Note: Running Fridays in FromGregsHead.com, is a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the PKF Texas – Entrepreneur’s Playbook® page of the PKF Texas website.
In these uncertain times it’s important to identify areas of waste in your business. Whether you are trying to squeeze one or two more percent cost reduction per transaction or increase profit margin by two or three percent, the impact is the same. Add more to the bottom line.
Recently we highlighted some waste reduction steps adopted by Toyota in our Award Winning Magazine, “The Leading Edge”. Let’s highlight them here:
1. Overproduction
2. Waiting
3. Transport
4. Inappropriate processing
5. Inventory
6. Motion and process improvement
7. Defects
Taking each of those areas you can then perform your own “whiteboard” waste audit to determine the two or three things in each of the seven areas above that are viewed as wasteful by your employees. Get your employees to buy into the waste audit by involving them in the selection of the top wastes. Put a dollar value on eliminating those wastes, remove them from business processes and watch the bottom line grow.