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OPERATIONS DIAGNOSTICS

Assessing Capability

Manufacturing Focus

Lean Factory Audit (LFA) for manufacturing operations, converting raw materials into finished goods.

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Service Focus

Lean Office Audit (LOA) for professional service operations, converting consumers into satisfied customers.

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Assessment provides Clarity

The operations diagnostics helps investors understand what they are buying; it delivers critical input for developing effective strategies. Traditional due diligence efforts mainly focus on validating financial statements and the sales funnel. We differentiate ourselves by assessing the value-chain end-to-end, uncovering the hidden problems and potentials in functions and interfaces – Sales, Operations, Engineering, Quality, and IT – all of which are critical to the long-term success.

Operations Diagnostics (OD)

  • Purpose: identify problems and discover opportunities
  • Application: pre-merger evaluation and benchmarking
  • Process: assess value chain performance PLM, SCM, CRM, OPS
  • Duration: 1 week for a ‘Quick Scan’ and 1 month for a ‘Deep Scan’
  • Deliverable: diagnostics report, benchmark ranking, gap-fit assessment
  • Impact: clarity as foundation for effective decisions

Assessed Dimensions

MANAGEMENT – ability to plan, motivate and execute:

  • Strategy deployment and tactical planning
  • Budgeting and financial control
  • Goal cascade
  • Performance management
  • Consequence management
  • Negotiation and conflict resolution

PROCESS – ability to meet the needs of the customer (VOC) and business (VOB):

  • Organization and communication
  • Strategy implementation
  • Problem solving, deviation management
  • Innovation and renewal
  • Learning, skill-building, people development

SYSTEM – infrastructure, accessibility, availability, quality of information:

  • Planning and manning (CRP, MRP)
  • Costing (FIM, ABC)
  • Information value, accessibility, protection (IT, IP)
  • Quality (ISO, QA, QM)
  • Continuous improvement (CI, Lean, Six Sigma)

PEOPLE – capability, motivation, mindset to meet business-needs:

  • Mindset, motivation, behavior
  • Knowledge, critical know-how
  • Skills and strategic capabilities

Assessment provides ’Big Picture’

  • Assets – plant, equipment, inventory
  • People – capability, mindset, motivation
  • Structure – documented vs practiced
  • Baseline – current performance vs benchmark
  • Potential – constraints, dysfunctions, inefficiencies
  • Strengths – source of competitive advantage to enhance

Contact us for an objective, comprehensive operations assessment. As a preparation for the full Operations Diagnostics, you can do the initial Lean Audit yourself.