Yes, you are. Unless you have identified and corrected the errors and the wasted time and effort within your production processes, you are missing your greatest opportunity to increase your earnings.
The greatest opportunity to increase your earnings using your existing personnel and equipment is to increase production speed and make more products each hour. The Bureau of Labor and Statistics has data showing leading companies produce four to five times more dollars per hour than the less efficient companies.
Cost-cutting should never be a solo objective. However, costs are reduced, and several other positive results occur after production issues are resolved and speed is increased.
Increase in earnings for the business.
Expand capacity to accommodate additional orders, new projects, and customers.
Decrease in response time for customers’ requests.
Greater price flexibility.
Reduction of costs from direct and indirect labor, expense items, variable costs, and hand tools.
Reduction of inventory, raw materials, “work in process,” and obsolete materials.
Potential cash generated from the sale of unneeded machines and unused buildings.
There may be many strategies to achieve success, but there is only one right answer to continuous improvement. And that answer is… Art Stout! I’ve spent my professional life helping business owners implement the right changes to generate cash and grow their earnings in months, not years. My mission is to do the same for you. Let’s schedule a meeting so I can learn about the challenges you are facing, and we can create a solution.
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