What if you could double your production capacity in 6 weeks?
A home counties concrete batching plant factory provided a great example of the potential for Hoshin Kanri business improvements. This manufacturer had a base turnover of £2.4 million. However, it was struggling to make a profit. In fact, the most recent P & L figures showed a loss of £97,000. Unfortunately, the second generation management in this family firm had let inefficiencies to creep in over the years. This decline had reached a point where the capacity of the plant had dropped just below breakeven point.
The company used Hoshin Kanri to carry out a wide range of improvement projects. But just as important these improvements were instigated simultaneously across the whole company. The result was a doubling of production capacity in a matter of six weeks. Just as importantly, the improvement team achieved this goal without investing any extra cash on capital equipment. That is apart from a few hand tools. What is more, the company only hired one extra part time person. This extra hand was needed to overcome a particularly damaging bottleneck in the design department.
In typical Hoshin Kanri fashion, the team generated expanded capacity not by spending money but by using their collective brains. Specifically group problem-solving remove a lot of waste and improved systems. A particular benefit that helped save time and money was improved interdepartmental interaction. All in all the improvement cost benefit analysis estimated £352,000 in savings and other benefits.
The net result was a return to profit for the following financial year of £50,000.
What if you could generate 11% extra fee earning capacity
A Dorset base accountancy firm with a base turnover of £2.8 million used Hoshin Kanri to remove end of year bottlenecks. As a major benefit from the process they developed an extra £310,000 of potential fee earning capacity. A large part of this extra capacity came from software upgrades and improved hardware. However improved work processes, better interdepartmental teamwork and more customer focused professional work also made a significant contribution.
Get in touch
If you’d like to know more about how Hoshin Kanri can help you multiply your profits call Jeremy Old on 0845 0945 819.
Or email Jeremy@teambusinessdevelopment.co.uk Remember we guarantee that our Reality Checks are self-funding. With Hoshin Kanri you will reap benefits well above the cost of your investment our typical client ROI is over 33 : 1.
You are in safe hands
Jeremy is author of ‘Reinventing Management Thinking; using science to liberate the human spirit’. This groundbreaking management manual draws on the latest neuroscience and psychology to help managers stimulate fierce engagement and motivation. By learning how to work with the twelve ’emotional needs’ Jeremy shows how any leader with a degree of emotional intelligence can quickly transform productivity by 30% or more.
Jeremy has twenty-five years experience as an independent management coach to small and mid-sized enterprises and non-profit organisations. His experience includes facilitating 54, strategic change or business improvement assignments across a wide range of industry sectors. On average his assignments yield an estimated 33 : 1 ROI for clients. In addition, Jeremy is qualified to MBA level, with a post-graduate diploma in psychotherapy.