Any business has to be defined with its phases, management, environment, mission statements and other issues to reach all goals and planned revenue. The main purpose of this paper is to introduce to clients a realistic business case and make them realize they need this service. In my case, I have picked a hypothetical consulting company, but it is very important to mention it is not just another consulting firm. The enterprise that will be described in this paper is a consulting company that comes to any business, makes soft adjustments, and guarantees that this business will be working better. As one goes though the paper, he or she will found a business overview and a proposal to customers. The phases are divided into sections and describe environment, operation strategy, core competencies, service design, etc. While describing the business case, CONSULTING COMPANY sign was used to actually name the enterprise. The major aim of this paper is to introduce an up-to-date, relevant, and lucrative business case report that will captivate many customers.
Considering business as a musical instrument such as a violin or guitar is a useful thing. As the strings of the instrument fall out of tune, a player will tighten and tune them as part of his/her standard maintenance procedures. However, over time, the player notices that the instrument does not hold its tuning for more than a day or two. The player begins to frequently restring the instrument, and this abates the problem to an extent. When a technician examines the instrument, he or she notices that the neck has warped over time, and this is the true cause of the problem. The internal truss rods within the neck are tightened, and the instruments performance is restored. For whatever reason though, the player is now not happy with the feeling of the instrument as adjusting the neck has changed the strings performance. The player decides that he/she would rather continue restringing the guitar more frequently rather than dealing with the new setup. Thus, he/she takes its back to the repair shop, and the technician restores the instrument to its previous condition. Though the player is effectively reducing the overall performance of the instrument and creating more work for him/herself, it is his/her own decision and preference. Much in the same way, though reverting to the previous state of a clients business may be directly counterproductive to increasing its efficiency or productivity, it is ultimately the clients choice. Any soft adjustments implemented by CONSULTING COMPANY are easily reversed, and the prior state of operation is restored. Despite no capital investment was made, no losses are incurred, and the process remains operationally and fiscally risk free! When it comes to our mission, we help businesses in practice of do not asking for any preliminary spending and ensuring that your business will be more lucrative and will bring more revenue after our soft adjustment.
Upon obtaining the requested documentation, CONSULTING COMPANY Solutions will begin to analyze the company and decide which internal team should be involved in the specific project and/or whether CONSULTING COMPANY Solutions will accept the project or not.
At this point, the client company will assume the accommodation costs for the team member(s) for the duration of the project, which will be reimbursed to the client upon successful completion and enumerated in the fee schedule and contract.
The client also assumes financial responsibility for repairs and adjustments to equipment necessary for standard operation; these costs are non-refundable.
If, for example, it is discovered that some equipment is malfunctioning and/or slightly defective in the first phase of the project (10 days), the client will be liable for the in-house repair or parts replacement for such equipment, or for compensating CONSULTING COMPANY Solutions for this repair and/or installation. Once again, these costs are not a capital investment as they only concern pre-existing departmental issues. Similar to the importance of the information and documentation provided by the client, these repair and maintenance issues are critical to a successful audit and subsequent adjustment development. CONSULTING COMPANY needs to be able to gain a complete and accurate picture of the current state of your operations, which naturally requires all processes to run at their full capacity.
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How is CONSULTING COMPANY Enterprise audit conducted and to what end? What is our strategy? CONSULTING COMPANY Solutions will conduct an in-depth analysis of all corporate structures and units in order to identify any underlying inefficiencies or problems. This audit can last up to three days and will focus on 6 key areas or operational blocks:
3. Quality Assurance and Control
4. Supply Chain and Logistics
5. Safety and Maintenance
6. Labor and Planning
These areas have been identified by CONSULTING COMPANY to be the most common and critical fields, in which soft adjustment implementation elicits the most profound and quantifiable results. Each block represents a complete business system within the clients organization that spans the departments, process phases, and hierarchal organization. In other words, these blocks are evaluated across all vertical and horizontal subdivisions within their scope. It should be noted further that these areas are not evaluated on a stand-alone basis but rather both individually as well as in the context of their relationship between and impact on each other.
You may also have noted that sales does not appear as an identified operational block, but it is an important part of your business without any doubt. For the purposes of CONSULTING COMPANYs Soft Adjustment Program, sales and marketing data is only considered in its relation to other enterprise functions, most frequently budget and outbound logistics. This happens due to the fact that for all intents and purposes, though the sales department is crucial to your business, it operates on almost an autonomous level or as a separate corporate entity. In additon, one of the most revelant topics of nowadays is social network. You can rely on CONSULTING COMPANY and social networks when it comes to business promotion. Here is just a hint of how social media can help your busienss CONSULTING COMPANY will be your provider to excellent and resultative promotion.
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Sales operations do not directly impact the processes governing production or services. Rather, they are the result of these operations. If your operations are efficient and productive, and you have performed your due diligence in identifying and capturing your desired market, the sales and marketing are simply the vehicles through which that market is penetrated and held. However, if your sales department is top notch, and it can sell an ice box to an Inuit, its efforts are wasted when it is found that promising quantities cannot be delivered, or the product is substandard and does not match the quality expected. Hence, CONSULTING COMPANY specifically chooses to focus on those primary corporate operations that can have an immediate qualitative and quantifiable impact on overall performance, and treats sales as a secondary (or dependent) business discipline.
Let us return to the primary operational functions. Some examples of typical lines of investigation in each of these blocks can be found below. However, these are only preliminary inquests, which provide the foundation for further investigation. These avenues of inquiry open the discussion for accurately defining the key problem areas within the clients business. Researching the points (and many more) below allows CONSULTING COMPANY to systematically determine the root cause of where and why things fail not at a superficial and external level but rather in terms of the underlying issues.
Each audit begins with the analysis of an organizations yield for several reasons. First, an operational yield is the most vulnerable area for adverse change, loss of efficiency, and subversion. Coincidentally, it is also the most effective area for us to optimize and the most accommodating sector for improvement through soft adjustment. This means that the companys faults are most visible because of their impact on yield, and that correcting them in respect to yield will produce the most effective and quantifiable improvements. Lastly, as an operational block, yield is directly dependent on and most intricately tied to all other areas of the enterprises overall operations. Thus, by analyzing yield first, we are oftentimes able to immediately define key issues, narrow down and determine where their underlying errors lie, and delve further more effectively into a concrete and detailed examination of specific areas within other operational blocks (Annacchino, 2007).
Yield is defined as the difference between work and product with respect to time. In other words, yield quantifies mean how much you produce or achieve as compared to how much material or work you put in, and it accounts also for any loss of time within that process as a result of mitigable circumstances. Yield can oftentimes be expressed as the ratio between achieved and ideal productivity. For example, in a production environment, a yield rate of 80% may indicate producing 16000 of 20000 possible units in one day. For a software developer, it may signify completing a project for a client in one month rather than three weeks as a result of manageable setbacks.
In order to understand yield, we must examine its 2 critical components, production capacity and loss of time. The production capacity of an enterprise (whether it is a shop, industrial site, or IT solutions vendor) is defined as the unit quantity and variety of product of a given quality, which can be made within a specific time. Naturally, this assumes full utilization of basic production assets at their optimum operational conditions; for example, 1000 mason jars/hr.
The maximum designed capacity is the greatest possible output under perfect manufacturing conditions. This indicator is used as an optimal reference point in respect to new projects, expansions of manufacturing, and other innovative actions within any company. Conversely, the ideal production capacity of a specific enterprise is a complex calculation and must account for many intricacies. The factors such as theoretical, practical, and financial considerations directly impact and constrain this calculation. As a result, the ideal capacity is a fluid and variable concept dependent on the companys position and goals.
However, real production capacity is also severely impeded by the loss of time as a result of unintentional factors. This loss of time can be the resultant of specific adverse events or unseen underlying issues within a process. Therefore, yield is directly tied to every other operational block examined during CONSULTING COMPANYs audit.
For instance, the issues that are recurring or cyclical in nature are strong indicators of underlying error and present a great target area for implementing successful changes. An example of such as an isolated instance of a motor breakdown and replacement, resulting in a 6-hour period of down time, can be considered an irregular adverse event and should not cause undue concern. However, if the motor is being replaced every 3 months, then this is indeed a significant issue, which directly and negatively affects yield and productivity. Such problems are to be investigated further and corrected.
In addition to yield, labor and planning constitute the second most important operational block due to its relevance to process integrity and execution. Due to its role in standard operating procedures, corporate structure, and employee responsibilities, it profoundly impacts overall operations.
Consider the following basic examples:
(1) If a standard operating procedure only defines a process for Slicing, is that process suitable for all items to be sliced? If a caterer were asked to slice a loaf of bread, would he/she slice an apple in the same way? Would an orange be sliced identically to the apple because they are both fruit?
This is an oversimplified but effective example of subpar process definition and planning. Concrete standards of operation, proper management, and adherence to established practices are important in ensuring that employees are able to properly execute their jobs. Unfortunately, these procedures are seldom or at least infrequently revised and maintained. Also, they oftentimes neither allow for appropriate levels of flexibility nor provide effective channels of modification to the process. Imagine an extremely rigid corporate structure, which requires 7 meetings and 3 signatures to get a new coffee machine, or business owners insist on having total authority over their business; thus, such situation prevents change or any process and/or departmental ownership by the subordinates.
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(2) Consider a classic example of conflict of interest ? the maintenance manager who directly reports to both the general manager of production and the director of safety and compliance.
Cases like this not only place an employee in untenable professional relationships or obligations, they also almost always ensure that the person can never effectively do his/her job.
(3) As a database developer, is it necessary for an individual to know the business development schemas or actual financial figures contained within the banking system for which he/she writes a program?
Should a mechanical engineer possess in-depth knowledge of the specific technological processes employed by a machine operator in a factory and vice versa?
No, they need only to know the information that allows them to operate on a level at which they can effectively use the operator or customer knowledge to achieve quantifiable results.
These questions are standard cases of particular user permissions and responsibilities. Restructuring or limiting these fields can bring immediate and discernible improvements to overall output without affecting or impeding existing processes. By allowing access to too big or too little data volumes or requiring employees to know unnecessary information, the organizations only complicate their operations and open the door to instability and risk.
By intricately examining how labor and planning influence a companys management and process structure, CONSULTING COMPANY can identify points of contention such as those above and implement methods to streamline, standardize, and correct all the inadequacies.
Detailed Description of the Service
Through experience, success, unique caliber, and qualifications of our members, CONSULTING COMPANY has unique insight where the components within each operational block are the most susceptible to disrepair. We approach each audit with our systematic and informed method. This methodology of in-depth analysis, exploratory questioning, and constructive reasoning is applied to the examination of all 6 operational blocks within the process of auditing the enterprise in respect to pre-determined points of contention.
For instance, while auditing a client, CONSULTING COMPANY may consider how the business suffers from the most common reasons leading to operations breakdown, such as:
1. Scheduling Inefficiencies
2. Present State of Investigative Standards
3. Inadequate or Improper Management
4. Lack of communication
5. Lack of Training and/or Cross Training
6. Improper System Setup (Tooling and Equipment )
7. Budget Adjustment Errors
8. Safety Requirement Standards and Follow-Ups
9. Part Failure and Chosen Vendor Programs
10. Parts Crib Support
In examining an enterprises audit information with respect to concrete notions such as the above mentioned within each block, CONSULTING COMPANY gains unique insight into common but oftentimes unnoticed patterns and errors leading to inefficiency and loss of productivity. Once these patterns and errors are identified, the CONSULTING COMPANY team develops concrete adjustments which correct these inefficiencies and achieve the desired results. These adjustments are then weighed and configured into comprehensive and cohesive systems of business improvement with the clients and CONSULTING COMPANYs goals in mind. These engineered business solutions are presented to the client upon completion of the audit phase.
What is the difference between CONSULTING COMPANY and other consulting firms? The thing is that we help in practice, and other companies provide only words and recommendations. They encourage your business and management, but all you have in the end is an uncountable result. This case does not require deep environmental scanning as it is not product but service business.
As it was previously stated, CONSULTING COMPANY takes full responsibility for the development and implementations of its solutions. This, in turn, dictates how we present our solution options. Remembering the name of the game here is not only important for increasing profitability or growth but, first and foremost, for correcting all underlying causes negatively impacting efficiency and productivity of the clients operations. As such, our strategy options will be concrete and non-negotiable. Again, unlike other consulting companies, our interest at this stage is not in initiating multiple rounds of subsequent planning sessions and modification of our engineered adjustments.
The project team will present the client with two separate and viable solution options. The initial solution presented will be that which the CONSULTING COMPANY team has determined to be most beneficial to the client not only with respect to maximizing revenue but also in terms of achieving the most profound positive impact on clients operations. However, if the client is not amenable to the first option for any reason, he/she will be presented with an alternate solution, which will be comparable in realizing these goals. Once the client has selected a strategy option, the project will progress to the prototyping and test phase.
Please note that should a client choose not to accept either solution, it will be determined that CONSULTING COMPANY cannot continue the project. In this event, a covenant non-compete clause will be entered to prevent the client company from implementing any part of said proposals or changes offered by CONSULTING COMPANY Solutions for the period of three years. Accommodation costs are non-refundable past this stage as well as any deposits or domestic expenses incurred by CONSULTING COMPANY Solutions.
Prior to moving on to the following phase, let us first explore the possibilities of what a particular solution may entail and what adjustments it may be comprised of.
In our experience and in accordance with our principle operating philosophy, the most effective solutions to any problem are the simplest and oftentimes completely overlooked. Our clients should not expect convoluted strategies containing dozens of adjustments, enumerated on 20 pages of letterhead, and littered with advanced biomechanical principles, social theory, etc. In fact, it is quite the opposite thing.
To forecast and show the example for the enterprise improvement, let us take a look at a bottled water plant outside of the US that was constructed to operate at a maximum designed capacity of producing 400 bottles per minute. After 3 years of operation, actual production had dropped down to 110-120 bot./min due to equipment malfunction and resultant stalls in the production cycle. In addition to the severe decrease of production capacity, the downtime incurred also created long periods of inactivity for company staff and led to an increase in required maintenance. These factors naturally exacerbated operational inefficiencies and financial losses.
Upon completion of the enterprise audit, the following was determined:
1. Due to the material quality of the bottle caps/tops selected from the vendor, a small but consistent percentage of tops took on a marginally elliptical shape.
2. Unbeknownst to the client, this minor defect in the caps was directly responsible for the equipment failure. Thus, the misfeeds in the cap feed mechanism resulted in periodic shutdowns of the entire assembly.
3. This equipment problem was first thought to be a software error, and an attempt was made to correct it by increasing the tolerance range of the mechanism.
4. This change, coupled with a misaligned guide rail in the feed mechanism, led to a further degradation of the equipment and resulted in instances of the machine operating while the mechanism was empty.
5. Another attempt was made to correct this using an IT program fix.
The following adjustments were implemented:
1. The equipment was recalibrated to a zero tolerance.
2. The initial program logic parameters were restored.
3. The feed mechanism rail was adjusted.
4. A different bottle cap was selected from the same vendor at a marginal increase in unit cost.
As a result of these simple soft adjustments, production skyrocketed to meet its designed capacity, annual revenue increased by 21%, and the clients production actually exceeded their currently available supply of water!
It should be mentioned that the entire solution resulted in absolutely no operational change, no equipment was replaced, and the only operational expense incurred was a slight increase in unit cost per bottle cap, which was well within existing budget limits and completely negligible considering the realized results. Furthermore, these results were immediate. Rather than production halting every few thousand units at a rate of less than 173,000 units per day, the cycle ran for nearly 24 hours (~576,000 units) before experiencing an unrelated stoppage.
Though this example is of a somewhat technical nature, the logic behind it is exceedingly clear and applies regardless of the process or industry in question. Simply put, our program and the solutions we offer are exceedingly simple in theory though being undeniably intricate and detailed in practice:
1. Evaluate the current situation.
2. Identify the root causes and underlying errors creating a problem.
3. Correct these issues using the simplest and most accurate non-invasive measures available.
On a final note regarding solution proposal subsequent to the audit and dependent on its findings and the proposed solution selected, CONSULTING COMPANY may request to change the schedule for the test and implementation phases in considerations of certain project-specific factors with the final decision to be made by clients general manager.
Quality Management: Meet the Team
Up until this phase (during the audit phase and solution presentation), the typical on-site CONSULTING COMPANY Solutions team will be comprised of 2 or more members in accordance with the project-specific requirements, but it is intentionally kept to a minimum. Typically, this includes a technical advisor and a legal representative.
As previously stated, client employees will not directly report to CONSULTING COMPANY Solutions during these phases, but they are expected to provide any assistance or information required to facilitate the audit. The CONSULTING COMPANY Solutions representative, acting in the capacity of technical advisor, will assume the role of project general manager with cooperation with the clients general manager (or equivalent) during the process.
In addition, should any subcontractors be required to perform service or labor in order to implement the adjustments, CONSULTING COMPANY will provide them at its discretion and expense. Here is a brief overview of who and what have to be organized according to our soft adjustment program.
Figure 1. Sample company organization chart.
Other Pertinent Details Are not Included Above
N/B: As the case is tied up with consulting and service business but not production, there is no need to manage any local considerations, manufacturing, or facility layout. The uniqueness of this service is that the team can be located all over the world, and once a client needs our help, the team comes to him/her. The issue of the CONSULTING COMPANYs team is the enterprise that observes and helps to organize local manufacture, facility layouts, and any other business processes in order to raise the effectiveness and revenue of the business.