Strategies for Improving Business Performance                           March, 2015
Welcome

This month, our feature articles focus on how to reduce operational cost without capital investment and how to keep your customers with good service.  Both of these topics arise daily in conversations with manufacturing and distribution executives.  Why not take a few minutes to think through strategies for success?

We tailor this newsletter to your need s, based on your feedback. Email us about what types of articles would provide value for your business in 2015.  In the interim, remember to visit our archives for countless articles to improve your business performance
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We hope you'll join us at th APICS executive panel & networking symposium  in Corona, CA on May 3rd.  We are excited to have an engaging panel to discuss innovation including leaders from Toyota, Harvey Mudd, WET and the California Transportation Commission.  It will also be an excellent networking opportunity.  

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Strategies to Reduce Operational Cost without Capital Investment

By Lisa Anderson 

 

As businesses look to find ways to grow profitably and build efficiencies into the process upfront, maintaining low operational costs remains paramount.  It also provides pricing flexibility as you are able to reduce your breakeven point for covering costs. A few strategies to consider include:

 

1. Reduce waste - sounds obvious but often requires significant focus. Focus demands priority. Dictating priority doesn't last long; instead, it must be a priority backed with support when "the going gets rough".  Reducing waste reduces raw material cost - if raw materials are a significant portion of your business cost, consider prioritizing. If they aren't, ignore this item!

 

2. Improve operational efficiency - find a way to resolve roadblocks, analyze root causes and improve your throughput. Improving operational efficiency frees up capacity for growth. You might be able to free up crews/people that can be re-focused on other, value-added activities that will increase profitability and support business growth.

 

Read the rest of the article

 

Keep Your Customers with Good Service

 By Andy Pattantyus

 

Two years ago, I pulled the plug on one of my telecom providers. Having no other options, I did business with them for 5 years, and hated every minute of every one of our interactions. 

Two years ago, a tree trimming company did a poor job pruning my ornamental pear tree, and now it is diseased and suffering. Needless to say, I did not call them back this year, when my tree needed additional care. 
Last year, I needed a new server and an upgraded network. The IT company I'd used for 2 years failed to serve me. They told me that my company was "different" from those of their other customers, and made me feel unimportant. I later found out that this IT company loses 25% of their customers every year. I decided to find a new IT company, the owner of which took the time to understand what I was looking for, and built a system to fit my needs. 25 years later, this IT company still retains most of its original customers, which, in the IT world, is almost unheard of.  

The ACA Group:
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A leading expert on LEAN manufacturing, and strategic, facility and automation planning. 

Andy Pattantyus has over 25 years of experience in developing, designing and implementing manufacturing systems, ranging from low volume "single piece flow" to high speed manufacturing systems exceeding 300 parts per minute throughput.  more


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