PLM (Product Life cycle Management) eLogic
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Tuesday, March 30, 2010
Friday, March 12, 2010
Benefits of Lean order practices
Lean Order practices yield benefits in four key business metrics - Cycle Time, Quality, Productivity, and Profit Margin:
Cycle Time: Customers have found that by effectively streamlining their business
processes, their end-to-end quote and order processing cycle times are typically improved by 50% - 90% over the existing practices. Reducing cycle time by these amounts provides the opportunity to effectively double throughput—and more importantly, in many cases, to lead markets in responsiveness to customer needs.
Quality: Outmoded, manual quote and order processes are typically error-prone from initial quote throughout the production cycle. By adopting Lean commerce practices customers typically reduce errors by 95%, and many achieve error rates of less than 1% by implementing bulletproof processes in pricing, sales ordering, feature/option selection, proposal and contract development, collateral creation, and engineering.
Productivity: Proper business process design, supplemented with functional automation and restructured data, will yield productivity improvements in excess of 50% over cumbersome and disjointed practices typically found in CTO/ETO operations. This productivity can translate directly to headcount reductions, or redeployment of key staff to higher impact tasks/responsibilities. Additionally, by removing many of the cumbersome, manual, and redundant sales tasks, sales force effectiveness and morale can be greatly improved, translating to increased sales effectiveness.
Profit Margin: Once the error rates are reduced and processes are streamlined, customers often realize between two and five points of margin gain through the elimination of mistakes, error/rework costs and overlapping/redundant handling, processing and expediting.
Cycle Time: Customers have found that by effectively streamlining their business
processes, their end-to-end quote and order processing cycle times are typically improved by 50% - 90% over the existing practices. Reducing cycle time by these amounts provides the opportunity to effectively double throughput—and more importantly, in many cases, to lead markets in responsiveness to customer needs.
Quality: Outmoded, manual quote and order processes are typically error-prone from initial quote throughout the production cycle. By adopting Lean commerce practices customers typically reduce errors by 95%, and many achieve error rates of less than 1% by implementing bulletproof processes in pricing, sales ordering, feature/option selection, proposal and contract development, collateral creation, and engineering.
Productivity: Proper business process design, supplemented with functional automation and restructured data, will yield productivity improvements in excess of 50% over cumbersome and disjointed practices typically found in CTO/ETO operations. This productivity can translate directly to headcount reductions, or redeployment of key staff to higher impact tasks/responsibilities. Additionally, by removing many of the cumbersome, manual, and redundant sales tasks, sales force effectiveness and morale can be greatly improved, translating to increased sales effectiveness.
Profit Margin: Once the error rates are reduced and processes are streamlined, customers often realize between two and five points of margin gain through the elimination of mistakes, error/rework costs and overlapping/redundant handling, processing and expediting.
Tuesday, March 9, 2010
The 5-Step Lean Principles Method followed by eLogic
1. Quantify Value
Lean practices start with understanding the value chain, and how each process step contributes to serving market and customer needs. We have have adapted Value Stream Mapping and Lean Process Design techniques to enable a quick, efficient and high-value analysis of the entire commerce value chain.
2. Eliminate Waste
By calculating costs, cycle times and error rates in each stage of the process, we identify and prioritize improvements. We develop short and long-range targets to eliminate waste. These measures drive the improvement process and develop the roadmap to results that incorporates the key process, systems, organization and data management projects to realize these gains.
3. Streamline Process Flow
High value commerce processes deliver results in a continuous, uninterrupted flow with a high level of automation of routine tasks. Customers do not perceive value and will no longer pay for inefficiencies of broken internal processes. We design Lean Processes that cover the full range of product differentiation with an optimized process for every customer order and no wasted time or effort.
4. Demand Driven Solutions
Product and service needs may vary at the level of market, industry, segment, and individual customer orders. We are experts at leveraging and integrating the systems technologies, processes, and data/information structures to ensure that customer needs are understood, managed, and incorporated into every product shipment.
5. Error-proof Activities
Without LEAN practices, as product differentiation increases, so do error rates. eLogic builds efficient and effective safeguards into all customer solutions. We know how to prevent errors without slowing down processes.
Lean practices start with understanding the value chain, and how each process step contributes to serving market and customer needs. We have have adapted Value Stream Mapping and Lean Process Design techniques to enable a quick, efficient and high-value analysis of the entire commerce value chain.
2. Eliminate Waste
By calculating costs, cycle times and error rates in each stage of the process, we identify and prioritize improvements. We develop short and long-range targets to eliminate waste. These measures drive the improvement process and develop the roadmap to results that incorporates the key process, systems, organization and data management projects to realize these gains.
3. Streamline Process Flow
High value commerce processes deliver results in a continuous, uninterrupted flow with a high level of automation of routine tasks. Customers do not perceive value and will no longer pay for inefficiencies of broken internal processes. We design Lean Processes that cover the full range of product differentiation with an optimized process for every customer order and no wasted time or effort.
4. Demand Driven Solutions
Product and service needs may vary at the level of market, industry, segment, and individual customer orders. We are experts at leveraging and integrating the systems technologies, processes, and data/information structures to ensure that customer needs are understood, managed, and incorporated into every product shipment.
5. Error-proof Activities
Without LEAN practices, as product differentiation increases, so do error rates. eLogic builds efficient and effective safeguards into all customer solutions. We know how to prevent errors without slowing down processes.
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