| Defining and accomplishing performance that will make | | | | 6. Document business policies |
| your company the best to your customers and | | | | 7. Define and enhance your core competencies |
| markets requires a six step road map. These steps | | | | |
| are deployed in sequence because the output of each | | | | Step Four: Implement Process Improvements |
| step becomes the input for the next. For example, | | | | Step four is implementing process improvements to |
| articulating corporate culture such as defining your | | | | eliminate waste, improve productivity and exceed |
| competitive market performance before creating your | | | | customer expectations. You must also improve your |
| customer value proposition will likely result in ineffective | | | | weak performance to your customer value drivers |
| allocation of department resources. The first two | | | | identify in step two. Process improvement requires |
| steps provide critical information and analysis about | | | | using the fewest resources to provide the highest |
| external market characteristics, customer requirements | | | | value to markets and customers. These objectives |
| as well as competitor performance. | | | | requires careful analysis of business and production |
| Each of these first two step requires structure | | | | processes. While eliminating waste and increasing |
| elements that must be carefully defined and thoroughly | | | | value through process and flow analysis is important, |
| deployed before articulating your corporate culture. | | | | lean process improvement must also focus on |
| This means you must study and understand your | | | | achieving competitive productivity. There are five |
| markets, customer values and competitive | | | | action elements in this step. |
| performance before allocating people, performance, | | | | |
| policies and product performance. Corporate culture, | | | | 1. Document and publish your future state value stream |
| step three, consists of structuring all resources to meet | | | | map |
| customer and market expectations. selecting and | | | | 2. Identify bottlenecks, queues and inefficient within |
| effectively using resources required being competitive | | | | your value stream |
| with markets and customers before scheduling and | | | | 3. Conduct process analysis and productivity studies |
| planning company resources. Competitive growth | | | | 4. Implement process improvement projects for |
| requires constant analysis and adjustment of internal | | | | inefficiencies |
| processes, resources and skills. When your corporate | | | | |
| message of competitive performance, operating | | | | Step Five: Implement A Resource Scheduling System |
| policies, company values and market expectations are | | | | Step five consists of planning and scheduling company |
| articulated, you are ready to deploy steps four, five | | | | resources to most effectively meet customer |
| and six. These internal steps must have strong | | | | expectations. This means managing inventor levels, |
| directions and guidance from your corporate culture | | | | material flows and production schedules to meet all |
| efforts. Imagine defining a process improvement | | | | customer deliveries 100% of the time. This process |
| project without corporate values or directions. | | | | typically requires selecting and implementing a |
| Step One: Analyze Markets, Competitor and | | | | computer scheduling system such as ERP to |
| Competitive Productivity | | | | coordinate detail tasks and schedules. It is important to |
| The first step of competitive growth requires careful | | | | complete the lean process improvements step first so |
| study and quantification of markets, customers and | | | | resources are used accurately for true priority |
| competitors. You must know the demand metrics of | | | | management. This step has five action elements. |
| your market definition. They determine the potential | | | | |
| and requirements for your sales strategy, cost | | | | 1. Document business and manufacturing procedures |
| structure, operational performance levels and your | | | | 2. Establish and document production and sales plans |
| competitive productivity objectives. These metrics | | | | 3. Engineer work standards and best practices |
| change over time, as markets, competitors and | | | | 4. Deploy a resource scheduling and planning system |
| customers change. Semi-annual review and | | | | 5. Manage production schedules, customer orders and |
| adjustments are necessary. Company operations | | | | inventory plan |
| must accommodate these change. There are four | | | | |
| action elements in this component that your must | | | | Step Six: Manage and Adjust Internal Resources to |
| master. You should analyze the performance of | | | | Reflect Market Change |
| these elements at least semi-annually, they are: | | | | The last step is using sales and operating planning |
| 1. Establish your market definition and boundaries | | | | (S&OP) to manage performance of the |
| 2. Analyze and know your demand metrics such as | | | | competitive growth process. S&OP is a |
| market share, size and growth | | | | structured process to frequently evaluate how current |
| 3. Create and manage a competitive intelligence | | | | production performance meets current sales results. |
| system | | | | Competitive growth S&OP extends this balancing |
| 4. Measure and calculate your competitive productivity | | | | to include the action elements of the six steps. |
| against your competitors | | | | S&OP involves all departments of the company |
| Step Two: Deploy Your Customer Value Proposition | | | | to analyze how well the company is meeting customer |
| The second step consists of defining and measuring | | | | and market expectations. This includes current and |
| your customer value proposition. The success of your | | | | future expectations. This process requires that you |
| company is primarily based on how well you meet the | | | | measure daily and weekly internal and external |
| expectations of your markets and provides the highest | | | | performance. Internal adjustments are necessary |
| values to your customers and markets. The company | | | | when external markets change. There are four action |
| with the best value will likely attract the most | | | | elements: |
| customers and grow the fastest. The trick to this | | | | |
| simple equation is to understand customer values and | | | | 1. Deploy the sales and operations planning process |
| assure your performance for these values are the | | | | 2. Monitor external and competitor changes |
| best among all customers and competitors. There are | | | | 3. Evaluate internal performance metrics |
| four action elements in this component that your must | | | | 4. Adjust resources and methods to rebalance |
| understand and achieve. You should analyze the | | | | performance |
| performance of these elements at least semi-annually, | | | | |
| they are: | | | | Making your company the best requires understanding |
| | | | | the needs and expectations of your customers and |
| 1. Define and publish customer values | | | | markets and then adjusting company resources to |
| 2. Rate customer value performance for you and your | | | | best meet those expectations. There is a logical |
| competitors | | | | sequence to this process. You must first gather data |
| 3. Identify customer value strengths and weaknesses | | | | and information about your markets, customers and |
| for you and your competitors | | | | competitors. This information allows you to accurately |
| 4. Implement process improvements for your | | | | define and measure your performance to customer |
| weaknesses | | | | value drivers. These drivers quantify customer and |
| | | | | market expectations. Armed with accurate |
| Step Three: Articulate Your Corporate Culture | | | | customer value drivers, you can define and deploy an |
| The third component of competitive growth is | | | | effective corporate culture that all employees can |
| articulating your corporate culture. Your corporate | | | | understand and follow. Step four involves implementing |
| culture provides a unifying communication of what | | | | a focus process improvement program that is |
| needs to be accomplished by all employees. This step | | | | designed to exceed the performance of all |
| has seven action elements and communicates | | | | competitors. Efficient process and resource allows for |
| corporate values, performance standards and required | | | | the efficient scheduling and planning of products and |
| operating results by all employees. Corporate culture | | | | services for customer orders and inventory |
| provides a common direction and vision to be | | | | investment. Finally the S&OP process used to |
| accomplishment all employees must follow. Without a | | | | measure performance and make adjustments as |
| strong deployment, sustaining competitive performance | | | | markets, customers and competitor changes. |
| can not be maintained. There are seven action | | | | |
| elements to master within this component. There are | | | | The competitive growth process is a holistic method |
| four topic elements in this component, they are: | | | | that makes at least 36 months to complete for the |
| | | | | typical company. There are 28 action elements across |
| 1. Define and communicate competitive market | | | | six steps. Each element requires a detail project plan |
| performance metrics | | | | and dedicated resources to implement performance |
| 2. Communicate corporate goals and values to all | | | | expectations. Being the best requires a strong and |
| employees | | | | structured infrastructure. It also requires competitive |
| 3. Budget and acquire resources and staff to | | | | productivity. This means providing the best product at |
| accomplish goals | | | | the lowest price. Once you achieve this performance, |
| 4. Publish department goals and objectives; require | | | | you must maintain it by adjusting and changing |
| compliance | | | | processes, products, performance and values as you |
| 5. Achieve required process capabilities to accomplish | | | | markets, customers and competitors change. |
| objectives | | | | |