HOW TO IDENTIFY PRODUCTIVITY GAINS THAT MAXIMIZE YOUR RETURN ON INVESTMENT
THE MATURITY MODEL APPROACH
Some businesses achieve higher levels of productivity by automating data entry first across departments, then branches, and finally up and down their supply chains. Enterprise Resource Planning software solutions such as CargoWise One produce significant productivity gains in this space.
Some companies access process solutions, to free up the hidden capacity and achieve higher levels of productivity, by making workflows visible, running better operating procedures, and facilitating better handovers between individuals. Cloud workflow solutions and visual boards produce significant gains in this space.
Some companies access advanced management approaches such as Constraint Management and software solutions such as PAVE to produce substantial gains in productive.
The Productivity Maturity Model guides Managers to pick, choose and stack the gains of the different approaches. The Productivity Maturity Model also allows Managers to plan with high leverage the next productivity gains they will achieve. The maturity model represents a systematic way to manage your own Productivity Journey.
Common data issues observed in clients
- Too much time is lost to the double entry of data
- There are too many errors in the data
- There is a lot of chasing around for information
- There is too much rework caused by incorrect information
Common workflow issues observed in clients
- There is a lot of hidden capacity
- The workloads are not balanced across my people
- There is a lot of capacity directed at low value adding activities
- We lose a lot of time lost to iterative pick up and put down of jobs
- There is constant pressure to hire more people
Common operational issues observed in clients
- Our lead-times are too long
- Our competitiveness is only on par with the competition
- There is a lot of unfinished jobs in front of our people
- There is little visibility of the state of operations
- It is hard to manage risk
- We are too often reacting to events rather than being proactive
- There is a lot of blame between departments
- Some of our resources are overloaded whilst others have it too easy
PRODUCTIVITY MATURITY MODEL FRAMEWORK
Business has come a long way in terms of leverage. Gone are the days where information was transferred only by word of mouth (paper solved that problem). Gone are the days were substantial amounts of information were transferred by physical post. Gone are the days were information was either physically mailed or faxed between offices. These advances speed up the flow and accuracy of data. Now a basic business will start with a computer and an internet connection.
Leveraging data for productivity
The objective of leveraging data for productivity is that “Once one party knows it, the data moves automatically to others, and everyone knows it”. This final goal cuts data entry in an entire supply to one instance. This final goal eliminates almost all data entry errors.
Increasing the effectiveness of people and knowledge for productivity
The objective of increasing the effectiveness of people and knowledge is that “the right decisions are made at the right time” everyone acts in a way that increases the value the business produces. This final goal eliminates almost all decision making that drive up costs and limits growth in profits.
THE PHASE CATEGORIES
The Maturity Model consists is two-dimensional model in which the 9 Phases are indexed according to their leveraging affect with respect to data (x-axis) and processes (y-axis). The Maturity Model Shows three tiers or categories rises up the y-axis. Each category contains codified phases where a cause and effect understanding of business operations can be leveraged to achieve productivity gains.
The Focus on Data
Phase 1 – Manual: The oral and written collection, sharing and manipulation of data
Phase 2 – Computerized: Jobs and information are in your system
Phase 3 – Enterprise Integration: If a data item is anywhere in your system, it is everywhere in your system
Phase 4 – Supply Chain Integration: If one party knows it, the data moves to others who need to know automatically.
The Focus on Processes
Phase 5 – Workflow: Job progress is clearly visible
Phase 6 – Workflow Automation: Automation of human tasks
The Focus on Business Decision Making
Phase 7 – Constraint Management: Control of materials release tied to bottleneck output
Phase 8 – Buffer Management: Systematic management of risk in advance
Phase 9 – Work Mix Management: Managing the sales and work mix to optimize throughput
Phase 10 – New Market Offers: Delivery of high value market offers competitors refuse to copy
WHY USE THE MATURITY MODEL?
The Maturity Model is multi industry tool that answers the question “what should i do next?”
Book a Productivity Health Check with us or do it yourself through our Online Portal... this will lay out exactly what you have achieved and provide feedback on whether it makes ROI (Return On Investment) sense to continue improving your current phase of productivity to focus improvement efforts into the next phases.