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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!!!
Waste (non value added effort)
1. Unnecessary work or expense
2. Repetitive work
3. Redundant work
4. Work that can be done by others
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
Time to Create Report 2 hrs.Cost per Hour $12.00Cost per Week $24.00Cost Over 5 Years $6,240.00Investment .00Savings $6,240.00
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
Time to enter order : 4 min.Cost per Hour : $12.00Cost per Order : .80Orders/Day : 50Cost per year : $10,400Investment : $4,500Savings : $5,900
Redundant Work
Work because data is needed in different places
Customer Information in Accounting and CRM
Inventory and On-Line InventoryOrder Entry and Shipping System
Misshipment / Yr: 12CostsReplacement Ship $250Return Shipment $100Total Cost $350Cost / Yr. $4,200Investment $1,295Savings $2,905
Work done by you that can be done by others
Customer Portals Vendor Portals Client Data Entry Electronic Data Interchange
Cost per Order not EDI $50Orders per Month 85Orders per Year 1020Cost per Year $51,000Investment $10,000Savings $41,000
Exercise – Define a Process
Large Process – Enterprise Level Small Process – Accounts
Payable
Step 1 Step 2 Step 3 Step 4
The Fulfillment Process
Request Acknowledgement Acquire (Pick/Produce) Deliver (Hand/Ship) Invoice Collect
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 1.25They hand me the
money
Types of Data Transfer
(H) Handwritten / Paper (P) Phone / Fax (E) Manual Email (D) Data Entry (C) Computer / Automated (V) Verbal
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)
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.)
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
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