basictraining
don’t always follow revenues; in
fact, often the opposite is true.
Bigger is not always better.
Fortunately, the lean movement in
both manufacturing and logistics
exposes opportunities to raise profit by cutting fat, rather than by
growing larger. Better yet, a lean
approach can help synchronize bot-tom-line growth with top-line
growth.
Next, discourage the assumption
that “our ability to grow is limited.”
Many years ago, nearly every com-
pany in the warehouse service busi-
ness operated in a single metropoli-
tan area. Conventional wisdom held
that quality would be compromised
if branch operations were estab-
lished at some distance from head-
quarters. Today, national service
providers are common, and inter-
national service firms operate—
successfully—on nearly every conti-
nent. The best of the best can pro-
vide quality services of many vari-
eties from point of manufacture in
distant lands to delivery to cus-
tomers’ locations across North
America.
D
si
n
Missing something?
If you’re not getting the process design for your facility, consider the firm ranked No. 1
among the nation’s Top 10 in Distribution and Warehouses.* Jacobs has the track
record for every process and delivery method you can imagine.
architecture
design
engineering
site development
sustainable & LEED design
commissioning
environmental graphics
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* Engineering News-Record 2009
Understanding the execution system
To succeed at execution, it’s important to
understand both the pitfalls and the elements of success. As for the former, common reasons for failure in execution include
a lack of necessary resources, poorly defined
requirements, unrealistic timetables, misunderstood risks, and inability to respond
to changed circumstances. A successful execution system, on the other hand, should
include the following elements: standardization of the method, activity alignment, a
regular review and refinement cycle, an
organized communications program, and
measurement of results.
Once you’ve hit upon a system that
works, it’s important to record the
methodology. If you have 12 facilities in
your network and the shipping accuracy
rates of three are consistently higher than
those of the other nine, it is critical to identify and describe in detail precisely how
processes are performed at the successful
facilities. Careful documentation of successful practices will help raise the quality
of all performance.
It’s also important to keep in mind that
time management starts at the top.
Management icon Peter Drucker observed
that “effective executives know where the
time goes.” If time management is not built
into your organization, execution is unlikely to be improved. How is the time of each
management or team member best used?
Are some people doing things right, but not
doing the right things? Effective execution
is enhanced by drawing back periodically
to review whether or not everybody
involved has the right priorities. Re-examining priorities should be part of every performance review.
To be successful at execution, we must
understand the elements of a successful
execution system, as well as the reasons for
failure. There are nuances in definition that
might be debated; yet most of us, like U.S.
Supreme Court Justice Potter Stewart on
pornography, recognize effective execution
when we see it.
Art van Bodegraven, practice leader at S4 Consulting, may be
reached at (614) 336-0346 or avan@columbus.rr.com. You can
read his blog at http://blogs.dcvelocity.com/the_art_of_art/.
Kenneth B. Ackerman, president of The Ackerman Company, can
be reached at (614) 488-3165 or ken@warehousing-forum.com.
