Inventory Management

If a company strives for each job to be done on time, every time, and at a profit, it cannot neglect the strategy of operational processes.

It’s like starting a press and walking away, confident that the machine knows what to do. The machine is never oiled or cleaned. It just keeps cranking out the parts; the owners are happy. Over time, the gears get dirty, the oil gets dirty, and the machine gradually slows down. A few parts get jammed in the press and have to be thrown away. Fewer parts get produced during a shift, but the owners don’t notice.

Next, there are not enough parts to fill the order on time. Employees work overtime to catch up. But the parts are finally finished and loaded on the delivery trucks so the owners don’t worry. Customers complain about the late delivery, but the owners chalk it off to a fluke of business. Soon the dwindling daily production rate requires that the owners send out bad parts just to meet the deadline. Customers complain so the owners add staff to increase production. That doesn’t work so the owners buy another press and add more staff.

Then orders begin to decline. The owners hire a marketing firm to help them get new customers. Business continues to falter as the owners pump more money into possible solutions. Workers leave for machine shops that pay more. In the end, the old press just gives out and the owners used all of their capital on improvements that didn’t work. The business folds and the owners shake their heads, vowing that they did all they could do to save it.

But what if they had had an operations process in place?

That’s a completely different story. A maintenance schedule kept the press in peak condition. The workers were trained to detect any maintenance needed between routine inspections. The press’ daily output was measured and reviewed. Any slowdown was immediately detected. A process allowed for occasional breakdowns and allotted time in the daily schedule for corrective measures. The operations team brainstormed to uncover the cause of the breakdowns and either modified the equipment, changed suppliers, or updated the equipment.

The second scenerio is just how Holt Marketing and Management Services uses innovative processes to help your business get back on track and significantly improve productivity. Contact us for your free consultation.

 

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