See how operational excellence drives the profit of a company. Learn techniques to improve efficiency and effectiveness of your operations.

1. Operational Excellence –
Improving Profitability
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

2. ITS NOT STRATEGY THAT MATTERS – IT’S EXECUTION THAT COUNTS
 cpSphere

Delivering Next Generation of Solutions
17215 Studebaker Rd. Suite 390
Cerritos, CA 90703
1.562.860.8637
1.562.860.8611
growth@cpSphere.com
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
www.cpSphere.com
info@cpsphere.com
www.cpSphere.com

3. Operational Excellence
Systematic management of all the processes to achieve
world class performance by:
 Efficient utilization of tools
 Optimization of Resources
 Elimination of process waste / inefficiencies
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

4. Lack of operational Excellence …
Results in
low profitability and cash
flow issues
When do you address it?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

5. Operational Excellence Becomes a Concern
when…
 Cash flow starts to get a little tight
– Trouble meeting payroll
– Suppliers are screaming for payments
– Inventory is out of control
– Expenses are rising faster than revenue
 Backlog starts to shrink
 Opportunities are missed due to cash flow issues
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

6. Improving Profitability – Traditional Approach
 CFO/Department Head is responsible to lead
the cost cutting efforts
Focus usually is on cutting expenses
 

Workforce Extend Reduce
Scrutinize
Reduction Payment Terms Employee Perks
Purchasing
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

7. Performance Improvement: Strategic Approach
Generate Ideas to
measure the identify waste
achieve a better
current level of
level of output
performance
Performance improvement is all about
organizational change
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

8. Ideas Should be…
• Effective
• Efficient, and
• Adhere to Market
Forces
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

9. How to Generate The Ideas
Value Stream Mapping
  $
Visualize Your Eliminate Increase
Processes Waste Profits
 
Value Stream Mapping is a Lean technique Lean: A business system for organizing and
used to analyze the flow of materials and managing product development, operations,
information currently required to bring a product suppliers, and customer relations to create
or service to a consumer. precise customer value—goods and services
with higher quality and fewer defects—with less
human effort, less space, less capital, and less
time than the traditional system of mass
production.
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

10. Purpose of Value Stream Mapping
 Identify processes where “Lean” techniques can be
applied
 Help reduce / eliminate wait time
 Eliminate process waste
 Reduce production cycle and processing time
 Understand process linkages and dependencies
 Create the basis for “Lean” implementation plan
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

11. Value Stream Mapping – Case Study
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

12. Business Case
Problem Statement Solution
Losing Business to competitors due to Improve lead time performance by
long lead times and late deliveries. synchronizing production with customer
demand.
Key Requirements
1. Reduce flow time to meet customer
Ideal State demand.
2. Reduce RAW, WIP and FGI levels.
• On-Demand
• Defect Free Measurements
• 1-By-1
1. Total flow time
• Lowest Cost 2. Inventory levels
3. EBIT performance.
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

13. Value Stream Map – Current Process
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

14. Team Brain Storming Session
• Can Customer increase the size of the blanket order
and provide us with a longer term forecast visibility?
• Can we flow the demand down to the supplier with
a longer term visibility?
• How can we reduce wait time?
• How can we reduce change over time?
• Can we reduce lot size?
• Can we merge production processes to reduce travel
time?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

15. Value Stream Map- Future Process
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

16. Strategy Implementation Check List
• People
Do
Plan
• Product
• Systems
Act
Check
• Processes
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

17. Next Step
• How would you apply Value Stream Mapping into your
Business?
1. Share the business challenge with your key staff.
2. Define business case
3. Define a high level business process
4. Define activities for each business process including wait time.
5. Randomly pick a minimum of 5 current jobs and record all
activities and time. From the initial customer call to receipt of
payment for the goods or services.
6. Map the process – this is your current value stream map
7. Categorize each activity as value added or non value added
8. Define a map eliminating as many of the non value added
activities – now you have a first draft of the future state
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

18. CPSPHERE – HELP YOU FOCUS & GROW
Did we all Get it?
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com

19. Next Step
Identify Strategic Pricing Align Adoption
Initiative Operations
• Set the price which • Create a consensus
is easily accessible • Address adoption
• Does your product • Set Target Profit
to mass of buyers hurdles in
offer exceptional • Come up with
• Use Pricing actualizing the
Buyer utility? Target Cost
Corridor Tool strategy
• Use Buyer Utility • Streamline Cost
• Balance Scorecard
Map Innovation
Measuring Business Success
Operation Excellence
November 1st , 2007
October 4th , 2007
It is a given fact; whatever you
Name of the game is “Profit”. Learn techniques for streamlining your operations
measure, it improves. Learn how to
that results in positive bottom line for your growing business.
define an operating plan for your
business and what to measure
1.562.860.8637
ITS NOT STRATEGY THAT MATTERS – ITS EXECUTION THAT COUNTS
info@cpsphere.com
www.cpSphere.com