Have you ever evaluated the productivity and level of effectiveness of your business operating resources?
Business executives are often caught in a web of having to respond to daily problems, operating issues, sales and marketing promotions, and customer service matters, resulting in "brush-fire management." Although you have probably heard this before, it might be the appropriate time to review business operating functions in terms of their overall costs, performance, and effectiveness in support of corporate plans and goals.
- Do they respond to the present and future needs of the business?
- Do they help carry out the primary objectives of the business?
- Do they provide the most cost and service effective operations?
In addition, operations management focus needs to consider:
- Product promotion and timing
- New product introduction
- Product deletions
- Market and geographic demand changes
- Changes in customer service requirements
- Shifts in product mix and sourcing
- External regulations and controls
- Product and service quality benchmarks
Today's management needs to examine the productivity of operating resources in support of the total business requirements. As price increases become more difficult and in many cases yield to actual reductions, non-controllable cost increases place more pressure on profits. As competition intensifies, management is turning to operating resources as an avenue to reduce costs, improve service, and increase profits.
If you have not addressed these issues recently, it may be the right time to do so.
Clearly defined goals and objectives should form the framework for cost reduction and productivity improvement.
Our program is designed to assist management in the identification and implementation of cost reduction opportunities within the operating functions of the business. It examines material sourcing, inbound processing, production, and finished products logistics outbound to customers. It can be effectively applied to companies that produce as well as distribute products to the market place. It is designed for continued internal monitoring and/or external assistance.
It considers certain key factors that play a role in influencing changes within business operations. Typically these include:
- Volume increases based on forecasted sales
- Labor rate increases
- Labor and skills availability
- Facility capital and operating costs
- Information systems and accessibility
- Operating reports and controls
PROGRAM OBJECTIVES:
Primary Objective - Reduce operating costs and improves productivity associated with the sourcing and movement of product through the business in response to marketplace and customer service requirements.
Secondary Objective:
Our analysis identifies specific areas of activity that have the potential for being performed more efficiently and result in significant savings to the company. Specific recommendations are documented and savings estimated.
- Reduce business-operating costs
- Improve performance of business operating functions, tasks, and activities
- Improve management controls
- Improve product and service quality
A well-organized approach to productivity improvement is essential to guarantee accomplishment and results.
PROGRAM METHODOLOGY:
Our approach to this type of program begins with a detailed examination of all operating activities. This is accomplished through a thorough review of procedures and policies and observation of all methods and functions. Activities are observed and data analyzed using proven methods and techniques, coupled with computer analysis and modeling.
This evaluation will answer questions such as:
Can the flow of material and product be improved?
- Are present handling and storage methods best suited to accomplish production and distribution requirements?
- Can selected changes produce improved results in terms of reduced personnel requirements and/or lower costs?
- What level of mechanization can be effectively applied in order to reduce costs and improve timing and service?
- Will employee and supervisory training help improve productivity?
- What monitoring and control devices need to be implemented to assist management?
Our analysis identifies specific areas of activity that have the potential for being performed more efficiently and result in significant savings to the company. Specific recommendations are documented and savings estimated.
Program results provide significant benefits in operations improvement.
At the conclusion of our work, we provide both oral and written reports describing findings and recommended improvements. Potential cost reduction opportunities are identified and future benefits estimated. Our reports contain sufficient detail that the company, with or without our assistance, can easily implement action plans.
The results of this effort provide management with a "report card" on the status of business operations and a prioritized sequence of improvement actions.
REM Associates Qualifications:
REM Associates provides consulting services designed to assist a wide range of consumer and industrial companies where improved production, distribution, and administrative operations can significantly reduce costs, increase profits, and improve service to customers.
We have effectively served many clients in this specific area over a long period of time. Through this experience, we have become familiar with current trends and practices and know what to look for as well as how to look.
REM Associates is a network of highly experienced consulting personnel. These senior management people provide tailored resources to meet the specific needs of each company within a fee structure that is substantially lower than the larger management-consulting firms.
Greater resource productivity can provide the margin of success for business management
Copyright@2009, REM Associates of Princeton, Inc. 20 Nassau Street, Suite 244, PO Box 7345, Princeton, NJ 08543-7345. All rights reserved.