Operations
is the key results producing activity of a manufacturing business,
concentrating on supply chain integration with production and logistics
optimization. Operations Management decisions impact every aspect of the
business, and to be effective, must ensure communication and coordination
across every functional boundary. Operations Management is where a
manufacturing business makes its money.
Creating
and developing a results producing Operations Management system in a
business seeking step change in performance is one of the most difficult
challenges a management team faces. JK SecuriTech has developed an
Operations Management model based upon establishing cross-functional
business processes with time horizon limits of concentration.
The
key business processes that must be linked and managed in cross-functional
teams, and their time horizons, are:
1.
Order Fulfillment Process
The
Order Fulfillment Process starts when the company receives an order, and
ends when the ordered product is shipped and invoiced. A minimum cost OFP
involves the Sales, Engineering, Manufacturing, Materials, Production,
Quality, and Finance functions, working in concert to minimize order
fulfillment time. The time horizon for this process is equal to the longest
lead time for a product.
2.
Sales Demand versus Order Fulfillment Process Capacity Planning
Demand
versus Capacity Planning anticipates the future demand for products
through market forecasting, and forecasts the supply chain, production,
and logistics capacity needs and costs associated with satisfying the
demand. Demand \ OFP Capacity planning involves Marketing, Engineering,
Materials, Manufacturing, and Finance in a cross-functional team that
specifies and plans the implementation of OFP capacity changes. The time
horizon for this process is from three to six months.
3.
Product Development Process
Product
Development is the cross-functional process that ensures the competitive
future of the company's products. The Product Development team includes
all the functional areas of the business. The Product Development time
horizon spans from the short cycle development that is inherent in a job
shop business, to the long cycle development activities characteristic of
businesses with annual product introductions.
4.
Strategic Planning Process
Strategic
Planning is the process that anticipates and plans for the change needs of
the business. It also includes all the functional areas. The time horizon
for Strategic Planning is from one to three years.
Implementing
the
JK SecuriTech Operations Management model causes cross-functional
integration of effort and activities by concentrating on results producing
business processes ensuring coordination, communication, and
concentration of effort across the business.