麦肯锡：运营绩效(英文版)

麦肯锡：运营绩效（英文版）2024/3/28麦肯锡：运营绩效（英文版）KEYMESSAGESSuperioroperationsdrivesvaluecreationIndianmanufacturingcompaniesfacesignificantoperationschallengesNewtoolsandmindsetrequiredtobuildoperationalexcellenceRewardsfrompursuingoperationalexcellencecanbelarge–thejourneymustbeginnow麦肯锡：运营绩效（英文版）INTERNATIONALRESEARCHSUGGESTSTHATCOMPANIESWITHSUPERIOROPERATIONSDELIVERSUPERIORRETURNS… * Excellent"areUScompanies(fromtheDiscoveryscreenedtargetlist)whichincreasedtheirmovingaverageROICeveryyearduringa5-yearperiod(1995-99),andhadaROICgreaterthantheirindustrialaverage ** CompaniesfromtheS&P500industrialswhichpassedtheExcellencefilter,fullspreaddataavailableforonly320companies *** Basispointsreflectsabsolutechangeinspread(i.e.,aspreadincreasefrom5.0%to7.0%equals200basispoints)Excellent–Superioroperationalperformance(12companies)*S&P500IndustrialsROIC-WACC,basispoints***Excellent-Other**companies

(32companies)ApproachShort-listed44“excellent”companiesforanalysisROIC>WACC(from95-99)ROIC>IndustrialaverageShort-listed12“excellentcompanies”basedonqualitativereviewofoperations麦肯锡：运营绩效（英文版）AverageTotalreturnstoshareholdersWilshireIndex(market)"Excellent"-Top12*"Excellent“–Next32S&P500Industrials * Operationalexcellentcompaniesdefinedas12companiesthatpassedoperationsexcellencefilterfromtheIndustryWeekGlobal1000Source: McKinseyOperationsDiscoveryProject3XTRS

performance

relativetomarket…WHICHTRANSLATEINTOSUPERIORVALUATIONS麦肯锡：运营绩效（英文版）OPERATIONALEXCELLENCEDRIVESTHESERETURNSNewproductintroductioncycletimeandcost50%lowerthancompetitionManufacturingfloorspacerequired50%lessforcomparableproductOrdertodeliverytimelessbyafactoroffiveP/E20+pointshigherthanothermajorplayersMake-to-ordersupplychainInventorylevel60%lowerReceivablesturns45%higherRevenuegrowth40%fasterandROIC1.5timesindustryaverage3-yearcostsavingsgoal

ofUSD1billionachievedthroughAlcoaProductionSystemAdditionalUSD1billionsavingstargetedfor2003From1996to2000,CAGRofrevenuesandnetincome15%and30%,respectively,inspiteofplungeinaluminumpricesOperationalInitiativesOverallfinancialimpact麦肯锡：运营绩效（英文版）ALCOACASESTUDY–CORPORATE-WIDELEANTRANSFORMATIONLeanoperatingpractices(APS)TransformationfoundationPerformance-basedmeasurementsystemFacilitiesmodernizationRenegotiatedlaborcontractsVariablecompensation(salaryandhourly)Qualityassurance,SPCReducedset-uptimesFlexiblejobdesignPayforperformance/skillAlcoaBusinessSystem麦肯锡：运营绩效（英文版） * Alcoa’squarterlynetincomeadjustedforspecialitemsSource: Platt’sMetalWeek;WallStreetJournal;McKinseyMetalsPracticeAlcoaadjustednetincomeAluminumspotpriceAdjusted

netincome*$MillionsSpotprice

ofaluminum$/lb.Alcoaperformancevs.priceofaluminum-1001002003000.400.600.801.001.200198283848586878889909192930InitiatedAlcoaproductionsystemALCOACASESTUDY–THERESULTS949596979899BrokeoutofpricecycleEVA-1995-99(ROIC-WACC)Growth-2000-05(5-yearprojected)AlcoaCompetitorIndustryAlcoaCompetitorIndustry麦肯锡：运营绩效（英文版）KEYMESSAGESSuperioroperationsdrivesvaluecreationIndianmanufacturingcompaniesfacesignificantoperationschallengesNewtoolsandmindsetrequiredtobuildoperationalexcellenceRewardsfrompursuingoperationalexcellencecanbelarge–thejourneymustbeginnow麦肯锡：运营绩效（英文版）INDIANMANUFACTURINGCOMPANIESFACEAPROFITABILITYCRISIS199720%

decreaseProfitmargins*2000PAT,percentageofsalesPercentageofcompaniesmakinglossesPercent199750%

increase200019977%

decreaseEVA(ROICminuscostofcapital)2000Percent * Basedonasetof132companiesin10sectors(IndustrialMachinery,Ferrous,NonFerrous,ConsumerDurables,Chemicals,Petrochemicals,Pulp&Paper,Power,TyresandAutomotive)Source: Prowess;McKinseyteamanalysis麦肯锡：运营绩效（英文版）POORFINANCIALPERFORMANCEISDRIVENBYPOORLABOURANDCAPITALPRODUCTIVITY…AutomotiveSteelPower(generation)LabourProductivityCapitalproductivityIndex,US=100ApparelIndex,US=100Source: McKinseyGlobalInstitutestudyoftheIndianeconomyEXAMPLESNANA麦肯锡：运营绩效（英文版）ManufacturingSupplychainChannel

managementKeyaccountmanagement/SalesforceeffectivenessPricingPurchasing/

supply

managementGAPSEXISTINALLAREASOFOPERATIONALPERFORMANCEToomanysuppliers(250*vs.100forbest-practice)Unawareof‘pocketmargins’80%timeonnon-valueaddedactivitiesPoorchannelcapabilityandreturnsNosystematictrackingoftopcustomersandtheirsatisfactionToomuchinventory(140daysvs.35forbest-practice*) * Automotiveindustryanalysis麦肯锡：运营绩效（英文版）KEYMESSAGESSuperioroperationsdrivesvaluecreationIndianmanufacturingcompaniesfacesignificantoperationschallengesNewtoolsandmindsetrequiredtobuildoperationalexcellenceRewardsfrompursuingoperationalexcellencecanbelarge–thejourneymustbeginnow麦肯锡：运营绩效（英文版）NEWMINDSETREQUIREDTODRIVEOPERATIONALEXCELLENCETypicalmindsetRequiredmindsetLimitedtopmanagementinvolvementDrivenbyCEOagendaIncrementaltargetsStep-changeimprovementSubjectiveproblemsolvingFocusonfactsandrootcausesAd-hocimplementationRelentlessfocusonchangeandconsequencemanagementProgrammedrivenby“sparable”executivesLedbythebrightestandthebestSource:Interviews麦肯锡：运营绩效（英文版） Source:Interviews;SIAM;HarborReportEquivalentcarsperequivalentemployee;Index,USaveragein1998=100SEVERALSOURCESOFGAPSEXISTINMANUFACTURINGPre-libera-szationplantsExcessworkers,OFT*,DFM**,techno-logy,scalePost-libera-lisationplantsSupplier

relationsScale/Utili-sationOrganisationoffunctionsandtasksandtrainingIndiaPotential

Non-viableAuto-

mationUSaverage632381775841610016DesignformanufacturingIndiaaverage=241ViableAuto-

mation1.ManufacturingAUTOMOTIVEEXAMPLE麦肯锡：运营绩效（英文版） * AccordingtoDRI-segmentation Source:Interviews;McKinseyAutomotivePracticeDESIGNFORMANUFACTUREOFSELECTINDIANSEGMENTACARS*ProductivitypenaltyGlobalbest-practiceCar1Car2Car3Globalbest-practiceCar1Car2Car3NumberofbodypanelsNumberofspotweldsPressshop:31%(represents4%oftotalemployment)Bodyshop:25%(represents19%oftotalemployment)IndiaIndia麦肯锡：运营绩效（英文版）BOTTOMUPIMPROVEMENTPROGRAMSEVALUATENUMEROUSIDEASANDCANYIELDLARGEBENEFITSInatypicalprogram,morethan2,000ideasaregenerated,rigorouslyevaluatedandimplementedIdeasarenotcapital-intensiveShouldyieldpaybackinnotmorethanoneyearShouldbeimplementablein3-6months

Rigorousevaluationofsimpleideas……couldyieldimpressiveresults30-40%reductionincompressiblecosts(10-20%reductionintotalmanufacturingcosts)SignificantreductionindowntimeLargereductionindefectrateBetterreliabilityandshorterthroughputtimeindeliveries麦肯锡：运营绩效（英文版）SUPPLYCHAIN–SIGNIFICANTGAPSEXISTFrom…To…“Singlesolutionforentirecompany”–onesizefitallapproachDefinewhatneedstobeofferedDifferentcustomerservicelevelsProductvarietyandconfigurationMultiplechainswithinacompany“Redesigntomeetcompetitivebenchmarks”Designtomeetsegment-specificcustomerbreakpoints“Push-systemistheonlywayIndiansupplychainswork”Pull(whereverpossible)basedonbetterforecastingandordermanagement“ITsystemwillsolveallsupply-chainissues”UseITselectively(notbefore,butafterredesign)for:InformationtransparencyOrdermanagementandforecasting2.Supplychain麦肯锡：运营绩效（英文版）CROSS-FUNCTIONALCOMMODITYSOURCINGTEAMSHELPREDUCEPURCHASINGCOSTS3.PurchasecostreductionImperativetoreducepurchasingcoststogainoverallcostadvantageTraditionalfunctionalorganisationsLimitedengineeringandoperationsinputsintopurchasedecisionsMostcostreductionisnegotiationdriven,ratherthantotal-costdrivenContextSomeelementsofstrategyPerformancespecifications-“fitforuse”In-houseinvolvement(makevs.buy)SupplierdiscoverySolesourcevs.multi-sourceContracttype,pricinganddurationJointcostelimination(transportation,inventoryetc.)CompositionofsourcingteamsCrossfunctionalwithparticipationandsupportfromallareas(purchasing,plant,engineering,marketingetc.)andbycommodity麦肯锡：运营绩效（英文版）THETOTALCOSTOWNERSHIP(TCO)FRAMEWORKHELPSIDENTIFYCOSTLEVERSBEYONDPURCHASEPRICEProductioncapacityTransportationInventorycarryingcostsWarehousingPurchasingadministrationFactoryyieldR&DDamagedproductSpecificationsWarrantyexpeditingInternalandjointleversChangespecificationsLoadschedulesintosupplierschedulingsystemviaEDIInvolvesuppliersindesign/reviewsAnalyzesupplier’sTCOtoidentifycost-reductionopportunitiesEvaluateyieldimprovementpotentialfromalternativespecificationsConsolidatepartnumberstobuildscalePurchasepriceTraditionalPurchasingLeversIdentifynewsuppliers(localandglobal)Includenon-performancepenalties(e.g.,misseddeliveries,non-conformingparts)incontractsIllustrativeactionareas麦肯锡：运营绩效（英文版）KEYMESSAGESSuperioroperationsdrivesvaluecreationIndianmanufacturingcompaniesfacesignificantoperationschallengesNewtoolsandmindsetrequiredtobuildoperationalexcellenceRewardsfrompursuingoperationalexcellencecanbelarge–thejourneymustbeginnow麦肯锡：运营绩效（英文版）EACHAREACANHAVESIGNIFICANTIMPACTONPROFITSANDVALUECREATIONRevenuesPertaxROICEBITCostsInvestedcapitalWorkingcapitalFixedassets:LeversRangeofimpactpossiblebasedonMcKinseyexperiencePricingmanagement2-6%increaseinreturnonsalesKeyaccountmanagement/salesforceeffectiveness5-30%revenueincreaseChannelmanagement10-20percentagepointsincreaseinmarketshare123Purchasingcostreduction10-15%reductioninpurchasecostsManufacturingeffectivene