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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.

 

 

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