Operational excellence (OpEx) of an organization is the execution of its operations in an excellent way. So the question remains how that is executed, measured and communicated.
Every business in the automotive industry can benefit from adopting a policy of continuous improvement found in lean manufacturing principles.
This can include streamlining the hiring process and distribution networks and keeping their costs lean. When working in auto manufacturing, utilizing efficient “factory flow” techniques can help improve the quality, speed, and reliability of the manufacturing process – increasing profits and reducing waste along the way.
Download our new OPEX Playbook for the Automotive Industry and get access to schedule a free consult with a manufacturing expert.
What is Operational Excellence - Implementing a Three-Step Process
Cornerstone Consulting implements these three steps when helping a company work on embracing a stance of Operational Excellence.
Step 1 - Setting up the Accountability Room
You can’t measure what you can’t see. The first step we take to deliver OpEx is the establishment and Accountability Room which will link shop floor performance to cross-functional planning. This is the step where decisions are made on what data will be measured and made visible in the Accountability Room. This allows an automotive manufacturing facility to become more profitable and sustainable, as it provides a company with the ability to focus on its core strengths and gain visibility into their operations. In order to execute OPEX as a strategic goal, business leaders need to have a clear vision of what they want their organization to look like in the future.
Step 2 - Making Data Visible
Step 2 is all about finding visibility into operations and digging deep to find the actual data points needed to begin the process of making the metrics visible so a proper analysis can be completed. Organizations have to improve their operational efficiency over a period of time, which not only increases the profit margin, but also helps in reducing cost and increasing customer satisfaction. The only real way to make these changes requires the ability to make data visible in a meaningful way and allow changes to be implemented. Experienced manufacturing consulting firms like CCO work hand in hand with clients to analyze each task in the manufacturing process and develop a layout that maximizes efficiency for their unique production needs.
Step 3 - FIT Operations
The third and final component is FIT operations, Cornerstone’s proprietary business system that looks at the costs, risks and benefits of business decisions over time. During this step, CCO works with clients to implement the data and feedback that has been collected. Changes are implemented at all levels of production with items such as more efficient factory layouts enabling material to travel less, reducing the necessary on-site lot sizes and inventory levels. Improving material flow can reduce the staffing needs for certain operations, allowing fewer workers to effectively and safely handle more production, and decrease energy use (and costs). The new process flow can improve communications, minimize space and overhead requirements, decrease manufacturing costs, and improve overall productivity.
Why Operational Excellence in Automotive Manufacturing is important
Operational excellence is achieved when automotive manufacturing organizations focus on continuous improvement, thorough documentation and training, and lean manufacturing. Operational excellence improves the overall experience of your customers and employees, while reducing costs and increasing profitability.
If your company is currently spending money on infrastructure that does not benefit you or your organization, then you are wasting money. By switching to an OPEX model, you will be able to reduce costs and improve efficiency. At the end of the day, there are a lot of benefits to implementing an OPEX approach to your manufacturing facility.
If you have any questions or would like to explore how we can help your facility achieve OpEx, please reach out to us at (888) 324-4808 and we would be happy to learn more about your business. Cornerstone Consulting Organization’s manufacturing consultants can assist your business with all manner of productivity improvement methods, including factory flow optimization, lean & six sigma, ergonomics, and more. Contact us today to learn more.
Download our new OPEX Playbook for the Automotive Industry plus receive a free consultation with our world class consultants to talk with you about your business! Start now to get your business on track for 2022.