Productivity for profits

Productivity For ProfitsFINDING HIDDEN MONEY

Improve your productivity by being able to:

Analyze the systems you have in place

Identify wastes in your process thus opportunities for improvement

Quantify the costs of not changing

Engage your staff to create more efficient systems by eliminating waste

Implement the solution

Make more money!!!

Productivity

Quantity and Quality

Cost

Productivity

Quantity and QualityCost

=

Waste (non value added effort)

1. Unnecessary work or expense

2. Repetitive work

3. Redundant work

4. Work that can be done by others

Unnecessary Work or Expense

Reports no-one is looking at Reports that don’t help create change or

improve process Tasks that don’t add value to your customer Are you still spending money on the Yellow

Pages

Time to Create Report 2 hrs.Cost per Hour $12.00Cost per Week $24.00Cost Over 5 Years $6,240.00Investment .00Savings $6,240.00

Repetitive Work

The same task repeated over and over again

Data Entry

Giving Directions and Hours of Operation

Work Orders

Filling out Forms

eCommerce Order Entry

Time to enter order : 4 min.Cost per Hour : $12.00Cost per Order : .80Orders/Day : 50Cost per year : $10,400Investment : $4,500Savings : $5,900

Redundant Work

Work because data is needed in different places

Customer Information in Accounting and CRM

Inventory and On-Line InventoryOrder Entry and Shipping System

Misshipment / Yr: 12CostsReplacement Ship $250Return Shipment $100Total Cost $350Cost / Yr. $4,200Investment $1,295Savings $2,905

Work done by you that can be done by others

Customer Portals Vendor Portals Client Data Entry Electronic Data Interchange

Cost per Order not EDI $50Orders per Month 85Orders per Year 1020Cost per Year $51,000Investment $10,000Savings $41,000

Exercise – Define a Process

Large Process – Enterprise Level Small Process – Accounts

Payable

Step 1 Step 2 Step 3 Step 4

The Fulfillment Process

Request Acknowledgement Acquire (Pick/Produce) Deliver (Hand/Ship) Invoice Collect

Customer Waves Me Down How can I Help You

They tell me what they would like and I pull it from

the freezer

I hand them the ice cream

I say that will be 1.25They hand me the

money

Types of Data Transfer

(H) Handwritten / Paper (P) Phone / Fax (E) Manual Email (D) Data Entry (C) Computer / Automated (V) Verbal

Wastes of poor data transfer

Verbal (No audit – No trail – Eliminate if possible - Redundant)

Handwritten (Redundant – Work done by you)

Fax / Phone (Redundant – Work done by you – Repetitive)

Email (Redundant – work done by you – repetitive)

Data Entry (Redundant – Repetitive – Work done by you)

Computer / Automated (Best)

Change has a ripple effect

Quantify your current cost

Calculate your average cost per minute (avg. pay * 1.5 /60)

Estimate the amount of time the task takes

Estimate the number of repetitions per day

Calculate the number of minutes per year (day * 5 * 52)

Calculate the cost per year (min/yr. * cost/min.)

Get all stake holders involved

Implement and Track

Implement the solution Track the results Tweek

Rinse and Repeat

Sum Up

Increase Productivity

Identify a Process Analyze the steps or tasks the process takes Identify the steps that contain waste Quantify the cost Engage your staff and brain storm on solutions Implement the change Make More MONEY

Personal Productivity Tips

Don’t Multi-Task – Lose 40% of your productivity

Turn Off Distractions – Phone, Email, Facebook, Twitter

Make a List and Prioritize – Plan the work and work the plan

Important not Urgent

Ask Yourself How Can This Be Done By Someone Else.

Perfect is The Enemy of Good

Executive Duties not Minimum Wage