Recorded webinar: http://bit.ly/1IidQDp
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All too often people use Lean solely to drive daily incremental improvement (kaizen). What we don't hear as much about is the power of Lean to create substantive business improvement (kaikaku), such as gaining significant market share, growing sales within existing customers, creating disruptive products, increasing cash flow, and growing margins. Margin growth is especially important. Even non-profits need money to reinvest in their operations.
In this webinar, you'll learn how to make improvements that grow your top and bottom lines. You can create better work environments that deeply engage the workforce, while also thrilling your CFO, shareholders, and Board. THIS is what assures that Lean management continues to be taken seriously.
Specifically, you will learn:
• How to calculate the financial impact of your improvement efforts.
• Ways for improving margins (profit) through expense reduction (but not layoffs!).
• Improvements that help grow your top line (revenue/sales).
• How to engage executives in the process.
2. Consultant – We help clients deploy Lean
management & achieve business performance
excellence.
Author & Speaker:
Karen Martin, President
The Karen Martin Group, Inc.
@karenmartinopex
2
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Shingo Award
winner!
Shingo Award
winner!
3. You will learn…
• How to calculate the financial impact of your
improvement efforts.
• Ways for improving margins (profit) through
expense reduction (but not layoffs!).
• Improvements that help grow your top line
(revenue/sales).
• How to engage executives in the process
13. (Current State PT in hrs – Future State PT in hrs) x occurrences/year
Available work hours per year *
Calculating Freed Capacity
Time
FTEs
(annualized)
Labor
Dollars
(annualized &
unburdened)
(Current State PT – Future State PT) x occurrences per time period
(Current State PT in hrs – Future State PT in hrs) x occurrences/year x hourly pay
* Next slide
16. P/U
AFrame
Power Pole
Water
Before:
Floor hand walk distance =
3,095 feet per rig-up
• Reduction of 2600 feet walked per floor
hand per rig-up.
• Reduction of >5,900 miles of walking
per year (1000 rig-ups per month).
After:
Walk distance = 300 - 500 feet
17. 50 hours x 250 occurrences per year
1,750 hours per employee per year
Calculating Freed Capacity
= 7 FTEs
• Absorb additional growth without commensurate labor expense gain
• Reduce paid overtime
• Reduce unpaid overtime; better work-life balance
• Get to know one’s customers better
• Add greater customer value in new ways
• Make improvements
18. Ways to Reduce Expenses
Hard Dollars; Bottom-Line Results
• Less expensive processing
• Reduced paid overtime
• Less expensive shipping
• Eliminate unused software licenses
• Insourcing to existing teams
• Less electricity/water use
• Reduced rent due to smaller
footprint needed
• Supplier renegotiation
• Attrition without backfilling
Soft Dollars; Cost Avoidance; Freed
Capacity
• Lower turnover
• Fewer sick days
• Fewer workers comp claims
• Litigation mitigation
• Fine avoidance
• Reduced proportional hiring
• Reduce reliance on third parties
for greater bandwidth
• Freed capacity
20. Top Line Improvements
• Create new products (goods and services).
• Command max price for existing products.
• Create new product features for existing products.
• Go into new markets.
• Attract new customers in existing markets.
• Retain existing customers (reduce churn).
• Increase sales volume/frequency per customer.
• Charge for all chargeable services.
• Reduce write-offs; improve collections.