Tag Archives: good business growth

Business visual communications for Good Business Growth..

08 Friday Jan 2016

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For a long time I have been interested in visual business communications. How can we use graphics to provide simplicity, clarity and efficiency. In the world of work, there is an overload of reports, spreadsheets, emails and routines/procedures etc. Therefore its imperative that we become knowledge masters – not by just feeding our brains with more fact, figures and instructions but by summarising, indexing and prioritising what we receive and what we want to communicate. There are many tools to do this. These are the three I used regularly:

Flow Charts: A great tool to condense a massive amount of information in a concise and clear way. Flow Charts helps map the different steps in a process and then identify any weaknesses.  Its a great way for presenting and explaining long and detailed routines/procedures – very useful if used at heavy process driven organisations. If the map is too long and complicated then its not the chart’s fault, its the system you are working with!   And if you do produce a complicated flow chart then you have fertile ground for identifying problems, improving processes  and reducing waste.

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Mind Maps: The tool for radiating thoughts in a creative process for the presenter and the audience.  The word and pictures are the hooks for the brain to think, remember, spread thoughts and ideas. They should always be developed and read in a clockwise manner. A good Mind Map is a treat for our brains which are usually overburdened with mono tone (monotonous ) written sentences. The brain is always craving a colourful image and hooks to make connections in your vast memory of knowledge, experience and creativity.

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Mind Trees: This is my own developed tool based on other similar techniques and ideas. A Mind Tree is a great way for management to develop their plans and concepts and put them into a format that can be explained on one page. Then just as importantly Mind Trees can help operational co-workers  understand and implement: for example company business ideas, the factory customer goals, the latest management trends and organisational restructuring etc. Mind Trees have strict rules. There must be one goal, 4 x needs and then 12-16 x drivers . Then finally the described actions required to achieve the goal!

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Business visuals should work to present themes, processes and ideas; grabbing attention, promoting comprehension and motivating people to use their precious brain space, energy and time to achieve real understanding and further creativity in the maintenance and implementation of their work.

Mark K. Astley: Robert Vernon Associates Ltd.

The Retail Store Practice: Understanding the customer experience to secure improvements..

18 Wednesday Nov 2015

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For all buying organisations and their supplier base, especially those working in the international sourcing industry, there is a removal from store practice_edited-1the customer experience and the supply chain. One of the classic examples on the consequences of this removal was in the sourcing of pizza cutters in China about 20 years ago. The local buying team and its vendor produced and supplied the circular knife as per dimensions and colour scheme – except it did not cut!! The team and the factory had no idea what a pizza cutter was! They did not understand the customer experience and probably did not know what a pizza was!

One of the ways to address this removal is to invest in and organise a Store Practice Training programme for co-workers and members of the supplier’s operational management team. The aim of these sessions are to understand, appreciate and help improve the following:

  • The retail and distribution network
  • The customer buying process – the mechanics of the store shelf
  • Understand the customers – Mrs Jones, the kids and her husband!
  • Product and Process Quality Improvements
  • Return as brand ambassadors and customer champions to the office and factory.
  • Start a local supplier development programme at the vendor factory.

My experience of these in-store training programmes was as a 3 days session, based at a retail unit near a distribution centre with opportunities for retail worker and customer interface. The profile of the participants was a mix of buyers, merchandisers, factory operators, supervisors and managers from various suppliers and locations.

The learning outcomes during these days were significant; understanding the product, the packaging requirements, how the stores operated as a sales machines and the application of Good Business Growth  – price, availability, quality and business ethics.

Upon completion of the training programme when everybody returned to their factories or offices, the next important stage of the training was to secure success and a return on investment by implementing a follow up action plan:

  • With presentation to co-workers back at the Office/factory shop floor and about their experience and what they learnt.
  • Create a Customer Champion within their organisation, using the Store Practice training course material as the base for how the Champion and the factory work together.
  • Create an atmosphere of pride, working for and supplying the brand – tied into the 4 Good Business Growth  parameters.

Creating and participating in a Store Practice training  is a considerable time and resources investment. The return on that investment can be considerable in:

  • Improving product quality and development at the suppliers
  • Align all parts in the supply chain to a core set of values and business idea.
  • Open the channels for cost savings and improvement just by seeing what happens in the retail and distribution process.
  • Create a’WE and not us and them..

A Store Practice training programme provides development and improvement opportunities for all participants including the retail co-workers. And finally it secures that pizzas can be cut by a knife that is sold, supplied and made by people who care about quality, price, ethics and is actually available for Mrs Jones and her family to buy.

Innovation Through Good Business Growth…

08 Monday Jun 2015

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Moving to innovation

Following on from my previous article regarding the Staircase Model. I recently discussed with an old friend in India about the four foundations that the staircase model is built on:

  • Quality
  • Price
  • Social and Environmental Assurance
  • Delivery on time.

We discussed adding ‘Partners in Innovation’ to the above. After some reflection I came to the conclusion that this is actually a result of achieving a good performance. Innovation maybe difficult within a business if there are a number of quality claims for high priced products that have inherent reputational risks and are not always available in the store or distribution centre! The business would be fire fighting and a long way from innovating.

Then in terms of the Staircase Model – where does Partnership Innovation come in:

Staircase Level 4:  When a factory achieves this level, the organisation and its buyers have a strong understanding of the following:

Buyer and supplier alignment at level 4 allows for a partnership of success between the organisations – wanting and needing each other to be successful traders/retailers or factories. This then becomes a fertile ground for Innovation in product  and production development; helping to secure capacity and supply agreements that allow investment in efficient technology, new materials and processes that reduce the consumption of resources. An Innovation Partnership secures profit and a fabulous offer for the customer with Democratic Design.

Conclusion:

All my LinkedIn articles have essentially been about business doing good in terms of performance and its responsibilities to society, both of which compliment each other to achieve growth.

Good business growth needs to work on quality, price, ethical and delivery performance. Once performance is secured in all these 4 areas at the same time, it creates a virtuous circle of success that allows for partnerships and high investments.  The staircase model is an excellent framework to achieve improvement and development through an innovation partnership.

One last reflection: probably the most difficult stage in starting to work with the Staircase Model is to find the right organisations to begin the climb by having the right management attitude to achieve level 4.

Mark K. Astley – Robert Vernon Associates Ltd.

The Supply Staircase Model

15 Friday May 2015

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staircase modelOver the last few years, the Supply Chain industry has introduced various factory/supplier categorisations in order to determine the status and performance of their whole vendor base. The way it’s normally communicated is in the form of a traffic light colour code. The suppliers are measured against various performance factors (quality, sustainability, logistics and price) that determines whether they are red (poor performing) or amber, green, gold or  champion suppliers!! Usually the total vendor base performance is a Pareto curve. 20% at the top, 70% in the performance improvement category and 10% in the poor performing category.

The increasing demands on performance in price development, quality, delivery and sustainability need to be measured and analysed through all parts of the supply chain. Stakeholders need to make the right purchasing, investment and performance improvement decisions. This can best be achieved through understanding and benchmarking the supply base through a categorisation reporting system.

From my own experience I always preferred the Staircase Model. This approach communicated a more positive message rather than a GO – NO GO of a traffic light colour code.. The staircase provides a 4 step level route that is more about development and improvement rather than just compliance to a standard performance criteria:

Staircase Level 1: Provides a clear entrance level for a factory to be considered for business e.g. they are legal and have a proactive management approach. The factory can at least quote for some test business and within a very limited timescale have a plan to achieve level 2.

Staircase Level 2: Achieving a performance that meets the minimum requirements and would qualify to have the minor part of the buyer’s total business. This business would be for a limited period – max 1 year and is dependent on a continued improvement progress to level 3.

Staircase Level 3: Conducting business to the full requirements; the supplier is operating at a high level of proficiency and reliability on price, quality, sustainability and delivery. They are  always part of an RFQ quotation activity for the major part of the buyer’s total business volume.

Staircase Level 4: Working in partnership with the buyer. Being part of a supplier development programme that improves sustainability, reduces costs and improves efficiency for all parts of the supply chain. The factory agrees with the buyer a level of business commitments on volume (number of pieces), capacity and value that can be valid for many years.

The Staircase Model provides:

  • A vendor base status programme
  • A business development programme for the Factories and the Buying Teams.
  • An improvement process rather than a compliance project
  • Brings Quality, Social and Environmental requirements into the business decision process, rather than being solely technical issues.
  • Be the main agenda points for factory visits rather than quick tours around the operations, enjoying a nice lunch and then the rest of the time is spent in the showroom!
  • Secures Price with a Meaning: The volume of business for level 1 suppliers should be considerably less than those of level 3 and 4.
  • Secures that all parties focus on the right issues and not personal/ subjective points of improvement e.g. installing air conditioning!!!

Conclusion: Gone are the days of just supplying a cheap product for the buyers to negotiate and the factory to make. The product range must constantly develop along with the production process. The Staircase Model provides a clear framework for knowing the performance of suppliers and then what needs to be done in a step by step development for both parties – achieving Good Business Growth.

Quality Improvement: The Learning Box

20 Friday Feb 2015

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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.

Buyers need to assure further down the supply chain….

23 Friday Jan 2015

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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.

Democratic Design for Good Business Growth…

05 Monday Jan 2015

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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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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

Finding the right tools and KPI’s…

05 Friday Dec 2014

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Finding the right tools

Key Performance Indicators drive everything in today’s business. Very often though, there are too many and they can sometimes damage the operation of a company through incorrect application and/or sub optimisation by individuals and teams.

KPI’s should be based on the right selection of business tools, techniques and methods.. For Good Business Growth the 4 Key Areas of managing and measuring the supply chain are:

  • Availability: Production/logistics planning – Select the best techniques to plan and secure factory/supply chain capacity and capability?
  • Quality: Select the best tools to minimise the risks in product design and production. Then decide on the best process control method to reduce quality control at final delivery.
  • Social and Environmental Compliance: Find the best methodology to secure 365 days of operation rather than 2-3 days of a compliance audits.
  • Price Development: Agree the tools, techniques and methods to work with the Vendors, rather than negotiating with them.

Find the right tools, techniques and methods in the above areas, then the right KPI’s will follow.. They should be simple, transparent, continually reviewed and maintained with your supply chain team and vendors. Please contact us if we can help your organisations to achieve this..

Mark K.Astley

The Cost Down Programme – CDP

14 Friday Nov 2014

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Robert Vernon Associates announces a new one day activity to its expanding programme of Good Business Growth training and facilitation courses:

THE COST DOWN PROGRAMME: CDP

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Introduction:  A one day activity programme, conducted on the production floor to identify and reduce article and production costs in a win/win situation for buyers and suppliers.

The Course Objectives: Secure current business and improve potential future volume levels by finding ways to reduce the price for the final customer, improve costs for the retailer and improve profitability in the supply chain.

The CDP is highly activity based, conducted on a client’s nominated production floor.. For more details please take a look at the activity details in this link..One Day on site training course_CDP.

If you and your company are interested to run Cost Down activities in your factories or in your suppliers please complete the contact form.

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