Assessing OpEx in Your Supply Chain

04/12/16

David M.Powe

OpEx and Your Business

Every business or company that creates, builds or otherwise produces something relies on a supply chain to make sure it has the people and materials it needs to fulfill its production and customer service goals smoothly and efficiently. One key to having a high performance supply chain is developing an effective Operations Excellence (OpEx) program to drive continuous improvement. A great OpEx program can help ensure that your supply chain is functioning at world-class levels.

 

2016-04-09 21_13_20-Asessing OpEx Effectiveness - Microsoft PowerPoint

 

 

Most executives and managers believe their supply chain is functioning effectively and efficiently. If not, they are taking steps to correct the issue. But I’ve found that companies that don’t have a continuous improvement program rarely, if ever, achieve high performance levels. Are your OpEx efforts driving maximum improvements? There are three areas are vital to your supply chain from an OpEx perspective: Employee Engagement, Tools and Methodologies, and KPIs. Here are some high-level questions to ask in assessing the strength and reliability of the Employee Engagement link in that chain.

  • Employee Engagement
  1. Do all employees participate in process improvement?
    • You — as owner or manager, your leadership by example is absolutely essential to this process.
    • Senior Management — they have to buy into the goal of creating excellence and maintaining continuous improvement
    • Hourly workers — they have to feel needed and valued for both day-to-day productivity and long-term excellence to occur
    • OpEx Experts and Mentors — they can be invaluable in creating understanding and buy-in
  1. Have you regularly scheduled time for process improvement activities?
    • Are your process improvement teams standing or ad-hoc?
  1. Do employees understand the required performance level of their process?
    • Are teams responsible and accountable for KPI improvement?
    • Are they willing to raise the bar on themselves?

Our next articles will look at the Tools and Methodologies link, followed by the KPIs link. Feel free to get in touch in the meantime to see how AIOPX can help you strengthen these key elements in your OpEx program.

David M. Powe

David M. Powe, Lead Consultant

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