|
Management Control Systems |
Taking control of your management processes and systems
Establishing and Maintaining a Culture of Control
A Sydney Consulting Management Control System (MCS) will help you take control of your management processes and systems. Our expertise resides in our understanding of the technical precepts of successful MCSs, and more importantly, in the underpinnings, construction and maintenance of successful Control Cultures. Click here for an article by our joint Managing Director Bill James "Establishing and Maintaining a Culture of Control."
Identify and Recover Systemic WasteA Sydney Consulting MCS will focus the operational planning and reporting elements within a business on the recovery of all significant forms of waste.
It will also pinpoint the responsibility of individual managers in the review and resolution of operating variances.
Working with your management team, we will define the Operational Management Process and redevelop, if necessary, the standards at the heart of every input to the business process. Equipped with an accurate set of Zero Based Standards, the MCS will identify the root causes of failure to deliver targeted operational goals in Key Performance Indicator (KPI) such as:
- Demand Forecast accuracy
- Aggregate Available Capacity (Master Schedule)
- Aggregate Capacity Utilisation (Master Schedule)
- Project Cost Attainment
- Project Timeline Attainment
The Inner workings of a Management Control System
Management Control System Precepts - Key Differences between Push and Pull System Models
Push |
Pull |
Production requirements are forecast and forecast accuracy is a critical Key Performance Indicator.
|
Production occurs only once a firm order is received.
|
Production is usually in large batches / production runs.
|
Production may be single units or small batches.
|
Skills are often specialised with people working on a limited range of fixed processes.
|
The workforce may work across a larger part of the total process and have a wider range of skills.
|
Work in Progress and Finished Goods inventories are likely to be large with set ups and changeovers less frequent.
|
Work in Progress and Finished Goods inventories are likely to be small with set ups and changeovers more frequent. |
Indirect labour requirements are usually greater.
|
Direct labour requirements may be greater.
|
Often requires more overhead and management / supervision because of the function emphasis.
|
Emphasis on process rather than function often results in lower overhead and less management / supervision.
|
Focus is strongly on productivity and cost management.
|
More focus on flexibility, quality and materials / inventory management.
|
Better suited to high volume production across a small product range where demand may fluctuate significantly.
|
More suited to production over a wide range of products where demand is reasonably constant but can be adapted for high variability.
|
More suited to a supply chain where customer and suppliers are distant as inventory can be used as a buffer.
|
Since inventories are minimized may not be suitable if suppliers or customers are distant. Good logistics are essential.
|
Better suited to a supply chain where customers and suppliers are wide over a wide geography and "Just In Time" is cost prohibitive.
|
Better approach where physical proximity of all within the supply chain allows for frequent supply and delivery.
|
The more traditional model used in a large number of industry supply chains.
|
A more recent approach widely employed in the automotive and electronics industries. Also applied in the supply / processes of fresh foods.
|
Finding the unique balance of Push and Pull
Click to enlarge
Sydney Consulting will assess the current state of your operations and design the best possible combination of Push and Pull System elements. Together with your management team, we will ensure that the root causes of waste receive the necessary focus by ensuring the system incorporates the following elements as required such as:
- Master Scheduling and Load Levelling
- Definition of Operating Standards and Standard Costs
- Standard Operating Procedures (SOPs)
- Bills of Material and Routing
- Quality Assurance & Control Processes
The Outcome
A Sydney Consulting Management Control System (MCS) can reveal the hidden value in your operationsFollowing a detailed initial review, our professionals will provide you with a specific operational diagnosis and a timeframe showing how and when operational improvements can be made and consequent financial benefits can be banked.
 We use a unique set of analysis tools to demonstrate and quantify systemic waste. The analysis tools include:
- Employing a real time zero based approach - bottom up, evidential construction of the raw capability of your processes
- Utilising real-time comparative techniques for analysing performance
- Reviewing the complete supply chain or value stream
- Implementing powerful historical analysis techniques
- Seeking the views of individual managers
- ‘Throwing acid' on the value added assumptions for all key activities in all key processes
We deliver real improvements in overall financial performanceOur consultants will focus on more than just the "bottom line". We will ensure that the impact of changes on cash flow are clearly tracked and reported and that any changes in the balance sheet are clearly understood.
Areas of focus that will contribute to these changes will include:
- Reduction in costs through the elimination of waste
- Increase in output through better utilisation of resources
- Reduction in input inventories, WIP and finished goods
Contact us to discuss a review of your company's performance and the results a Sydney Consulting customised Management Control System can deliver.
|
"The Sydney Consulting approach works. Improvements are anchored in
lean principles and implemented using fully hands on, high involvement,
coaching methods so that managers develop ownership of the management
tools and disciplines."
"Overall I would say that there almost seemed to be a little bit of magic in the systems that were introduced. That is, whilst the improvement in results (an almost doubling of efficiency in some areas) exceeded our expectations, it also seemed a little disproportionate to the interventions made and the changes implemented. "
"Results
have been impressive! In one area we were able to manufacture for a
major new contract without any further investment whilst we were
upgrading facilities at one of our other manufacturing sites. "