Operations executives in companies are being asked to make efficient use of capital and be ready for product commercialization from the ‘get go’ by driving optimization in their product operations processes.
Since 70%-80% of the products costs are being determined in the engineering and design phase of the product; the critical element for a company’s success entails having effective design control and engineering change processes for product development, as well as early and effective collaboration between engineering and operations throughout the product commercialization activities.
In addition, Operations must have efficient management of quality system processes that expands beyond the company’s boundaries into the entire supply chain. Processes such as Nonconforming Materials, New Product Introduction, Supplier Qualification, etc. are critical for the ability to meet demanding margin targets. Executives in operations must have access to relevant process metrics and trends so that they can keep their fingers on the operational effectiveness of their product commercialization activities. They need to be operationally efficient while, in many cases, maintaining compliance with various regulatory standards (e.g. RoHS, WEEE, FDA, ISO).
Operations executives are also meeting the efficient capital challenge by focusing on specific core competencies and partnering for product design and product manufacturing with other companies. This environment is creating a strong need for sharing of accurate product information both within the enterprise as well as throughout the supply chain.