Times are tough.<br />Get efficient.<br />Lean Landscaping<br />www.landscapemanagementnetwork.com<br />
Introduction<br />Productivity vs. Price – compete on better<br />What is Waste?<br />What is the Cost of Waste?<br />How ...
How Can you Compete?<br />Charge less (reduce profit)<br />Improve productivity (reduce costs, improve efficiency)<br />
Advantages to Reducing Price?<br />Law of supply + demand<br /> At lower a lower price, you should sell more work<br />
Advantages to Improving Productivity?<br /><ul><li>Lower costs = lower prices, without lowering profit
Better stability in a downturn
Better customer service
More opportunity for growth
Less work for more money (owner)
Better able to keep and retain the best people
Simplicity - Less problems, stress, hours
Problems surface to the top, where they can be solved
Better culture
Better training + development
Happier employees
Happier customers
Happier boss!</li></li></ul><li>=<br />$1 million in sales<br />20% profit<br />$200,000 net profit<br />$5 million in sal...
A Penny Saved is a DOLLAR Earned<br />IBM found the cost of fixing a mistake is 100x greater than the cost of doing it rig...
A Typical Problem….<br />We had a problem on a jobsite where the crews didn’t fine grade the topsoil before laying down ne...
A Typical Problem….<br />To illustrate the costs of the problem to the crew, we had everyone write down what they thought ...
The Actual Costs of the Mistake<br />
The Actual Costs (cont’d)<br />The costs of the re-doing the work were just over $5,000<br />Worse yet, the crew should ha...
A Penny Saved is a DOLLAR Earned<br />A $120 task notdone rightjust cost the company:<br />$10,000<br />… or about 83x the...
Typical Landscape Waste<br />A typical landscape company operates at between 60% to 70% of their capacity<br />… that mean...
Typical Landscape Company<br />
Eliminate Waste for Profit + Reward<br />Replacing waste (non-billable hrs) with sales (billable hrs) is the key to maximi...
Efficient Landscape Company<br />
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Lean Landscaping

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A presentation designed for landscape contractors to improve sales and profit by replacing waste (non-billable hours) with billable hours.

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  • The Landscape Management Network. Run a better landscape business for $99/month. For more information on how Dan uses his budget, watch the next video in this series, Price for Profit.
  • This is a far easier way to grow your business. Instead of throwing more people at more work and scrambling even harder to stay on top of it all, you can focus your efforts on doing your work very, very efficiently. The results will surprise you. Increased sales, increased profits, and decreased headaches. ***After all, a $1 million dollar company who makes a 20% net profit makes the same money as a $5 million dollar company who makes a 4% profit. Which company do you think would be easier, and more enjoyable, to own and operate???
  • The Landscape Management Network. Run a better landscape business for $99/month. For more information on how Dan uses his budget, watch the next video in this series, Price for Profit.
  • Lean Landscaping

    1. 1. Times are tough.<br />Get efficient.<br />Lean Landscaping<br />www.landscapemanagementnetwork.com<br />
    2. 2. Introduction<br />Productivity vs. Price – compete on better<br />What is Waste?<br />What is the Cost of Waste?<br />How do I get lean?<br />
    3. 3. How Can you Compete?<br />Charge less (reduce profit)<br />Improve productivity (reduce costs, improve efficiency)<br />
    4. 4. Advantages to Reducing Price?<br />Law of supply + demand<br /> At lower a lower price, you should sell more work<br />
    5. 5. Advantages to Improving Productivity?<br /><ul><li>Lower costs = lower prices, without lowering profit
    6. 6. Better stability in a downturn
    7. 7. Better customer service
    8. 8. More opportunity for growth
    9. 9. Less work for more money (owner)
    10. 10. Better able to keep and retain the best people
    11. 11. Simplicity - Less problems, stress, hours
    12. 12. Problems surface to the top, where they can be solved
    13. 13. Better culture
    14. 14. Better training + development
    15. 15. Happier employees
    16. 16. Happier customers
    17. 17. Happier boss!</li></li></ul><li>=<br />$1 million in sales<br />20% profit<br />$200,000 net profit<br />$5 million in sales<br />4% profit<br />$200,000 net profit<br />
    18. 18. A Penny Saved is a DOLLAR Earned<br />IBM found the cost of fixing a mistake is 100x greater than the cost of doing it right.<br />Would you agree this is true for landscaping?<br />
    19. 19. A Typical Problem….<br />We had a problem on a jobsite where the crews didn’t fine grade the topsoil before laying down new sod<br />We installed a tractor trailer load of sod, only to rip it up again 3 weeks later when the client discovered the problem<br />
    20. 20. A Typical Problem….<br />To illustrate the costs of the problem to the crew, we had everyone write down what they thought the mistake cost.<br />…. The average guess was about $2000<br />
    21. 21. The Actual Costs of the Mistake<br />
    22. 22. The Actual Costs (cont’d)<br />The costs of the re-doing the work were just over $5,000<br />Worse yet, the crew should have been working on new, billable work – we lost a full day of billable opportunity, also worth $5000.<br />
    23. 23. A Penny Saved is a DOLLAR Earned<br />A $120 task notdone rightjust cost the company:<br />$10,000<br />… or about 83x the cost of doing it right the first time.<br />
    24. 24. Typical Landscape Waste<br />A typical landscape company operates at between 60% to 70% of their capacity<br />… that means 30% – 40% of sales is lost to waste!!<br />
    25. 25. Typical Landscape Company<br />
    26. 26. Eliminate Waste for Profit + Reward<br />Replacing waste (non-billable hrs) with sales (billable hrs) is the key to maximizing profit<br />With less sales lost to waste, company profits increase and so do employee rewards (wages)<br />
    27. 27. Efficient Landscape Company<br />
    28. 28. How do you do it?<br />
    29. 29. 1. Reduce Waste<br />Overproduction<br />Waiting<br />Transportation<br />Extra Processing<br />Inventory<br />Defects<br />Unnecessary Motion<br />Human Potential<br />Resistance to Change<br />
    30. 30. 2. 5S.<br />Sort<br />Set In Order<br />Shine<br />Standardize<br />Sustain<br />
    31. 31. 3. Continuous Improvement<br />Sweat the small stuff – deal with problems<br />Ask Why? 5 times<br />
    32. 32. 3. Continuous Improvement<br />For any problem, ask WHY 5 times<br />Keep tracing the problem back to its ROOT CAUSE<br />If you solve just the problem, you only solve one problem<br />If you solve the cause you might solve 20 problems that all stem from the same cause<br />
    33. 33.
    34. 34. 3. Continuous Improvement<br />100 small fixes are easier than 1 big one<br /><ul><li>It’s easier to climb stairs then to scale a cliff</li></ul>Don’t wait for the best solution…. Just get better<br />
    35. 35.
    36. 36. How do youactually DO it?<br />Trainingand employee development<br /><ul><li>Don’t depend on discoveringtalent. Develop it.</li></ul>Think outside “the way we’ve always done it”<br />Systems and procedures<br />Think McDonalds! Clear systems that answer:<br /><ul><li>Who, what, when, where, why</li></li></ul><li>How do I actually DO it?<br />Employee rewards that are tied to productivity<br /><ul><li>Are your employees paid by the hour?
    37. 37. Do you have a pay-for-performance system?
    38. 38. Do you have clear productivity goals?
    39. 39. Are they measured? Held accountable?</li></li></ul><li>Landscape<br />Management<br />Network<br />www.landscapemanagementnetwork.com<br />

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