Which processes must be reviewed? Here is a list of the processes
most companies focus on:
• Customer service and order entry.
• Distribution and warehousing.
— Reducing finished goods inventory without
sacrificing customer on time performance, reducing product
availability, and increasing distribution costs and expenses.
— Reducing handling of finished goods and
movement of the product.
— Reducing the amount of "buffer"
and safety stock inventory.
— Keeping finished good's inventory
accuracy at a high quality level with no tolerance.
— Reducing distribution and warehouse costs
— Increasing visibility of inventories
— Providing a flexible network to handle
both anticipated or sudden changes in demand.
— Improving warehouse productivity and
reducing storage space.
— Reducing cycle time to process customer orders and shipments.
— Reducing the order quantity to the plant.
— Moving to a time-phased replenishment
planning system with customer visibility versus only a reorder
point system with large lot sizes.
— Improving demand forecasting.
— Revising roles and responsibilities, and
prioritizing value-adding activities.
— Removing incentives in the sales
compensation system that inject bias into the forecast and
— Removing complexity from the forecasting
— Assigning accountability and responsibility
for tracking the sales forecast versus actual customer demand and
explaining all out-of-tolerance conditions.
— Having Sales/Marketing review all demands
monthly and determining a root cause for all out-of-tolerance
— Regularly visiting the manufacturing plants
and developing a better understanding of the manufacturing
— Replacing the forecasting system with
customer demand information.
— Better prioritization of selling activities
and working closer with the customer to determine customer
— Aligning sales with market focus, business
and manufacturing strategy.
— Reducing paperwork.
— Better explanation of new products to the
— Better focus on key market influences.
— Increasing net selling time by x%.
— Increasing sales by x% over the current budget.
— Having more timely information on the
customer, market and competition.
— Participating in a monthly Partnership
meeting with distribution, planning and manufacturing.
— Ensuring the main objective is to get to
the "voice of the customer" and translate that
information into product definition.
— Reducing the time and cost to bring new
products to the market by 50%.
— Improving concurrent development of new
— Using the Quality Function Deployment
concepts and tools.
— A new product development process that is
simple and understood.
— New product development process that has
milestones defined. They are used to gatekeep and ensure all
required deliverables are on time.
— Reducing the time to generate bills of
material and product documentation.
— Improving on time of new product
deliverables used internally.
— Implementing an engineering capacity
— Improving engineering productivity by 30%.
— Increasing interaction with the business teams.
— Improving the quality of the documentation
utilized by the users.
— Ensuring new products are driven by the needs of the
marketplace and not by technical wizardry.