Arrelic Operational Excellence Model

OEMany companies drive operational excellence into their operations. Yet when asked exactly what it is, there is always hesitation. Answers such as “It’s about process quality (making perfect parts every time)”, or “Applying lean tools everywhere to eliminate waste” are common. It is not an easy concept to quantify, and very difficult to explain in simple practical terms to an operator on the production floor, so they know what to do to create and sustain it.

Where will your Operational Excellence journey take you?

Lean is a big component of Operational Excellence. Lean is based on elimination of waste, and the best way to eliminate waste is to create flow. Therefore the lean journey is one of creating flow. Flow is created at a cell level by using one piece flow techniques. Flow is continued at the value stream level by connecting processes or cells with FIFO (First In First Out) or supermarket (Kanban or Pull) systems. Flow is created in the office through work flow cycles, integration events, virtual office cells, and pitch, and recently more progressive companies have created flow in the supply chain by setting up formal connections such as Sequenced FIFO and kanban with suppliers. The intent of lean is to flow value at the rate of customer demand which is the first step towards Operational Excellence. The answer to the question, “Where will your operational excellence journey take you”?

Defining Operational Excellence

Operational Excellence is when each and every employee can see the flow of value to the customer, and fix that flow when it breaks down. It’s that simple. What this means is that each employee knows that the product moves from process A to process B in a specific quantity, at a specific time, to a specific location; otherwise, something is wrong. Additionally, when something does goes wrong (and it will), they know what to do to fix it, without seeing their supervisor, reporting to management, or having a meeting. This happens in the office as well, where employees can see the flow of a customer order through several business processes and fix that flow when it breaks down in the same manner.

Think of it as orders flowing (from order entry through manufacturing to delivery) through a pipe. Someplace (in the office or on the manufacturing floor) the pipe gets clogged and the flow stops. The operators would know what to do to unclog the pipe and allow flow to resume without any management involvement. Employees create and maintain a lean flow, while management focuses on growing the business.

Value Proposition from Arrelic

  • Increasing Profitability and Cash Flow

    Arrelic strategies, tools and techniques  and our methodologies designed for improving business performance, improve equipment  uptime (OEE), reduce scrap, improve yield, improve quality & productivity, accelerate set-up/change-over times, reduce lead times, optimize inventory.

  • Driving Culture Change

    Companies who successfully leverage operational excellence as part of a strategic platform for growth often achieve market performance well beyond their nearest competitors. We can help you how to expand continuous improvement into  non-manufacturing areas, how to enhance sales force productivity, how to optimize the maintenance activities and enforcing the employees  in all level.

  • Supporting Growth Initiatives and New product development

    We will share best practices for applying process excellence to new product development and commercialization, Efficient product development processes closely integrated with the operational processes . You will  gain important advantages, such as reduced lead time to market, improved quality and increased development capacity.

  • Beyond the Basics

    Many manufacturing organizations need to expand continuous improvement throughout the enterprise and seek training to expand capabilities into marketing, customer service, engineering new product development and quality control.

  • Supply Chain Management: The Real Improvement  

    The complex and often costly internal supply chain processes is one area that many businesses seek to improve. By “killing complexity” in the overall supply chain system, companies will experience better, faster delivery with lower costs.

  • Focus on Maintenance: Key for enhancing Profitability.

    Proper maintenance of plant equipment can significantly reduce the overall operating cost, while boosting the productivity of the plant. Hence another perspective of looking at maintenance function is not only to maintain but also to enhance the process or the plant operation system as a result of turnaround planning.

Key Results

  • Reduce Manufacturing Cost by 20 %
  • Number of Breakdown reduced by  50%
  • OEE improved by 30 %
  • Reduction Defective Products by 50%
  • Customer Complain down by 60%
  • Inventory down by 30%
  • Major Accidents reduced by 100%
  • Improvement of Suggestion 10 times
  • Improve 5S score by 80%
  • Machine Changeover time by 40%
  • Reduce Energy Consumption by 20%

Methodologies

  • TPM, 5S and SMED
  • Six Sigma
  • Lean Manufacturing and VSM
  • Value Chain and Value added analysis
  • Management System
  • Strategic Alignment
  • RCM and TQM

Return Over Investment (ROI)

  • 10 to 33+ Folds of investment in consulting fees.
For more details kindly send mail to dsahoo@arrelic.com

 

Posted by Arrelic

Arrelic is a deep-tech firm aiming to bring the next level of IoT based sensor technology for smart manufacturing to create a better future in today’s world.

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