Business Stimulus Plan

Companies seem to be waiting for the government stimulus money for a positive effect on cash flow. Unfortunately, few people seem aware of the glacial slowness of big government. Instead of hoping that the Federal Reserve, companies can create their own economic stimulus plan.

While this economy is difficult to increase sales, it is easy to focus on cost reduction. Every dollar saved goes straight to the bottom line. And employees like to find ways to simplify, streamline and optimize business to better serve customers.

According to July-August 2009 survey of Harvard Business Review (How is the desolate landscape?)

27 percent of companies are streamlining product offerings and services
34 percent are re-engineering processes
37 percent are better products, services or customer service.

If your company will not use this opportunity to improve the value chain?

Stimulus Plan Step 1-Simplify

All companies reflects the disorder in recent years in offices, factories, stock products, or service lines. Now is the perfect time to get employees to work at removing the debris of the past. When the clutter is gone, it’s easier to see where the focus in the next step: a rationalization.

Stimulus Plan Step 2-Streamline

There are many companies who do things and then try to sell it. Instead of trying to promote products or services on customers changing business customer pull product or service when required. Any company can use the principles of Lean Thinking to deliver what customers want when they want.

Pushing the products or services on customer results in excess inventory, both raw materials and finished products. Tire companies have just the product or service delivery when the customer requests. Think of it this way: The stock is fundamentally wrong. It has to be stored, manipulated, moved and so on. It takes time and money that could be used elsewhere

Push it to the large amounts of raw materials and production of large quantities of the product. Using a traction system results in orders and production of a batch as small as possible. The most extreme form of what is called “one-piece flow.”

How does the incentive! Having worked on many projects to reduce delays, it is often easier to reduce delays by 75 percent or more (45 minutes / hour), which can increase profit margins by 60 percent! Instead of having to work harder, officials think they have more time to do it right the first time. Why? Because they are constantly picking up and putting the product or service. In the real flow in a single piece, the product is working all day, resulting in fewer errors and faster delivery, which hit with customers.

Many service business owners believe they can not apply the principles of Lean Manufacturing, but nothing could be further from the truth. emergency rooms of hospitals are a service, right? Press Ganey, which controls the response times of emergency recently reported that the average emergency room is four hours! Robert Wood Johnson Hospital (winner of the Baldrige Quality Award in 2005) became discharged patients in 38 minutes and patients hospitalized in 90 minutes. Sigh health professionals when they hear this time of delivery.

Opportunity: The companies that reduce cycle times by eliminating delays grow three times faster than the competition.

The company that workers in economies of speed, reducing the delay to gather more customers and more profits than its competitors. Encourage employees to start its rationalization in the present.

Step 3 Stimulus Plan Optimization

Once businesses remove the slack from its value chain to switch to a retrieval system, it’s time to start optimizing the process to eliminate defects and deviations.

Every business is wrong. Every process, product or service varies a little. Finding and fixing bugs, errors and variations in the final product can have up to 25 to 40 percent of the total budget. And only four percent of the company produces more than 50 percent of the defects and the deviation (art. 40 to 50).

The elimination of defects is simple: Count the number of mistakes, errors or defects in a process (eg, errors of order, product defects, errors in billing, etc.)

Classify the defects in the phase of the process (eg, order entry, packing error, etc.)

Change the process so it is impossible to make the same mistake.

Many companies caught in the blame for staff errors. Systems and processes that officials make mistakes. When the system or the process was changed so that you can not make the mistake, the employees quit.

Employee Incentive Plan

Each of these steps, simplify, streamline and optimize the employee may engage in the pursuit of excellence. Tired of serving customers from wrong and got tired of trying to get someone to hear your ideas for improvements.

Tags: , ,

Friday, May 6th, 2011 Business Plan

Leave a Reply