7 Principles for Synchronous Profitable Operations (SPO)
The concept of “synchronization”, or JIT and its practice are very important, but it is very difficult for all manufacturing companies to achieve a complete and especially profitable “synchronization”. For final manufacturers, “synchronization” seems to be still an extremely effective method, but for their suppliers, “synchronization” is not always adequate and especially it is not always profitable enough. Detalii…
Starting from the basic thinking of Strategic Kaizen, namely from Flow, Pull and Synchronization to Takt Profit (and implicitly to Takt Time), the 7 principles of Strategic Kaizen for performing Profitable Synchronous Operations are:
- creating long-term value for all key stakeholders (beyond just that of customers);
- ensuring the complete and continuous strategic transformation of the manufacturing flow continuously guided by the ideal Takt Profit;
- configuring operational modules so that they flow continuously profitably enough;
- module planning and control based on the principles of Flow, Pull, Takt Profit (and implicitly Takt Time);
- Pull, Takt Profit, and Takt Time along the entire flow;
- simultaneous operational and financial strategic improvement of the entire flow;
- honoring Takt Time only if Takt Profit is met.
So, it is advisable for both end manufacturers and their suppliers to use Strategic Kaizen in order to simultaneously satisfy the urgent need for “synchronization” need and “profitability” to achieve complete and continuous strategic transformation and to achieve continuous strategic improvement in manufacturing costs of at least 6% per year and with a total of 30-45% for 5 consecutive years, based on the reduction/elimination of costs of excess inputs and the associated cost of failing to utilize those optimally, costs that exist in their organization anyway, without significant investments, with financial visibility of improvements at the level of KAIZENshiro budgets.
Source: Alin Posteuca on LinkedIn