Operations & Process (Little’s Law)

Operations and Process Model

Questions We Solve

I don’t know my exact profit margin on a per-product basis.

Our overhead is just one big “lump sum” and I don’t know which department is most expensive.

We have a lot of cash tied up in inventory but don’t know what it’s costing us to keep it.

I am unsure how much my costs will increase if my sales double tomorrow.

Focuses

Whether you are building a custom machine or a financial report, we map the total time from “order received” to “invoice paid.” This analysis identifies where work sits idle and where hand-offs between departments are failing.

Manufacturing: Production lead time and work-in-progress (WIP) levels.
Services: Project lifecycle and client onboarding speed.

A lack of standardization leads to variance in cost. We analyze the variance in how different team members perform the same task to identify the most cost-effective “Gold Standard.” We then estimate the savings of moving the entire team to that standard.

Key Metric: Process Variance & Standard Labor Hours.

Using a “Converging-Diverging” model, we identify the single point in your process that limits your total output. We quantify how much revenue is lost because of a specific “choke point”—be it a specific machine, a senior partner’s approval, or a specialized technician.

Key Metric: Total Process Capacity vs. Current Output.

We analyze the efficiency of your primary “engine.” In manufacturing, this is machine uptime; in services, this is staff billability and utilization. We identify “Idle Capacity” (paying for resources you aren’t using) versus “Over-utilization” (leading to burnout and quality errors).

Key Metric: Billable vs. Non-Billable hours or Machine OEE.

Every time you have to fix a mistake, you pay for it twice. We quantify the total cost of “Failure”—including material scrap, employee time spent on revisions, and the cost of client credits or returns.

Manufacturing: Scrap, warranty claims, and physical rework.
Services: Revision cycles, unbillable corrections, and client churn.

We categorize activities into “Value-Add” (what the client pays for) and “Non-Value-Add” (manual data entry, unnecessary meetings, searching for files). Processes that may not necessarily work efficiently together create “friction” within the system by slowing down end-to-end delivery. By quantifying the cost of “Friction,” we show you how much margin is being eaten by administrative or operational “noise.”

Key Metric: Value-Added Ratio.

Translate Operational Friction into Financial Opportunity.

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