As the Detroit 3 automotive OEMâ continues to restructure, the impact on Tier 1 suppliers is becoming increasingly critical. More articles are written in detail the situation of these great companies. But what about smaller companies, Tier 2 and Tier 3 mid-market companies? What trauma they are experiencing as a result of their reduction in customers? Of equal importance, both credit institutions and private equity investors' valuation of these companies when the knowledge of their products, operations and human infrastructure is limited?
Aside from the obvious financial criteria, a smaller company operations can be evaluated on four real criticism is attributed održivosti.Područja including human infrastructure, sales pipeline, processing excellence, and bound and out bound contracts. Successful companies excel in all four areas.
The human infrastructure is a leading indicator of success for any mid-market parts for the automotive industry. In 1994, Jim Collins and Jerry Porras wrote the ubiquitous book built to traje.Autori specially selected topic of organizational design and human resources (human infrastructure) as a guiding theme. This choice was not accidental, and their study clearly indicate the edge of the importance of human infrastructure. Similarly, almost all business organizations, the human infrastructure variable is critical to the success of the operational tier of 2:03.
Within the mid-market companies, small staff of employees and leaders should wear more hats. Cross training is becoming increasingly important, because individuals are limited to critical back-up.
assessment of employee talent and training is necessary for the success of these companies. In fact, most reduce training expenses during the financial stresa.Rezultat a similar reduction in vehicle development time OEMâ restructuring. Both imply some trouble. It is critical for smaller companies to expand training restructuring talent is lacking, therefore, knowledge of concepts such as lean manufacturing, Six Sigma, a value Stream Mapping become essential for operational success.
void in leadership, as a result of the limited number of people, multiply the need for training. Starting entrepreneurial companies, family owned businesses, minority led suppliers and cost consensus suppliers often choose the cheaper person, family member, or someone simply experienced in their industry to lead their companies. These companies hope that this individual will lead to run your business from the depths of mediocrity. In fact, this decision, but all define the fate of the company. The choice of the leader becomes the most critical point, as well as restructuring talent can only come from successful experiences. Ford Motor chairman, Bill Ford realized that he never led the company through restructuring. So he and the board decided to hire a world-class craft talent. It all starts with leadership talent and the board painfully aware of the problem.
distribution chain is defined as a landing opportunities are not being produced and sold. Success in this area is not a number, but is defined as a percentage of total nadopunjavanje.Tvrtka is no significant revenue growth inevitably fails. Each company must show year-over-year real growth rate above the general rate of inflation. This is done by replacing the lost revenue due to changes in car models or desourcing, while gaining new business in an amount that exceeds the replacement value. Finally, the company's success in replenishing the sales chain is measured in relation to the same period a year growth over a long period of time.
To accomplish this task, strong sales and marketing strategies must be employed. The strategy must include focused customer diversification. As a share of the OEM market continues to transition to new domestic and foreign OEM, successful firms seize the opportunity for an aggressive marketing for the company relocated. Tier 2 or 3 vendors have the privilege of direct marketing team OEMâ's. After that, they must target specific companies that do business with these transplants. It is more important to redirect marketing efforts in light of the failure of domestic OEMs and their "tied at the hip" Tier 1:02 suppliers.
Processing excellence in not just an objective plant floor, instead, to follow all company functions. Neither the process of material movement, to transfer data to the claims processing can go unscrutinized. At the step in the process of fat and waste. Each area defines one or more of the seven wastes in the Toyota Production System (TPS). Removal of waste is essential for survival, even at the expense of closing facilities, laying off longtime employees, or remove bad family members of critical positions.
Communication metrics plays a key roll in getting the entire organization on the path to recovery. Using the value of current maps provide a visual display of waste. This technique is simple, quantitative, and becomes the basis for operational measurements. This is just one of many tools used to redefine the operational efficiency resulting in excellence needed for survival.
The fourth and final area includes the bound and out bound contracts. It can be defined as contracts with both buyers and sellers. Material costs and selling prices have dramatic effects on the viability of Tier 2:03 of the company. Material costs such as oil and steel have escalated in the last two godine.Rezultati are depleted gross margins and net profit. Such as input costs have escalated, companies are forced to aggressively pursue price increases. In almost every case, this has led to significant conflicts with customers. Often, this conflict has resulted in lost business and / or future opportunities, or unsuccessful price negotiations.
Continuous review of suppliers, material quantities, order forms and opportunities for synergies are potrebne.Metodički procedure in search of offshore suppliers, new technologies, and aggressive supply prospects is absolutely necessary to maintain margins. Smaller companies lack the funds for the implementation of these processes on the firefights and the fundamental lack of knowledge of the process. Successful companies have made it part of their culture.
out-bound contracts involve getting and maintaining a fair price for the product. Active discussion with customers on material cost constraints, the customer specified materials and technical specifications should be led by customer management. It becomes more difficult as most sales professionals to avoid a conflict could affect future sales and provizije.Prodaja professional pay structures of the past must be altered to fit changing culture. Margins on the sale must be in focus in relation to income alone. Collins and Aikman and other selected strategies of revenue in the first place. This has led many of them in financial difficulty.
four major categories of survival will not be enough if the corporate culture is placed on maintaining legacy organizations a nd process. This change requires a commitment to "soup nuts" value of the current mapping of the entire organization. This May sound like an overwhelming task. In fact, it is easier with smaller firms. They themselves have less bureaucracy, a few layers, and an increased sense of urgency. This is a critical emergency, as well as the financial community has limited patience with the smaller, struggling companies. Some minority suppliers have added questions under the letter, carries less margin value-added tasks, experiencing declining support OEMâ, a lack of experienced leadership.
This might sound like a lost cause. However, there are many cases of firms attacking these areas ... and flourish. It just takes commitment. And this comes from the top. When you criticize one of these smaller firms, to evaluate the sales chain, contracts, processing and human infrastructure, and forget about the quality of the panel on the wall.
CMM Engineering team of proven turnaround experts can help companies to increase profits, expand revenue, product launch, and improve overall business efficiency. We will teach and mentor the leadership to promote change in difficult times and assist in implementing the increase in floor trade and business transactions efforts.
0 komentar:
Posting Komentar