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This page contains TWO sections ~ please click on the section you wish to view:

1 ~ Development of the CIP Management System

2 ~ AUTOMOTIVE Industry Skills Development Programme

 

 

 

1 ~ Development of the CIP Management System

 A management concept to overcome the traditional insular & potentially 'empire building' dangers of conventional tiered management structures. It is best illustrated by the charts below but please contact us if you are interested in more details regarding procedures & implementation.

METHODOLOGY

Objective

For any company to prosper in today's business climate, at the start of a new year it is vital that operators review their situation and learn from their experiences during the recession. It is important that operations are managed in a manner which ensures complete co-ordination between marketing, sales, production planning, purchasing, quality and production, in line with International best practice which, in the current competitive environment, focuses on managing the whole process rather than individual departments.

During the recession CIP identified the importance of the increasing need to bring the company up to international levels and establish what are the appropriate strategies and systems needed to secure achievement of action plans and implement necessary actions in accordance with the output as identified in a study of the operation and the Terms Of Reference for development of a business plan.

CIP Input

 To be competitive in today's environment management at all levels must understand that everything they do has a cost and must be factored into the product price build up and that cost analysis systems must be based on real time situations and by monitoring issues addressed in the development of the management team.

 ·       All staff must be included in the battle to eliminate waste and reduce non-productive time through a Continuous Improvement Process

·       It is no longer acceptable practice to simply mark up the cost of a product to achieve profitability - prices should reflect perceived customer value and therefore should be market driven

·       The value of the company assets must be based on its current retail value, and staff value is the value of the staff abilities, not their salaries

·       Good product brand image has considerable influence on product pricing levels

·       Team work enhances productivity and incentive schemes should be developed to encourage team work and pride in performance at all levels

·       A state of the art operation requires highly developed planning which, in itself, controls cost of time, materials and logistics

·       Business plans need to be fluid and action plans constantly reviewed and updated to improve efficiencies, eliminate waste, reduce cost and, most importantly, increase profitability

·       Good communications at all levels are a key factor in the success of any company in this changing world of high technology super highways so staff should all be encouraged to improve their communication skills

·       The importance of the learning experience needs to be encouraged throughout any company so that everyone takes advantage of the investment in training and skills development

 It is understood that Material and Inventory Management has been identified as a problem area and CIP focuses on the following points:

 ·       It is vital to have a common, co-ordinated system with part numbers and cross referencing of individual items to their relevant assemblies. The system should ensure that optimum inventory levels are maintained whilst still meeting customer demands. Such a system must improve cash flow and thus market competitiveness and profitability

·       An efficient system will also improve Customer Satisfaction since each outlet should be aware of both stock availability and location so that client needs can be satisfied quickly and efficiently. The other key benefit will be the assistance that can be provided to production planning to ensure that optimum batch sizes can be produced without incurring excess stock levels

·       It has been said that ‘the need for a warehouse is an admission of logistics failure’! Whilst this may over-simplify the problem it is a philosophy that can aid the understanding of the requirement for efficient stock level maintenance

·       The inventory control system MUST cover raw materials and work in progress as well as finished product - the whole logistic route - if maximum efficiencies are to be maintained.

·       It may also be necessary to assist and advise on the productive and profitable methods of material movement within the facility

·       CIP will advise on optimum methods of storing and managing stocks of both materials and finished product

 To be competitive with tenders and quotations, an accurate costing is essential:

 ·        Costs cannot be controlled until they are properly measured and quantified

·        Traditionally, cost reduction is targeted as the main criteria for performance improvement. This philosophy usually results in operations being poorly equipped and often understaffed – in today’s environment it is the elimination of waste that provides the greatest opportunities for performance improvement

·        Waste elimination is something most employees can relate to and support. Consequently a Continuous Improvement Process should be adopted and become an integral part of the company culture so that change can readily be accepted

 CIP will assist with the implementation of a monitoring system to ensure any out of line conditions can be acted upon as early as is reasonably possible

 Human Resources Development

 HR development is a priority in any company and shows that it understands that a company's greatest asset is its people. It is not possible to obtain the optimum output from computerisation of systems without having the personnel to fully capitalise on the new system once it is operational.

A survey of the HR programme requirements will be undertaken to develop a comprehensive programme, with full management approval, for the first six months in order to ensure the appropriate environment is in place to attract, retain and develop valuable staff. The report will include an action plan and priorities for implementation.

Development of key HR Programmes related to the new system will be undertaken as well as a detailed report on the skills and development needs of key personnel.

It is gratifying to find that a company has identified the need to address any shortcomings in this very important area. An environment that nurtures high employee morale, attitude and loyalty shows rapidly in the resultant high efficiencies and customer satisfaction. 

Computerisation

To achieve the computerisation objectives the CIP Value Analysis will be used. The main objectives of the process are:

 Ø           To provide a detailed analysis of the key processes of the organisation from receipt of an order through to delivery

Ø           To follow the analysis and, where appropriate, recommend improvements to processes in order to increase effectiveness and efficiency

Ø           To build an Activity Based Costing Model of the business in order to identify more accurate costing of the services provided

Ø           To establish parameters to Computerise processes and systems

 A focus on business processes is essential to:

 q      Enable the organisation to Focus on the Customer

q      Allow the company to Predict and Control Change

q       Improve the use of all Available Resources

q       Enable changes to be made to complex processes Rapidly and Effectively

q       Help to manage Inter Functional Relationships

q       Help prevent the Occurrence of Errors

q       Develop for the business a complete Measurement System

q       Provide the staff with an understanding of How Good It Can Be & How to Get There

 

World class objectives are important:

ð   To do things properly

ð   To do things that are needed

ð   To do things the best possible way

ð   Tobe Environmentally Friendly

 The Process

 CIP uses its Continuous Improvement Process to knock down barriers

Traditional Procedure for a Customer Order

Process Mgt1.jpg (24235 bytes)

Each “Department” only views the order from their own viewpoint

Process Focused for a Customer Order

(removes barriers)

Process Mgt2.jpg (17005 bytes)

Process Based Management helps you see the business from the Customers' viewpoint

 

World Class Principles

 World class is about constantly striving to achieve higher standards in products and services by Continuously Improving the Processes through which they are provided to the:

 Customer, who is . . .

. . . The Next Person in the Process

 Process Value Analysis Objectives

 ð   To identify the primary activities of each individual role

ð   To establish the role of an individual in both their own ‘departmental’ process and also where they cross into other processes

ð   From the output and analysis to be able to draw flowcharts mapping out each of the key processes for the Company

ð   Following analysis of these flowcharts, new flowcharts are drawn with changes made to improve the ‘flow’

 Process Value Analysis Benefits

 w      Identifies the Value Added and Non Value Added activities

w      Identifies each area where the key process stops or is delayed because the next person in the chain is not aware of the impact they are having if they don’t complete their ‘bit’ correctly and on time

w      Creates the opportunity to reduce process costs

w      Improves Customer Satisfaction levels

w      Clarifies what actually happens when an order is received into the company

w      Easier to identify and implement Process Measurement

w      Helps reduce Lead Times

w      Improves team building

q       Organisational Focus

ð   Process Focus

 

q       EMPLOYEES are the problem

ð   The PROCESS is the problem

q       Do my JOB

ð   Help to GET THINGS DONE

q       Understand my JOB

ð   Know how MY job fits in the TOTAL PROCESS

q       Measure INDIVIDUALS

ð   Measure the PROCESS

q       Change the PERSON

ð   Change the PROCESS

q       Can always find a better EMPLOYEE

ð   Can always IMPROVE the process

q       Motivate People

ð   Remove BARRIERS

q       Control EMPLOYEES

ð   DEVELOP People

q       Don’t trust ANYONE

ð   We are ALL in this TOGETHER

q       WHO made the error?

ð   WHAT allowed the error to OCCUR?

q       CORRECT

ð   Reducing VARIATION

q       BOTTOM LINE driven

ð   CUSTOMER driven (next person in process)

q       House keeping COSTS

ð   Environmental INVESTMENT

The Output

 From the Continuous Improvement Process as outlined above and as required by the TOR will include:

 1.      A redesigned set of procedures, defined and designed in such a way that computerisation can easily be implemented

 2.      A detailed description of the system design to be purchased (software) with recommendations for the platform (hardware) to be adopted for the system, including all system specifications

 3.      After installation, training of the staff to use the new system in an optimal way.

 

APPENDIX

SAMPLE ACTION PLAN FORMAT

 

 

               ACTION PLAN

File No:

DEPARTMENT:

 

DEVELOPMENT AREA:

ITEM NO

ACTION TO BE TAKEN:

PERSON / S RESPONSIBLE

TARGET DATE

COMMENTS / COMPLETION DATE

1

 

 

 

 

 

 

2

 

 

 

 

 

 

 

Be CreativeBe a Leader not a Follower

2 ~ AUTOMOTIVE Industry Skills Development Programme

 

As a result of a recent review of the retail motor industry it was clear that, whilst franchised dealers had access to training provided by the AUTOMOTIVE Manufacturers, independent SME’s did not have access to such training.

We have discussed with our associates in the Middle East and Africa the need for strategies to address industry skills’ shortages, both now and into the future, and it became apparent that the CIP management approach to training and profit optimisation would benefit both franchised and non franchised dealers.

It is suggested that consideration be given to the formation of a retail workshop ‘Industry Skills Initiative’, which would assist industry to identify and plan relevant responses and other solutions to skills shortage issues and challenges.

This could be by the formation of an automotive working group, tasked to undertake research and provide evidence on a range of skill shortage issues in independent retail workshops in the automotive industry.The key issues likely to emerge from the working group activities include:

 ·         Concern that there is a poor industry ‘image’ which makes it difficult to attract sufficient interest for school leavers to see it as an attractive career option.

 ·         The need for improved information about, and promotion of, the industry and the need for career guidance staff, in particular, and teaching staff in general, to have more direct links with the industry.

 ·         The need to strengthen the important role played by school/industry relationships in encouraging young people into the industry.

 ·         The increasing divide between major vehicle and component manufacturers and small retail and repair firms, and the implications for the skills needs of employees, is a major concern.

 ·         The rate of technological innovation and change in recent years has introduced levels of skill complexity requiring educationally advanced training programmes and diagnostic aids. Therefore, young people entering the industry need a higher level of basic skill than they have in the past. Employers are concerned that teachers and parents still view the industry as a career option only for young people who are not high academic achievers.

 ·         The priority for industry, government and educational institutions should be to address the challenges associated with ensuring that training is of a high quality and is consistent with the needs of the industry.

·         The tendency to promote from within an organisation so there is a lack of fresh blood entering with new ways of doing things.

·         There is often no clear understanding of the value of the labour force, often calculated as its salary cost rather than its retail revenue value.

·         The failure to assess the true value of its fixed assets, including premises, valuing them at original cost, not their current retail rental value.

·         There is often no appreciation of the true value of family members employed in the business, which should be based on the value of their skills if employed elsewhere.

·         The revenue potential of facilities should be calculated on a 24/7 basis. 

·         All equipment and machinery should be in full time use and thus subcontracting their use should be considered.

These are just a few key issues likely to be highlighted by a study of this sector and the recommendations should be included in an Industry Skills Action Plan to be undertaken by the industry to overcome skills shortages in the retail motor industry.

One of the key benefits to be derived from the formation of the Task Force would be the opportunity for a number of industry associations and independent consultants with expertise in this industry to collaborate and work together in an attempt to achieve mutually beneficial and common outcomes. This cooperation would be enhanced further during the life of the Task Force and thus be likely to result in the achievement of even greater success.

The Task Force should make some significant progress in areas such as:

bullet The production of a range of new automotive career information pamphlets.
bullet The development of a careers web site.
bullet Promotion of the industry through pilot programmes in regional areas which, overall, would result in stronger links between schools, industry and parents.
bullet A Training Targeted Initiatives programme to promote and coordinate participation in new Apprenticeships through a Group Training Scheme.

CIP would be happy to coordinate and participate in the initial stages of the Task Force and have already identified some additional issues that need to be addressed. These include:

·     The provision of adequate opportunities for students to gain experience in some form in the workplace as this significantly increases their chances of future employment in the industry.

·     Exposure to the industry in the region which usually highlights the need for the development of career information and promotional strategies specific to the local area.

·     The development of an integrated website featuring all areas of the industry (manufacturing as well as retail, service and repair).

The Task Force should turn its attention to the most appropriate ways of addressing these additional issues as well as continuing to implement the Action Plan objectives.

As an approved training supplier to the IMI (Institute of the Motor Industry) in the UK, CIP conducted a most successful apprentice training programme in the UAE for Emiratis for Dubai Municipality for two years.

Note: CIP would be interested in receiving contacts from consultants with an interest in such a programme and from retailers and wholesalers interested in benefiting from its implementation.

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Contact Information

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Postal address 29 Bedford Road, Houghton Regis, Bedfordshire, LU5 5DL.  UK
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Send mail to cip@cipauto.co.uk for any additional information about CIP
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  LINKS

BDM Voice:  One of the UK's leading providers of integrated 'voice' and business development solutions, specialising in the Automotive Industry.

Autostrategies ~ Import and Vehicle Parc statistics for almost every country in the world
Copernicus ~
Copernicus International Consulting Ltd. Copernicus helps companies to achieve sustainable growth by developing their innovation initiatives and strengthening their internal capabilities, so we can work well together to assist you by adding our specialist knowledge of the Automotive industry.
IMI
~ Institute of the Motor Industry, UK
Mid East Journal ~ all aspects of Middle East News for Businesses: part free - full range of articles by subscription
 

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