With our economy still lagging in the Midwest and many small business owners asking "When will customers start buying again?", if a business owner wants to increase profit without raising prices while keeping existing customers, it is time to invite Tim Wood to the party.
Before we go any further, as a student and teacher of Lean for over 10 years, I know the Seven Muda - 7 Wastes. My son, Carl, who is a Research Scientist at Owens-Illinois told me about TIMWOOD, the mnemonic for remembering these 7 wastes - someone was clever.
Transportation - Any unnecessary movement of material, documents, or people.
Think multiple trips = wasted time = wasted transportation.
Inventory - Work in process, incomplete work and work no longer in demand by customers are all suspect. Years ago an HVAC business owner showed me a storage garage filled with furnaces purchased on discount volume. The inventory value of these 2 year old furnaces equaled a Rolls Royce! I'd rather have a Rolls in the my garage.
Motion - Are you switching between computers, moving people around the office for different tasks? What movements in your office aren't adding value that customers care about?
Waiting - Queues, bottlenecks and traffic jams are all signs of waiting. Knowing where and WHY a bottleneck occurs is the first step, changing habits and patterns to ease customers' waiting or eliminating wait is second. And what about those employees standing around talking amongst themselves. . .what are they waiting for?
Over-processing - Is adding more value than the customer requested or expects. Examples are:
1) Sending a paper copy of document emailed via PDF.
2) Music CD packaging.
3) Mail order blue jeans with packing peanuts.
Where is the value? Do they have cost?
Over-production - Production of product or service before demand. Auto manufacturers are famous for Labor Day Sales to move old inventory before new models arrive. In offices, printing forms before the customer needs often leads to waste when forms are revised.
Defects - Mistakes, errors, or products/services that don't conform to the customers' expectations. Yes, mistakes will happen and they should always be a learning opportunity. Too many mistakes will almost surely lead to too few customers.
If you believe you have NO waste, before you start the celebration do two things.
1. Call a dozen past customers.
2. Examine what is in your dumpster.
You may be surprised! Take a walk around your business and look for Timmy hiding in the corners.
Linda Lucas Fayerweather EA, MBA
Owner of Changing Lanes LLC a productivity coaching firm since 1998
Like us at www.facebook.com/Changinglanesllc for updates and tips.
Showing posts with label lean culture. Show all posts
Showing posts with label lean culture. Show all posts
Monday, August 22, 2011
Monday, June 13, 2011
Do You Have SOP?
Do You have SOP?
Standard Operating Procedures (SOP) are a set of clearly written instructions outlining the specific activities needed to complete a task. This task may be simply closing the office at night or it could be to install the thingamajig in the whatyamacallit. These instructions or directions are written in simple language often with pictures so that all operations and employees required to perform this task are able to understand and do it. Simply put: procedures create standardized work with repeatable results.
Standard Operating procedures usually have the following characteristics:
• Idenitify where will this task be done
• Assign who has this task in their job description
• Idenitfy who will be responsible for the successful completion of this task
• The time needed to complete this task
• Define how this task contributes to the customer's satisfaction or profitability of the company
• Timeframe of when this task is done (many times per day, daily, weekly, monthly, seasonally)
• Actual procedures will be in simple language and often have pictures
Before you throw up your hands and say "I don't have time to do that", here are some of the basic reasons for doing SOP.
• Identify the flow of work from the beginning to the end.
• Error elimination or reduction.
• Provide a training manual for new employees/workers.
• Assists when solving production problems.
• Provide evidence of quality standards are in place.
• Provide evidence for excellence in the workforce.
• The MOST important tool when selling your business - you are selling a provable system with directions!
Businesses that implement procedures have also found that:
1) Creativity is increased because staff doesn't have to keep reinventing how to do something -- especially those tasks that are seasonal or not done frequently.
2) Stress levels are reduced on both management and labor because each knows what needs to be done and how; no more guess work.
If you are looking at your business and saying, how can I do this, start with the area of your business that has the most headaches. Putting standards there first will give you great feedback and results.
Copyright 2011 Linda Lucas Fayerweather
http://www.changinglanes.biz/
419-897-0528
Standard Operating Procedures (SOP) are a set of clearly written instructions outlining the specific activities needed to complete a task. This task may be simply closing the office at night or it could be to install the thingamajig in the whatyamacallit. These instructions or directions are written in simple language often with pictures so that all operations and employees required to perform this task are able to understand and do it. Simply put: procedures create standardized work with repeatable results.
Standard Operating procedures usually have the following characteristics:
• Idenitify where will this task be done
• Assign who has this task in their job description
• Idenitfy who will be responsible for the successful completion of this task
• The time needed to complete this task
• Define how this task contributes to the customer's satisfaction or profitability of the company
• Timeframe of when this task is done (many times per day, daily, weekly, monthly, seasonally)
• Actual procedures will be in simple language and often have pictures
Before you throw up your hands and say "I don't have time to do that", here are some of the basic reasons for doing SOP.
• Identify the flow of work from the beginning to the end.
• Error elimination or reduction.
• Provide a training manual for new employees/workers.
• Assists when solving production problems.
• Provide evidence of quality standards are in place.
• Provide evidence for excellence in the workforce.
• The MOST important tool when selling your business - you are selling a provable system with directions!
Businesses that implement procedures have also found that:
1) Creativity is increased because staff doesn't have to keep reinventing how to do something -- especially those tasks that are seasonal or not done frequently.
2) Stress levels are reduced on both management and labor because each knows what needs to be done and how; no more guess work.
If you are looking at your business and saying, how can I do this, start with the area of your business that has the most headaches. Putting standards there first will give you great feedback and results.
Copyright 2011 Linda Lucas Fayerweather
http://www.changinglanes.biz/
419-897-0528
Monday, October 18, 2010
Waste and Wasting
The Seven Deadly Wasters - Lean Waste Identification
When someone asks me "what is Lean Office or Lean Service" I will go to the short answer and say "Lean is a continuous improvement process that helps businesses put systems in place leading to sane employees, happy customers and increased profits."
The true key to Lean is a identification and elimination of waste! Muda is the Japanese word for waste and the seven deadly wastes identified by Taiichi Ohno (1912-90) of Toyota are:
1. Overproduction: Anything that is more than customer demands. Overproduction can hide other defects.
2. Waiting or Delay: Waiting for anything - people, materials, machines or information are all wastes. Often in a service business waiting can lead to taking the "low hanging fruit" or business that is easy to get but often not matching your perfect customer.
3. Unclear communication: Communication needs to be clear and understandable to staff, customers and vendors. The time spent re-communicating is better spent building strong relationships.
4. Over processing: This can be anything from re-entry of data to duplication of a task by different department.
5. Inventory: Having too much or not enough of supplies. Running out of toilet paper or having toner for the "old" copy machine still on the shelf are great examples of inventory tracking.
6. Unnecessary Movement - waste of motion: This can be from bad ergonomics to poor layout of business machines.
7. Defects or Errors: The cost of redoing or correcting anything! As my dad would say, "Linda, if you don't have time to do it right the first time, when will you find time to correct it?"
Start small this week and see what errors you can detect in your company. Identification is the first step to correction. Before you "start correcting" look around and make sure you find the ROOT cause! We will talk about that next week.
Copyright 2010 Linda Lucas Fayerweather MBA EA
http://www.changinglanes.biz/
419-897-0528
linda@changinglanes.biz
Business Plans Make Profit!
Waste Management
In a 2007 study on municipal solid waste (MSW), Americans generated roughly 254 million tons of solid waste. Further, 169 tons were discarded into the municipal waste stream to be disposed of for energy recovery efforts like recycling or becoming contents in our landfills. Many people assume that "junk" mail makes up the bulkof the MSW. Here's the real deal about what's going into our landfills and recycling efforts:Making the most of marketing has become a opportunity of looking where the discards end up.
2.1% Standard Mail
2.2% Disposable Diapers
2.3% Plastic Bags, Sacks & Wraps
2.3% Magazines and Newspapers
3.0% Glass beer and soft drink bottles
4.9% Corrugated Boxes
5.5% Furniture & Furnishings
6.9% Yard Trimmings
18.2% Food Scraps
Copyright 2010 Rebecca Booth
Marketing Goddess
Imagine That!
419.855.3399
Celebrating 13 years of delivering results for our clients.
http://www.rebeccaboothmarketinggoddess.com/
Source: 2007 MSW Characterization Report. Source Note: "The items show here do not represent all items in MSW, and therefore do not total 100%.
Muda QuotesWasteful Quotes! Who would have thought this was such a popular topic. Enjoy.
"A man who dares to waste one hour of time has not discovered the value of life." Charles Darwin
"All the waste in a year from a nuclear power plant can be stored under a desk." Ronald Reagan
"Architecture is the art of how to waste space." Philip Johnson
"Be in the habit of getting up bright and early on the weekends. Why waste such precious time in bed?" Marilyn vos Savant
"Boredom is the feeling that everything is a waste of time; serenity, that nothing is." Thomas Szasz
"Don't waste your time away thinkin' 'bout yesterday's blues." Jon Bon Jovi
"Take time for all things: great haste makes great waste." Benjamin Franklin
"I wasted time, and now doth time waste me." William Shakespeare
"Feeling sorry for yourself, and your present condition, is not only a waste of energy but the worst habit you could possibly have." Dale Carnegie
When someone asks me "what is Lean Office or Lean Service" I will go to the short answer and say "Lean is a continuous improvement process that helps businesses put systems in place leading to sane employees, happy customers and increased profits."
The true key to Lean is a identification and elimination of waste! Muda is the Japanese word for waste and the seven deadly wastes identified by Taiichi Ohno (1912-90) of Toyota are:
1. Overproduction: Anything that is more than customer demands. Overproduction can hide other defects.
2. Waiting or Delay: Waiting for anything - people, materials, machines or information are all wastes. Often in a service business waiting can lead to taking the "low hanging fruit" or business that is easy to get but often not matching your perfect customer.
3. Unclear communication: Communication needs to be clear and understandable to staff, customers and vendors. The time spent re-communicating is better spent building strong relationships.
4. Over processing: This can be anything from re-entry of data to duplication of a task by different department.
5. Inventory: Having too much or not enough of supplies. Running out of toilet paper or having toner for the "old" copy machine still on the shelf are great examples of inventory tracking.
6. Unnecessary Movement - waste of motion: This can be from bad ergonomics to poor layout of business machines.
7. Defects or Errors: The cost of redoing or correcting anything! As my dad would say, "Linda, if you don't have time to do it right the first time, when will you find time to correct it?"
Start small this week and see what errors you can detect in your company. Identification is the first step to correction. Before you "start correcting" look around and make sure you find the ROOT cause! We will talk about that next week.
Copyright 2010 Linda Lucas Fayerweather MBA EA
http://www.changinglanes.biz/
419-897-0528
linda@changinglanes.biz
Business Plans Make Profit!
Waste Management
In a 2007 study on municipal solid waste (MSW), Americans generated roughly 254 million tons of solid waste. Further, 169 tons were discarded into the municipal waste stream to be disposed of for energy recovery efforts like recycling or becoming contents in our landfills. Many people assume that "junk" mail makes up the bulkof the MSW. Here's the real deal about what's going into our landfills and recycling efforts:Making the most of marketing has become a opportunity of looking where the discards end up.
2.1% Standard Mail
2.2% Disposable Diapers
2.3% Plastic Bags, Sacks & Wraps
2.3% Magazines and Newspapers
3.0% Glass beer and soft drink bottles
4.9% Corrugated Boxes
5.5% Furniture & Furnishings
6.9% Yard Trimmings
18.2% Food Scraps
Copyright 2010 Rebecca Booth
Marketing Goddess
Imagine That!
419.855.3399
Celebrating 13 years of delivering results for our clients.
http://www.rebeccaboothmarketinggoddess.com/
Source: 2007 MSW Characterization Report. Source Note: "The items show here do not represent all items in MSW, and therefore do not total 100%.
Muda QuotesWasteful Quotes! Who would have thought this was such a popular topic. Enjoy.
"A man who dares to waste one hour of time has not discovered the value of life." Charles Darwin
"All the waste in a year from a nuclear power plant can be stored under a desk." Ronald Reagan
"Architecture is the art of how to waste space." Philip Johnson
"Be in the habit of getting up bright and early on the weekends. Why waste such precious time in bed?" Marilyn vos Savant
"Boredom is the feeling that everything is a waste of time; serenity, that nothing is." Thomas Szasz
"Don't waste your time away thinkin' 'bout yesterday's blues." Jon Bon Jovi
"Take time for all things: great haste makes great waste." Benjamin Franklin
"I wasted time, and now doth time waste me." William Shakespeare
"Feeling sorry for yourself, and your present condition, is not only a waste of energy but the worst habit you could possibly have." Dale Carnegie
Monday, July 14, 2008
1% - Forecasting - Your Desire - Communities
============================================================
Monday Morning Motivators – July 14, 2008
============================================================
Enjoy your java with an eclectic collection of tips and ideas to use today and to get energized for the week ahead. Subscribing and unsubscribing at www.mondaymorningmotivators.com
“Pain is temporary, Failure lasts forever.”
-- Lance Armstrong
============================================================
Table of Contents
============================================================
1. 1% Per Month - Linda Fayerweather
2. Sales Forecasting - Rebecca Booth
3. Attract What You Desire - Pat Altvater
4. Part 2: Adventures in On-Line Communities – Paula Frazier
5. To Do This Week
6. Fine Print
============================================================
1. 1% Per Month
============================================================
Building a lean culture in a small business can be as entertaining as playing Whac-a-Mole®. Impact on the business may be fast and dramatic but just like the arcade game, eventually new problems show up and old solutions get forgotten. The internal challenge for change is to create a culture that strives to apply improvement – even if change is small and incremental.
In society, we view culture as the systems that give lasting definition to a group, tribe or family. If your business tribe is embracing change, you have begun a never-ending journey that can best be sustained by small improvements. Targeting 1% change a month means those moles won’t have a chance to rear their furry heads in your business.
Copyright 2008 Linda Fayerweather
Planning IS Change
Changing Lanes LLC
www.ChangingLanes.biz
============================================================
2. Sales Forecasting
============================================================
There are no tried and true methods for predicting how much you will sell of a new product. Development costs are easy to measure, but the gap between known costs and unknown revenue makes deciding how much to invest in a new or improved product/service is difficult. Here is a step-by-step system for minimizing your risks, thanks to Doug Hall, Business Week Small Business (Feb/Mar 08):
1. Share your idea with 50 potential customers – this can easily be done via email at a trade show or simply by calling them.
2. Ask them on a scale of 0-10 how likely would they purchase this product/service?
3. And on a scale of 0-10, how new and different do they believe the concept is.
4. Next, calculate the simple average for each question and add the two numbers.
5. Multiply the answer by .007. This result is an estimate of what percentage of your prospects will become buyers.
6. To calculate potential sales, multiply this percentage by the number of prospects to whom your company will make at least three sales contacts, and then multiply by the amount an average customer would purchase in a year.
Happy calculating!
Copyright 2008 Rebecca Booth
Marketing Goddess
Imagine That!
419-855-3399
www.rebeccaboothmarketinggoddess.com
===========================================================
3. Attract What You Desire
============================================================
In the Fourth Principle, Wayne Dyer says we can attract anything we want when we know and accept that it already exists in the consciousness of our mind (through our visualizations). This principle reminds us that there is intelligence in the universe that is creative and responsive to suggestions from us. We are part of this through our thoughts which are creative; what we think about, we become.
To manifest what you want:
• Use visualization on a daily basis. Picture what you want without knowing HOW it will happen. Then remain in faith and trust.
• Stay consistent with your visualization; don’t keep changing your mind. Picture yourself experiencing what you want to manifest as if it was already happening.
• Stay alert for clues and act accordingly.
• Act as if what you want is already in your life. If you want health, act in a new healthy way. If you want wealth, start thinking abundantly and acting that way also by giving thanks for everything that has manifested in your life.
If you find your conditioned way of thinking, which might be pessimistic or negative, crops up, eradicate those thoughts immediately and return to your new beliefs. When you follow these suggestions, you’ll notice a shift in your life and you’ll begin attracting everything you desire.
Pat Altvater
Chief Wizard of WOW!
www.thesecretofpermanentweightloss.com
www.permanentweightlossebook.com
www.transformationsinstitute.com
Author, Journey to WOW – Ignite the Power Within
===========================================================
4. Adventures in On-Line Communities – Part 2
===========================================================
I recently took on the on-line business community for a second time. Notifications, announcements and invitations ensued. It wasn’t overwhelming this time; though it felt a bit transactional for a referral marketer like me. Part of increasing your “ranking” in an on-line network has to do with increasing the number of people you are “connected” to. Many of the requests to connect made no sense and the information we’d shared on our profiles didn’t indicate that we had anything in common.
And then…I received a notification and message from a leader in the community, the Chairman of Ecademy Morocco. If anyone is trustworthy it should be him! Right? Right! So I replied and visited his profile. I found that many of our beliefs and practices are in alignment:
1. He is a professional coach. Me too!
2. He is a speaker and a trainer in his industry. Likewise!
3. He offers networking workshops. So do I!
4. His business requires extensive travel! Mine too!
5. He is a leader in his industry. So am I!
There was one comment in his message that sealed the deal. He generously wrote - “I am sure there are plenty of things you can do…that I can’t…that I can…learn from you”! As we learn more about each other and our businesses, he will come to know that my day everyday is committed to helping people create referrals for life through developing RECIPROCAL RELATIONSHIPS. That’s exactly what he’d just described!!! Connecting made sense for both of us. So we did!
Lesson Learned: When it comes to establishing on line (and offline) relationships, you’re in control. It’s a matter of identifying criteria for connecting that makes sense for you!
Copyright 2008 Paula Frazier is a referral marketing trainer, coach, consultant and keynote speaker. She is an Executive Director for BNI and part of a select team of Master Trainers for Referral Institute. She is also acknowledged in the New York Times best seller, Truth or Delusion – Busting Networkings Biggest Myths. Check out #33, Delusion with a twist! Paula can be contacted at paula@referralinstitute-va.com
===========================================================
5. To Do This Week
===========================================================
Visit a past customer this week – or just invite them to lunch.
Monday Morning Motivators – July 14, 2008
============================================================
Enjoy your java with an eclectic collection of tips and ideas to use today and to get energized for the week ahead. Subscribing and unsubscribing at www.mondaymorningmotivators.com
“Pain is temporary, Failure lasts forever.”
-- Lance Armstrong
============================================================
Table of Contents
============================================================
1. 1% Per Month - Linda Fayerweather
2. Sales Forecasting - Rebecca Booth
3. Attract What You Desire - Pat Altvater
4. Part 2: Adventures in On-Line Communities – Paula Frazier
5. To Do This Week
6. Fine Print
============================================================
1. 1% Per Month
============================================================
Building a lean culture in a small business can be as entertaining as playing Whac-a-Mole®. Impact on the business may be fast and dramatic but just like the arcade game, eventually new problems show up and old solutions get forgotten. The internal challenge for change is to create a culture that strives to apply improvement – even if change is small and incremental.
In society, we view culture as the systems that give lasting definition to a group, tribe or family. If your business tribe is embracing change, you have begun a never-ending journey that can best be sustained by small improvements. Targeting 1% change a month means those moles won’t have a chance to rear their furry heads in your business.
Copyright 2008 Linda Fayerweather
Planning IS Change
Changing Lanes LLC
www.ChangingLanes.biz
============================================================
2. Sales Forecasting
============================================================
There are no tried and true methods for predicting how much you will sell of a new product. Development costs are easy to measure, but the gap between known costs and unknown revenue makes deciding how much to invest in a new or improved product/service is difficult. Here is a step-by-step system for minimizing your risks, thanks to Doug Hall, Business Week Small Business (Feb/Mar 08):
1. Share your idea with 50 potential customers – this can easily be done via email at a trade show or simply by calling them.
2. Ask them on a scale of 0-10 how likely would they purchase this product/service?
3. And on a scale of 0-10, how new and different do they believe the concept is.
4. Next, calculate the simple average for each question and add the two numbers.
5. Multiply the answer by .007. This result is an estimate of what percentage of your prospects will become buyers.
6. To calculate potential sales, multiply this percentage by the number of prospects to whom your company will make at least three sales contacts, and then multiply by the amount an average customer would purchase in a year.
Happy calculating!
Copyright 2008 Rebecca Booth
Marketing Goddess
Imagine That!
419-855-3399
www.rebeccaboothmarketinggoddess.com
===========================================================
3. Attract What You Desire
============================================================
In the Fourth Principle, Wayne Dyer says we can attract anything we want when we know and accept that it already exists in the consciousness of our mind (through our visualizations). This principle reminds us that there is intelligence in the universe that is creative and responsive to suggestions from us. We are part of this through our thoughts which are creative; what we think about, we become.
To manifest what you want:
• Use visualization on a daily basis. Picture what you want without knowing HOW it will happen. Then remain in faith and trust.
• Stay consistent with your visualization; don’t keep changing your mind. Picture yourself experiencing what you want to manifest as if it was already happening.
• Stay alert for clues and act accordingly.
• Act as if what you want is already in your life. If you want health, act in a new healthy way. If you want wealth, start thinking abundantly and acting that way also by giving thanks for everything that has manifested in your life.
If you find your conditioned way of thinking, which might be pessimistic or negative, crops up, eradicate those thoughts immediately and return to your new beliefs. When you follow these suggestions, you’ll notice a shift in your life and you’ll begin attracting everything you desire.
Pat Altvater
Chief Wizard of WOW!
www.thesecretofpermanentweightloss.com
www.permanentweightlossebook.com
www.transformationsinstitute.com
Author, Journey to WOW – Ignite the Power Within
===========================================================
4. Adventures in On-Line Communities – Part 2
===========================================================
I recently took on the on-line business community for a second time. Notifications, announcements and invitations ensued. It wasn’t overwhelming this time; though it felt a bit transactional for a referral marketer like me. Part of increasing your “ranking” in an on-line network has to do with increasing the number of people you are “connected” to. Many of the requests to connect made no sense and the information we’d shared on our profiles didn’t indicate that we had anything in common.
And then…I received a notification and message from a leader in the community, the Chairman of Ecademy Morocco. If anyone is trustworthy it should be him! Right? Right! So I replied and visited his profile. I found that many of our beliefs and practices are in alignment:
1. He is a professional coach. Me too!
2. He is a speaker and a trainer in his industry. Likewise!
3. He offers networking workshops. So do I!
4. His business requires extensive travel! Mine too!
5. He is a leader in his industry. So am I!
There was one comment in his message that sealed the deal. He generously wrote - “I am sure there are plenty of things you can do…that I can’t…that I can…learn from you”! As we learn more about each other and our businesses, he will come to know that my day everyday is committed to helping people create referrals for life through developing RECIPROCAL RELATIONSHIPS. That’s exactly what he’d just described!!! Connecting made sense for both of us. So we did!
Lesson Learned: When it comes to establishing on line (and offline) relationships, you’re in control. It’s a matter of identifying criteria for connecting that makes sense for you!
Copyright 2008 Paula Frazier is a referral marketing trainer, coach, consultant and keynote speaker. She is an Executive Director for BNI and part of a select team of Master Trainers for Referral Institute. She is also acknowledged in the New York Times best seller, Truth or Delusion – Busting Networkings Biggest Myths. Check out #33, Delusion with a twist! Paula can be contacted at paula@referralinstitute-va.com
===========================================================
5. To Do This Week
===========================================================
Visit a past customer this week – or just invite them to lunch.
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