balanced scorecard is developed considering contingency planning, danger elimination as well as moral dimensions of the developed plans (Kantor, Nolan, & Sauvant, 2011).
The BSC method is shown as a way which evaluates the efficiency of the company through economical, customer, inner business procedures as well as research and development. Considering the values, mission and vision of Waterboard Corporation, the four areas can be described as follows:
Financial: Waterboard’s new division of Cargo Shipping would have to concentrate on developing a competitive edge through proper allocation of adequate resources and keeping client database in an attempt of decreasing dangers by mechanised process (Biegelman, 2008).
· Waterboard Corporation would focus on improving its market share by diverse methods like online promotions, coping with client appointments as well as individualised relationship with their clients through the Cargo Shipping division. In order to attain the stipulated 10percent growth rate, the new division will need to provide security and proper training to its employees to deliver quality services to the customers and arrange for them adequate resources to enable them reach to the clients.
· The Corporation, through the new division would focus on boosting the profit margin by lowering the operational expenses like vocational or unnecessary marketing promotions and replacing them with focused customer networking all over the globe utilizing the process and business abilities (Kantor, Nolan, & Sauvant, 2011).
· The Corporation would as well focus on boosting its earnings. In order to achieve its objective of market expansion through the Cargo Shipping division to about 10%, Waterboard would concentrate on delivery of additional services like online consultation via video conferencing. Basically, this would increase its earnings due to the large market share it would create.
Customer: In Waterboard Corporation, customers are given the first priority and accorded much respect. This is evident by the strategies put forward for achieving client satisfaction. Some of the customer objectives of the Waterboard’s new division would concentrate at:
· Developing stronger c.
Lean Manufacturing essential tools for all manufacturing industry
Lean consulting1
1. Profitability Improvement in FMCG Manufacturing Operations
SSA embarked its journey to expand and serve, to international markets and Indian
MNCs abroad, in the year 2011. During this course, SSA came across varied
industries like FMCG, Machine Manufacturing and other service industries, across
Africa and Asia, who in specific had requirements to improve their operational
profitability. This was because industries around the world were challenged with
increase in labour, material cost and other operating costs. ABC Pty (a subsidiary in
Indonesia of an Indian MNC giant) is one such FMCG who was facing these
challenges. The following article describes how SSA had handheld and supported ABC
to deploy ‘Profitability Improvement & Cost reduction drive’ using process
improvement tools and techniques.
Business Challenge
ABC Pty is an FMCG serving Indonesia and nearby Southeast Asian markets with Home
Care and Body Care products, with a turnover of approx. INR 1500 Cr. ABC recently
came across two major challenges in their business, which was eating away their
available operating gross margins. One of them was, rise of about 55% in minimum
wages as enforced by the local government; and the other major challenge was
devalue of local currency which increased their cost of material that was imported
from different parts of world. This led to an immediate need for a Cost reduction drive
across the plant operations, which can help themcompensate against the current
challenges raised.
Itisnotthesrongestofthespecesthatsurvves,Orthemostintelgentthatsurvves.iiliit
Itistheonethatisthemostadaptabletochange.
- Charles Darwin SSA partnered with ABC Pty to initially diagnose and identify the focus
areas for Cost reduction
and define a time bound approach to achieve the desired financial savings,
which delivers a
perpetual result for the Organization.
Diagnosis
SSA has a unique approach to diagnose and prescribe roadmap for profitability
improvement. This diagnosis is carried out across all the organization’s elements like
Sales & Marketing, NPD cell, Product Design, Production Planning, Procurement,
Production, Supply chain and Warehouse. The focus of Diagnosis is to identify profit
leakages, identify opportunity for process optimization, calculate Cost of Poor
2. Approach to Improvement
Based on the diagnosis and identified focus areas in product manufacturing lines, SSA
took a three pronged approach to deploy Operational cost reduction initiative at ABC.
The basic focus was to deploy process improvement techniques to achieve the
financial goals using these three methodologies – Lean Manufacturing, DMAIC
problem solving and Total Productive Maintenance (TPM).
Project Deployment
ABC has about 25 to 30 products and each product category has a separate
manufacturing line setup. At ABC Pty plant almost 13 production lines had an
opportunity to improve productivity by deploying Lean. The focus of deployment was to
eliminate wastage in material movement caused due to convoluted layout, eliminate
over-processing, improve resource utilization through capacity balancing, reduce
process cycle time of manual operations through Kaizens and reduce WIP
through flow balancing.
Following Rapid Lean approach was deployed to achieve necessary productivity and
financial goals:
Lean Consulting