Your business strategy includes operational process innovation
Changes to in-house manufacturing and supply chains must be driven by the business strategy in order to justify the investments needed in new capital equipment, superior production methods and training. Manufacturing operations have significant impact on the costs incurred by the business, and require considerable investment and management time in order to remain cost competitive.
Key Issues
·         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.
Factors for Success      
Factors to  Avoid
1.     Your case for resources is justified and included in the business plan
2.     Planned and agreed resources, both money and people, are available when needed
3.     You regard operations as strategic weapon
1.     Your managers are not committed to the operational changes being implemented
2.     Expecting immediate results
3.     Starting without a plan and agreement on what has to be done
Who does this apply to?
Senior management, support teams, module team leaders/supervisors
Realisable Benefits
Increased profitability, more competitive, sustainable manufacturing processes


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