AS A CONTINUOUS IMPROVEMENT COACH AND CONSULTANT,
I OFFER SERVICES FOR IMPROVING PERFORMANCE THAT FOCUS
ON LOST OPPORTUNITIES IN EVERY INDUSTRY AND DEPARTMENT!
Hidden Opportunities and Costs can be measured for any process or value stream, regardless of product type.
Billions of dollars are lost annually in the U.S.
because companies’ measurement systems do not reveal asset and process potential.
Some of these dollars are lost revenue tied to product never produced; others
are excess costs buried in the ledger with “normal” costs – all these dollars
can be identified, quantified and tracked, so that the true potential of
an infrastructure can be understood from the top to the bottom of an organization.
The interesting thing about these dollars is that they are ALL tied
to surprises and recurring problems that the workforce deals with on a daily
basis. If those problems can be solved or prevented, the missing
dollars will flow through to the income statement.
Connecting these dollars to the workforce can be done via
several improvement tools designed to help change the focus of the workforce.
These tools range from strategically formatted and grouped cockpit charts,
process control and response plans, process flows and characteristics, and
customer/supplier requirements to a project system designed to facilitate
project execution and a “changing plan” for the workforce.
But, by using Cost of Quality, you can “Go Exploring” for
opportunities that would be otherwise overlooked. These opportunities are
currently preventing your company from maximizing its performance without
spending expansion capital to increase production and reduce unit costs.
- Avoid Expansion Capital.
- Reveal and Understand Plant and Value Stream Bottlenecks
by setting process optimums based on a
“perfect world” scenario.
- Proactively Manage Equipment Delays (Maintenance and
Operations).
- Identify Excess Costs embedded in the General Ledger.
- Measure “What’s Not Working” to get focused on the right
things.
- Remove Non-Value-Added Costs and Process Inefficiencies.
 TAP INTO UNUSED CAPACITY AT LITTLE OR NO COST.
Engineers often confirm production capacity based on manufacturers design specs for run rate and an assumed availability/utilization based on historical performance. Mines use operating hours, run rates and tons produced to measure success, but seldom measure tons lost due to hidden availability/utilization, sub-optimal run rates or lost recovery.
I can show you how to identify, measure and communicate lost production at every organizational level.
Measuring lost production is just as important as measuring production because:
- A lost unit of production is worth just as much as a produced unit.
- Lost production units are hidden and are almost always greater than people think.
- Sometimes expansion capital can be avoided by tapping into hidden production capacity.
- Production losses are connected with problems and organizational barriers that frustrate the workforce and form the corporate culture:
- A focus on these losses changes a reactive culture to a proactive culture. Managers and employees change what they measure, what they fix, what they talk about and how they respond to problem resolution.
- Employees want to work for a company that cares about what they lose, not just about what they produce. Employee satisfaction and retention are likely to improve when loss management becomes part of the culture.
 PERFORM SURGERY ON YOUR COSTS
Excess costs are hidden in most every department. These costs are often related to recurring events caused by process breakdowns or failures or poorly followed procedures. Often there is little or no investment required to fix them.
By taking a surgical approach to finding and eliminating these problems, cost reduction and improvement can be sustained. Excess costs are probably much larger than you think. I can show you how to find them in all departments.
Measuring excess costs is just as important as measuring total costs because:
- Excess costs connect with the problems that employees face every day.
- Employees appreciate a focus on problems that “eat their lunch” on a regular basis.
- A focus on reducing costs by eliminating these problems:
- Improves the productivity of the workforce. People can perform more of their normal tasks without stopping to fix controllable problems.
- Improves the bottom line using a common sense approach to cost reduction (remove the waste without impacting value-added spending).
- Changes a reactive culture to a proactive culture. Managers and employees change what they measure, what they fix, what they talk about and how they respond to problem resolution.
- Improves employee satisfaction and retention when managing excess costs becomes part of the culture. Employees want to work for a company that cares about what they waste, not just about the money they make.
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