Operations and EBITDA Improvement

Cost and Margin Analysis

Six Sigma

Lean

Robotics Process Automation

Cost and Margin Analysis

Focus for cost improvement can be in reducing defects and failures (Six Sigma), reducing waste in progress (Lean), or moving work to the cheapest, capable resource (RPA). Identifying the opportunities includes quantifying.

  • Contribution to profit by product line

  • Direct labor cost, year-over-year

  • Equipment utilization

  • Inventory turns

  • Exceptions costs, e.g. expedited freight

From there, the best methodology for the work can be chosen.

A balanced approach to improving cost, quality and delivery of process execution can best be improved the rigorous application of proven methodologies. HMC staff have experience applying these tools to both production and back-office processes.

Specific skills include

Six Sigma

Six Sigma (SS) is an extension of the Scientific Method to operation

State the problem

Hypothesize

Collect data

Analyze

Draw conclusions

SS takes this further to act on the findings and sustain improvement gains.

The DMAIC cycle is widely known, but at HMC we look to bring Control in right after we define the problem and how we measure. We can’t focus on improvements if things keep breaking.

Six Sigma has gotten a bad reputation of the years, but that has been because the focus has been on building programs and certifying staff, not robustly applying the methodology.

We robustly apply the methodology

  • The problem statement make you uncomfortable

  • We hypothesize then test

  • We apply the right tool for the job

  • We measure the result

Our services in Six Sigma include

Program building

Including governance, methodology, body-of-knowledge, skill building

Execution of DMAIC cycle

  • To Production Processes

  • Transactional Support Processes

Deep expertise

  • In Voice of the Customer

  • Data-driven root cause analysis

Lean

  • Program building, including governance, methodology, body-of-knowledge, skill building

  • Application of Lean Operating Principles to the 8 wastes

Lean operating principles

Organize Around Outcomes

Work products

Production output

Demand-Pull Flow

What to work on next?

Visual Controls

Output measures

Age of WIP

Process Problems

Customer / Supplier Integration

Seamless across organizations

Methods improvement

Mistake-proofing

Production cells

The 8 Wastes

Motion

Waiting Time

Overproduction

Processing Time

Inventory

  • Raw

  • In-Process

  • Finished Goods

Defects

  • Caught internally

  • Escape to customers

Transportation

  • Internal

  • External

Under-utilization of assets

  • People

  • Machines

Our approach to Lean is to identify a pain area in the company and study which of the 8 wastes are present. They, whether the process is production or back office we modify the 4 Principles to fit in the culture of the operation, pilot, and rollout

Our services in Lean include

  • Application off Lean to

    • Production Processes

    • Transactional Support Processes

  • Deep Expertise in

    • Visual Controls

    • Creations of low

  • Customization of a Lean Body of Knowledge to the client business and industry

Robotics Process Automation

Robotics process automation is the newest tool at the disposal of operations management. RPA is a localized software solution that works with the existing IT to emulate what a human does. The bot has a log into Outlook; It checks for incoming orders; Opens them in Adobe Acrobat; Logs in to SAP; Navigate to the Entry; Copy from Adobe, paste to SAP; Upload orders.

Our RPA services include

Idea identification and scoring process

Process documentation

Process streamlining and standardization

To-be process design

Bot configuration and testing

User Acceptance testing

Overall Project Management