Services
OperationsRx is a management consulting firm specializing in profit improvement and liquidity initiatives.
OperationsRx has a balanced mix of diversified solution providers who can cover all of your business requirements. We have senior level operations professionals who have acted as COO's, VP of Operations, and Plant managers for mid market - large corporations. Our firm has Supply Chain planning experts that have developed leading edge solutions for many companies. Furthermore, OperationsRx deploys a core group of software development, data mining, and IT Solution Professionals. The extensive skill sets of our employees allows us to design and deploy solutions that deliver quantifiable financial impact.
The percentage of clients that want our support on additional projects is greater than 70%. Many of our clients have asked us to do multiple projects over the course of many years. Our private equity clients utilize our firm during many projects for their portfolio companies due to the value creation capability of OperationsRx. OperationsRx truly becomes a partner to our clients, and we often develop relationships that last a lifetime.
STRATEGIC SOURCING
Material Costs are typically 60% – 70% of cost of goods sold. Recently large corporations have invested millions of dollars into large Sourcing Organizations for good cause. These folks control the majority of the cost in the business. A one percent improvement to overall spend translates into millions of dollars for some companies. Many middle market businesses are not fortunate to have a Strategic Sourcing Group as part of their Management Team. OperationsRx provides Strategic Sourcing Services to clients.
The OperationsRx approach is to work with the Buyers or Purchasing team to develop strategies that reduce cost, minimize inventory investment, reduce lead times, and minimize transaction costs to the business. Strategic Sourcing is a business case for change and stands alone in terms of Return on Investment. OperationsRx often integrates Strategic Sourcing Initiatives with Planning and overall Operational Improvement Strategies.
OperationsRx can develop the Solution Blue Print for Sales and Operations Planning. Our Team will work with the client team to develop the model for each segment of the S&OP Blue Print. This overall approach of Demand Management and Planning provides clients with a thorough understanding of the entire business and what is going to be required from a resource, inventory, and capacity standpoint to support the anticipated demand.
OperationsRx have developed Structural, Sustainable, S&OP Processes that set the cadence for planning the business. OperationsRx have designed and implemented S&OP Solutions in both client legacy systems as well as OperationsRx CloudAnalytics Supply Chain Planning Software. Regardless of the technology infrastructure sound Sales and Operations Planning is the foundation for optimized supply chains and an optimized network both manufacturing and distribution. The goal is to maximize fill rates, minimize inventory investment, and maximize productivity of the footprint of the business.
SALES & OPERATIONS PLANNING
OperationsRx has developed Supply Chain Solutions that reduce complexity, maximize customer service delivery performance, minimize inventory and maximize productivity of the network. It is very important to understand the relationship between how we plan and execute demand and the impact on operations. Productivity, Inventory, and Delivery Performance are all dependent on Supply Chain Planning, Strategies and Solutions. OperationsRx provides seamless solutions from Sourcing through Distribution. By utilizing OperationsRx’s S&OP process and Supply Chain Planning Methodology we are able to define replenishment quantities and the resulting inventory footprint required to support the anticipated demand of the entire business. This enables the team to precisely manage the Supply Chain, understand the footprint requirements for inventory planning, and make decisions to improve the entire business. OperationsRx takes a global view of the business when developing supply chain planning strategies and solutions.
SUPPLY CHAIN MANAGEMENT/
OPTIMIZATION
DEMANDS & SUPPLY PLANNING
OperationsRx applies Eli Goldratt’s “theory of constraints” methodology to business improvement initiatives. As Eli made famous through his book, “The Goal” constraint based management is the best way to understand operations and develop solutions that work. A business is only as effective as the slowest resource in the chain. When determining how to increase throughput and productivity, the team needs to establish an understanding of the constraints and develop a strategy in order to exploit them. Constraints can be market, management, or capacity.
A primary issue to most ERP systems is poor data management. Systems are only as good as the data that’s loaded into them, “garbage in, garbage out.” OperationsRx has developed a very efficient and effective way to clean your system data using our proprietary tools. These tools extract and present core data that allows users to monitor and maintenance inputs. Updates are then loaded into the system to correct future outputs. Using these tools to “tune-up” the ERP engine will restore trust in the data and build confidence in system execution.
DATA CLEANSING
The OperationsRx Business Analytics Group have developed leading edge solutions for analyzing all aspects of a business. Analytics that are data driven create a solid foundation for development of improvement strategies. The OperationsRx CloudAnalytics Software is a by-product of being a data driven solution provider. Now, CloudAnalytics has evolved into a leading Business Analytics Software Package, a Supply Chain Planning Package, and an ERP / MRP Package for special situations that do not fit traditional ERP Packages.
OperationsRx has captured a very special niche for businesses to leverage their Business Analytics Systems and Solutions while working with some of the brightest manufacturing, supply chain, technology, and distribution minds in industry.
BUSINESS ANALYTICS
ERP OPTIMIZATION
Enterprise Resource Planning systems, or ERP’s, are used by companies to synchronize the management of day-to-day business operations. Their reliance on these systems mandates that the outputs be consistent and reliable. When trust in the system output is questioned, their initial reaction is that the system is broken. This leads users to create work arounds or perform their own calculations outside the system. The internal issues within the system are not addressed due to lack of knowledge or time requirements. This ultimately results in poor productivity, higher inventories, poor fill rates, higher costs, and a frustrated work force.
OperationsRx is careful to not recommend wholesale changes to a companies’ core ERP system by switching to another ERP solution. In most cases, the current system is sufficient to run the business with a high level of performance given that necessary fixes are made.
TAILORED TRAINING
OperationsRx provides tailored training programs to get your users up and running fast. Our training goes beyond the ERP application to include best business practices. We create tailored programs specifically centered around your requirements, your team and your business. We provide specific work flow training programs to match your data, your processes and your procedures. These can be delivered classroom style or train the trainer approach.
It is critical to not only determine how much inventory is required to run the business but also where that inventory should be located. In companies with multiple distribution points, this becomes important to minimize freight costs while minimizing lead time to the customer.
Through the OperationsRx supply chain planning process, we can zero in on the inventory required to run the business. In addition, by utilizing our tools, we can determine what inventory should be at which distribution points and in the right quantity to satisfy customer demand. This ties directly into our Network Optimization design services that determines where the distribution points should be located to minimize lead time to customers but maximize fill rates.
Once the inventory quantities by SKU by location are determined, then OperationsRx works with the client team to properly set those stocking quantities in the ERP system and ensure that the parameters are set correctly for demand and supply signals by location. Also, we work to set this up correctly so centralized demand and supply planning teams can manage the entire network on a consolidated inventory planning platform.
Objective of Inventory Network Optimization is to maximize fill rates, minimize inventory investment across the business, and maximize productivity of the footprint.
INVENTORY NETWORK OPTIMIZATION
Most ERP systems have their own parameter settings within MRP that cause the system to act in a specific function resulting in system output to the user. Often, parameters within MRP were set incorrectly, or changed in the system, or set without understanding the net result. Some ERP systems have parameter settings that are very critical to how demand and supply is managed throughout the order management process. For example, in some systems, a parameter set one way could result in a buyer or a planner releasing replenishment PO’s or WO’s for twice the needed inventory. This is easy to miss unless someone on the team inherently understands the implication of these settings on the global business. Then we can determine how the mistakes can be made. Parameters, Master Data, Time Fences, etc. are all important to how the system operates. OperationsRx works with the business team to understand the optimal future state settings for the business then implements those changes.
ERP is an investment in your business’ future, if your product adoption has not gone as planned: we can help. System implementers with minimal real world business experience may simply lay the basic groundwork for ERP implementation. We find that many companies that require additional support or confidence that their business is ready to launch or optimize their ERP to their satisfaction and standards. Whether your company wants to make sure best practices are followed or requires additional customizations ahead of go-live, OperationsRx can assist.
We can help your company get the most out of your ERP or clean up a project that is over budget, over project timeline, or needs expert support.
MRP RESCUE & RECOVERY
SUPPLY CHAIN SOLUTIONS
OPERATIONS SOLUTIONS
LEAN MANUFACTURING & SIX SIGMA
The OperationsRx Lean Enterprise can be defined as the adaptation of the Toyota Production System, Six Sigma, and Best Practices from Industry Leading Manufacturing Companies. The OperationsRx Lean Enterprise is more than a philosophy, it is a culture and a total business system (TBS) incorporating end to end business solutions centered around the concepts of Lean and Waste Elimination.
The OperationsRx Lean Enterprise is focused toward reducing cost, improving productivity, minimizing inventory investment, and improving responsiveness to the customers.
The Principles of Lean and Continuous Improvement are a “mindset”. A mindset that successfully ingrained in a companies’ culture can produce benefits for years.
Six Sigma is a disciplined, data-driven approach to process improvement aimed at the near-elimination of defects from every product, process, and transaction.
The purpose of Six Sigma is to gain breakthrough knowledge on how to improve processes to do things BETTER, FASTER, and at LOWER COST. Six Sigma can be used for any activity that is concerned with cost, timeliness, and quality of results.
TAILORED TRAINING
OperationsRx provides tailored training programs to get your users up and running fast. Our training goes beyond the ERP application to include best business practices. We create tailored programs specifically centered around your requirements, your team and your business. We provide specific work flow training programs to match your data, your processes and your procedures. These can be delivered classroom style or train the trainer approach.
SHOP FLOOR PLANNING & EXECUTION
OperationsRx applies Eli Goldratt’s “theory of constraints” methodology to business improvement initiatives. As Eli made famous through his book, “The Goal” constraint-based management is the best way to understand operations and develop solutions that work. A business is only as effective as the slowest resource in the chain. When determining how to increase throughput and productivity the team needs to develop an understanding of the constraints and a strategy on how to exploit them.
For every business it is important to plan it well and to execute it well. Through the OperationsRx planning strategies we can establish daily shop floor schedules that maximize flow and productivity on the shop floor. Those same schedules need to be executed well. This means that daily management and accountability become increasingly important. Work Rules must be created that facilitate the smooth and steady flow throughout the order fulfillment process. Work Rules are the glue that hold the execution engine together. For example, work rules can be as granular as a start window. One work-center in a plant may have a start window of 24 hours. This means that the work orders released everyday must be started in 24 hours. Another work-center may have a start window of 72 hours based on the size of the work orders run in that center.
All of this is done through the planning team. Planning and Operations need to work collectively to establish a manufacturing ecosystem that plans and processes demand in the most efficient manner through the footprint. This requires a detailed understanding of each work-center, capacity, mix, batch sizing, etc. Once planning and Ops understand the science of the shop floor then plans can be established that maximize throughput and productivity while replenishing inventory to meet customer demands. The planning team must inherently understand operations and vice versa. Plan it well and execute it flawlessly.
OperationsRx employs the latest techniques to improve Operations throughout a business. Whether it is Shop Floor, Capex Investments, Automation/Technology, Lean Manufacturing, Daily Management/Accountability, Inventory Reduction, or Material Cost Reduction, OperationsRx has developed solutions that maximize ROI and minimize “Time to Value”.
OperationsRx can help your team identify the Operational Improvement Initiatives that best meet the needs of your business. We will develop a “Business Case” that supports a broader initiative prior to getting started so that management has sound fact base with a clear roadmap to aid in decision-making prior to committing to moving forward.
The OperationsRx approach is to develop an understanding of the business then make the best selection from the Operational Improvement Tool Box that can help the business achieve their objectives. Too often service providers are quick to implement all of the tools from Lean Manufacturing, Six Sigma, Daily Management, Quality Improvement, etc., regardless of client need. OperationsRx applies point specific solutions that meet the needs of the client, minimizes the cost, and maximizes the return on investment. Our goal is to be self-funding as quickly as possible.
OPERATIONAL IMPROVEMENT
PMO - PROJECT
MANAGEMENT OFFICE
OperationsRx has developed a PMO Practice focused on managing complex initiatives that require attention to detail in order to be successful. Many of these projects have hundreds of activities and tasks and take many months or sometimes even years to implement.
OperationsRx takes a hands on approach by meeting with the client team to develop the project plan, define teams, establish meeting times and frequency, and create action item and issues resolution process. We then facilitate the project by working alongside the client every step of the way. This approach to Project Management ensures that projects are completed on-time and under budget and both the client and OperationsRx can celebrate success at the end of the initiative.
DAILY MANAGEMENT
& ACCOUNTABILITY
Daily management is a system that involves all layers of the management team and the employees on the shop floor with participation in the improvement of the business implemented through a standardized method. Improvement of the business occurs through clear alignment of goals by everyone based on the chosen business strategy and a standardized method that can be executed through daily activities on the shop floor in support of those goals.
With the business case clearly defined, and performance standards identified, the essence of daily management can begin to be exercised on the shop floor. The essence being that all employees participate in the improvement of the business by active problem solving when things go “wrong”. Things going “wrong”, doesn’t allow the organization to meet the desired output as originally defined as a standard expectation and everyone understands that it is a problem.
Problem solving is the key action that drives the improvement of the business. It is not enough to simply identify when things have gone “wrong” by actively identifying when a pre-specified standard has not been met. Knowing clearly when a problem has occurred is essential as a first step of improvement, but not pursuing the cause or root of the problem will cause daily management to be useless. Daily management should have a clear and active problem solving component embedded within its structure as a part of the accountability model. It should be clear to everyone involved what problems have been surfaced and what problems are being worked on and what problems have been solved. The problems being highlighted should be clearly based on not meeting the pre-specified standard that was agreed upon that drove the improvement of the business. It is helpful that problems that have been solved be tied back to improvements to the production standard and be quantified for everyone to understand and to demonstrate the organization’s progress.
OperationsRx has developed an approach to Lean Planning & Scheduling that sets the foundation for all operational improvement initiatives. Material and Information Flow Optimization is the key to sound Execution. OperationsRx developed a Lean Planning & Scheduling process that optimizes flow and sets the daily plan for seamless execution on the shop floor. The OpsRx Team works directly with the people in the factory to design, develop, and implement the planning and execution strategies including the integration into legacy systems for daily execution. The objective is to perform analysis utilizing OperationsRx proprietary tool sets to develop plans, turn those plans into schedules, then utilize client ERP systems for daily execution.
Integration of Lean Planning Processes with Manufacturing Execution and Accountability create a sustainable, repeatable, process that enables manufacturing to satisfy demand and minimize cost. Inventory is minimized, quality improves, and transactional costs decrease. In essence complexity and chaos is reduced simplifying daily activities to achieve exceptional results.
LEAN PLANNING & SCHEDULING
DISTRIBUTION & LOGISTICS
Distribution & Logistics make up a large portion of cost for most manufacturers and even more or “Big Box” retailers. OperationsRx has developed a solution set for distribution centers that deliver a high return on investment. OperationsRx develops the Sales & Operations Plan which translates into the Sourcing and Manufacturing Execution Strategies. Since the S&OP process controls order frequency and inventory footprint then the distribution centers can be laid out for optimal material flow. This results in pick and put-away productivity, reduction in non-value added activities, reduction in damage, improvement in service delivery performance, and reduction in excess and obsolete inventory.
The OperationsRx Team delivers seamless end to end solutions for the business optimizing performance at each step along the way.
OperationsRx also offers services in Network Optimization for multi-site distribution center operations, logistics and freight cost optimization services, and 3rd party support for your distribution center management needs. The OpsRx Team has played integral roles in designing and implementing WMS systems as well as working with legacy systems to improve overall system efficiency and performance.
OPERATIONAL EXCELLENCE
With OperationsRx Operational Excellence, OpEx for short, we develop alignment through the entire organization using a top-down goal setting approach. Each subsequent goal supports the previous level’s goals and they are all aligned to achieving bottom line results. This methodology has been incorporated into an easy to use web-based portal that provides a simple, intuitive interface for idea generation and real time data and graphical reporting to support status and accountability.
The OperationsRx Operational Excellence structure is designed as a Corporate Level Accountability Model. It makes sure all levels of the organization understand the value stream of the business and facilitates choosing projects that will generate business value. The portal will assist in developing a standard and expectation for each key project. In this environment, deviations from the standard identify a potential problem well in advance of the required commitment date as well as identify that projects are moving the key metrics. A defined meeting structure supports the overall process and sets the pace of change.
TECHNOLOGY
BUSINESS MANAGEMENT
Business Management is critically important to manufacturing and distribution companies. Having the ability to understand the entire ecosystem of the business becomes critically important to making the right decisions that maximize profitability and cash flow. Understanding the business ecosystem enables us the ability to understand the implications of our decisions on all parts of the business.
“Running a business to optimize the local does not necessarily optimize the global.”
If departments of a business are measured and/or incentivized on meeting local goals and objectives, it does not necessarily mean that overall business performance will be improved. For example, the manufacturing shop floor can be measured on overall efficiency and therefore may cherry pick long running shop orders to maximize efficiency. If choosing to run those orders does not improve fill rates, misallocates materials or resources making something that is not sellable, then we negatively impact the global performance of the business. Having the ability to understand local decisions on the total ecosystem of the business is critical to maximizing performance of the overall business.
OperationsRx inherently understands the business ecosystem. We are end to end, customer to customer, Supply Chain, Technology, and Operations Professionals that understand how to design and model business ecosystems to maximize performance and profitability. OperationsRx acts in several different roles supporting the business ecosystem performance.
Coach/Mentor
OperationsRx can coach and mentor your senior leaders. We can work side by side with your team to train them on how to understand the business ecosystem. We can train them on how to design and implement supply chain planning systems, operating models that support business goals, and execution strategies like daily management and accountability that maximize operational efficiencies. We become the coach and mentor of your team members, whether they are new to the organization or have been there for years. They will receive a boost from someone that speaks their language and is a true operations professional.
Interim Management
OperationsRx team members can also assume interim management roles in the business. Whether it is a leadership role or a lower level role in the organization. Our professionals have held interim positions for our clients in the following roles.
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COO
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VP Operations
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Operational Excellence Leader
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Plant Manager
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Maintenance Manager
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Supply Chain Manager
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Distribution & Logistics Leader
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Buyer/Planner.
Organizational Development
OperationsRx can help companies with organizational development work. Having deep skill sets in business ecosystems and what it takes to maximize results, OperationsRx is well positioned to help companies design the best organization structure for their business. Understanding the critical needs of the business also enables OperationsRx to determine the best skill sets required to effectively run the business. Whether the need is a strong Supply Chain Manager or deeper skill sets in Strategic Sourcing, a data analytics expert that can quickly synthesize data and provide critical decision making information, a senior Operations Expert that understands Lean/Six Sigma, etc.
OperationsRx can help the leadership team quickly understand where the gaps are in their team and what type of individual is best suited for each position. OperationsRx can also be a part of the interviewing process as well as training during the employee on-boarding.
During a project, OperationsRx often is asked to evaluate the team to assist the leadership with an objective assessment of each position in defined parts of the organization. This could be Supply Chain, Operations, Technology, etc.