The summer build season is upon us, so the familiar daily time constraint challenges are back. Yet this summer build season is not like the past few years. In many regions, sales are not as strong, so margins are dropping to keep the sales volume needed to remain profitable. During the winter slowdown, many of you stated you intended to take the time and make the necessary improvements and changes to meet the ever-changing markets and competition. Now that the summer build season is back, how successful were your teams implementing those promised improvements? How much pushback or non-compliance has your group given to follow through on the promised changes?
Here are two questions for improvement that you may not even have considered:
- How dynamic is your manufacturing order scheduling, and is it possible that the scheduling process negatively impacts the margins?
- How accurately is your quoting based on the current methods? Most companies cannot explain and prove the costing methodology of the design software. They have no idea that the component design system is more of a shotgun than a rifle approach, even when each component is fully designed.
Most companies have not considered these two critical aspects of their company for many years. Instead, they think they know their processes are working well and they doubt that refinement would make any difference. But is this just wishful thinking? For each of my clients, I will explain how their scheduling and bidding methods may hinder them in different situations and how they can improve both these critical aspects. These improvements then have a very positive effect on their profitability.
Food for thought — What is the number one reason people resist any change?
Modern cognitive theory states that people tend to perceive reality in light of pre-existing expectations and will ignore large amounts of contrary data before finally changing their minds. — Psychology Studies, Author & Source Unknown
Why is this so common? It is because we are all trying to protect our Ego or Pride. We cannot see that change is needed, or if we do indeed recognize the changes needed, our pride prevents us from admitting it. If by admitting, we perceive it as, “We were wrong, and they were right.” This thinking prevents us from listening to others—an absurd way of viewing life. What worked in the past was a good thing, but we need to evolve to meet the challenges of today.
Now, consider how this mindset affects decision making during the busy build season time of the year. Why and how would anyone consider making any changes now? But, keep in mind, successful people and businesses are always busy, and they do not make excuses for being too busy for improvement. If your group did not make all the promised changes during the slower times, are you willing to act now? What can be gained by making changes now?
If you are resisting making changes now, consider this. How many companies were very busy as they went bankrupt, and when exactly did they attempt to make the needed improvements to prevent the loss of profits? The answer is simple: they did not take the time, and obviously did not know exactly what changes were needed. No matter how successful any organization has been in the past, there is no guarantee of success in the future.
How can changes be made during the busy time of the year? It may surprise some, but spending money for greater returns sometimes makes perfect sense even when your company is in cost-cutting mode. When you ask the same people the same questions, you will get the same answers because that is what they know. Maybe, just maybe, it is time to bring someone into your organization from outside your company who is not vendor-related, with “free” advice, or the common groups you interact with. As one client stated, “we can waste thousands of dollars spinning our wheels over many months, or get it done in a few weeks with you, Todd.”
There is no better value than TDC for getting the best ROI for professional consulting services. TDC is your best source for learning about proven and practical lean manufacturing best practices combined with industrial engineering principles to keep your company at the leading edge of competitiveness. Cost savings and net profit gains that usually take months or years can be accomplished in weeks or months with TDC. No one is better at providing your team with proven results for good employee practices, pricing, truss labor estimation, and so many other best-in-class practices. All areas are addressed, not just manufacturing. Please do not take my word about TDC’s services, though. Read the public testimonials many current and past clients with decades of expertise and experience have been willing to give.