like the definition of Philip Kotler (American Marketing Guru): The business function that identifies current unfulfilled needs and wants, defines and measures their magnitude, determines which target markets the organization can best serve and decides on appropriate products, services, and programmes, to serve these markets. Thus marketing serves as the link between a society’s needs and its pattern of industrial response”
When I started to work in the pharmaceutical industry I learned that we are a part of our business and we should work to provide high-achievements as a team by well communicating, collaborating, producing and delivering quality products on time with the highest productivity.
Today we are living in a hypercompetitive business world. The technology, service and culture are changing. Therefore customer needs are changing. Some companies are failing and some others are growing. There are many reasons for all of these changes.
There are some changes in manufacturing operations. There is a big pressure from local and global players. Governments and regulatory bodies are also forcing certain rules and standards especially in the food industry due to the developments in analytical technology, increasing awareness in social and environmental sustainability, increasing health cost of global epidemic due to the urbanization and change in culture of lifestyle. All of these changes, customization and increasing use of the internet and social media are becoming a coercive power over companies and their customer value.
In today’s business world the quality, price and delivery of products alone do not offer the differentiation that allows manufacturing companies to compete successfully.
Therefore companies should adopt innovative manufacturing tools, technologies, best-practices, services and develop their people and skills. When I look at manufacturing companies; a survey showed that their most important 3 competing priorities are quality, customization and price. I have to say that these priorities can not guarantee to create a transient competitive advantage.
1- Delivery of competitiveness in manufacturing operations is an essential parameter for success. Provide alignment to the strategy and ensure that all of the organization knows, understands and applies the strategy in highest communication and collaboration. It should be in accordance with customer’s perspective and include value (innovation, service, cost) and the key drivers.
2- Building a performance strategy is an essential parameter in operational excellence in manufacturing operations. A methodology should be used to achieve a balance between controlling costs, generating extra profits and maximising cash.
3- Using the best tools, techniques and practices in operational excellence will be a valuable.The close alignment should be between operations and board of directors to improve competitive priorities. This will provide customer value through continuous optimisation of systems, people, and processes. Companies are using different techniques and tools to create operational excellence such as Lean, 6 Sigma, TPM and 5S.
4- Team working in manufacturing operations is very important. 97% of companies define it as a first key enabler. 80% of companies showed that regular individual appraisals is a second enabler. It encourages people and it is very effective in motivation. 67% of companies define the continuous improvement/reconfiguration as an important enabler.
5- Skills and people are another important key stone in operational excellence. According to the surveys, it is 80% behaviours and 20% tools, therefore techniques require a combination of systems, processes and people. Many companies are using these tools in a superficial way and do not get the maximum leverage. There is an increase in the number of intermediate and highly qualified people in operations after economic crises.
We have to engage people and motivate them about performance improvement through practice and application to reach the main objective. On the other side leadership should apply a broader blend of learning and development activities by implementing strong people development, knowledge transfer and development of best practice.
Companies can create operational excellence in short-term. On the other hand they have to invest and implement long-term marketing and innovation strategy, competitive intelligence, long-term sector analysis, power branding, customer needs for today and future, strong talent management policy, strong preventive measures for quality failures (the right people and knowledge will be a guarantee) and innovation management in higher speed before than local and global competitors to create continuous growth and profitability.
A leading management thinker Peter Drucker has a fantastic definition! “Marketing is looking at the business through the customers’ eyes”. Who will perform this?
Look at top R&D spenders! They are spending 8% of their annual sales for innovation and they are trying to work with top talents in operations, innovation and marketing.
Do you think that the best people can create excellence in operations and businesses?
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