IMPROVEMENT OF THE OPERATIONS

The operations are often the key to a competitive advantage in many markets. Have a good level of service, quality or cost adjusted depends on the efficiency of the operations.

A model or improper operation management is the source of many difficulties and missed opportunities in companies. During the analysis phase we identify the true origin that causes inefficiencies, and we quantify his influence in the final performance. We also found potential barriers to the implementation of these improvements. With this we establish an action plan and we set the targets to be achieved the improvement project.

Sustainable reduction of operating costs

Reduce the level of operating costs allows a substantial improvement in profitability of the companies.

This improvement allows to opt for a wide range of possible competitive options, ranging from gaining market share through lower prices, to the execution of new investments (expansion, R & D, etc.).

DOT CONSULTING helps you to identify potential savings and implement improvements that will enable a sustainable reduction in fixed cost structure.

To reduce the level of operating costs in a sustainable way, we perform a cross-sectional analysis of activities and business processes. We pay special attention to the interaction between areas, management of resources inside an area and to the lost opportunity costs.

We get savings when we obtain improvements in one or more of these factors:

  • Remaining non-value activities and duplication of tasks
  • Re-work and quality issues
  • Overprocessing of activities that the customer does not value
  • Imbalances in workload between areas and unnecessary waiting times
  • Deficiencies of the planning resources to seasonality of demand
  • Oversized of resources
  • Unrealized potential savings by implementing technological improvements
  • Low productivity by poor management or supervision of resources
  • Poor stock management by excessive accumulation, lack of materials or by inadequate management of obsolescence
  • Opportunity costs of wasting the manpower available

After an initial phase of analysis, we identify and prioritize the customer to perform actions for sustainable cost reduction, implement solutions to transform into real savings potential savings identified.

The actions to be implemented are based on four lines of action:

  • Reduction or elimination of activities
  • Redesign of processes and services
  • Improved resource management
  • Internal reorganization

Improvement of the production. Lean Manufacturing

To be able to compete with adjusted costs and a high level of quality is a key factor to success in the world of industry.

In DOT CONSULTING we collaborate with our clients to transform their production plant in a production system efficient, fast, flexible and reliable. We manage to save time and costs of production by working with our customers to improve profitability.

Productivity improvements of between 20% and 40%, and reductions in their products lead times of 50% in most cases.

We are experts in maximizing the results by applying reasonable, incremental and appropriate for each case the lean manufacturing methodology.Traducir del: inglés

The Lean Manufacturing methodology is widely applied since its introduction 70 years ago, and has become the most solid approach to address the improvement of efficiency and quality in production environments. Such has been its success that applies not only to the production plants, if not in many other business environments, such as services of all kinds, hospitals, financial institutions, etc.

Thanks to our extensive experience in this field and a good methodological knowledge, we can help our customers achieve results quickly. We focus from the start in areas that allow quickly monetize efforts that involve the implementation of lean manufacturing techniques, ensuring a clear economic return.

Only a progressive advance and with a forward economic returns can ensure sustained and balanced improvement in the profitability of a production plant with all what that entails:

Changing mentalities of teams

Better management of physical facilities

Using operational management systems at all levels

The final objective is to create an integrated production system in the supply chain and focused on creating the maximum value for customers in the most efficient manner.

Specifically, Lean Manufacturing methodology is a set of techniques to reduce potential losses in time or money that convert a productive process in inefficient.

These losses or waste have been studied and classified into seven types:

  1. Over-production. Consists in process as many items in advance or with too much advance the needed by the client.
  2. Excess Inventory. Excess storage of finished product, in process or raw material.
  3. Transportation. Move finished products or in production that are not strictly necessary.
  4. Unnecessary movements. Any movement that realizes an operator that clearly does not involve the generation of added value to the product or service.
  5. Defects. Repeating a process or its correction, including rework considered nonconforming product by the customer.
  6. Over-processing. Making unnecessary processes in the production of an article that are not valued by the client. This includes using inappropriate tools or utensils, produce with excessive quality or features not required by the customer quality. Often this one’s are inappropriate processes.
  7. Timeouts. Downtime in which operators are waiting materials, information or instructions for production. Also in this aspect we could include downtime due to breakdowns.

Identify these losses is important, but the ultimate goal is to eliminate them from the production process.

In order to eliminate these losses it is necessary, first, to understand the value chain of the product, by doing an analysis of the production process and the costs incurred. Simultaneously, an audit of the production plant allows us to obtain an assessment of the degree of progress and a comparison (benchmarking) with industry best practices of the market. Depending on each case, we perform specific studies of key elements to determine the impact of the losses incurred by the process and ultimately determine the potential improvement expected.

This makes it possible to implement a package of specific measures tot every especific place in the production to improve production. Between them:

  • Improvements in production lines. Lay-Out enhancements and optimizations of production flow; operational improvements in the work cells; implementation of rapid change (SMED); inventory optimization and logistics; realization quality improvements and improvements in the use of equipment (OEE)
  • Improvements in production management. Planning and programming of the production; determination and use of production standards; Total Quality Management (TQM) and Total Productive Management (TPM)
  • Work tools. Establishing measurable (KPI’s), Techniques 5 S’s; establishing systems for continuous improvement (Kaizen); implementation of Six Sigma; standardize processes and improve staff training and versatility

In DOT CONSULTING we put all the effort in the implementation of these techniques and the real transformation of the way to work. This is only possible if there is an appropriation and internalization of these techniques by the operators. That is why we take a lot of time to work with them, training them in each item, answering his questions, helping and motivating teams, so like looking for a demonstration effect in each of the implemented improvements so they can be able to extend easily to the rest of factory.

Purchase, Integration of suppliers and outsourcing

Good supplier management is a key success factor in highly competitive markets.

It depends on it to enjoy a reduced level of costs and a guarantee of good service. Equally important is to achieve maximum integration of suppliers in their production chain, minimizing incidents and, if appropriate, outsourcing non-key activities.

From DOT CONSULTING we help our customers to obtain savings on purchases and to improve their competitiveness.

Our focus is the sustained improvement of results through the optimization of the management and the organization of the purchases, the selection of suppliers (management of contracts) and the monitoring of its performance. For this it is important that their internal teams have clear objectives and criteria. It is also necessary to create a sufficiently broad base of suppliers to select the best options for the business.

In DOT CONSULTING we have verified that it is possible to reduce costs between 10% and 40% maintaining or improving the customer’s links with their suppliers, depending on the product.

We help establish a working strategy with suppliers, as well as a model of interaction that allows you to improve the quality of the relationship and the final results. Custom solutions are often needed with key suppliers, enabling effective integration into their supply chain. We consider it very important to establish SLA’s-Service Level Agreements, that allow to measure, evaluate and control the suppliers.

Our services include:

• Diagnosis of potential savings and realization of “quick wins”

• Development of negotiation skills

• Organizational design and integration of the purchasing area with other areas of the company

• Performance management and SLAs

• Contract management. Selection of suppliers and their development to integrate them into their production processes

Redesing of processes and their implementation

In DOT CONSULTING we improve business operations by redesigning the main business processes and the subsequent implementation in the entire organization.

These improvements usually involve significant cost savings, but above all impact on the cycle of work and the quality of product or service, with the consequent improvement in customer satisfaction.

Since the beginning of our collaboration, we analyze the potential for improvement of the most important business processes through redesign methodology for later optimize quality, productivity, cost and duration of the performance of a product or service.

Applying this methodology by phases, we work with our customers to prioritize the processes in terms of their ultimate impact on the results.

Diagnostic phase

For each process we establish a system based on diagnosis:

  • The study and detailed mapping of business processes
  • Current and historical operating data (if system is available or a representative sampling of usual activity)
  • Classroom observations of the activity of the personnel involved

With this we identify the main gaps and areas of improvement as well as the major drivers and barriers for effective transformation of business processes.

These studies allow us to draw up a detailed action plan, agreed with the customer, where we prioritize the economic impact of each improvement made, the prioritization on the set of activities, we quantify the adequate time and resources required for its implementation. All this is an excellent guide for the organization in the next phase, as a developing vision of improvement in each process objective facilitates:

Monitoring of progress achieved

Make a powerful communication to the organization of the changes that gone a be implemented

Establish coherent objectives with the results we aspect to achieve

Prepare the necessary means to implement improvements

Assign tasks to the main agents of change

Monitoring progress to be obtained

Design and implementation phase of the solution

In DOT CONSULTING we are specialists in creating functional teams with the staff of our customers and jointly establish new work processes that will make improvements identified in the previous phase. We integrate in the internal teams of our clients in the areas involved and we work hand in hand with them, understanding their views and attending to detail. This systematic work culture, eliminates the initial strength in a process of change and facilitates the implementation and ownership by the customer of the new procedures. With all this, we maximize internal leadership and the ownership of the project by the client staff.

This systematic work incorporates and solve the key issues for the success of any organizational change:

  • Definition of the processes and resources required for its implementation
  • System management of these processes and indicators to be used
  • Training staff to implement the necessary changes
  • Organizational structure and the roles and responsibilities of personnel involved in the change process

Once started the implementation of the new processes, we monitor the results closely in order to be able to correct deviations and ensure the final achievement with the desired results.

Our methodology allows us to gain in quality and feasibility of the solution, because we can understand all the limitations and environmental requirements that normally represent barriers to change.

We obtain a calm but effective implementation of change, without interrupting service or generate major problems in the internal organization, with the participation and motivation of our workers of our client. This allows us to achieve economic results that DOT CONSULTING team is committed and agreed with the client during the initial diagnosis.

#800000Improving supply chain – Suply chain management

The supply chain is a key element that often companies do not pay enough attention.

As a consequent of a result of a bad customer service, lost sales, excess inventory and all kinds of additional costs such as transport, unnecessary investments or inventory obsolescence. The biggest variety of products, chains increasingly longer and more complex in an increasingly demanding market, supply are challenges for many big companies.

  • Each market has its particular characteristics product and solutions have to be adapted to each case carefully. First a situation analysis on key aspects is necessary:
  • Time limit of delivery of orders
  • Degree of compliance with commitments (rate customer service)
  • Process of making commitments to customers
  • Management capacity vs demand
  • System forecast
  • Inventory management (stocks)
  • Supplier Management
  • Production Planning
  • Definition of roles in the organization that supports the entire process of managing the supply chain
  • The diagnosis must allow us to identify the origin that causes inefficiencies and determine the potential for improving their economic impacts, such as the definition of an action plan to address the implementation.

The implementation of the improvements in supply chain is particularly critical since many people are involved, departments, interests and even different countries. Coordinate and implement necessary changes to cross different disciplines, such as the commercial area, production, logistics, planning and shopping. Sometimes it is also necessary to involve the areas that define the product.

  • Definitely have an efficient supply chain provides significant competitive advantages:
  • Increased customer satisfaction and credibility of the company
  • Increased sales
  • Decrease in stocks with an increase in turnover
  • More efficient use of production capacity
  • Increased visibility on where to invest in productive resources
  • Reduction in additional costs of all kinds
  • Better management of financial operations
  • Increased knowledge of demand and therefore of the market

Typical results obtained improvements are above 30 pp. in the level of service and decrease stock level of 20%.

Improvement of the operations services. Lean Service

We improve efficiency and the service operations in business areas

We help our clients to adjust its services to customer expectations without leaving a part the objectives of the business in terms of cost and profitability, in areas such as Customer care, Back-office, after-sales services, network management and team geographically distributed call centers, etc. We also optimize support areas such as HR, finance and maintenance.

Improved efficiency of the customer service has to be consistent with the key business: keep costs low but improving the acquisition and retention of customers. You need to understand the expectations of customers in each segment and service to adapt to them, balancing cost with services that are crucial for the success and profitability of a company.

Our solutions are based on a detailed analysis of:

  • The processes used and their impact on the client
  • The management tools used, degree of control over the activity and offering convenience
  • Recurring service incidents
  • The organizational aspects as the relationship with other areas of activity
  • The functions of the personnel involved
  • Training needs of the teams involved

With all this, and once determined the potential for improvement in economic and service terms, we define improvement actions and establish a priority in its implementation.

For the implementation of these improvement actions and the achievement of these benefits, there are available multiple alternatives depending on the environment. You can use techniques Lean (“Lean Service” is the equivalent of “Lean Manufacturing” in the area of services), in addition to redesigning of processes, the establishment of management systems, standardization of processes and quality standards, technical of TQM, centralization of services and establishment of systems for continuous improvement.

As a final result, we should achieve:

  • A reduction of costs
  • An increase in revenue
  • An improvement of services levels
  • An increase of customer loyalty

Desing process, improvement and implementation o R+D+i

We help our customers achieve greater return on their investment product development processes.

Thanks to changes introduced we improved the development time and the fulfillment of the objectives of cost with quality and functionality required.

We address the improvement of the development process through a system diagnostic of the current work and the realization of an audit in which we compare current practices with the best of the industry (benchmarking). In this analysis we study the product development process and management systems.

Once identified the potential improvements and deficiencies respect the best practices, we set reasonable objectives for quantifying improvement returns.

Finally, with the diagnosis and objectives, we define a plan of action to make real our potential improvement.

Normally, the main weaknesses are in the excessive number of processes and their complexity, the lack of clear responsibilities and a monitoring process that provides little control and transparency

The implementation of a new model involves the improving of:

  • Internal processes (product definition and other requirements, test market, resource allocation, approval, planning, monitoring of progress and reporting, portfolio management projects, validation, processing and release)
  • Monitoring and management of the project portfolio. By prioritizing projects, control of key milestones, quality and cost and establishing KPI’s (follow up indicators)
  • Internal organization. Clarification of the roles and responsibilities of the main actors, as well as coordination with other areas of the company
  • Training of  the staff on the new development methods

The best practices we implement include solutions such as:

  • Simultaneous engineering, to coordinate efforts with other areas and reduce the deadlines of development and manufacturing
  • Portfolio management for the allocation of shared resources and risk management
  • Methodologies Design-to-Cost (Target Cost) for the control of the final product cost
  • Methodologies for quality improvement, as MAFE’s design (Modal Analysis of Failures and Effects)
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