Benchmarking: Operational Audits

Today’s competitive environment mandates that a company be the very best that it can be when serving its customers.This means providing customers with the right products, at the right time, at a very competitive price.

As companies grow, it becomes necessary to have procedures and systems in place to succeed. However, simply having a quality system although important does not guarantee a high level of operational success.

Defining Operational Audits

An operational audit focuses on the company’s mission and objectives, when meeting customer expectations, and how well the group is performing. It targets the roles of all supporting departments looking for gaps, procedural issues, or opportunities for delay that can lead to problems, missed shipments, and customer dissatisfaction.

Equally important is benchmarking your group against the highest performing companies in your industry and market segment.

Meaningful Results – the ‘Bottom Line’

For either a manufacturing or service company, an operational audit can be the key to increasing customer service levels and profitability.

When properly designed, an audit yields constructive results no matter what the numbers may say. Certainly, favorable outcomes are welcome. But an unfavorable result also helps by highlighting a deficiency or ‘out of balance’ condition. The company can take actions to correct problems once they are identified.

MSCS’s Operational Audit

MSCS conducts operational audits using its program that has proven methods and tools. The audits are custom fit to your organization’s operation and list in detail any gaps found along with suggested remedies.

The standard MSCS Operational Audit consists of ten (10) departments, 25 subsections, and 90 inquiries about the production system and the daily business transactions. The results depict a very detailed picture of the company’s tactical operations and its performance to the company’s operational standards. All inquiries and answers are recorded and supported with operational documentation.

Related Topics

Procurement. Executives today expect results. Because of this, the procurement group is expected to play a much larger role and bring value to the entire business enterprise. If you’d like to learn more about procurement and supply chain management programs, please follow this link.

Organizational Structure and Performance. Top performing organizations require structure, culture and resources to produce high performance. Departments designed around four specific areas achieve higher performance levels. For more on this topic, please follow this link.

Transforming Procurement Operations. Today, procurement is expected to play a much larger role and bring value to the entire business enterprise. Some organizations have difficulty migrating their legacy processes to more advanced procurement models. For more on this topic, please follow this link.

Manufacturing and Supply Chain Services

We are Manufacturing and Supply Chain Services, MSCS, specializing in ‘enterprise wide’ production and operations management programs. Our company’s proprietary processes and services promote organization, control and cost reduction boosting your company’s bottom line. How can we help you?  Contact Us

Learn more about MSCS’s procurement and supply chain programs.