A Strong Business Organization Structure is Paramount to Business Success OWNER/CEO/MD OPERATION HEAD/

OPERATION OFFICE SALES MARKETING PRODUCTION SCM & COMMERCIAL QUALITY TRAINING MIS ADMIN AND HR ACCOUNTING & FINANCE PLANTS

ANOTHER VARIANT OPERATION OFFICE PLANT ONE PLANT TWO PLANT THREE HR AND ADMIN FINANCE QUALITY AND TRAINING TECHNICAL CELL / MIS PLANT FOUR SALES & INVOICING ACCOUNT DELIVERY TEAM

Production focused on waste management

Standardize processes and procedures

Old Traditional way Philosophy Low Unit Cost Principle Improve Individual Efficiency Strategy Standard costing and Standard hours Method Time studies work standards Reason Verify employee performance to standards and costing Control Method management review and reports and adjust and standards Effect encourages behavior that increases non value added activities Result is waste is increased System cost is higher

New way Toyota Philosophy Waste Reduction Principle Eliminate Variation Strategy Develop Consistent process capability Method Standardized work and procedures Reason Able to determine Normal from Abnormal Control Method Visual Control , planned and automatic audits Effect Abnormal Conditions can be corrected quickly return to best methods Result Waste is reduced System total system cost is reduced r