Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Profit leaders mfg ebook
1. You’re About To Discover…
3 Proven Pathways to
Profitability for
Competitive
Manufacturers
with Douglas Crumb
Profits Maximization Expert
2. Have you ever wondered…
what it would feel like to step into the board meeting with:
25% increase in production profits in one week?
50% of your floor space “freed up” on every production line?
70% your raw material and WIP inventory costs reduced on average?
Reduce lead-time from hours to minutes?
labor costs cut up to 80% in less than 9 weeks?
A plan to outrun your competition on a continuous basis?
How would your income and lifestyle change?
3. How many of you would like me to share with you …
A step-by-step program to cut production costs by 25%?
A blueprint to reduce floor space by 50%?
A roadmap to cut inventories costs by 70%?
A proven step-by-step guide to reduce up to 80% in labor cost in less
than 9 weeks?
Most common Pitfalls to avoid on the profitability forecast and
implementation program
4. You’re About To Discover…
How to reframe your operation efficiency to
provide your company with a competitive edge
How to Integrate and optimize the value stream
A strategic framework to shift your manufacturing
profits to the next level
Cutting edge strategies on how to outrun your
competition
A secret formula to create a profitability forecast
and its implementation roadmap
How this proven system works for any
manufacturing company
5. Profitability Road Map
● I promise you, today you will take
with you 3 proven Strategies to
grow your profits, that I have
successfully used for more than 28
years.
● Your desire for profitability will
determine whether you use 1 or
the 3 strategies at once.
6. Why Profits Maximization in
Manufacturing Companies?
Increase Profits
Gain market share
Better & more competitive products
Free up resources to invest on innovation
Separate your products from the
competition
Gain an unfair advantage
7. The Time Is NOW!
Your Customer is depending on you to be
more competitive
Competition is already doing it
We are in a global economy, which means:
more competitors
Innovation & cost competitiveness are your
new currency
It might be your last WAKE UP CALL
8. Douglas Crumb
Helping manufacturers to maximize
profits for almost 30 years
Personally and successfully took
operations to Mexico
Author of “3 Proven Pathways to
Profitability for Competitive
Manufacturers” and founder of Profit
Leaders MFG
International Speaker & Coach
Millions of dollars in production costs
CUT.
9. My Story
• Green engineer directly from college.
• Experienced and survived a 2 year
union strike.
• Experienced single digit gross
margins.
• Felt the pain of a large customer
leaving and duplicating our product in
China.
• Traveled to China to understand who
and how they were beating me.
10. My Story
• Started utilizing China as a
supply source.
• Experienced long and costly
transport time.
• Experienced quality issues with
no recourse.
• Real Frustration.
• I despise losing, there had to be
a way to win at this game
11. Turning Point For Me
I traveled to Washington D.C.
with my mentor to complain to
our New York State Senators
regarding our largest customer
copying our design and funding
a manufacturing facility in
China. This was when we
decided to stop complaining
and agressively attack this
situation.
12. Profitability Model
Multiple
Solutions
Develop a low Profit
cost offshore Develop high
option. Improvement margin innovative
new products that
customers want.
Maximize
production by
“leaning out”
current operations.
13. Different Approaches
• Rome Cable: After replacing the union we implemented
self directed work teams and developed a CIP culture.
• DHD Healthcare:
– We fired up the new product development engine with our
Phase Gate approach to release multiple new products
every year.
– We implemented a Lean cellular 1-Pc Flow approach
to reduce lead-times literally from days to seconds.
• ConMed:
– Through Lean we completely turned around our
manufacturing.
– We utilized American Industries to open doors to low
cost manufacturing offshore to allow us to compete in
any arena.
15. Let’s Turn the Focus to YOU
Now that I’ve explained what I experienced
and how I overcame these problems, I’d
like to focus on the issues you are facing
every day, and how we can help you turn
your situation around quickly.
16. Challenges Most Companies Are Facing
Production Costs going UP
Employment costs & Health insurance is up
Flat Quality & Efficiency metrics
Global economy: Offshore customers &
Competition
Threats to Intellectual Property
Lack of straight forward roadmaps to
optimize profit
Don’t know where, when or how to start
PROFITS curve change
17. 3 Proven Pathways to Profitability
Pathway 1: Create constant new
profit streams
Pathway 2: Implement Tactical
Lean Manufacturing
Pathway 3: Move through a Fast
Track Offshoring
It’s important to make a thorough assessment to determine which
products you could innovate, which you need to lean out, and which ones
you need to offshore to maintain leadership and competitiveness in the
market.
18. 3 Proven Pathways to Profitability
Pathway 1: Create constant new
profit streams
Pathway 2: Implement Tactical
Lean Manufacturing
Pathway 3: Move through a Fast
track Offshoring
19. Pathway 1: Create constant new profit streams:
New Product Development
How would your company benefit if…
● You were recognized as the cutting edge
new product provider in your market?
● Your product gross margins remained at
or above your “sweet spot” ?
● You would have A pipeline of new
product releases ON TIME and ON
BUDGET?
● Your products were new and innovative
with solid IP protection?
● Your competitors were always a step
short?
Would any of this be of value to you?
21. Common Pitfalls
● Manufacturing a product that will not sell or
with a lot of competition
● Weak supplier selection = back order and
often times quality problems.
● Patent infringement law suits or inadequate
protection
● Insufficient regulatory compliance/approval.
● Design creep
● Weak validation
● Poor documentation of design requirements
and documents.
● Lack of a regimented system
22. Learning what your customer really desires:
A vibratory positive pressure respiratory device for
mobilizing secretions, developed on physician’s
desire for a device that could simulate the actions
of the cilia in patient’s airway.
This was learned through direct contact with
numerous customers through VOC sessions and
focus groups.
Needless to say this product has been a wild
success!
23. On the flip side:
I knew of a an organization that thought they
knew what the customer desired, rather than
asking:
–Complaints of patient discomfort
–Complaints of product not performing
correctly
–Competitor Infringement suit
–Eventual market removal
You really can avoid these costly pitfalls!
24. It's Your Money
● Develop the right product
● The system forces you to ask
the customer what they need
and then you leave them
waiting for you to deliver
● Why not do it on-time and
“people will start
within budget and avoid the buying what you are
pitfalls? selling the moment you
start selling what they
are buying!”
25. 3 Proven Pathways to Profitability
Pathway 1: Create constant new
profit streams
Pathway 2: Implement Tactical
Lean Manufacturing
Pathway 3: Move through a Fast
track Offshoring
26. Pathway 2: Lean Manufacturing
How would your company benefit if …
● You could improve productivity on any
product line by 25% in one week?
● you could free up 50% of your floor
space on every production line?
● You could reduce by 70% your raw
material and WIP inventory costs on
average?
● You could reduce lead-time from hours
to seconds or minutes? Key Disciplines:
● You could gather immediate attention • Kaizen 5 day approach
of a processing defect at time of • 5 Ss
occurrence? • Value Stream Mapping
• Flow Manufacturing
27. Lean Disciplines
• One Piece Flow: Established to produce
to the Takt time, Eliminates “batching”
( “Pull” methodology)
● KANBAN – JIT Product line
replenishment by water spider, only
enough to meet Takt time.
● SMED - Single Minute Exchange of Dies.
● Visual Shop Floor: production center
performance hourly tracking
• Andon: Simple visible indication of product
line status that sets the tone that production
is the engine and we are the “pit crew”.
28. Waste vs. Value-Added
● Waiting (Man or Machine)
● Transportation
● Over Processing
● Over Production
● Excess Motion
● Inventory
● Poor Quality/Rework
32. Kaizen Added Benefits:
● With one past employer I was
responsible for a large engineering team
where engineers worked on projects
while production and maintenance were
responsible for manufacturing.
● Once we transformed to the Kaizen
culture, production became the engine
and engineering, maintenance, quality,
and materials became the support
groups that kept the engine running
smoothly.
● We accomplished this through……………..
33. Kaizen Culture
• Cross functional Kaizen teams
working hand in hand.
• Morning “walk- throughs”.
• Andon System Notification.
• Line side cubicles.
34. 3 Proven Pathways to Profitability
Pathway 1: Create constant new
profit streams
Pathway 2: Implement Tactical
Lean Manufacturing
Pathway 3: Move through a Fast
track Offshoring
35. Pathway 3: Three Steps to fast track your
production lines to an offshore location
Step 1: Strategic Site Selection:
customer location, supply base,
community and real estate
Step 2: Materials, logistics &
excellent skilled labor
Step 3: Fast track, risk-free start
up in 9 weeks
36. Step 1: Strategic Site Selection
Security Risks
Legal Complexities & Intellectual Property
Exchange rate risk
Pioneering vs. Leverage in an Offshore
location.
Currently established industry & Supply Chain
Industry Associations, Industrial Parks and
Infrastructure
University , Academic Infrastructure, Research
and Development
Industrial Real Estate & Utilities: leasing vs.
buying
37. Step 2: Materials, Logistics & Labor
Supply Base: Who, What, Where
Importation and exportation of
raw materials
Free trade agreements
Inventory: Constraints, Concerns, Solutions
Logistics: accessibility & transportation
Warehousing
Labor: Skilled/Unskilled - Costs & Trends
Productivity & Quality Indicators
Union vs. Non-union: what to expect
Engineering & Technical skills available
Time Zone difference in a global market
Bringing Expatriates
Environmental, Health and Safety (Mexico’s OSHA Laws)
38. Step 3: Fast track, risk-free start up
operations in Mexico in 9 weeks
How to get the best clock hour operation cost
Starting up without a legal entity in Mexico
Setting up the operation to SAVE on taxes: NO
VAT and NO INCOME TAX
Getting all the government permits to start up
Finding skilled labor for your operation
Importing all equipment & machinery
Setting up customs paperwork to save on raw
materials tariffs (taking advantage of Mexico’s
44 Free Trade Agreements)
39. I Did It and So Can YOU!
A Custom MFG facility designed and constructed to our
needs within 8 months!
February 2008 September 2008
Production Begins Oct 2008 Ribbon Cutting with the
Governor Nov 6, 2008
40. Will YOU Be My Next Success Story?
At Profit Leaders MFG we are on a Mission:
To help 10,000 Manufacturers to increase their PROFITABILITY
through our PROVEN PATHWAYS
Our Philosophy: once one becomes successful, he has the moral
obligation to help others walk the same road
41.
42. When you work with Profit Leaders MFG, you will:
● Learn how to develop a product all
the way from concept to market
release.
● Get a vehicle for filling your new
product pipeline (Your own personal
HEN!)
● Learn a system that forces
communication and ensures timely
completion and budget control.
● How to Meet FDA & ISO regulations
with your new products
● Get the actual templates and Ebooks
for completing each action item
43. When you work with Profit Leaders MFG, you will:
● Learn the 7 Wastes that plague
every manufacturer and how to
remove them.
● Ingrain a Kaizen culture, replacing
“status quo” with measurable
continuous improvement.
● “Can do” production environment
● Learn how to prepare production
lines, and your company, to offshore
operations to a low cost region
● Learn how to start up in Mexico in
less than 9 weeks, RISK FREE
44. Approach
● Your time is valuable, so is ours.
● You are pulled in multiple
directions.
● You don't have time for lengthy
theory.
● I have been in your shoes......I
wanted the fastest clear path to
results.
● These methods are all about
results, if you crave theory, this is
the wrong discussion.
45. Manufacturing Profits Blueprint
• More Time
• Bigger profit margin
• A Competitive & Unfair Advantage
• More Business Flexibility
• Reduced Production Cost
• “Done For You” Blueprints
47. Manufacturing Profits Matrix
Product line profitability assessment
Market trends Analysis
Competitor Analysis
Supplier Analysis
Go to market strategies
Product line final strategies: which
ones to innovate, which ones to lean
out and which ones to offshore
48. Manufacturing Success Library
You will gain access to our exclusive
Manufacturing Success Library that
includes all the forms, templates,
contracts and more that you need to
begin the process of turning your
manufacturing plant into a PROFITS
CENTER while avoiding major pitfalls
during the process.
49. Manufacturing Profits Resource Rolodex
You will gain access to my personal
business rolodex which contains
information on the top resources I
use to grow manufacturing profits
with my customers.
Fast track your success by working
with people who know the
business
50. Jumpstart Offshore Comparison +
Done-For-You Business Audit
Use our proven cost model to estimate the cost of
moving your business to Mexico
Determine the most cost effective region to land
your offshore operation
Utilize the comparison charts to determine the
right time to pull the trigger
Our team will analyze your current business and
find areas of hidden profit and more, all to save
you time and give you more flexibility within your
business
51. More Time, More Flexibility, More Profits
Manufacturing System
4 Week Online Academy Series $8000
Week 1: Manufacturing Profitability Blueprint
Week 2: Pathway 1 -New Product Development
Week 3: Pathway 2- Lean Manufacturing
Week 4: Pathway 3 - Offshore Manufacturing
Manufacturing Profits Matrix $2000
Manufacturing Success Library $3000
Manufacturing Profits Resource Rolodex PRICELESS
Jumpstart Offshore Comparison + Business Audit $2000
53. My Personal 100% Iron-Clad
Money Back Guarantee
• [INSERT CERTIFICATE]
Take action now and try the complete
system for 30 days. If you aren’t
overwhelmed at how easy it is to do
this system simply send it back.
But I know once you begin,
you’ll see powerful opportunities.
54.
55. Personalized Offshore Blueprint
Have your full offshore plan laid out
for you
Discover if now is the right time for
you to make your offshore move
Visualize the numbers so you can
have a clear & precise plan of
action
Personalized for your business and
your success
56. More Time, More Flexibility, More Profits
Manufacturing System
4 Week Online Academy Series $8000
Week 1: Manufacturing Profitability Blueprint
Week 2: Pathway 1 -New Product Development
Week 3: Pathway 2- Lean Manufacturing
Week 4: Pathway 3 - Offshore Manufacturing
Manufacturing Profits Matrix $2000
Manufacturing Success Library $3000
Manufacturing Profits Resource Rolodex PRICELESS
Jumpstart Offshore Comparison + Business Audit $2000
Personalized Offshore Blueprint $15000
