A company’s operating model drives its orientation to realise commercial outcomes.

An enterprise’s production capability starts with its business model.  Production capability is the enterprise’s operating model which is “how” the enterprise will orientate and align with its stakeholder expectancy to realise the commercial opportunity of the targeted business model.  The health of the operating model directly dictates the optimal scale of effectiveness and efficiency it can achieve. It is in different terms the production capability of the enterprise, consists of, production intelligence, production planning and production delivery or output. 

Production intelligence – is production authenticity embodied in; production know-how, appropriate choices for production, synchronised resources including enablement, measurement, predictability, quality assurance, etc.  The measures are optimal through put, optimal efficiency, optimal effectiveness, optimal balance of risks and outcomes, production change management, production delivery management, continuous improvement, etc.  It reaches across the enterprise into all functions departments, divisions, levels, positions, etc.

Production planning – is production balance between demand and delivery optimised by; critical path planning, coordinated concurrent activities, time planning, capacity planning, risk balance of possible eventualities, balancing cost, time and output, across all functions whether internal or external.

Production delivery or output – is production through put by any measure of time where output corollate with production planning within standards, specifications, and quality.

Alignment to the target business model where growth or scale, balanced with its economic-echo-system gives emphasis to longevity.  The operating model is the “greatness” whereby the enterprise will extract value for its stakeholders or if it not so great, will impair the intended value.  It must be explicit in its functional construct, meaning that it is orientated the way activities flow through the enterprise with minimum “resistance” or “constraints”. 

Production intelligence, planning, and delivery should be enterprise wide across all functions, it is the ultimate accountability which will create a healthy enterprise.  Production is the focus in delivering commercial outcomes but, too often this is left to chance where it exists implicit and scattered across the enterprise. The result is realised inefficiency and ineffectiveness, unmeasured, unaccounted, and unidentified.