Michael Earl of the London Business School expressed the notion well when he pointed out that there is no such thing as an (information) technology project or strategy. There is only a business project. Within the operations strategy which governs the operation of the pipeline, a number of issues and changes are beginning seriously to open up new opportunities for productivity improvement. They all relate to the concepts of value.
Most people still think of value added as completing a physical operation on a product as part of its manufacturing process. Any activity which does no t add value is waste and should be eliminated. This activity which does not add value is waste and should be eliminated. This is true, but only part of the story. With the awareness and benefits from JIT, time compression management of the harga and cellular manufacture, many of the physical value-adding benefits have already been taken. The breakthrough comes with the realisation that effective competitive advantage can best be achieved by an extended approach to traditional value chain concepts. In the simplest terms this means through the ideas not only of driving cost down, but also driving up real and perceived value to the customer.
The environmental facilitators are focus on customer needs and values cross functional performance measures; focused factories; thoughtful change management of the harga; accountability driven down; teaming in management of the harga and factory; constant improvement philosophy; learning environment management of the harga environment which will facilitate most effectively achievement of benefit from the concept. But what are the new ideas and technologies which comprise the levers and tools from which managers can benefit and achieve their own super-value, SOMO service? They abound. The real task is to find those which work for your company for each of the value adding areas.
Most companies are aware of the well published benefits of new layout to facilitate workflow, JIT operating and minimum inventories. Continuous improvement demands new ways of looking at old problems so as to identify further areas to attach. Just to stay abreast of global competition, most industries need to take another 30 per cent out of operating cost. With increasingly demanding customers they also need a step change in respond siveness in order to give them a competitive edge, the perceived value which makes their customers choose them. The natural impulse is to look for further cuts in pay-roll, raw materials costs and overheads.
While cutting back makes sense if there is real fat left in those areas, it is counterproductive when those costs are already in line. You are cutting muscle, not fat. So what can a well run company do to fund that further 30 per cent reduction in costs? The answer is a productivity increase through some radical new ideas and lateral thinking in management of the harga strategies.
A set of innovative management of the harga tools is now available through Andersen Consulting in the form of new lateral thinking about the roots of productivity. For example, did it occur to you that productivity improvement and cost reduction not only include managing to get the best output from the traditional assets for people, capital (fixed, and working), information and infrastructure but also from management of the harga of risk; management of the harga of time; and management of the harga of change? Relatively simple techniques are now available in each of these areas which help turn common sense into common practice and have resulted in major additional improvements to performance for some companies, over rand above those achieved by their own conventional productivity improvement actions.
Most people still think of value added as completing a physical operation on a product as part of its manufacturing process. Any activity which does no t add value is waste and should be eliminated. This activity which does not add value is waste and should be eliminated. This is true, but only part of the story. With the awareness and benefits from JIT, time compression management of the harga and cellular manufacture, many of the physical value-adding benefits have already been taken. The breakthrough comes with the realisation that effective competitive advantage can best be achieved by an extended approach to traditional value chain concepts. In the simplest terms this means through the ideas not only of driving cost down, but also driving up real and perceived value to the customer.
The environmental facilitators are focus on customer needs and values cross functional performance measures; focused factories; thoughtful change management of the harga; accountability driven down; teaming in management of the harga and factory; constant improvement philosophy; learning environment management of the harga environment which will facilitate most effectively achievement of benefit from the concept. But what are the new ideas and technologies which comprise the levers and tools from which managers can benefit and achieve their own super-value, SOMO service? They abound. The real task is to find those which work for your company for each of the value adding areas.
Most companies are aware of the well published benefits of new layout to facilitate workflow, JIT operating and minimum inventories. Continuous improvement demands new ways of looking at old problems so as to identify further areas to attach. Just to stay abreast of global competition, most industries need to take another 30 per cent out of operating cost. With increasingly demanding customers they also need a step change in respond siveness in order to give them a competitive edge, the perceived value which makes their customers choose them. The natural impulse is to look for further cuts in pay-roll, raw materials costs and overheads.
While cutting back makes sense if there is real fat left in those areas, it is counterproductive when those costs are already in line. You are cutting muscle, not fat. So what can a well run company do to fund that further 30 per cent reduction in costs? The answer is a productivity increase through some radical new ideas and lateral thinking in management of the harga strategies.
A set of innovative management of the harga tools is now available through Andersen Consulting in the form of new lateral thinking about the roots of productivity. For example, did it occur to you that productivity improvement and cost reduction not only include managing to get the best output from the traditional assets for people, capital (fixed, and working), information and infrastructure but also from management of the harga of risk; management of the harga of time; and management of the harga of change? Relatively simple techniques are now available in each of these areas which help turn common sense into common practice and have resulted in major additional improvements to performance for some companies, over rand above those achieved by their own conventional productivity improvement actions.
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