[VIDEO] - $1, $10, $100
In a previous article, "$1, $10, $100" we talked about 3 key strategies that are transforming the way we approach processes and quality.
- Get customer feedback
- Make ‘kits’ sooner
We said that systemizing your own processes and prioritizing quality with these strategies will result in three things every shop owner wants:
- Happier customers,
- The ability to provide products on a schedule,
- And few defects, if any.
We also mentioned that changing how you approach processes and quality control could not only give you those three things but that it could also significantly increase your profits.
So, who's in?
see it in action
We hope you've had a chance to start implementing at least one of these strategies so far. Today, we are bringing strategy #3 to life with a real world example from our shop.
Let’s review our example to highlight the $1, $10, $100 thought process and then take a look at our video to see what it looks like in our shop.
$1, $10, $100 Example
Your saw man cuts parts and stacks them on a conveyor to be pushed down the line. On the last sheet he finds a bad part that needs to be recut and let’s say the cost is $1.
If that same part makes it to the build area when they have the box partially assembled, then it will cost $10. The reason for the 10x jump is because the product is almost near the end of the value stream. It is as close to a paycheck as it has ever been. Then, you stumble onto a defective or missing part and everything has to be stopped, rework done, fire it back up and continue on.
This may sound exaggerated, but I assure you that every time this happens it costs the company a lot more than if it would have been caught earlier in this process.
Now, let’s take it a step further. That same job but instead of a missing box part, let's say it is a drawer. The job is late and the customer is only 20 miles down the road so the decision is made to ship it and have the service guy go fix it. $100. You effectively just spent 100x what it would have cost at you $1 to fix it at the beginning.
Push up your problems today
This is such a simple idea, but the implications are huge. They are beyond huge, actually. They are astronomical. Plain and simple you must push your problems farther up hill and farther away from the end of the value stream.
This one point executed correctly could put your business on the fast track and ready for take off.
Do you remember reading about this idea a couple months ago and planning to use it, but just didn't have time to get to it? Trust me when I say there will never be time to work on your business instead of just in it. You have to make the time to continuously improve. If you do, the pay off personally and professionally will be huge.
If you have put any of these strategies to the test, be sure to comment below and let us know if how its going and what effect it has had on your shop!