OPERATIONS

Operations Strategy

"Operations" constitutes all of the activities that a company conducts in order to deliver value to its customers. It's the set of processes that transforms either materials or information into a product or service. It is the core of a company’s business. This definition of operations can be applied to almost any organisation including industrial, public sector and pure service operations. Typically over 70% of a company’s assets (and people) are the responsibility of the operations function.

An operations strategy is concerned with matching the characteristics of the operations function with the requirements of the market in order to fulfil the needs of the business i.e. using quality, cost, and service as competitive weapons.

An operations strategy is a long-range game plan for the production of a company’s products/services, and provides a road map for the production function in helping to achieve the business strategy.

Areas of benefit include:

• Improved flow of goods
• Lower inventories with increased turns
• Shorter cycle times
• Higher staff productivity levels
• Maximised utilisation of floor space and capacity
• Increased distribution network efficiency
• Enhanced customer satisfaction
• Greater return on assets
• Continuous improvement

Axios believes that there isn't "one best way" to do anything - whether it's creating an organisational structure or designing and managing an operations organisation. The best way to do something depends critically on the characteristics and capabilities of your organisation and the competitive context in which it finds itself.

Operations Toolkit

Axios believe becoming ‘LEAN’ is a process of eliminating waste with the goal of creating value, not just a cost cutting exercise. Equally it is a process that can be applied in any industry sector – manufacturing, public sector, service, telecoms, technology, pharmaceuticals, or retail. In many processes, it is not unusual for non-value added activity to comprise up to 90% of the total activity.

As well as training in Lean Thinking, Axios is experienced in developing Lean Strategy and supporting the implementation of Lean programmes. The appropriate tools will be used to suit the particular need.

Lean is not prescriptive but an advanced methodology and way of life. Working smarter not harder can directly improve your bottom line. Introducing Lean Tools to eliminate waste will reduce operational costs to create greater wealth within an organisation.

Streamlining operations through the elimination of waste, will deliver both efficiency and performance expectations at a reduced operational cost.

SIX SIGMA at many organisations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process -- from manufacturing to transactional and from product to service.

The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six Sigma defect is defined as anything outside of customer specifications.
A Six Sigma opportunity is then the total quantity of chances for a defect. Process sigma can easily be calculated using a Six Sigma calculator.
The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects.

The Five S’s - Many people start their journey of continual improvement simply by getting their workplace in order.

Based on five words that begin with 'S', the 5 S philosophy focuses on effective workplace organisation and standardised work procedures. 5 S simplifies your work environment, reduces waste and non-value activity, and improves quality, efficiency and safety.

The five S's are:

Sorting (the useful from the useless – get rid of clutter)
Storing (a place for everything and everything in its place)
Shining (keeping the workplace clean)
Standardising (applying best practice)
Sticking to the rules (benefiting from best practice)

Axios only use appropriate tools and only use tools appropriately.

The PRAGMATIC use of these tools delivers sustainable business results.