The main concern of the board of directors is to show the clear direction towards which the company must go in the future, namely to establish the company’s productivity vision (or whatever the company wants to be). The senior managers must be constantly concerned with developing the company’s productivity mission (or why the company even exists and what real production capacity it has to ensure), establish the business principles on which to develop the company’s values and establish productivity core business goals in the short, medium and long term and profitability and productivity scenarios and strategies to meet the vision set out by the board of directors. Then middle managers and lower managers should lay down in detail the profitability and productivity strategies and policies (targets and means) in order to fulfill the vision by continuously fulfilling the productivity core business goals.
The main challenges of managers that have an impact on the necessary productivity level, and thus on the profit plan aim at:
- dominating successive changes in the real needs of customers (new profitable products) and technologies by promoting a culture of continuous innovation;
- ensuring the link between the internal and external environment of the company and continuous identification and addressing sync mismatch through an effective productivity culture at the shop floor level;
- continually becoming aware of the actual company’s current position and to continuously demonstrate their leadership skills.
PCBG and Multiannual Profitability and Productivity Scenarios and Strategies aim to tackle stringent problems/ constraints of productivity. For example, for multiannual productivity strategies to increase synchronization between manufacturing flow and supply chain for a particular product family cost (PFC), PCBGs can be set up such as:
- reducing manufacturing lead time for each main process;
- reducing the number of workstations;
- reducing the cycle time;
- reducing the setup and transfer time;
- reducing the factory lead time;
- reducing the supply lead time and
- reducing the delivery lead time.
The expected impact concerns the development and then the implementation of objectives, scenarios, strategies and policy (targets and means) of profitability and productivity in a clear and acceptable way by the company and beyond. Based on the objectives and policies, a master plan is developed for implementing the actions and activities needed to achieve the outputs level of performance required to continuously satisfy the corporate vision. In the design, implementation and verification of results of the actions and activities of the productivity master plan all employees are involved: senior managers, middle managers, lower managers and implementation teams of improvements and problem solving that include team leaders and operators.