The Way to Operational Excellence
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Noiembrie 2010 |
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HORVATH & PARTNERS MANAGEMENT CONSULTING S.R.L. |
Adresa
Strada Cretei, Nr. 12
014154 Bucureşti, Sector 1
Telefon
+40-31-620.18.88
Fax
+40-31-620.18.89
Website
www.horvath-partners.ro
FACTORS OF SUCCESS IN THE VALUE-ADDED CHAIN OF PRODUCTION BUSINESSES
The increasing efficiency and quality requirements set the existent production locations in Romania in front of new challenges. Operational Excellence, the ability of obtaining added value in a more effective and efficient way through process-related, organizational, technical and cultural customization wins ground in Romanian businesses too. Horváth & Partners has conducted a recent study in which was analysed the future role of Operational Excellence strategies.
There is high management focus on Operational Excellence (OpEx) at the moment. 63% of the business people questioned are already implementing a clear Operational-Excellence-Strategy. The study identifies actual factors of success that require operative excellence to a great extent. Important knowledge can be gained in specific spheres of activity from the statistical analysis of 100 companies:
Design and development processes are the spine of Operational Excellence
Internal logistics permits a high flexibility of production and an adequate reaction to volume sinking. Moreover, it represents the key to a high and at the same time efficient delivering performance. However, it is often a weak spot of businesses: only 32% demonstrate a high or extremely high level of internal logistics and many score badly (13%) or extremely badly (19%) in this category.
Companies with a powerful process management are more successful than their competitors. The indicators of the distributors’ performance offer for example an effective tool for reducing the rejection rate in production. Moreover, a significant interrelation occurs between the performance measurements of distributors and the own productivity. 43% of the questioned businesspeople had good assessment results in process management and 27% showed visible improvement potential.
The KVP strengthens the Operational Excellence from the inside
The permanent improvement process was considered to be very important: 65% of the businesspeople showed a high or very high disposability to change, while 14% proved visible deficits. The continuous improvement process stands in close interrelation with productivity, quality and financial success.
In companies with participative decisional structure and a strong management commitment, the changes required by the continuous improvement processes are greatly supported. This way these companies generate innovative, valuable, high quality products and are financially more successful.
A functional integration and qualification of the employees, for example through job rotation, has important positive effects on the delivering performance.
The supply chain will be networked even stronger
It is striking that within the Supply-Chain-Management methods the consignment stores are the widest spread (implemented by 51% of businesses), and yet provide the lowest effectiveness (only 51% of the subjects evaluate the effectiveness as high or very high).
Extremely popular are the cooperative approaches for controlling materials (VMI, SMI, CPFR) and malfunction effects analyses (logistics-FMEA). Many companies plan to implement these methods concretely (between 13% and 15%).
The increasing efficiency and quality requirements in production also create new challenges for the management of personnel. For the successful implementation of Operational Excellence, companies need better qualified and motivated employees.
