Use case optimizing cost of quality - Business Playbooks Software - Automate Your Runbooks with Ease

Customer : Recruitment SaaS

Scenario
Scenario

Scenario

  • The company was dealing with relatively high cost of quality and wanted to implement strategic measures for lowering expenses without resorting to short-term cost cutting. This required a significant re-think of strategic goals and operational procedures.
Challenges

Challenges

  • To transition from a short-term cost cutting approach to a long-term optimization focus necessitated a cultural realignment and a re-think of existing operational procedures.
  • The changes (cultural & procedural) needed devolution at a departmental level thereby creating a pan-organization consistency of approach.
  • Involvement of suppliers and OEMs was important to the optimization initiative.
  • The rejigged operational procedures need to conform to the standards of OpEx (Operational Excellence) and LEAN methodologies.

Above all, the entire initiative needed to be governed via a framework that ensured visibility and transparency of actions.

Data Points
Data Points

Data Points

  • At the start of the exercise, the cost of quality was approx. 35% of revenue.
Solution

Solution

  • SmartPlaybooks in conjunction with partner Avanulo deployed a comprehensive yet customizable suite of playbooks to compliment the redesigned processes: These covered:
    • Planning & governance – for periodic renewal of goals and actions and ascertain responsibilities
    • Budgeting & oversight – to manage departmental budgets, approvals and reporting
    • Participation of vendors and suppliers – to handle delivery of supplies & components per JIT methodology and streamline dependencies.
    • Review & analysis – to ensure that oversight rigor was established
  • Inter-departmental & inter-organizational coordination
    • Playbooks incorporating tasks across functions (and 3rd party organizations) were structured which allowed for an integrated approach.
    • Handover of tasks between functions which had sequential dependencies were designated as milestones (to be alerted on in case of delays).
  • Real-time visibility as opposed to out-of-date information
    • 360* view of data for analysis of cycle completion times along with identification
Results
Results

Results

  • The cost of quality was brought down by 10% over the first four months.
  • The cost of saleable goods was brought down by approx. 53% over a 12-month period.
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