Purchasing-Processes Improvements Drive $600,000 Inventory Reduction, Part 2
Apr 16, 2012 – 9:44 am | Posted by Nero Haralalka
This is the second of a two-part blog on reducing inventory by uncovering savings opportunities in buying processes at a medical-device company. Continue reading…
Purchasing-Process Improvements Drive $600,000 Inventory Reduction, Part 1
Apr 12, 2012 – 12:09 pm | Posted by Nero Haralalka
Businesses often continue to struggle with high inventories – both finished goods and raw materials — after initial attempts at reduction. While they can make some improvement by using common sense, companies sometimes fail to apply the proper tools for attacking this form of waste, tying up millions of dollars that — if freed up — could fund acquisitions, equipment and technology upgrades, and other needs. Continue reading…
Project Rationalization: Select the Best, Get Rid of the Rest
Apr 11, 2012 – 8:57 am | Posted by Joe Panebianco
When working with leadership teams on their strategic plans, one of the most common mistakes I see is having too many projects. Everyone always feels that they need to keep every project on the list for a variety of reasons, many of which defy logic: Continue reading…
Smart Companies Plan Ahead for Added Value After Waste Removal
Apr 09, 2012 – 10:07 am | Posted by David Pate
People frequently say that operational excellence is all about creating value for the business. When it comes to execution, though, I find that thinking often begins and ends with simple cost reduction. Such limited focus prevents companies that have invested expensive resources in process improvement from leveraging the new knowledge in the same way they would leverage a new technology, product or market. Continue reading…
What Threats Lurk on Your Business Horizon?
Apr 04, 2012 – 9:59 am | Posted by Gary Rascoe
Business leaders always have to be on the lookout for the next thing that could make their core products and competencies obsolete. The decline of the whale oil industry, which unfolded over 30 to 40 years, is occurring in other industrial sectors at a much faster pace today. Continue reading…
What Is the Strategic Importance of Operational Excellence?
Apr 03, 2012 – 2:34 pm | Posted by Ken Koenemann
Over the years many people have espoused the benefits of Operational Excellence: better customer service, increased flexibility and reduced costs, etc. What we tend to forget is that we are trying to create a competitive advantage that will differentiate ourselves from the competition. While operational improvement is great, if will flounder and fail if it does not lead to improved financial performance. Continue reading…
You Know You Have a Value Stream Management Problem When
Apr 02, 2012 – 8:47 am | Posted by Ku Ho (Jonathan) Chong
First, let’s consider two types of customers. On one side you have consumers who are looking for products tailored to their unique needs and desires. At the same time another group of customers is perfectly happy with more traditional price, quality and delivery tradeoffs, and limited product options. They don’t want to have to think about and answer a laundry list of questions when making a purchase decision. Continue reading…
Root-Cause Analysis Leads To 73 Percent Cost Reduction and Cleaner Water
Mar 28, 2012 – 10:28 am | Posted by Doug Bonner
When you think of lean manufacturing, the last thing that comes to mind I bet is wastewater treatment. But that’s exactly what a major frozen-food producer had in mind when they contacted me for help. The North American-based manufacturer recently recognized that shipping of large quantities of sludge to secondary processors was costing them over $442,000 a year. The combined cost of treatment and sludge disposal was averaging over $600,000 per year. That’s a big chunk of operating cash being used to manage waste. The company challenged TBM to come up with ways to return 25 percent of that expense to the bottom line. Continue reading…
Baseball Leadership: A Lesson in Individual and Team Performance
Mar 19, 2012 – 9:20 am | Posted by David Pate
One of my sons loves baseball. As I was watching one of his games recently, it occurred to me that a successful business is a lot like a successful baseball team. Perhaps it was a side effect of baseball in early March not being played in Florida, but it seemed to me that the hallmarks of an effective baseball team were the very things we work to develop in our leadership teams. Continue reading…
Two Factors to Consider Before Attempting to Implement End-to-End Value Streams
Mar 16, 2012 – 9:07 am | Posted by Ku Ho (Jonathan) Chong
End-to-end value streams encompass all aspects of an enterprise: product development and commercialization, marketing and sales, procurement and manufacturing, and after-market service. The primary benefit to customers is a noticeably superior product or service. For a company, the benefits are enhanced responsiveness and superior profit margins (mostly from increase in market share, reduced inventory, and lower costs to serve). Continue reading…
