Flexible Operations

Thriving in an Uncertain Environment

GMT has a robust capability in flexible operations design and implementation that helps clients to manage the reality of uncertain customer demand—improving the balance between customer service and inventory, while ensuring profitability and quality.

Many businesses try to eliminate or minimize demand fluctuation by focusing solely on their sales forecasting processes. But GMT's operations experts recognize that demand volatility and forecast error are facts of life. GMT helps clients to recognize the spectrum of strategies for managing uncertainty—and to develop flexible processes that accommodate variation.

GMT's custom-tailored approach offers inventory management, operational flexibility, and performance optimization strategies to fit each client's business, supply chain strategy, and operational constraints. Typical results include lower inventory, increased operational stability, and an environment based on continuous improvement—not on an ongoing response to forecast error.

Capitalizing on Uncertainty
Creating Manageable, Responsive Processes
A Focus on Teamwork and Continuous Improvement

Capitalizing on Uncertainty

GMT helps its clients to develop highly responsive supply chains that respond to the "pull" of actual market demand—instead of to the traditional "push" to build products in anticipation of demand.

More important, GMT helps clients to understand how much inventory is truly necessary—and in what form inventory should be held—so that they can balance trade-offs between cost and customer service.

GMT works closely with client team members to build flexible systems that respond to customer orders. Parts and products are bought and assembled in quantities as close to demand as economically possible, ensuring that time and capacity are not wasted. In addition, these flexible systems enable executives to manage and prioritize sources of operational uncertainty—including vendor quality and delivery issues, manufacturing process problems, equipment failure, and human error.

Creating Manageable, Responsive Processes

Though GMT customizes its approach to address each client's situation, a typical GMT flexible operations assignment focuses on the following areas:

	Sales forecasting. GMT helps clients to increase accuracy through a formal, manageable forecasting process—and by applying technology tools that combine the power of statistics and analysis with human judgment about past and future events. Under this approach, forecasting becomes a measured process that produces timely demand estimates—supporting sales, operations, and financial requirements.
	Master production scheduling. GMT creates a flexible environment that makes it easier to maintain stable, feasible production schedules that balance demand, capacity, and cost. Results include stable lot sizes, capacity requirements, and inventory plans. Production scheduling is integrated into a monthly sales and operations planning process—and feeds critical data to shop-floor scheduling and procurement systems.
	Operations scheduling and control systems. GMT helps to integrate clients' manufacturing capabilities with customer-initiated manufacturing and procurement processes. Controlled by a master production schedule and driven by customers, GMT clients' operations react efficiently to demand and allow management to focus on daily execution. In addition, GMT helps clients to create simplified performance measurement and control systems that alert managers to abnormal demand and process variations.
	Sales and operations planning. To help top executives understand complex operations issues and manage crossfunctional tradeoffs, GMT institutes a management process that culminates in a monthly forum where current performance is compared to planned results—and where future operations plans are approved. This planning process brings senior managers from every functional area together to create broad ownership and accountability.

In implementing these flexible operations initiatives, GMT works with each client to address the related challenges they face in other functional areas—creating an integrated business approach.

A Focus on Teamwork and
Continuous Improvement

Unlike specialized operations consultants, GMT's professionals have a broad range of business experience. They understand the impact of operations on the client's ability to achieve long-term strategic goals—as well as the interaction of operations with other parts of the business.

Because operational initiatives have broad ramifications, GMT brings together crossfunctional teams of managers—representing such diverse functions as information technology, customer service, finance, and sales and marketing—to address these issues.

Not only does this team environment create a common vocabulary and a shared perspective, it also ensures broad acceptance of the plan for increasing operational flexibility.

GMT's team-based process creates a culture of continuous improvement, as team members work together over time to assess results to date—and to create realistic, achievable plans that balance customer satisfaction with outstanding product quality and long-term profitability.