Operational effectiveness is an important driver of success for industry leaders

To be successful, firms must become more flexible, responsive and efficient to meet the challenges of globalization and growing needs of customers.

The operations function organizes the systems of resources that act to create and deliver the firm’s product or service offerings. A firm’s operations are thus centered on its resources engaged in product development, manufacturing, service management, supply chain management, channel management, and other execution-oriented functions that act to create and deliver value to customers.

Operations strategy refers to a plan for optimizing the effectiveness of operational resources and aligning them with company strategy. Effective operations strategy combines top down, “directive” strategy to guide execution together with bottom up or “emergent” strategy and operations which are inferred implicitly from the pattern of decisions and actions taken by an organization. When we align directive and emergent operations and strategy, we arrive at a unified plan to optimize the utilization of resources that drive business execution.

Keystone’s Operations Strategy practice focuses on several key areas:

  • Asset strategy and optimization: Effectively allocating and managing CapEx is critical for financial performance (ROIC) and to ensure long-term sustainability, particularly in capital intensive industries. Keystone works together with clients on business modeling and capital reallocation decisions to help clients strike the right balance between flexibility and efficiency.
  • Lean manufacturing and service delivery: Keystone applies lean principles and approaches to shop floor manufacturing as well as to technology development and service environments. Leveraging lean and Six Sigma experts, Keystone works with clients to identify and eliminate sources of waste, optimize flow to reduce cycle time and improve overall customer value.
  • Network strategy and optimization: Keystone helps clients design streamlined, flexible manufacturing networks that can respond quickly to changing customer needs and supply market dynamics.
  • Strategic sourcing: Keystone works with clients on strategic sourcing engagements that optimize cost performance, build productive and sustainable supplier relationships and effectively balance global, regional and local supply base options.
  • Supply Chain Management: Keystone works with our leading supply chain experts to design and transform supply chain systems and supplier networks to better adapt to turbulent markets and rapidly-changing customer needs. Keystone supply chain projects tend to focus on supply chain strategy including global supplier footprint, sustainability, segmentation and differentiated product flows, transportation and 3PL cost management, inventory management, and SKU/product line optimization.