Profitability is coming from productivity, efficiency, management, austerity, and the way to manage the business.
– Carlos Slim
If we rightly say marketing is the business growth engine
we may also inforce that company operations represents the main fuel supplier
for buisness growth with expected profit.
The structure of operations might differ from a company to another. However, the core of operations consists of production, purchasing, warehousing and supply.
The overall aims of operations management are to create added value for the entire organization delivering in full and in time all customer requirements for company products. If we succeed in delivering company products and services, in time with expected quality at the lowest cost we create an important competitive advantage.
There are several challenges in operations during company strategic activities. However, it is essential to have a solid plan for production, balancing forecast against demand, inventory against capacity.
There is the need to have lean processes in manufacturing in order to maximize efficiency and minimize waste.
It is vital to have an excellent communications system throughout the whole company. All staff, from top to bottom, should have access to relevant information.
Operations management must be integrated and fully connected to the company strategy in order to successful contribute to the company goals achievement.
As an example, if we have a very innovative company with a creative marketing in promoting products on the market but the management of operations is inefficient shortly we may see how the company ruins the aspirations despite of highly innovative products well promoted on the market.
It is similar with a battle where there are very skilled and brave soldiers but due to incapacity of logistics department to supply ammunitions the entire army is completely inoffensive against enemies.
I often meet very competent entrepreneurs with high aspirations in terms of business growth but due to the fact of having limited resources their operations especially production could not deliver the required products in time and in full. As a direct result, they have to operate with high level of inventory with devastating impact on their cash flow.
Inefficient operations management could affect equally, company reputations on the market and business results mainly profit and cash flow. Therefore, entrepreneurs and managers must assess company resources and realistic to contract external services and expertise where necessary.
Having 20 years of outstanding experience in operations managements I have identified the main areas where we are able to support management teams in order to improve operations efficiency with direct positive impact in cost reduction and flexibility improvement.
These areas are the followings:
- Inventory management
- Implement the right production system based on product mix and volume
- Efficiency improvement for production lines
- High use of existing production capacity
- Waste reduction
- Improvement of products quality
- Implementation of Lean management
When you choose an external consultant you have to take into consideration many factors but there is critical the experience and expertise in getting the things right!
Our extended experience in operations management makes us to believe we are able to develop, together with local management teams, dedicated solutions for Lean logistics covering entire flow from customer order to final goods shipment. We focus address all processes: materials purchasing, production plan, production, warehousing and shipment. Our primary aims is to support local teams to deliver their products in time, in full with expected quality and with lowest possible costs for the company.
We can support you to change your operations into a very efficient and professional area of the business building confidence in the organization and trust with your customers on the market.
If you need support in operations do not hesitate to contact us!