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Category Archives: RVA Updates

The Company Board – Securing Good Business Growth

13 Monday Apr 2015

Posted by mkastley in RVA Updates

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board of directors, Business Growth, company directors

Good Business grpwth board

Like everything else, the leadership for good business growth comes form the top. Most of the business case studies on inspirational leadership concentrate on individuals – what is their management philosophy, their strategies, what kind of superman or wonder woman are they!!

The company board of directors and non executive directors very rarely get a look in and when they do its usually negative e.g. in the UK the HSBC board were subjected to a humiliating and extremely uncomfortable public interrogation on what the hell have they been doing to combat unethical practices by the bank’s investment division. In the case of one of my previous employers Tesco, the whole board in the last year has been practically replaced.

With the current questions about the effectiveness of Company Board’s, I decided to embark on a small investigation to determine what these collections of individuals should actually be doing to secure good growth for a business. This investigation involved attending training courses, individual discussions with existing board directors, recruitment specialists and actually reading the UK Corporate Governance Code.

The board of directors play a vital role in Good Business Growth, not a lip service but leadership in the set up, vision and the running of the company:

1. The basic elements that a company board works with are the 4P’s of Policy, People, Profits and Principles. This is done with a diverse board membership; representing society and the company customer base. Behaving with integrity through honesty and transparency, whilst avoiding ‘groupthink’..

2. To secure a sustainable business the board of directors should provide the company with the following:

  • Leadership through a collective responsibility that constructively challenges and develops proposals on strategy.
  • Effectiveness as a group with balanced skills and experience, using a rigorous self evaluation on their performance as a board. The members should contribute sufficient time to the role. Be a worthy and transparently appointed group of executive and non executive directors.
  • Secure Accountability through fair and balanced assessment of the business. Understanding and managing risk with internal controls.
  • Promote long term success of the company through a formal and transparent remuneration package for the directors.
  • Create a dialogue and relationship with shareholders that is mutually understanding and encouraging to achieve the business objectives.

3. In relation to Good Business Growth, what does this mean for the board when working with the executive management team of the business.

  • Work with strategy and long term sustainability – secure the ‘Why’ in the business.
  • Secure the business Code of Conduct and Company values.
  • Understand the Customer Experience of the product or service.
  • Help develop strategy and business longevity product through the use of Democratic Design and Price with a meaning.
  • Understand and guide the company Responsibilities in the Supply Chain.
  • Understand the Risks in the business and how are these risks being identified and eliminated.
  • Determine the right KPI Tools to judge the business in terms of good business growth, remuneration and legal requirements.
  • Use Process Flow Charts to understand the operational parts of the business on a one page holistic view.
  • Where practical understand and follow up the operational management tools employed in the business.
  • All types of auditing activities within the business are followed up. The long term goal should be to secure legal, ethical and profitable practices are assured through business processes rather than auditing.

The board cannot go into operational detail, that is for the executive management team. However, the above points can create a framework to apply in their agendas, reports and information packs used in the regular Board of Directors meetings.

4. The company board should be nurturing the success of an organisation through;

  • Enabling the love of all its stakeholders
  • Securing a company set of core values, policies and operating systems.
  • Helping to create a broader purpose to the corporate vision
  • Create the conditions for a humble, modest and self effacing business leadership
  • Promoting emotional leadership in the business
  • Aligning the business incentives and culture

In Conclusion: a company board shapes culture, provides a conscious leadership and  secures business functions/capability. It should be able to read the signals and join the dots when reviewing performance and understanding the risks in the real world. By doing this the board secures the 4P’s and achieve Good Business Growth..

Quality: Control the Process – Secure the business

27 Friday Feb 2015

Posted by mkastley in RVA Updates

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PRAS, procee, Process control, process flow charting, Quaity, risk analysis

process control_Feb15

 
To secure quality in production there needs to be a fully implemented process control scheme for the operators and their machines. Process control can best be described as per baking bread. You need the right ingredients in terms of measure and quality standard, then the correct viscosity of the dough, oven temperature and baking time. To achieve the best tasting bread, the recipe needs to be followed and the baking process needs to be monitored and maintained to within the optimal range. Its the same in any other production process – get it right with any process and like the bread, the end results will comply with requirements every time.

If you are buyer, secure that you have agreed a process control scheme with your supplier that can be verified in every batch being produced.

If you are a production manager bring the buyer into the agreement on a Process Control Scheme to secure quality and your profitability.

As per my previous articles, this is part of a Good Business Growth. A process control scheme need not only be for a factory. The principles as described by baking bread can be applied in any type of business, its all the same – control the input, control the process and the output will be secured.

Below is a flow chart I devised a few years back to describe how a Process Control Scheme can be devised for the buyer and supplier of any process, whether its a product or a service.

In the process, the control scheme can be as simple or detailed as required. Sometimes it requires only one control point to determine that a process is under control and producing the expected results. The important part and probably most difficult is as per the above flow chart – finding the control points and everybody agreeing. The method of reporting and controlling can then be a simple yes/no (poke yoke devices) or a full statistical process control implementation with machine or manual record maintenance.

With a process control quality system; the virtuous circle of quality, availability, price and ethical compliance are assured for Good Business Growth – its all connected.

Quality Improvement: The Learning Box

20 Friday Feb 2015

Posted by mkastley in RVA Updates

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customer experienced product quality, good business growth, Learning Box, Quality Drivers

Learning BoxDuring the early 1980’s the Quality Circle idea took hold in the electronic and automotive industry. One of the most famous case histories of its successful implementation was at Jaguar cars in the UK, where the workforce from top management to shop floor operator formed teams to understand and improve build quality. At the start of implementation they were not producing jaguars but dogs!! Since then of course the company has gone from strength to strength and they now produce a world renowned quality product.

Quality Circles are a great tool for an inclusive approach in a factory/service operation improvement programme . However, they can still be a bit formal and are essentially led by management as they work with an agenda base and a meeting protocol that is data driven with extended corrective action lead-times.

A more informal, inclusive, customer focused and flexible approach to Quality Circles was developed during my 10 years working in South Asia with IKEA – The Learning Box.

A Learning Box is a container or designated area for rejected articles/materials. This can be the existing facilities in the production inspection areas, either in process or at the end. It is important to label these facilities as the Learning Box for all to see including customers.

Before the well designated Learning Box’s are emptied and remedial work is conducted, the contents should be reviewed, analysed and actions agreed on how to avoid similar rejects/issues happening again. This activity needs to be done on an exceptionally regular basis with selected members of production; the operators, supervisors and managers. It should be an open platform, with a no blame culture, treating the contents of the Learning Box as valuable material in the drive to secure improvements and grow a Customer Experienced Product Quality approach.

Factory’s and organisations can find their own way to do this, dependent upon conditions, culture and opportunity. However, the main points to include in this approach are:

  • Be CUSTOMER FOCUSED and driven
  • Wherever possible work ‘bottom up’ – everybody has the possibility to contribute.
  • Make the analysis of reject articles as regular as possible
  • Find solutions – not who is to blame?
  • If the solution is ‘more inspection’, then it’s not a solution and the chosen method of working with the Learning Box is not working.
  • A solution is a corrective action and it must be as immediate as possible.
  • Use the inspection records to help in the review /analysis. This will provide valuable trends and patterns in helping to find the best possible course of action.
  • Make it a team effort – publicise the team’s work and results throughout the operation.
  • Use the Learning Box to create interest and involvement in all sections of the workforce.
  • Must include a factory operator who has been selected, trained and designated as the Customer Champion. Someone who can use customer eyes in the Learning Box discussions.
  • Include whenever possible the client and customers, so that their valuable input and contribution can be included.

This activity should be informal – avoiding as much administration, data presentations and form filling as possible. The result of the Learning Box should be an improved product quality. However the why to a Learning Box are:

It provides organisations with the opportunity to learn from mistakes and the responsibility to use the different skills and knowledge in their operations to find solutions. By involving as many levels in the workforce as possible, the quality message can be driven through all areas, not just in the inspection/compliance department. Everybody should be working to achieve a Customer Experienced Product Quality.

Mark K. Astley – Robert Vernon Associates Ltd.

Price with a meaning..

31 Saturday Jan 2015

Posted by mkastley in RVA Updates

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CEPQ, customer experienced product quality, Price with a meaning

price with a meaning

When talking about the price of a service or product we all know the maxim ‘you get what you pay for’. Of course there is no reality to this! No matter how low the price, if it doesn’t do what it says on the tin or is actually very poor doing it, then its expensive!!

When I worked for IKEA the big statement when designing, sourcing, working with factories and communicating with customers was ‘low price with a meaning‘. Just to have a cheap product with poor functionality, design, quality and ethically unsound has no meaning!! Everything has to have a value no matter the price.

How can organisations achieve low price with a meaning? As with all things it requires the virtuous circle of the following:

The Price: Achieving a low price requires a concentration on high volume, with a high degree of industrialisation to secure the most efficient production process. Raw materials are secured in terms of sourcing, specification, availability and all within a transparent supply chain..

Supply Chain Agility: A forecast and order planning system that shrinks the distance between the point of sales and the factory. Regular shipments with stock having a status of evil! Implementing a supplier matrix set up of 70-30. Split the sourcing between two factories, securing high production utilisation at the 70% factory and the rest as a security back up at a newer supplier being developed for future business.

Secure Product Quality: Please see my previous  article CEPQ – Customer Experienced Product Quality

Socially and Environmentally Assured: Secure the following basics:

  • Transparent and well supervised supply base including sub suppliers and contractors to the direct vendor factories.
  • Secure legal, clean and efficient factory supply.
  • Well managed labour in the supply chain – no child labour, no excessive hours etc..
  • A legal and well paid workforce securing an efficient and motivated factory.

The Product Design: See my previous LinkedIn article Democratic Design..

Everything that is made and supplied must have a meaning. It should be part of a company’s intrinsic value whether they are in the low volume/high price or the mass volume competitive market. Its all part of Good Business Growth…

Whatever the market, products have to be competitive, design and quality assured, produced and supplied by companies that care! As Apple Inc and IKEA have proven; customers buy why and not always the what !!

Buyers need to assure further down the supply chain….

23 Friday Jan 2015

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good business growth, sub suppliers, supply chain responsibility

Linkedin sub supplierTransparency and management custody down the supply chain are very important in today’s business – from avoiding horsemeat in processed food to eliminating clothing production in structurally dangerous factories. Knowing where products come from is paramount to secure:

  • Final user accountability (the guilt free purchase for Mrs Jones)
  • Legal compliance
  • Quality, service, code of conduct and price assurance

Sub suppliers (organisations supplying the direct suppliers) need to be managed and assured by Retailers, Traders and Producers. This has been and still is a daunting prospect, especially when the numbers involved take a steep exponential curve across various geographical locations. Typically a retail company’s vendor base can move from a hundred direct suppliers to thousands of sub suppliers. However, no matter the numbers and logistics involved, this issue need to be addressed and secured with the following:

  • Be a major part of the buyer- supplier relationship management
  • The Supplier takes responsibility for their suppliers
  • The Buyer is clear on the sub supplier requirements i.e adherence to its own specification or industry standards.
  • The Buyer has a regularly updated database of suppliers and sub suppliers..

To manage and handle sub suppliers in a practical and concise way Buyers should consider:

  1. The sub supplier requirements are a ‘lite version’ of their full code of conduct, quality specification and delivery conditions – secure the absolutes of customer, legal and company demands eg child labour, working hours, process control and tolerances etc..
  2. The Buyer and Supplier agree on the mechanics of how sub suppliers shall be checked and managed. eg auditing, verification material, designated factories and follow up reporting.
  3. The Buying Team add Sub Supplier management to their visit and meeting agendas with their vendor base.
  4. Where practicable, the buyer follows an industry standard to make it more manageable for the suppliers and the rest of their customer base.
  5. It should not just be an ethical requirement but also include quality assurance, production planning and price development.

The auto and aerospace industry have been working with and down their supply chain for many decades. They are working in high value, scientific/engineering industries with limited number of sub suppliers. The challenges in a consumer led, general merchandising, clothing and food supply industries are certainly different and probably not so exacting as science and engineering but they are no less important.

In my experience, the toughest part of implementing sub supplier management is the initial denial – ‘its not our responsibility and the numbers involved are huge, it cannot be done’. However, it can be achieved through a practical approach and management relationship between the buyer and direct supplier. The acceptance on the importance and responsibility to manage further down the chain secures the business for all stakeholders, including the final user – Mrs Jones!!

Can we help you and your business to secure further down the supply chain!! Please contact us for an initial discussion..

Mark K. Astley Robert Vernon Associates Ltd.

Quality is defined by customer experience..

13 Tuesday Jan 2015

Posted by mkastley in RVA Updates

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CEPQ, customer experienced product quality, Quality Drivers, Robert Vernon Associates, RVA

CEPQ_LinkedIn Banner

When boiling down to the main parameters for a business to succeed, it has to secure the following; competitiveness, availability, sustainability, good product design and quality. This means a customer offer that provides a well designed, competitively priced product on the store/warehouse shelves, supplied by a company that cares about society and the environment. And of course great product quality?

How can a company move quality further into the business, engaging all operations and not just the Technicians and Quality Managers. Quality is an essential part of good business growth..

Over the last 30 years there have been many quality improvement programmes and concepts developed and implemented. This has seen the use of science/maths equations, black/green/yellow belts and manuals full of procedures and directives. These improvement programmes have made great strides in improving service and product quality. However, they have been and are essentially the tools for quality technicians and managers.

As a business driver Quality needs to be concise and standardised for a more holistic understanding and participation by everybody. This starts with understanding the customer, it is only their experience of a product/service quality that determines success or failure. The best  approach to customer quality I have worked with are the following 4 definitions of Customer Experienced Product Quality – CEPQ:

  1. Durability and Function: What is the performance of the material and components to secure that the product does ‘what it says on the tin’.
  2. Safe to Use: What shall be the product’s chemical and substance content. What is the security of small and loose parts.
  3. Well Designed Product: Clear design briefs and specifications. If the product is part of a range, is it modular e.g. correct dimensions, consistent and true colour/shades.
  4. Customer Friendly: What is the after use appearance, are the buttons, switches etc convenient. Is the packaging sufficient and recyclable. Assembly and installation is easy for the customer.

Using the above 4 CEPQ headings, a company can devise their own points to secure according to their customer’s profile, operational and product range requirements. Once devised, these CEPQ points are then used as integral inputs for design/development, manufacturing and quality assurance management.

Irrespective of which Quality management systems a company employs i.e. ISO 9000, Six Sigma, TQM, Lean Manufacturing etc. – Quality is defined by the customer experience. Therefore CEPQ shall drive all these systems and similiar used in the supply chain.

Everything is connected; achieving a competitive price, secured availability at point of sale and a sustainability for the product and the company is difficult without assured quality. Implementing and securing good Customer Experienced Product Quality is vital to secure for any company’s Good Business Growth..

RVA helps business to achieve Good Business Growth, please contact us for further details and discussions on how we can work together.. Mark K. Astley – Robert Vernon Associates Ltd.

Democratic Design for Good Business Growth…

05 Monday Jan 2015

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40 dollar chair, action, Apple Inc., democratic Design, good business growth, Robert Vernon Associates

Democratic Design_aIt starts with designing a great product at a low price. There is skill in designing an architect’s chair for 4000 dollars, but the greater skill is in designing a chair of fantastic form and function for 40 dollars!!

Democratic Design is all about giving the majority of us in the Developed world a great quality product at a low price. Good form and function should not only be for the rich.

In the Developing world Democratic Design is about using the right sustainable materials and production techniques that secures good working conditions, wages and environmental security.

The drivers to secure democratic design are:

Design: Adapted to high volume and efficient production with innovative design – aiming to achieve a low priced product.

Raw Materials: Choosing the right materials and processing techniques to secure a sustainable and low cost supply.

Production: Safe and compliant working conditions with no danger to the environment. An efficient and effective factory.

Quality: Conforms to the requirements and specifications.

Installation: Good final assembly and installation techniques at the product’s point of use – a vital step in the design process.

It is not an easy path to take. Its about achieving a balance in the above drivers. It’s not always evident in cheap brands and is never apparent in the exclusive high price designer products. The big name fashion designers are celebrated on the cat walks and in glossy magazines, but the real heroes of design are those that can achieve Democratic Design.

If you would like to know more about this and Good Business Growth, please contact us for an initials discussion on how we can help your business..

The RVA publication series on Good Business Growth..

19 Friday Dec 2014

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good business growth, Linkedin, robert vernon associates publications, series of publication

The Articles...

Robert Vernon Associates have over the last few months published a series of Good Business Growth articles on Linked In. They were produced to secure the wider distribution of the concept; provide specific details and generate ideas and understanding for readers.

There are currently 12 articles, with more to come. The original writing focus was  for was International Sourcing/Supply Chain aiming to explain Good Business Growth. However, within the series, the articles can stand on their own for management, leadership and business operational understanding in:

  • Customer behaviour and expectations
  • Business ethical and code of conduct issues and management
  • Communication: Presentation and simplification of information
  • The Process: from Design to Execution

posts Nov 2014

These publications are concise and to the point, allowing them to be individually useful or part of a total explanation and  gateway to more detailed information..

Please contact us if you would like to discuss any specific topics raised in the articles or the total concept of Good Business Growth..

Mark K. Astley

Code of Conduct: The DNA of an organisation

12 Friday Dec 2014

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action, code of conducts, DNA of a company, Drivers, needs, Robert Vernon Associates

Customer or Organisation’s Code of Conducts are now in all parts of the supply chain. They have been an integral part of the office or factory noticeboard for well over 10 years..

Behind the code of conduct document is the reality of compliance to a raft of legislation, directives, procedures, maintenance plans and HR reports. To handle this requires departments and specialists in various operations. This is a necessity, but it must not be allowed to become a silo of function, working in isolation to its own plans, responsibilities and reporting mechanisms, with the rest of the operation being grateful that they don’t have to deal with all that stuff!!!

A code of conduct should be in the DNA of a company. Based on Robert Vernon Associates many years of varied experience  we have concluded that essentially there only 4 basic elements in any code and all businesses and their operations should be managing these elements, irrespective of customer or legislative requirement:

  1. Secure Social Conditions at the workplace
  2. Secure environmental performance and improvement
  3. Secure operational health and safety work
  4. No Child Labour in the factory

Breaking down a code of conduct into basic elements helps to simplify what at times can be something either too abstract, marketing verbage or too technical and detailed. Simplifying with basic elements as communication drivers for the workforce will help secure and achieve engagement and ownership in the operation. This helps to identify the needs, which can then be prioritised and delegated. Once the needs are clear then actions can be devised on the shop floor to handle non conformances or operational improvements, instead of plans being drafted in the supply chain office or company headquarters by Sustainability Teams.

A sustainable, compliant, efficient business depends upon everybody working together to achieve good business growth. The company Code of Conduct informs all stakeholders about an organisation’s values – in essence why they exist! They are no longer marketing gimmicks to be dusted down when the customer or senior managers plans a visit. Compliance to the requirements is vital for the customer offer. It needs to be assured 365 days a year not just on audits. Therefore engagement by everybody in the business is vital. Even if you do not agree with our 4 basic elements find your own, as a way of communicating and securing involvement. Avoid the silo of functions where its only one specific department or team that knows or thinks it knows what’s going on!!

Robert Vernon Associates can help turn your company’s code of conducts, values statements and supplier compliance requirements into reality. Making them not just the DNA of your company but that of your Supply Chain. For more information and a discussion please contact us..

Mark K. Astley

E6 Enterprises appointment

08 Monday Dec 2014

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autonomous power drives, Business strategy development, management and leadership consultancy, Robert Vernon Associates

RVA announces its appointment as management consultants to the autonomous power generation company:

E6 Enterprises

 

 

Robert Vernon Associates will provide guidance, input and assistance in the following:

  • Business Strategy Development
  • Management and Leadership Development
  • Research and Development finance and marketing management
  • Sustainability Management

E6 Enterprises are the developers and innovators of the of the Lower Energy Drive Array – the pat pending ‘Simkarray’ system.

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