03 Jun Boost your bottom line significantly by getting rid of waste!

PROFIT IMPROVEMENT

Boost your bottom line significantly by getting rid of waste!

 

As organisations grow, habits form, people get set in their ways and cost to produce inevitably rises. The result is inefficient practices. Removing waste in the business is an opportunity to make more profit.

The good news is that anyone in business can learn how to remove the waste. Working in teams, using common sense and practical tools, you can continuously identify and remove waste.

Toyota identified seven areas in a business where waste commonly occurs.

Overproduction

Ask where are you overproducing? Look for buildup of stocks, work in progress, and resources. Do we over service our customers? Do we produce unnecessary reports?

Waiting

Where do goods and services wait? Are we waiting to collect outstanding debtor accounts? Do we wait excessive periods to obtain approval before completing tasks?

Transport

Map out where things move from one point to another. Look at moving goods, paper, people and machines. Can we save time by locating the storage area or photocopier closer to the office. Can we combine the number of trips it takes to service the customer to save time and money?

Inappropriate Processing

Are you using the right machine for the job? Are you using a highly paid senior to complete a task that should be delegated to a lower cost employee?

Inventory

Is it costing you money by holding excessive stores of inventory, debtors, money in bank accounts? How can we reduce the level of stock we operate to currently?

Motion

Where do we waste time through our daily activity personally? Do we waste time looking for things on an cluttered and untidy desk? Do we look for things that could be filed better? Do we consider using more efficient means of delivering a letter like email?

Defects

Do we incur costs in fixing mistakes and redoing the job? How important is for us to do the job right the first time?

We have specialist consultants who can take you and your organisation through this profit improvement exercise. Call me and we will catch up on an obligation free basis to review if/how this program could be applied to your organisation.

Click here to view and print the full ‘how to’ article.  I hope you find it useful.

Forsythes Business and Financial Advisors
info@forsythesadvisors.com.au
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