Operations Planning & Management
(Part 1 of 3)

Business Management Health Assessment (BMHA)

“Designed for the Manufacturing Industry”

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QUESTION => Manufacturers – Are you achieving 500% + on Overall Equipment Efficiency (OEE)?  Are you achieving the planned ROI?

If there ever was a more important question for Operations & Business Management, the one above is key to attaining a desired factory business health condition.  There are a number of key business intentions for a manufacturer.  Making a descent ROI is one at the top of the list.  Others such as employee satisfaction, initiatives, advancement of technology and, productivity are equally important.  Measurement and monitoring of ROI needs OEE to navigate the challenges and threats for corrective action to achieve a planned & expected ROI.  A running barometer scorecard if you will.  Our Quality Assurance guru (Paul Violante) published a blog article [Enhancing Manufacturing Execution Systems (MES) by integrating OEE and EBITDA – LYNX Business Management Group (lynxbmg.com)] recently on this subject.  Take a few minutes to check it out as it is very well explained and supports what we have said above.

Over the next three weeks, we will discuss the management domains within the OPERATIONS PLANNING & MANAGEMENT business principle.

They are:

  1. Product Design & Engineering
  2. Operations Management (The execution of S&OP – Sales and Operations Planning)
  3. Quality Assurance of Product & Services

This week, we will focus on PRODUCT DESIGN & ENGINEERING, and it’s influence on many aspects of your manufacturing environment driving business goals and growth.

In a previous vlog [Cost Reduction & Lean – Cost Reduction & Lean (Part 1 of 3) – LYNX Business Management Group (lynxbmg.com)], we had a fire side chat with our LYNXBMG Technical Support Partner Gary Buss.  We discussed the importance of good product design for manufacturability and optimized works-cost.  As manufacturing Practioners, we lived and survived (for the most part) good and not-so-good product designs experiencing their direct impact to the levels of business success.

Design for manufacture is an aged old philosophy.  Nothing new, but by-gosh, so many undeveloped organizations continue to not think through the industrialization of what they design.  Close to 80% of the product cost is baked into the industrialization production costs at the early stages of design & development.  Once the design is authorized to move past the critical & functional design review process, material commitments are launched, chips begin to fly and production’s ability is forever more limited to what they can cut out for unwanted costs.

The importance of getting it right the first time for industrialization is paramount in order to benefit from the highest level of profitability.  It also contributes to ‘if and how’ that product you produce can evolve into the next generation of product desired by your customers and the marketplace.

A well engineered design can lend itself to possibilities of improvement, reduced bills of material, component consolidation (e.g. part count reduction) for efficiency, works-cost, redefining the machine capital needed for industrialization.  Clever design may enhance internal production capabilities enabling CAPEX replacements to introduce incremental capacity for new unrealized business opportunities.  Doing that well could potentially create advantageous end user benefits.

Keeping designed products elegantly simple is best.   I would like to share with you a true-life case in point on a well-known landing gear development program.  A Nose Landing Gear hydraulic steering swivel assembly was designed with multiple articulating components using stainless-steel materials.  It looked beautiful and was indeed robust – but very expensive.  In the end, the designer was asked, could a certified aerospace grade rubber hydraulic hose with fittings do the same function and meet reliability requirements?  The answer was yes.  The cost of the rubber fitted hose was 42 times less than the proposed design.  I will let you guess what direction we took.

As part of our Business Management Health Assessment (BMHA) process, we examine a manufacturers integration of engineering/design to Operations and the Manufacturing of products for the market.  Our process spends time with the Engineering, Operations, Program Management, Human Resources, and senior leadership on several management points embedded into their organization.

We look at a number of categories:

  • Product Configuration for profitability
  • Design to manufacture
  • Redesign opportunities
  • Product termination
  • CAPEX investment
  • Resource Assessments,
  • And many more …

In reference to the hydraulic true-life case example above, as a New Product Introduction and Series Production Program Manager in those days, being the guardian of cost, schedule, quality & performance of the product we produced involves all of the management categories listed in this article.  In our business management activities these days, we work with manufacturers to assure they have awareness of these criticalities and a development roadmap to enhance their processes for success.  It all leads to achieving the business objectives and goals mentioned at the forefront of this article.

Next weeks article will be focused on ‘OPERATIONS MANAGEMENT’.  It is a huge topic whereby the rubber meets the road sort-of-speak.

We encourage you to reach out to us on this topic.  We are practitioners with a true passion to help manufacturers like you meet your objectives.  It costs nothing to enquire, and we wager that you will be glad that you did.


The BMHA is an efficient LYNXBMG auditing and business development process assessing eight operating key business management principles & institutional processes.

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.

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.

Our Mission is to help manufacturing organizations achieve operational excellence, profitability, and growth in a competitive market through the mentoring of personnel and optimization of processes.

Our Core Values are:

  • Integrity & honesty
  • Demonstrate and build trust
  • Genuine care for Client growth and wellbeing
  • Coaching and devotion for excellence
  • Making a difference for industry

For more information or to order your own BMHA from LYNXBMG.

We look forward to hearing from you.