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The Situation:
A specialty printer was competing in a market niche that had
continued to grow. But sales were down and modest profits
had given way to growing losses. Plant labor costs were extraordinarily
high, rework was at record levels and delivery schedules were
being extended further and further into the future.
Our Approach:
Two three-day visits permitted us to interview virtually all
the key employees. Part of our approach was to help them identify
anything that stood in the way of them doing their jobs as
quickly, as easily and as well as they should.
The answers pointed to a chaotic
plant environment, where there was no time to do things right.
Mistakes made jobs late, and there was no time for training
or for the maintenance required for equipment to be productive.
Part of the problem lay with the
company owner, who was always changing priorities and over-reacting
to emergencies.
It was also clear that the plant
manager wasn’t holding his department managers accountable
for results, making excuses for them rather than setting performance
standards and insisting progress was made in achieving those
standards. He didn’t believe that real improvements
could be made.
The Results: We
helped the owner to calm down, and worked with him to build
a performance plan with clear goals for improvement. He included
his managers in the process, and promised to remove the obstacles
to things going the way they should. He also made it clear
he would hold them accountable for steadily improving results.
The Plant Manager didn’t buy into the process and left.
Things immediately improved, as managers began to see that
improvements were possible.
Within 90 days, customers and
salespeople had noticed the improved plant performance, and
sales were up more than 10%. The effect on profits was almost
incalculable.

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