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2008 | Buch

Operations Excellence

Smart Solutions for Business Success

herausgegeben von: Roland Schwientek, Axel Schmidt

Verlag: Palgrave Macmillan UK

Buchreihe : International Management Knowledge series

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Achieving operative excellence is an important endeavour for all companies – it is the golden path that leads to increased value over the long term. Through this book you too can achieve operations excellence within your own company.

Inhaltsverzeichnis

Frontmatter

Introduction

Introduction
Abstract
Achieving operative excellence is an important endeavor for all companies — it is the golden path that leads to increased value over the long term.
Roland Schwientek, Axel Schmidt

Research and Development

Frontmatter
Introduction:What is successful product development?
Abstract
No one would doubt today that markets are becoming progressively more global. The rise of Eastern Europe, the upturn in Latin America and, of course, the entrance of China et al. into the global marketplace have significantly increased the numbers of suppliers for almost every kind of product. With competition rising, it is more important than ever before for companies to find and highlight their unique selling point, to offer something that singles out one company from the crowd.
Thomas Rinn, Kai Bethlehem
Chapter 1. Changing business models and their impact on product development
Abstract
This chapter will examine how changes in the business model — whether in a company or an entire industry — can affect the process of product development. First, I define the precise nature of a business model, and how it should be used as a steering instrument for a company. Next, the chapter explores how business models develop over time and how these developments can be viewed as part of a lifecycle model. Following this, the question is discussed as to how companies can initiate and manage these innovations. Finally, a case study illustrates how generating scenarios for future business models can help companies to see what action they need to take now in terms of product development.
Michael Zollenkop
Chapter 2. Innovate to win: how clever cost approach design can outsmart competition
Abstract
Most of us know it, but few are willing to admit it freely: innovation and progress in technical products hardly ever provide sufficient leeway to increase prices to a considerable degree. The pressure from competing products or alternatives on offer around the world is simply too high. Innovation is something customers expect from well-known companies. It is a given — not a sign of outstanding performance.
Ralf Augustin, Kai Bethlehem
Chapter 3. Global development made successful: lessons learned by the automotive industry
Abstract
We are living in a globalized world. This, of course, places each individual as a buyer of goods in an advantageous position, yet it has also put enormous pressure on all companies, worldwide. In response to ever-increasing global competition, far-reaching change has taken place at many companies over the past decade. Hierarchical organizational structures, once very common throughout industry, have given place to decentralized leadership concepts and global company networks.
Jochen Gleisberg, Kai Bethlehem
Chapter 4. Success factors and levers for best practice in innovation management
Abstract
Innovation is becoming increasingly important for companies in many industries. Companies today are often so dependent on innovation that, if they were to fail to bring products to market, they would risk losing substantial market share at a rapid pace. Phonak, the Swiss producer of hearing devices, considered a ‘hidden champion’, makes 65 percent of its turnover with products it has brought to market in the last two years. This philosophy applies in more traditional industries, too. For example, Wittenstein, a German producer of gearboxes, generates 85 percent of its turnover with products fewer than five years old. To survive global competition, most companies simply have to innovate.
Stefan Pötzl, Thomas Kohr, Michael Zollenkop
Chapter 5. Smart engineering processes: ‘made in Japan’
Abstract
When people hear ‘operations excellence in Japan’, manufacturing innovations instantly spring to mind. This is not surprising considering the revolutionary concepts ‘just in time’, ‘cell manufacturing’, and ‘total quality control’, all of which bear a Japanese hallmark. Operations excellence in Japan, however, is not limited to manufacturing but spreads into other areas, such as cost control, supplier management, and product development too. This article concentrates on tried-and-tested product development strategies that originated in Japan, such as front loading, lead time reduction, and cost planning. The focus is turned sharply on the automotive industry, the birthplace of these groundbreaking R&D organizational processes.
Ken Mori, Satoshi Nagashima

Purchasing

Frontmatter
Introduction Strategic trends and challenges for purchasing
Abstract
The purchasing of material and services has undergone significant change since the middle of the 1980s. There has been a complete switch from purchasing being a traditional, reactive administrative function to becoming active cost management. In many companies, purchasing has been responsible for cost awareness being established comprehensively throughout whole organizations. Successful approaches such as reverse auctioning, target costing, value creation or supply chain management — all of which were considered innovative, in their time — were often initiated in purchasing departments and first gained widespread acceptance there.
Roland Schwientek
Chapter 6. Key trends in purchasing best practices and impact on purchasing strategy
Abstract
As competitive pressure intensifies in most industries, CEOs are increasingly putting procurement at the top of their agendas. The corporate world is dealing with an onslaught of modern challenges, ranging from globalization, to the entry of new competitors, through to rising material prices. Purchasing, which is viewed as a way to master these challenges, is shaping up to develop even further into one of the hottest corporate topics of the next decade.
Michel Jacob, Gabriel-Assad Singaby
Chapter 7. Purchasing EmPowerment: the way to achieve world-class purchasing
Abstract
Purchasing has grown considerably in stature in past decades. Its contribution to an organization’s long-term success and strategy is increasingly well recognized. Increasingly more companies are aware of the importance of permitting purchasing to move away from being a cost-cutting function to becoming a strategic entity that helps companies achieve the highest performance standards.
Roland Schwientek
Chapter 8. Organizations drive strategy and performance: insights from two successful lead buying models
Abstract
Procurement fads come and go. However, any thoughts that global sourcing is just the latest in that growing string of purchasing fads are misplaced. Within a short span of time, global sourcing has gained worldwide acceptance and is now firmly implemented in most large-scale corporations. Global sourcing is a direct response to the competitive pressure experienced by companies today. It is developing into the favored option for companies that need to reduce costs and to improve the quality and responsiveness of their procurement. Buyers send their largest suppliers to low-cost countries or set up small sourcing offices in these regions, in the hope of gaining better access to material and labor resources or to tap the potential of a more economical market.
Tobias Franke

Manufacturing

Frontmatter
Introduction Manufacturing in a global context
Abstract
When the South-east Asian ‘tiger’ states entered the international economic arena two decades ago, there was a fundamental change to the global manufacturing footprint of whole industries: western manufacturers were challenged by fierce competitors who had created favorable cost structures and who were both eager and able to learn quickly. As a result, European hi-fi and motorcycle manufacturers — to name only two examples — were almost completely squeezed out of the market. The rules of global competition are shifting once again, with the entrance of Central and Eastern Europe, China, and India into the global economy. The impact will be much broader this time, rippling through more industries and putting greater pressure on many more companies.
Ralf Augustin
Chapter 9. How companies can optimize their global manufacturing footprint
Abstract
Companies surfed the first wave of globalization largely to exploit opportunities in low-cost countries. They wanted to find suppliers and manufacturing locations that could help them decrease overall production costs as they competed in traditional western markets. The current competitive environment pushes them out into more challenging water, but the spoils of riding the swell are greater. Companies these days are searching for low-cost locations and suppliers, and they want to gain access to the large markets that are opening up rapidly in emerging economies. They also need to develop strategies to tackle the emergence of an increasing number of players from emerging countries that are quickly building capabilities to serve international clients.
Marco Zurru
Chapter 10. Leveraging manufacturing excellence in global production networks
Abstract
Manufacturing excellence — lean manufacturing — the Toyota production systems — regardless of the name that is applied, the elements that make up a strong and efficient manufacturing system and process are well known. Principles such as ‘just-in-time production and logistics’, ‘built in quality’, and ‘continuous improvement’ are applicable across manufacturing industries and are applied in many ways. Business people have toured the best plants and read the many books on the subject as they strive to eliminate waste from their processes and achieve the greatest possible cost and quality performance.
Volker Heidtmann, Stephen Weisenstein
Chapter 11. From maintenance to quality control: effective support functions leverage manufacturing performance
Abstract
‘We recently redesigned our factory layout and material flow, optimized shop floor processes and implemented lean manufacturing principles in production. However, the impact on overall manufacturing performance is below expectations, because we keep suffering from frequent short-term changes of our production schedule,’ a production site manager at a modern and highly automated pharmaceutical plant in Germany confessed. Erratic sales forecast figures were the reason he gave for the plant’s poor supply performance.
Thomas Kwasniok, Walter Pfeiffer

Supply Chain Management

Frontmatter
Introduction Supply chain management — more than just logistics
Abstract
Supply chain management is not a fancy consulting term for familiar functions such as logistics, transportation or warehousing. As the contours of the business world have shifted radically during the past decades, the demands on the supply chain have expanded. An integrating role, responsible for linking major business functions and processes into a cohesive and high-performing business model, has become necessary for business success. In many companies, supply chain management has taken on this central corporate role. The focus is no longer on how to move goods from A to B or how to organize a warehouse. Supply chain management sidesteps the function-based corporate organization and, instead, integrates the core functions that create value in an end-to-end process.
Robert Ohmayer, Steffen Kilimann
Chapter 12. Global supply chain management: a success factor for global players
Abstract
Supply chain management (SCM) is the nervous system of today’s global economy. It has grown beyond its operational roots, when it was a way of controlling the flow of goods and services, to take on a more strategic role. As well as encompassing all operative core processes, it is now responsible for managing costs, and also reducing complexity and redesigning value chain structures. SCM directly influences the success of a company’s key financials, such as return on capital employed (ROCE). Logistic functions such as inventory management, transport and warehousing were once purely functional and managed on a country-by-country basis only. These days they are bundled together and managed by an SCM manager who steers inventory and production capacity for an entire region or on a global scale.
Robert Ohmayer, Steffen Kilimann
Chapter 13. Complexity management: the starting point for improving performance
Abstract
Supply chains are becoming increasingly complex and more difficult to manage. While globalization shoulders a large share of responsibility for this rise in complexity, almost all aspects of the supply chain contribute to this development. Whether extending operations to new regions, launching new products and services, forming partnerships and alliances or outsourcing functions, each of these activities can create value. If they create value, these complexity-adding activities also create what we refer to as ‘good and necessary’ complexity.
Alexander Belderok, Thomas Hollmann
Chapter 14. Working capital excellence: how companies can tap hidden cash reserves in the supply chain
Abstract
As supply chain management should take a holistic view not only on cost, but also on assets and cash as well, in this chapter we will present and discuss our current thinking on working capital management. Working capital reflects the money invested in supply chain processes in the form of accounts receivable, inventories, and accounts payable. Based on our experience, optimizing working capital management can achieve amazing effects on the financial performance of an enterprise and its supply chains.
Roland Schwientek, Christian Deckert
Chapter 15. Supply chain organization: a key enabler for successful supply chain management
Abstract
Well-functioning supply chains are reliable and responsive, and remain cost efficient despite being flexible. As supply chains become more global and complex, however, supply chain links become strained, and supply and delivery glitches tend to increase. Companies are often robbed of their ability to respond quickly because they are weighed down by overly complex structures that have arisen, for instance, after embarking on a quick session of mergers and takeovers. Other companies might be burdened by conflicting operating styles and processes, and a lack of standard procedures throughout the entire supply chain. This prevents them from being best-in-class, especially in today’s highly competitive business environment in which a smoothly run operation is paramount.
Ingo Schröter, Stephan M. Wagner
Backmatter
Metadaten
Titel
Operations Excellence
herausgegeben von
Roland Schwientek
Axel Schmidt
Copyright-Jahr
2008
Verlag
Palgrave Macmillan UK
Electronic ISBN
978-0-230-59424-1
Print ISBN
978-1-349-30405-9
DOI
https://doi.org/10.1057/9780230594241

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