Download - Opti Products Overview
Driving Profitability And Security Through Process
OPTI™©
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
Product Overview
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The OPTI (“OPTI”) Solution
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
™ &©
Overview
Proven methodology derived from:
• Four prominent business systems, >30 years…
• Plus “real world” application…
• Deployed 535 times with +/- 3.5% margin of error
• Operating divisions and middle market companies
Addresses perennial questions:
• Is the Company/Division Sustainable?
• What is Optimal Profitability?• How do I/we “get there”?
(Roadmap)• What is it going to cost and
how long will it take? (Re-Tool)
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The OPTI Product SuiteOPTI SustainabilityA quick, and comprehensive, operational-based due diligence tool that assesses sustainability by evaluating the infrastructure connectivity of the target; leveraging a proprietary database, the tool then measures likelihood of success or failure against similar companies.
OPTI OptimizerAn optimization reporting feature that compares target’s financials against industry best-practices to determine gaps and set Best-In-Class targets; includes an analysis of performance metrics and transaction values on a global basis.
OPTI RoadmapAn integrated matrix that sets goals and objectives for a target, Roadmap ties back into both the Optimizer findings, and Sustainability gaps and disconnects, to assess the severity of the gap/disconnect, what it will take to repair issues, etc.
OPTI RetoolA foundational tool that enables a target to implement process-based changes that address previously identified gaps and disconnects. It is a Best Practice©, process-based infrastructure re-design tool that utilizes process mapping, activity costing tables and robust measurement tools.
Overview
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Productized OPTI Solutions
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Process Management
30/60/90 Plan
Recovery Roadmap
Optimization Report
Gap Report
Survey Analysis
2) OPTI Optimizer
1) OPTI Sustainability
3) OPTI Roadmap
4) OPTI Retool
• Four products with increasing functionality
• Proprietary modules are basis of tool • Flexibility to match operational
requirements
• Integrated end-to-end product solutions• Built from a stakeholder/owner/ operator
perspective
Overview
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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The OPTI Solution Enables
• Quick and detailed due diligence • Fast cash generation (rapid drive to break-even)• Effective cessation of financial leakage • Efficient infrastructure development • Enhanced success measurements to manage
processes and reduce cycle times
Overview
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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The OPTI Solutions
Implementation/StrategyDue Diligence
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Sustainability•Assess Mission Critical Processes•Quantify financial impacts•Identify gaps and disconnect
Optimizer•Validate optimization•Confirm financial health •Determine market value
Roadmap •Quantify leakage•Build plans action plans •Set up metrics
Retool•Retool processes to drive profitability•Build sustainable foundations
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
Overview
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Eight Core Systems
New Product
Dev.IT
Operations
Human Resources
Sales
Finance &Accounting
Marketing
Customer Care
MissionVisionCultureAlignment
MissionVisionCultureAlignment
OperationsMission Critical Processes
Material: define MRPS flow
Material: ID initial notification of material purchase requirements
Production: Validate human utilization
Production: Validate capital utilization
Training: Match skills with demand
Eight Core Systems
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
Methodology
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MCPs Overview
OperationsMRPS Sub Process
Determine Potential for Client
Develop Cross Functional Team
Priority
Define MRPS Flow
Track Cycle
ID Initial Notification of Material Purchase Reps
Long Term Production Plan ID Material Requirements
Core System
Mission Critical Process
Operations Loading
Operations Utilization
Operations MRPS
Operations Training
Marketing Brand
Marketing Dimension
Marketing DEP/DMP
Marketing Communication
Every Company has 18-26 MCPs Many MCPs have Sub-Processes
Methodology
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Proprietary Tools
Database of hundreds of OPTI- run mid-sized companies and growing
• 75% manufacturing entities; 25% variety of process-based companies
• Affirm sustainability +- 3.5% margin of error• Ability to run studies
Demonstrated success • M&A transactions with in excess of $3 billion in
consideration • The launching of 10 products• Direct investment in over two dozen companies
with an average 6X realization at exit
Optimization reporting leading to recovery roadmap
•Connect financials to operational leakages•Achieved average savings of 12.5% of Sales•Average time realization to Break-even 6 months
Differentiators
Unique Differentiator Impact
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Proprietary Tools Cont.
Proven end-to-end system to fix operational connectivity and increase profitability
• Database of over 1,500 survey questions by industry and resource role
• A proprietary means of relating gaps between Best-in-Class performance to internal financial leakages
• A series of statistical formulas to predict success or failure
• Roadmaps to effectively restructure and optimize operations.
• Re-tool templates that provide step-by-step guides for operational rehabilitation and stabilization
Differentiators
Unique Differentiator Impact
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Project Office
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™ &©
OPTI General
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Setting Surveys
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Sustainability
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Generated Questions
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Sustainability
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Report Development
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Sustainability
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
MCP Rating DetailBrand
3.00
Very few MCPs or Sub MCPs are documentedVery few company resources are trainedVery few checklists are followed/very little accountability is set/very few CSFs are managedDocumented systems are rarely, if ever, reviewed, modified or adjustedVery few documented processes achieve their goals and objectives
Dimension
7.00
Most MCPs or Sub MCPs are documentedOn average company resources are trainedOn average checklists are followed/on average accountability is set/on average CSFs are managedOn average systems are reviewed, modified or adjusted on a standard scheduleOn average processes achieve their goals and objectives
Communication
3.33
Very few MCPs or Sub MCPs are documentedVery few company resources are trainedVery few checklists are followed/very little accountability is set/very few CSFs are managedDocumented systems are rarely, if ever, reviewed, modified or adjustedVery few documented processes achieve their goals and objectives
Weighted Average
3.37
Very few MCPs or Sub MCPs are documentedVery few company resources are trainedVery few checklists are followed/very little accountability is set/very few CSFs are managedDocumented systems are rarely, if ever, reviewed, modified or adjustedVery few documented processes achieve their goals and objectives
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Reporting
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Sustainability
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Analytics
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Sustainability
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Standard Template
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Optimizer
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Key Ratio Analysis
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Optimizer
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
Financial Ratios Dec-07 Dec-08 Dec-09 Dec-10 Dec-11
Gross Margin % 60.0% 60.0% 60.0% 60.0% 60.0%
EBITDA % 40.0% 40.0% 40.0% 40.0% 40.0%
Profit Margin % 10.0% 10.0% 10.0% 10.0% 10.0%
Return on Assets 6.8% 6.7% 6.9% 7.1% 7.8%
Return on Equity 17.0% 16.8% 17.2% 17.6% 19.4%
Quick Ratio 80.0% 80.0% 80.0% 80.0% 80.0%
Current Ratio 150.0% 150.0% 150.0% 150.0% 150.0%
Debt to Equity 100.0% 100.0% 100.0% 100.0% 100.0%
Debt to Assets 30.0% 30.0% 30.0% 30.0% 30.0%
Accounts Receivables Turnover 6.8 6.7 6.9 7.1 7.8
Inventory Turnover 4.8 4.9 4.7 5.0 5.5
Total Asset Turnover 0.7 0.7 0.7 0.7 0.8
Average Days Sales Outstanding 53.7 54.2 53.1 51.7 47.1
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Leakage Figures
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Roadmap
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
OPTI Roadmap Master Template
Factor Category Factor Max 6 Months 12 Months 18 Months 24 Months
Direct Labor
Excess Movement 3.00% 0.50% 2.00% 2.00% 3.00%Theft 0.50% 0.10% 0.30% 0.30% 0.50%Safety 2.00% 0.50% 1.50% 1.50% 2.00%
New Product Development 3.00% 0.50% 2.00% 2.00% 3.00%
Direct Material
Scrap 1.50% 0.50% 1.50% 1.50% 1.50%Material Cost 3.00% 1.00% 2.50% 2.50% 3.00%Lazy Inventory 1.00% 1.00% 1.00% 1.00% 1.00%
New Product Development 3.00% 0.50% 2.00% 2.00% 3.00%
Factory Overhead
Utilization 3.00% 0.50% 2.00% 2.00% 3.00%Plant Loading 1.00% 1.00% 1.00% 1.00% 1.00%Personnel 2.00% 0.50% 1.50% 1.50% 2.00%
New Product Development 3.00% 0.50% 2.00% 2.00% 3.00%
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Financial Leakage Table
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Roadmap
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
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Initial Fix
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Retool
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
Increase “Velocity of Money”
Identify “Pain Points” and achieve quick impacts
Drive to “Break-Even”
Realize early team wins
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Process Infrastructure Development
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Retool
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
Activity Owner Mins.Salary
(FL)Total Cost
MRPS
Long Term Production Plan ID Material Requirements
Input six week/ future sales projections into Sales Database J. Doe 10 $50.00 $8.33
Calibrate scheduled orders over six weeks J. Doe 90 $50.00 $75.00
Determine under utilization of Machines W. Smith 90 $35.00 $52.50
Access six week/future sales projections CFTeam 45 $250.00 $187.50
Calibrate six weeks sales projections with parts needed CFTeam 45 $250.00 $187.50
Email invite and Matrix to Company Management CFTeam 3 $250.00 $12.50
TOTAL $536.33
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Ongoing Maintenance
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™ &©
Retool
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
CSF Action Plan
100% Finalize in next two weeks or fire supplier
25 days Analyze gaps, provide terms to holdouts
2.5 days No action plan, exceeded target
2 days Re-review of process, clean up gaps and issues
98% Schedule server downtime, perform full maintenance
Activity Actual
Locked in supplier pricing
70%
AR collection 27 days
1-999 production schedule
3 days
Quote to sales 5 days
Email server uptime
89%
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OPTI Contacts
Contact Information
ProprietaryExclusive Property of Operational Productivity Tool, Inc.
www.opticonnectivity.comhttp://opticonnectivity.blogspot.com/
Operational Productivity Tool, Inc.Office Court at Walton Point
482 Norristown Rd, Suite 114Blue Bell, PA 19422
484-351-8305