
Many of our clients have significantly increased productive
capacity and profits by applying the Holistic
Manufacturing methodology for variability reduction. Once
manufacturing capacity is no longer the bottleneck, HMC's
Holistic Manufacturing Supply Chain Diagnostic can help identify the
next leverage point and help clients achieve an additional outstanding
increase in profits.
When
Manufacturing Improvement is no Longer your Biggest Problem
Once the manufacturing processes are under control, a company
needs to identify where it needs to invest in further improvements.
The answer is not the same for every company, nor is the answer obvious
to the various functional heads. In fact, we usually see each functional
area taking actions to improve, often driven by key measurements (KRAs
- Key Result Areas) in each department. While implemented with the best
intentions, this non-holistic approach can be the biggest detriment
to significant improvement as it often fails to account for the myriad
of interactions between functional areas.
How
a Supply Chain Diagnostic Can Help
In the Supply Chain, the biggest leverage point comes from
significantly reducing conflict between the various functional areas,
enabling them to work in concert to achieve company goals. Our experience
shows that these root problems are cross-functional in nature. Therefore,
it is not within the power of one functional area to overcome them.
The
HMC Approach
The HMC Holistic Supply Chain Diagnostic consists of four
basic steps:
Diagnose the problem - Generally a
2-day intensive effort, involving extensive interviews with the Business
Unit head and the head of each functional area.
Documentation
& analysis - The HMC team
develops a clear understanding of the current business goals, then
documents and analyzes the biggest problems blocking each senior manager
from achieving his or her goals.
Root-cause
analysis - HMC uses a powerful
methodology for root cause analysis to validate the findings and to
gain consensus from management on the root problems.
Verification
- The HMC team presents its analysis
and recommendations to the client for verification. To verify that
they haveidentified a true leverage point, the team confirms that
if the root problems are overcome, there will be a minimum impact
of 10% on organization goals within one year or less.
If the root causes are not correctly identified and
dealt with, they do not go away. Symptoms reoccur and continue to prevent
the company from achieving its goals. All functional managers feel increasingly
frustrated, as similar issues resurface and consume their energy, without
lasting results.
Key HMC Team Members
Gerald and Jacquelyn Kendall are
the key leaders providing this new HMC diagnostic service. Using the
constraints management methodology, the Kendall's have worked successfully
with dozens of clients around the globe.
For further information on HMC's
Holistic Supply Chain services,
download
the Holistic Supply Chain.pdf or contact
an HMC representative today.
top