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"Amateurs practice until they get it right. Professionals practice until they can't get it wrong."

~ Origin Unknown ~

 

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Operations Restructuring:

Our numerous investigations of client problems show common themes:

  • Product and service quality and delivery does not meet customer expectations
  • Quality is not inherent in the process, but managed as a separate function.
  • Organizational silos exist with a lack of coordination and feedback, leading to poor internal and external communications
  • Many handoffs between organizations, leading to operational inefficiencies
  • Lack of meaningful performance measures, standards, and controls

All is these issues contribute to sub-optimal performance and reduced margins.

We believe that this is primarily due to the lack of internal alignment between three fundamental elements of the enterprise: the business processes, the supporting technology systems, and the organizational structure. This lack of alignment creates competing priorities, the fulfillment of which becomes a zero sum game. Such clients are prime candidates for operational restructuring.

Our approach leads with end-to-end process change and creates alignment between these key enterprise elements to develop organizational synergy that results in order-of-magnitude performance improvement. We excel at quickly analyzing the end-to-end business operation (As-Is) and restructure it to achieve an optimal state (To-Be) that maximizes performance improvement, leading to growth and profit.

We focus on the end-to-end organizational processes for product or service development and fulfillment to create top line and bottom line impact.

+ The Development Process

The process of developing products and services begins with the Voice-of-the-Customer.  This leads to research and development, design, creation of the supply chain, creating the manufacturing or service delivery process, and ends with a high quality / low cost product or service, scalable for volume.

BLMC partners with our clients to reengineer this process to: understand the customer; segment the marketplace; establish formal processes where none previously existed; eliminate non-value added steps; align resources, skills, and capabilities.  These changes allow for the creation of a holistic financial model that enables senior management to make well informed decisions.   The results our clients receive are:

  • Reduced time-to-market
  • Deeper market penetration
  • Lower production costs
  • Improved quality
  • A New Product Development process with formal Stage-Gate process
  • Dynamic Financial model(s) that enable timely decision making
  • A common understanding, throughout the enterprise, of roles and responsibilities

BLMC engagements are about real change with tangible results. We help our clients transform themselves into world-class organizations with improved shareholder value.

 

+ The Fulfillment Process

The process of fulfilling customer demand begins with creating and attracting customers.  This is followed by the proposal process, the order entry process, materials procurement, custom design, manufacturing and service delivery, after sale services and sustaining customers.

BLMC partners with our clients to drive speed across this process by: establishing formal processes where none previously existed; applying Lean and Just-In-Time techniques; optimizing Management Systems; aligning resources, organizational structure, and Information Technology with the improved Fulfillment Process. The results our clients achieve are:

  • Lower product and service delivery cost, with higher quality
  • Reduced cycle-times
  • Increased capacity with minimal additional capital investment
  • Improved communication across the supply chain
  • Feedback mechanism for the design process to improve next-generation products and services
  • Improved on-time delivery to customers’ request
  • Reduced inventory residence time
  • Streamlined roles and responsibilities
  • Process metrics that feed Continuous Improvement

BLMC engagements are about real change with tangible results. We help our clients transform themselves into world-class organizations with improved shareholder value.

 

+ The Performance Gap (Bottom-Line Impact)

The Performance Gap primarily affects the bottom-line and is typically the center of management’s focus.  Filling the performance gap entails making products and delivering services faster, at lower cost, and with higher quality than competitors, to deliver increased value to customers.  While each customer perceives value differently, it can generally be defined by the following equation:

Filling the performance gap requires addressing the relevant components of the equation for a given customer.   Barris Lotterer Management Consulting (BLMC) helps our clients address the following performance gap issues:

  • The Product Volume Pareto – the problem of managing a broad product portfolio with many parts, and the associated impact on overhead costs and structure.
  • Managing the Order-to-Cash Cycle – including improving the efficiency of short-cycle-delivery and the structure of the supply chain.
    • The Procurement Cycle Time – 2-4 weeks, or better
    • The Manufacturing Cycle Time – becoming world-class in a matter of months, not years
  • Optimizing the Manufacturing & Service Delivery Process – making the process world-class while substantially minimizing all forms of inventory and waste.
  • Optimizing the Spare Parts Process – maintaining high up-times on products in the field while lowering the cost of service.
  • Optimizing the Service Support Process – maintaining a high level, and quality, of service at lower cost.
  • Aligning the Supply Chain with the Product Design, Development, and Delivery Processes – understanding the increasing complexity of cross enterprise collaboration on product development and its implications on sourcing and procurement.
    • Optimizing the Design Process – introducing Collaborative Product Design and Concurrent Engineering practices with multiple teams, globally and across enterprises
    • The Creation and Sustaining of Supply Chain – over the product life cycle
    • Managing the Post-Initial Design Period – ensuring the stability of the supply chain to support subsequent sustaining engineering activities
    • Ramping Production to acceptable volume and yield – Managing the transition from pilot lines to peak production volumes with Point-of-Use inventory

 

+ The Opportunity Gap (Top-Line Impact)

The Opportunity Gap primarily affects the top-line and typically gets little attention from management.  Filling the opportunity gap entails successfully exploiting untapped markets through design innovation and strategy execution for future products and services.  This includes developing strategic core competencies that create and sustain competitive advantage.  Barris Lotterer Management Consulting (BLMC) helps our clients address the following opportunity gap issues:

  • Development of Strategic Core Competence – the management discipline of defining a company’s core skills and technologies that create value for the customer, and continually investing in these to stay ahead of the competition.
  • Winning in a Short Cycle Time Marketplace – How to leverage shortened cycle times to gain market share.
  • Pursuing New Markets – leveraging core competencies for the creation of new products and service offerings; planning for the horizon.
    • Acquisitions of complementary products – diversification strategy
    • Providing aggregation services – becoming the one stop shop
    • Creating value added subsystems
    • Finding alternative applications for existing products
  • Service vs. Product Sales – defining the growing role of services in a product company for additional revenue and higher margins.
  • Conception of the Ecosystem – how a company can achieve economies-of-scale without having to own the operations, this is a step beyond traditional alliances.
  • Moving to a Variable Cost Company – optimizing core competencies within the company and effectively controlling the outsourcing of everything else; managing risk through others.

 

 

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