Services – Operational Excellence 2018-04-20T09:44:21+00:00

Operational Excellence

There are certainly many ways to achieve Operational Excellence in your production, but also in all other work fields, like Supply Chain & Logistics, Administration, Finance & Accounting, HR, and so on. At San-Ten Consulting we are convinced, that the basis for excellent operations in all fields are efficient and effective processes. Once established, further conclusions can be drawn about the necessary work force as well as where to reasonably apply automatization and digitalization options.

Therefore, our approach starts with the definition of best processes, tailored to your company and your needs. To create the new processes we typically forgo a time (and money) intensive recording of your current processes since it will have only limited benefit for the definition of the new processes. Instead, we apply our T-O-P Business Process Modelling to develop the new to-be processes together with the experts of your company.

T-O-P stands for Target – Order – Place and we begin with the collection of all steps (Tasks) that have to be done within the process. In the Order part, we will sort them into the best possible way how these steps should be executed after each other. Eventually, in Place, we describe where in your organization this step will happen. Once done, it lays the groundwork for all further options:

  • Define a RACI matrix for all steps

  • Define necessary changes in the organizational structure of a department (e.g. a Service Center)

  • Allocate steps to an organizational unit “IT” to describe the steps that should be automatized

  • Find the best IT solution based on your process and your needs

  • In production processes, Place can even be used for the geographic layout of a factory for best process flow

  • Analyze the work force necessary for fulfilling the processes

  • … and more

Please find attached the file for T-O-P Business Process Modelling here.

Independent from your work area: if you have the feeling, the work in your department could be done more efficiently, the cooperation with other departments could be improved, or you have a cost reduction target to fulfill, please contact us here or write us an email. We will be happy to reply as soon as possible and discuss with you your options and how San-Ten Consulting can support you.

Operational Excellence

There are certainly many ways to achieve Operational Excellence in your production, but also in all other work fields, like Supply Chain & Logistics, Administration, Finance & Accounting, HR, and so on. At San-Ten Consulting we are convinced, that the basis for excellent operations in all fields are efficient and effective processes. Once established, further conclusions can be drawn about the necessary work force as well as where to reasonably apply automatization and digitalization options.

Therefore, our approach starts with the definition of best processes, tailored to your company and your needs. To define the processes we typically forgo a time (and money) intensive recording of your current processes since it will have only limited benefit for the definition of the new processes. Instead, we apply our T-O-P Process Modelling to define the new to-be processes together with the experts of your company.

T-O-P stands for Target – Order – Place and we start with the definition of all steps (Tasks) that have to be done within the process. In the Order part, we will sort them into the best possible way how these steps are executed after each other. Eventually, in Place, we describe where in your organization this step will happen. Once done, it lays the groundwork for all further options:

  • Define a RACI matrix for all steps

  • Define necessary changes in the organizational structure of a department (e.g. a Service Center)

  • Allocate steps to an organizational unit “IT” to describe the steps that should be automatized

  • Find the best IT solution based on your process and your needs

  • In production processes, Place can even be used for the geographic layout of a factory for best process flow

  • Analyze the work force necessary for fulfilling the processes

  • … and more

Please find attached the file for T-O-P Business Process Modelling here.

Independent from your work area: if you have the feeling, the work in your department could be done more efficiently, the cooperation with other departments could be improved, or you have a cost reduction target to fulfill, please contact us here or write us an email. We will be happy to reply as soon as possible and discuss with you your options and how San-Ten Consulting can support you.

Good Processes and Automatization & Digitalization

We sometimes get the question, if the process design is really necessary and if automatization and / or digitalization won`t make the process design obsolete. Our straight forward answer is: good, i.e. efficient and effective processes are still the foundation of all excellent operations. There is only one exception for you as a company, and this is if you surrender all your processes to the IT solution and accept that the software dictates you when to do what (because usually the software designer thought about an underlying process already). You may have some questions like:

No company is like the other and therefore, most companies usually can not do this, also because their operational structure does not completely fit to the IT solution. For example, some companies have a combined FACT (finance, accounting, controlling, tax) department, where tasks can be shared internally. Other companies have controlling in decentralized business organizations, thus there will be a hand over in the process from one department to the other. And this is where our expertise in process design (and all following steps) gives you much more freedom to operate but still on best-practice level.

Our answer is: because of two good reasons: Firstly, your current processes are developed over time without automatization and are probably not ideal to work together with IT solution. And secondly, if your current process is not good on paper, it won`t get better in IT. For example, if a process involves today an approval step by a supervisor, you can push this into the digital age and send an electronic notification to the supervisor who can approve digitally. But the question we would have, are, is this approval step still necessary in the digital age? Is it at the correct position in the process flow? And, most important, if you combine this step with other process steps, is an electronic email still the best way of digitalization? Or can a different solution with a portal be more appropriate?

If you are aware of the whole (best-practice) process you can much better make a decision about the digital solution that meets your needs.

But also in production it applies, that your current process is probably not state-of-the-art and will not harmonize with digital solutions. We once had a project to reduce warehouse stock and with that NWC at a small production unit. We quickly found out that the production planning process was based only on the stock in the warehouse. They planned bi-annually the next 6 months of production in a way that they produced more of products with low stock and less for high-stock articles. The problem was, that there had been no alignment with Sales and Marketing. I.e. production did not know if an article was meant to phase out and gets replaced with a newer version, or if promotions are planned at fairs that result in higher demand, and so on. If you just automate this process, you get the same problems as before. Eventually, we introduced and implemented a new production planning process where in bi-weekly planning meetings Production together with Sales&Marketing planned the next 4 weeks in detail and the following 4 weeks as a forecast. This gave enough lead time for procurement but still allowed a very flexible, demand oriented production planning.

Therefore, San-Ten Consulting will always promote to define excellent processes first and then build the automatization and digitalization on it.

If you are in a similar situation, please don`t hesitate to contact us or write us an email. We will be happy to discuss your situation as soon as possible and find out the best way we can help you.

Good Processes and Automatization & Digitalization

We sometimes get the question, if the process design is really necessary and if automatization and / or digitalization won’t make the process design obsolete. Our straight forward answer is: good, i.e. efficient and effective processes are still the foundation of all excellent operations. There is only one exception for you as a company, and this is if you surrender all your processes to the IT solution and accept that the software dictates you when to do what (because usually the software designer thought about an underlying process already). You may have some questions like:

No company is like the other and therefore, most companies usually can not do this, also because their operational structure does not completely fit to the IT solution. For example, some companies have a combined FACT (finance, accounting, controlling, tax) department, where tasks can be shared internally. Other companies have controlling in decentralized business organizations, thus there will be a hand over in the process from one department to the other. And this is where our expertise in process design (and all following steps) gives you much more freedom to operate but still on best-practice level.

Our answer is: because of two good reasons: Firstly, your current processes are developed over time without automatization and are probably not ideal to work together with IT solution. And secondly, if your current process is not good on paper, it won`t get better in IT. For example, if a process involves today an approval step by a supervisor, you can push this into the digital age and send an electronic notification to the supervisor who can approve digitally. But the question we would have, are, is this approval step still necessary in the digital age? Is it at the correct position in the process flow? And, most important, if you combine this step with other process steps, is an electronic email still the best way of digitalization? Or can a different solution with a portal be more appropriate?

If you are aware of the whole (best-practice) process you can much better make a decision about the digital solution that meets your needs.

But also in production it applies, that your current process is probably not state-of-the-art and will not harmonize with digital solutions. We once had a project to reduce warehouse stock and with that NWC at a small production unit. We quickly found out that the production planning process was based only on the stock in the warehouse. They planned bi-annually the next 6 months of production in a way that they produced more of products with low stock and less for high-stock articles. The problem was, that there had been no alignment with Sales and Marketing. I.e. production did not know if an article was meant to phase out and gets replaced with a newer version, or if promotions are planned at fairs that result in higher demand, and so on. If you just automate this process, you get the same problems as before. Eventually, we introduced and implemented a new production planning process where in bi-weekly planning meetings Production together with Sales&Marketing planned the next 4 weeks in detail and the following 4 weeks as a forecast. This gave enough lead time for procurement but still allowed a very flexible, demand oriented production planning.

Therefore, San-Ten Consulting will always promote to define excellent processes first and then build the automatization and digitalization on it.

If you are in a similar situation, please don`t hesitate to contact us or write us an email. We will be happy to discuss your situation as soon as possible and find out the best way we can help you.