How To Achieve Excellent Enterprise Operation?

The company's Z has been growing for many years. Turnover While running up the steps, the company's operation deteriorated day by day, and various problems such as blowout broke out. At the front end, upstream demand plan is uncontrollable, emergency purchase and order cancellation are frequent, products are all mass-produced, design is constantly being revised, and even exposed design defects; product demand is unstable, resulting in unstable material demand and overstock of suppliers. At the back end, the supplier has no control over the procurement, the procurement volume is scattered, bargaining power is reduced, suppliers are numerous, and there is a need to integrate; the procurement system is not sound, the quality and engineering participation is not enough, the quality can not be guaranteed; the long-term overdue payment, the supply risk increases greatly. For the whole company, the competition of product price is fierce, but the cost is hard to drop. Stagnant stock, suspended orders, historical debts are just like sharp swords. The stock that keeps high is profitable on the books, but it is in stock. The result is that costs and inventory are out of control. Sales are growing, but cost pressures are weighing on for another day.

Do these problems seem familiar? Although the "unhappy families have their own misfortunes", the problems faced by enterprises in operation difficulties are strikingly similar: every link of supply chain operation, from demand to production to procurement, is hard to find a link to be in place. In this way, from the customer's point of view, the customer can not get the perfect order, that is, the right quantity, the suitable delivery time and the right quality. From the company's point of view, the cost is out of control. Although the business looks good, but eliminating the rush, rush, waste and stagnant stock, in the end, it is "Yang Bai Lao". Although the problem is two, the root is one, that is, the operation level of excellence is too low, and a systematic solution is needed.

　 Horizontal: all links in the supply chain should be linked.

A number of visits to the company, all levels of personnel, from chief operating officer to the director of production, design, planning, procurement department head, covering the company. Supply chain The main department. Everyone recognizes the seriousness of the problem and wants to start from the field that he can control and try to make a solution, but the result is that the whole operation is more chaotic and inefficient. In front of you is a piece of Swan, Barracuda and shrimp: everyone wants to pull the car out of the mire of inefficient operation, but cancel each other out, and the effect is limited.

for example Marketing And R & D teams that want to save dozens of people through new products, there are more than 100 products / technologies at the same time. Hopefully, a few of them will become popular, but the development resources are too thin, the quality of development is not high, and mass production is still being designed. Moreover, under the condition of limited market, the more products, the smaller the volume, the smaller the scale effect, which brings greater challenges to plan, production and purchase.

Production, because of the difficulty of scheduling and low utilization of capacity, can only expand capacity, buy more equipment, recruit more people to support new product development, resulting in higher fixed costs of the company. Procurement is more: in order to reduce procurement prices, the same product, set up two sets of procurement team, competing with each other, who selected the winning bidder, the credit is on who head. As a result, the price has dropped, but the problem of quality and delivery is that "pressing the gourd" has become a nightmare for quality assurance and production departments. Another consequence is that the number of suppliers is expanding, the volume of procurement is dispersed, and the overall bargaining power of the company has declined, creating obstacles for future annual price cuts.

In order to control costs, the senior management level turns exception management into "case management", and everything needs to be signed at the first level. Even the small orders generated by MRP must be signed by high level signatures. It is said that the approval is in layers, and in fact it is also a walk through: at the next level, the next level is signed, and it is signed. So the quality of decision-making is not improved, but the decision-making and approval process is longer, lower efficiency, and the operation layer is complaining. {page_break}

There are so many operational problems on the whole chain, such as the president of GE, who need to have systematic thinking to solve them systematically. One of the "seven objections" of the party is firmly opposed to the change of cadres who lack the overall view, and this is also the reason.

In the supply chain, when enterprises and enterprises, departments and departments interact with each other to solve a problem, they must weigh the side effects of other departments or partners and try to find the lowest total cost plan. The local optimization scheme is likely to damage the overall interests, and finally we all suffer losses.

　 Vertical: from the results to the roots, provide a systematic solution.

The above is about horizontal systematization, that is, horizontal linkage in supply chain, whether it is internal departments, or between companies and companies. Vertically, operational performance has to be decomposed longitudinally. From results to symptoms, and then to the root, excellent operation is like a (see Figure 2). The whole system is driven by customer (demand management). The upper end is the goal, that is, the perfect order in the eyes of the customer and the reasonable supply chain cost in the eyes of the company. The two big targets are broken down into many small indicators, for example, perfect orders include time delivery rate, quality, order accuracy, etc. supply chain costs include production cost, logistics cost, procurement cost and so on. Excellent operation level is low, the result is not good, symptoms are high total inventory, accounts receivable and accounts payable long. The roots are in procurement, production, planning, inventory and other functions.

　 Index: excellent operation is inseparable from index system.

In addition to horizontal comprehensive consideration and vertical root cause analysis, we should establish a complete index system for comprehensive monitoring and key improvement.

In the enterprise, the problem of sales side can easily be highlighted: sales growth or decline, at a glance. But the operational problems are not. In particular, the rapid growth of local enterprises, revenue growth of a handsome cover 100 ugly. But with the rapid growth of turnover, all kinds of inefficiencies are also falling into the corner of business operations. For example, the organization is becoming more and more complicated, the process is getting longer and the products are more and more diversified. These problems, such as human flesh, do not accumulate in one day, so they will not be immediately alerted. When finding fat, many problems have become systemic problems. It is very difficult to lose weight.