Do you feel like you're being squeezed by the competition? You have to cut costs when there are no more places to cut? You need to turn your operations around before profits and customer satisfaction begin to suffer?
Focusing on operational efficiency can help your business work smarter: increase efficiency, reduce costs, and streamline processes. Are there concrete changes I can make to simplify and improve how my business works?
How do you identify and eliminate waste?
Operational efficiency (OE) and lean manufacturing both target waste. This means finding out where you spend resources (time, money, people, effort, etc.) on activities that do not add value to your product or service, and then eliminating those problem areas. The results are measurable, immediate and sustainable.
Typically, there are 9 main causes of waste in a business: overproduction, delays, unnecessary transportation, too much inventory, defective products, defective design, complicated processes, outdated equipment, poorly trained employees.
How OE can help you work smarter - not harder
BDC's Operational Efficiency approach works because it involves all employees in improving the plant's administrative and manufacturing processes. The benefits derived by companies who have implemented OE measures include:
- Significant cost savings that last
- Increased productivity (10% to 50%)
- Reduced inventory (30% to 80%)
- Reduced setup time (30% to 90%) and response time (30% to 70%)
- Improved quality control and reduction of non value-added costs (5% to 30%)
- Strong competitive advantage
- Increased profits
How does OE work?
Our consultants assess your company's management processes, looking at everything from methods and systems to supply chain and human resources. They develop and implement a customized action plan, and identify the necessary training for your employees. The consultants also conduct a follow-up to ensure that new processes are sustained over time.
The following are the main tools used by our consultants for improving operational efficiency:
- Mapping: Accurately charting your operations using diagrams and flowcharts to visualize problems and improvements
- VSM (Value Stream Mapping)
- SLD (Swim Lane Diagram)
- SPAG (Spaghetti Diagram)
- 5S Process (Sort, Straighten, Sweep, Standardize and Sustain): Reducing delays and gaining space through a clean and well-maintained workplace
- SMED (Single-Minute Exchange of Die): Reducing equipment changeover time and downtime
- PARETO (the 80/20 Law): Targeting 20% of the causes will resolve 80% of the problems
- OEE (Overall Equipment Efficiency): Determining the overall effectiveness of equipment by measuring its availability, quality and performance
- Benchmarking: Setting standards by measuring your performance and comparing it to similar companies and to industry best practices
- Kaizen activities (Continuous improvement): Making ongoing efforts to perfect the way you do business by reducing time, cost, space, mistakes and effort
- Kanban: Maintaining an orderly flow of material. One of the primary tools of the JIT (Just-In-Time) system
Why choose BDC?
||Over 65 years working with SMEs to help grow their business |
||Our network of professional consultants are skilled at striking a balance between quality, price, efficiency and results|
||Promoting business self-sufficiency and success at an affordable cost|
|Money and more
||We combine financing and consulting that are adapted to help your business grow|
Answers to your questions
Looking for financing?
BDC can provide financing to get your projects off the ground and to ensure your long-term success.Learn more