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nGROUP Performance Blog

nGROUP Process Analysis: The First Steps

Posted by Ryan Cates on Nov 14, 2018 10:24:00 AM

At nGROUP, we begin each engagement with a potential client with a process analysis to determine what the client’s pain points are, what the current situation is, and how nGROUP can help realize their operational potential. This process analysis includes the steps described below. Note that there may be some variation depending on the situation and service required. nGROUP does not have a one size fits all approach. We provide custom products and services based on each client's needs and opportunities.

Process AnalysisStep 1: Introduction to nGROUP’s Concept.

We introduce ourselves and our concept to key stakeholders to determine if they’re open to working together. Stakeholders often have questions such as who nGROUP is, how our concept works, how it’s more effective in driving value than their current procedures, and how we contribute to the processes we help improve. We use case studies to illustrate how we’ve developed customized strategies for other clients and how those strategies have helped them achieve their operational goals.

Step 2: Identification of Key Areas to Drive Improvements

Since we utilize a comprehensive approach that looks at people, processes, and technology, it’s essential to identify critical areas in which we can drive improvements. As a rule of thumb, processes that involve more than 50 people, labor-intensive manual processes, and/or temp labor are all a good fit. There may also be situations that aren’t a good fit. For example, if there’s not a large enough labor source, if the process isn’t labor intensive, if there’s internal resistance to change, or if there are unrealistic expectations.

 

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Step 3: Defining Program Objectives

To define program objectives, it’s critical to determine what a client hopes to achieve through a partnership with nGROUP. Knowing what matters most to a business helps us focus on the desired outcome so we can examine every possible solution without preconceptions or limitations.

Step 4: Data Collection

To understand the client’s current cost per unit (CPU), we need to collect and analyze all relevant data. This data gives both us and the client insights into all the factors that contribute to the CPU as it stands. It can also help reveal and address critical pain points.

 

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Step 5: Production Process Analysis

The analysis of the production process serves to pinpoint where there’s room for improvements that could drive down CPU. We study all relevant processes and systems to identify inefficiencies and determine what types of improvements could be made to reduce labor costs, boost productivity, and enhance quality.

production process analysis

Step 6: Unit-Labor Cost Proposal

Finally, we put together a unit-labor cost proposal that outlines an improved cost of labor per unit of output that can be attained based on our customized strategy. This proposal is presented to the client, after which there may be follow-up questions and discussions. Once the client decides to move forward with us, the engagement begins.

we tie our performance to our remuneration — if we don’t achieve the projected results, we absorb the costs. This flexibility not only reduces the client’s risk; it also demonstrates our confidence in our ability to help the company realize its operational potential.

 

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Topics: Workforce Management, Manufacturing Management, reduce labor costs, Lean Manufacturing, Labor Management, performance partners, nGROUP, warehouse efficiency, Process Analysis Steps