Double Your Profits

Double Your Profits
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NAVIGATION

Jay Arthur
888-468-1537
303-756-9144
KnowWare International, Inc.
DBA LifeStar
2253 S. Oneida
Ste 3D
Denver, CO 80224

We work with companies
that want to fire up their profits using
Lean Six Sigma

During the current economic "crisis", most of the media was talking about banks in trouble. But there was a different story that caught my attention. Bank of America has been buying up other companies like Countrywide. Oddly enough, Bank of America has been pursuing Six Sigma for many years. Maybe this Six Sigma stuff is paying off!

What does this mean for you? Well, with the economy in turmoil, suppliers are going to be more cautious about extending credit and customers are going to be more cautious about buying anything that isn't absolutely necessary. That's why now is the ideal time to laser focus your improvement efforts to double your profits. Many opportunities lie inside your business, not outside.

Like most profitable companies, you're wasting one-third of your total costs on fixing problems created by the other two-thirds. Cut that unnecessary spending in half and it will double your profits and eliminate the need for credit.

Simplify and Streamline

First step: go Lean!

Eliminate unnecessary delays in key processes. Doubling your speed will reduce defects by as much as 50%, cut costs and increase customer retention.

Focus on the gaps between work activities. There are gaps between steps in every process. Incomplete orders, jobs, and other work products pile up in these gaps. Eliminate the work in process and close those gaps to double your speed.

Pull out those Post-it notes; map the process; put times on every gap (i.e., arrow) between steps; and figure out how to redesign the process to eliminate the major delays.

Take a floor plan and spaghetti diagram the flow of materials and work products; then redesign to minimize movement of people and materials.

This kind of analysis can be done in a matter of hours and most changes can be done quickly.

Download my Lean Simplified book and Lean Simplified quick reference card, and get started today.

Once you've simplified and streamlined the process, it's time to start optimizing the process.

Optimize

Step Two: Six Sigma the steps. Four steps out of every 100 are causing over half of the defects, deviation and lost profit.

Count and categorize your defects into buckets using a Pareto chart or two. 4% of the business is causing over half of the rework and lost profit. Do a little root cause analysis and find ways to prevent the defects. Each of these improvement projects should take no more than 4-8 hours if they're properly focused.

Or analyze work products using histograms or other tools that show the variation from part to part. Do some root cause analysis to figure out how to reduce the variation, which will reduce costs as well.

Download my Six Sigma Simplified book and Six Sigma Simplified quick reference card, and get started today.

Repeat

Every improvement leads to new insights into ways to further simplify, streamline or optimize operations to minimize cost and maximize profits.

Here's My Point

Much of your profit and loss statement is within your control. Economic downturns are the perfect time to laser focus the improvement effort and start eliminating unnecessary costs of waste and rework.

The alternatives of layoffs, bankruptcy or going out of business aren't really that attractive.

Stop worrying about the economy! Start working on your business to plug the leaks in your cash flow.

Double Your Profits Book

Hire Jay Arthur to train your staff in his one-day Lean Six Sigma Workshop! Contact Jay at (888) 468-1537, support@qimacros.com.

Order Lean Six Sigma System Now Want to increase your profits and slash costs by $250,000? Consider our risk-free trial of the Complete Lean Six Sigma System (#490)

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