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Improve Cost
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Pain

Profit

  • Administrative costs are growing while staffing level is constant

  • With the downturn in the economy, our product pricing is out of line with customer needs

  • Implementing change has become very expensive due to internal resistance by key staff and executives

  • Our specialized processing and transfer costs in manufacturing has cut into our margins

  • We keep fixing the same problems over and over again

  • Capital costs for manufacturing are constraining our ability to expand

  • Our IT department spends 80% of project time to keep the lights on

  • Staff turnover has impacted productivity and delayed key projects

  • SGA (selling & general admin) are lower than the industry average, but do not undercut staff and sales operations

  • Products are designed and manufactured to optimize the most important desired outcomes, which keeps their pricing at or below competitors

  • Change is easily introduced since the culture embraces change and the policies and systems support adaptation and are resilient

  • Operations are continually implementing ideas to improve efficiency and reduce complexity

  • 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

  • Investment in training and employee development combined with a culture of empowerment and trust has virtually eliminated turnover

  • 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

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