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8 STEPS TO GET LEANER IN A TOUGH ECONOMY!

Written by: Joe Dager

Article Overview: Most savings/expense is created in the design of the product/process. How many times have you told an engineer we are not designing a space shuttle? How many times do you come under budget?

8 STEPS TO GET LEANER IN A TOUGH ECONOMY!

Most savings/expense is created in the design of the product/process. How many times have you told an engineer we are not designing a space shuttle? How many times do you come under budget? Anyone can do anything if he has all the money in the world. Do you wonder why our government is in the position it is? Cost effective and simple are not dirty words. They should be the words we reward.

1. Improve by finding win/win solutions. It is a 2-way street. There aren't many sellers markets left, take advantage of them. Also, consider your vendor's perspective because that is the way you may get their attention and their trust. In other words, it is about the only route to being successful..
2. One of the great sources of waste is your own operations, Get efficient NOW. I cannot remember how many times I have seen companies in trouble that spend half their time returning and trying to use parts that were not correct. Get real, give your people the right parts at the right time with the right information. Guess what it WORKS!
3. In today's, world it is amazing how much a supplier will do for you. Don't look only at price concessions but look for engineering assistance, stocking programs, consignment, freight concessions and even PR .
4. Resist making major changes till the bleeding stops. The next person is always going to offer better solutions and service but that is seldom the case.
5. Unless you find gross negligence, work with current suppliers for concessions and help.
6. Commit to an accurate schedule and be relentless about quality and speed in the administrative side.
7. Ditch the losers. If you are not making money on any product raise the price immediately.
8. Take a look at your special orders. Nothing elevates a supplier more than exceptional emergency service. You must do this to save customers. But they should pay extra, they may not even see see it as special until it is priced appropriately.

Getting leaner will pay off in huge dividends, the biggest one may be survival.

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  We Can Do This

Article Tags: economy, engineer, lean, space shuttle



Related Forum Posts
Re: Did you reach your goal this year? - I love the honesty in this thread. There is so much power in that! It's reassuring to remember that entrepreneurship is TOUGH. But I find that very motivating. But to know that we all CAN do it, if we only stay the course. Sometimes I can compare myself with the worlds most famous whoever, and then feel discouraged. But that's not really realistic now is it? I've had a lot of ups and downs since I moved to Manhattan 3 years ago, and last year was no exception. I've been really surprised by some happy developments though -- just when you think everything is going to fail, something good happens! Last year, I'm most proud of being invited to speak at 3 different events, getting 6 new clients, and having a magazine article published about my coaching. A few years ago I never would have thought I could do any of that -- I had some really frustrating times where I was seeming to get nowhere. So for me, dealing w/ disappointment,frustration, and having realistic expectations has improved over the last 5 years, and now it's helped me to become a better coach for others going through the same thing. I really do understand what it's like to move to NYC alone w/ a suitcase, not have an apartment,and meanwhile try to start a business w/o support. It was sort of a right of passage for me. Side note story, but sort of represents some of the feelings I'm talking about here -- I used to make paintings. I'd sell them online. I made one called "idealism" which was basically showing how there is no place for idealism, art, or new ideas is a society of grids and stop lights and cubicles. It was an extremely low time for me, and I wanted to take all of my paintings to the dumpster -- I almost did! My mom called me and insisted that I not throw them out. Within a month, a stranger in NYC (I was still in AZ at the time), bought my idealism painting. This buyer must have felt the same way I did, and that alone proved to me that there WAS a place for what I had to offer in the world -- even if I couldn't see it at the time. I then moved to NYC where there was much more of a place for what I had to offer. Moments like that drive me forward, past whatever doesn't seem to be working.


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