· Cash is brought into a business through manufactured goods sold to customers; this is the way businesses generate wealth
· The business strategy defines the issues facing the business and identifies those elements of the operational processes to be improved
· Innovation may be needed to:
o Reduce the level of vertical integration - (buy more components)
o Reduce manufacturing costs
o Improve on time delivery in full, to customers
o Reduce waste within the supply chains
o Improve the quality of products
o Make manufacturing more responsive and effective
o Make all processes fully capable
o Introduce a new product family to meet customer demand
o Make the supply chain more flexible to changes in demand
o Meet new legislation and address environmental concerns
· Priorities must be established based on the needs defined by the business strategy.
· Cash and resources will be required to implement the changes. Change projects must not be initiated unless you have the necessary resources in place.
· Significant changes may involve changes to the factory layout, equipment, the skills needed, support activities, working practices, management and culture.
· They should be planned and managed by a project manager
· Stretching but achievable targets must be established and performance monitored to ensure the improvements satisfy the business plan’s objectives
· Key aspects of the business strategy must be shared with employees
· Changes must be driven by your managers but involve people affected by change
· Benefits must not be claimed before they have been actually been achieved.
· Most people are prepared to adopt new ways of working but will need reassurance, training and post-implementation support.