From Automotive, Industrial, Infrastructure all the way through to the Travel industry. A diverse range of sectors with a number of common challenges. For starters Digital disruption. Companies need to optimize operational efficiency while lowering cost of service. While adopting new business models that will navigate the new digital world.To exploit the value from connected car solutions, OEMs need to re-tune their operating models.
- Assembling a connected car business leadership team with strategic and corresponding competencies
- Bundling cross-functional skills, complemented by an active integration of major geographies
- Developing new skills across the organization to create new connected car offerings and to manage relationships with end consumers
- Implementing lean, highly efficient processes and embracing a commitment to open innovation
- Adopting an open technology architecture including standardized APIs
- Using big data, analytics and cloud technologies to create data-driven services
- Capital utilization
- Labor utilization
- Supply chain and manufacturing integration
- Identify the value that can be driven from manufacturing operations and rigorously measure progress toward that target.
- Use analytics to gain better visibility into manufacturing value and opportunities. - Don’t start with an arbitrary, fixed percentage for year-on-year improvement.
- Define value targets unique to your manufacturing environment and business goals.
Gaining competitive advantage through a value-based analysis
Manufacturing is back and capacity utilization is tight around the world. But how can companies fulfil demand profitably? In many cases, traditional measurement approaches are no longer helping. Companies use old or broken metrics that do not do not allow full visibility into the manufacturing processes and do not focus directly on business value. By contrast, “Perfect Cost” is a strategic measure, using analytics and other assessment tools, to help organizations understand how they are tracking to the best possible manufacturing performance across the enterprise.
Many companies have much more capacity than they think they do. Ellison research shows around 50% of manufacturing executives plan to get more out of what they already have invested within their manufacturing and supply chain network. By getting the most out of existing facilities, companies can eliminate redundant capital investment in capacity and free it up for growth, innovation and increased competitiveness.Perfect Cost enables companies to analyze performance of the manufacturing network to understand current costs and future “perfect” costs while understanding capacity to meet current and future demand.Analytics-based examination of the manufacturing environment is conducted across multiple levers:
Perfect Cost analysis is potentially a breakthrough method of finding extra capacity at a lower cost per unit in the manufacturing network. The following are keys to success:
Combine operational and financial metrics to measure the value of your manufacturing performance relative to perfect cost.