Improve Cost
Pain
Profit
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Administrative costs are growing while staffing level is constant
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With the downturn in the economy, our product pricing is out of line with customer needs
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Implementing change has become very expensive due to internal resistance by key staff and executives
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Our specialized processing and transfer costs in manufacturing has cut into our margins
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We keep fixing the same problems over and over again
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Capital costs for manufacturing are constraining our ability to expand
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Our IT department spends 80% of project time to keep the lights on
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Staff turnover has impacted productivity and delayed key projects
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SGA (selling & general admin) are lower than the industry average, but do not undercut staff and sales operations
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Products are designed and manufactured to optimize the most important desired outcomes, which keeps their pricing at or below competitors
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Change is easily introduced since the culture embraces change and the policies and systems support adaptation and are resilient
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Operations are continually implementing ideas to improve efficiency and reduce complexity
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Our IT department only spends 20% of its budget and resources on KLO (keeping the lights on), while 80% is devoted to driving growth and delivering new capabilities
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Investment in training and employee development combined with a culture of empowerment and trust has virtually eliminated turnover
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Manufacturing has replaced specialized equipment with multi-functional equipment (higher initial costs) that can be used to manufacture a much wider array of products with a reduced need (and time) for change over