Business Management Health Assessment (BMHA)
“Designed for the Manufacturing Industry”
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BUSINESS RESULTS & PERFORMANCE
Business Results & Performance is a direct output of solid business planning & strategy of the organization.
There are a number of key management domains that are the building blocks for this business management principle.
This week, we are reviewing the last of the four business management principle domains:
4. WORK PACKAGE MANAGEMENT
One may ask, what do you mean managing work packages, what are work packages and how does that apply to our manufacturing facility? Well, all good questions and if these questions are being asked, then the strategic business planning strategy and foundational aspects of what the company is about may need a review. Managing the work packages that drive production is essential to process bite sized packages of work. It makes the planning, monitoring, control and measurable understanding of the production and productivity of your factory easier for your team to manage.
Successful factories intentionally set manageable sized work packages for execution. If the work package is too large, it overwhelms the workforce and marginal control plus incomplete activity has a genesis affect. It results in lots of activity, added resources to fight the battle with reduced productivity affecting product/service delivery. All bad things resulting in high level impacts on work in process, costs, management efficiency and low OEE (overall equipment efficiencies).
We realize that depending on your product and service, work packages will be different from one manufacturer to another. The point we are making is, size the executable work packages appropriately for the factory workforce and productivity will have the best chance of meeting the organization’s business objectives.
That said, one needs to manage the work packages in a pragmatic way. It does not need to be complicated or fancy. Ask yourselves, what are the work package activity planning and tracking tools in place? What we are talking about here are simple and proven project/program management tools and techniques. They could be Gantt planning for execution and Earned Value Management, work centre workload orders that can be completed in one (1) shift, Swimlane / Bowling Lane charts, and/or a top-level business scorecard for the senior team members.
Either way, tools and techniques such as these are necessary for new product introduction and at times of problem solving problem-child production that needs some hands-on effort. The goal is to avoid hand-holding production and functional areas. Get them working in an efficient and productive manner freeing up creative and progressing thinking by everyone.
It is also important to look at how the business management systems (e.g. Enterprise Requirements Planning (ERP)) collects data to plan, monitor and control your factory’s productivity. If that is lacking or incapable, then project management tools & techniques will be critical to meet business needs and objectives.
The work package management (WPM) culture within an organization is key. Ask yourselves again, how well integrated are our WPM processes and who in each function know how they are to be used? Do the various value add functions know how they affect other departments?
There are a number of points to be asked and audited that affect the bottom line on this domain of results and performance. WPM is often not something considered and may be part of the root cause for low margins and loss of business. In the end, its about results and performance.
Until then, we look forward to speaking with you. It costs nothing to talk to us and we will be glad to help. Contact Us – LYNX Business Management Group (lynxbmg.com)
Extended support by LYNXBMG enables manufacturers like you to execute continual improvement through mentoring of personnel and optimization of your operating processes.
Flexible Product Options:
Client self-performed assessment – Internally managed. Formalized Report-Out.
OPTION B
Assisted assessment – Leave the process to us – 3 Day on-site process with a LYNXBMG Business Development Expert to manage and document a deep dive of your operational business. Formalized Report-Out and Roadmap to develop the business.
With a completed BMHA, we guarantee leadership will have clarity on:
- The level of congruence within the functions planning, managing, and controlling the company.
- The level of congruence and integration of the management processes used to drive the company.
- The alignment of the business plan to the company’s core objectives.
- Strengths, weaknesses, opportunities, and threats within the company.
- Opportunities for cost reduction and performance improvements affecting overall equipment efficiency (OEE).
- Procurement and purchasing leverage opportunities.
- Operations and Quality Assurance alignment.
- Organization readiness & prioritization of what to focus on to develop the business.
- Progressive steps to achieving a lean enterprise.
- Expected ROI from development actions taken ~ 500+% based on OEE improvement to manufacturing quality, efficiency, resource allocation & management processes.