A poorly designed organisation is like a colander: you can pour your best talent and hours of effort into it, but much of this capacity will leak through the holes or be used up trying to plug the holes. A well-designed organisation uses its talent effectively and limits the waste that occurs. So, what then, constitutes good organisational design?
Integrative Improvement Blog
The integrative improvement blog discusses and provides commentary on the latest topics in the business performance improvement sector.
Rising asset capital cost and complexity have resulted in a surge in operational and financial risk. This has intensified pressure from shareholders and regulatory bodies to improve asset lifecycle costing and reporting. Fortunately, by following a total asset lifecycle management approach, you can better manage your assets for long-term business competitiveness.
With the advent of digital manufacturing, traditional lean is being catapulted to another level. A recent study indicates that traditional lean’s focus on shop floor execution has become too narrow for today’s complex, linked value chains and adaptable manufacturing environments. What’s needed, according to the study, is a ‘digital lean’ approach.
If you could see into the future, you would never miss a production target, endure a safety incident, or have a machine go down. While this will remain an elusive dream, you can, however, predict the future. With predictive maintenance, you can uncover unnecessary maintenance, which could save you millions of dollars in the longer term.
Forward-thinking executives around the world are increasingly viewing operational excellence (OpEx) as a key driver of top-line growth, and no longer as just a tool for incremental process improvements at operational level. They understand that OpEx project teams and processes are best placed to create disciplined frameworks to gain competitive advantage.
For an F1 pit crew, changing four tyres takes less than 15 seconds. This is living proof that changeover times can be reduced by analysing each element to see if it can be eliminated, moved, simplified or streamlined. In manufacturing maintenance, single-minute exchange of dies (SMED) can dramatically reduce the time it takes to complete equipment changeovers.
Internal supply chain alignment is just as important as cooperation with external partners for gaining competitive success and satisfied customers. From procurement to sales and operations planning (S&OP), each functional area is critical to success. But this success hinges on the level of collaboration between the respective functions.
Formulating and writing standard operating procedures can be quite a challenge, and it often takes several attempts to produce material that is truly instructive. A well-drafted SOP is not a static, one-time effort. It has life. It provides the baseline against which thoughtful and effective improvements can be planned and implemented.
Much like a product life cycle, a continuous improvement leader’s life cycle may start small, grow as the leader becomes more aligned with the organisation’s mission, and then subside somewhat as performance improvement matures. So to stay relevant in a maturing organisation, consider broadening your skill set.
Building an effective culture of continuous improvement (CI) is not just about executing a cluster of improvement projects. While it’s a good place to start to reap tangible rewards, more is required to drive sustainable results over time and embed continuous improvement in the organisation’s DNA.