Productivity for profits
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The document discusses how improving productivity can help businesses make more money. It recommends analyzing processes to identify wasted time from unnecessary, repetitive, or redundant work. Examples show how automating data entry or orders can save thousands per year. The key is to quantify current costs, get staff input, implement solutions, and track results. Improving productivity through eliminating waste in processes can significantly increase profits.
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Productivity for profits
- 1. Productivity For Profits FINDING HIDDEN MONEY
- 2. Improve your productivity by being able to: Analyze the systems you have in place Identify wastes in your process thus opportunities for improvement Quantify the costs of not changing Engage your staff to create more efficient systems by eliminating waste Implement the solution Make more money!!!
- 3. Productivity Quantity and Quality Cost
- 4. Productivity Quantity and Quality Cost =
- 5. Waste (non value added effort) 1. Unnecessary work or expense 2. Repetitive work 3. Redundant work 4. Work that can be done by others
- 6. Unnecessary Work or Expense Reports no-one is looking at Reports that don’t help create change or improve process Tasks that don’t add value to your customer Are you still spending money on the Yellow Pages
- 7. Time to Create Report 2 hrs. Cost per Hour $12.00 Cost per Week $24.00 Cost Over 5 Years $6,240.00 Investment .00 Savings $6,240.00
- 8. Repetitive Work The same task repeated over and over again Data Entry Giving Directions and Hours of Operation Work Orders Filling out Forms eCommerce Order Entry
- 9. Time to enter order : 4 min. Cost per Hour : $12.00 Cost per Order : .80 Orders/Day : 50 Cost per year : $10,400 Investment : $4,500 Savings : $5,900
- 10. Redundant Work Work because data is needed in different places Customer Information in Accounting and CRM Inventory and On-Line Inventory Order Entry and Shipping System
- 11. Misshipment / Yr: 12 Costs Replacement Ship $250 Return Shipment $100 Total Cost $350 Cost / Yr. $4,200 Investment $1,295 Savings $2,905
- 12. Work done by you that can be done by others Customer Portals Vendor Portals Client Data Entry Electronic Data Interchange
- 13. Cost per Order not EDI $50 Orders per Month 85 Orders per Year 1020 Cost per Year $51,000 Investment $10,000 Savings $41,000
- 14. Exercise – Define a Process Large Process – Enterprise Level Small Process – Accounts Payable Step 1 Step 2 Step 3 Step 4
- 15. The Fulfillment Process Request Acknowledgement Acquire (Pick/Produce) Deliver (Hand/Ship) Invoice Collect
- 16. Customer Waves Me Down How can I Help You They tell me what they would like and I pull it from the freezer I hand them the ice cream I say that will be 1.25 They hand me the money
- 17. Types of Data Transfer (H) Handwritten / Paper (P) Phone / Fax (E) Manual Email (D) Data Entry (C) Computer / Automated (V) Verbal
- 18. Wastes of poor data transfer Verbal (No audit – No trail – Eliminate if possible - Redundant) Handwritten (Redundant – Work done by you) Fax / Phone (Redundant – Work done by you – Repetitive) Email (Redundant – work done by you – repetitive) Data Entry (Redundant – Repetitive – Work done by you) Computer / Automated (Best)
- 19. Change has a ripple effect
- 20. Quantify your current cost Calculate your average cost per minute (avg. pay * 1.5 /60) Estimate the amount of time the task takes Estimate the number of repetitions per day Calculate the number of minutes per year (day * 5 * 52) Calculate the cost per year (min/yr. * cost/min.)
- 21. Get all stake holders involved
- 22. Implement and Track Implement the solution Track the results Tweek
- 23. Rinse and Repeat
- 24. Sum Up
- 25. Increase Productivity Identify a Process Analyze the steps or tasks the process takes Identify the steps that contain waste Quantify the cost Engage your staff and brain storm on solutions Implement the change Make More MONEY
- 26. Personal Productivity Tips Don’t Multi-Task – Lose 40% of your productivity Turn Off Distractions – Phone, Email, Facebook, Twitter Make a List and Prioritize – Plan the work and work the plan Important not Urgent Ask Yourself How Can This Be Done By Someone Else. Perfect is The Enemy of Good Executive Duties not Minimum Wage