Recovery efficiency

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The Italian version has been published on "HR on Line N. 12 - June 2009" by Giuseppe Toscano

Recuperare efficienza nelle Operations attraverso il temporary management

The present time, in which the crisis is starting to slow down and positive signs can be seen, more and more often calls us to take important decisions for our companies. It is very clear that the companies who want to be ready to catch the coming wave, right in these phases need to get prepared and tool them up as good as possible. Keeping an eye on the costs, of course. In this situation, for many companies may be quite interesting the option of a Temporary Management project. Which means to bring in the company a top manager for a fixed time, with a specific project and clear and agreed targets, in terms of what to accomplish and by when.

This approach may bring crucial advantages in the development of the business: a perfect focus; the opportunity to employee highly qualified resources; defined investments and no impact on fixed costs. On the other side, the required investment may be quite important.This means that the decision has got to be carefully evaluated, with a clear trade-off analysis between costs and expected returns.

A Company Operations Assessment may be a very useful tool to support this crucial decision making process: through the support of qualified consultants it is possible to get a clear picture of the actual status of the company, against an investment pretty low in terms of both time and costs.

The Assessment will be performed in three steps, as follows::

1 - Collection of data and information on the company

It allows to focalize the status of the company and to properly position it in its business arena. Among the data to be analyzed, we can mention:

  • Structure and company ownership
  • Main markets (both segments and geographical distribution)
  • Turn over by market segment; trend and forecastMain products and customers
  • Main competitors
  • Manufactured and outsourced processes
  • Main suppliers and purchased parts/materials
  • Macro-processes
  • Main Key Performance Indicators (KPI).

2. Assessment on manufacturing activities and supporting services.

This is the core of the work; it is intended to “bubble up” any inefficiency and, therefore, the opportunities for improvement.

The analysis in each section will be conducted as follows:

  • Review the existing operational procedures
  • Verify their actual implementation
  • Analize the results obtained
  • Verify the actions defined on the base of the trend of the result

Among the items that will be analyzed more carefully, we can mention:

  • Manufacturing processes
  • Production equipments (adequacy)
  • Process controlEquipment’s maintenance
  • Continuous improvement approach
  • Lay-out, ergonometric solutions and material flow
  • Personnel selection, training and qualification
  • Suppliers management
  • Production planning
  • Subcontractors management
  • Warehouses management (shelf life and FiFo)

3 - Final report

Finally, the company management will have a clear picture of the actual status that will point out strength points as well as opportunities for improvements.In this way he/she will clear identify how and where to focus the actions to optimize the processes, to reduce the defects rate, to improve the customer satisfaction. In one sentence: to improve the competitiveness of the company. Also understanding costs and benefits expected form each implemented action.

Priorities will then be better focused and investments concentrated where they can be more effective.Specifically, the option to start up a Temporary Management project will be evaluated on the base of clear and documented facts and figures.

In summary, the assessment used to validate the opportunity of a Temporary Management project, guarantees to the company an excellent cost-benefits trade off, no matter what is the result.In fact, if it will bring to the decision to prefer different solutions instead of the Temporary Management, the advantage is clear: it will have avoided a wrong decision. But also if the starting idea will be confirmed, it will allow a much better focus and a clear definition of the project. And this will be achieved against a quite limited investment. .

The Italian version has been published on "HR on Line"