EPISODE B4.003 Operations Stage IV Capacity Plan

Introduction
Here we are in the last week of July and the first month of the 3rd Quarter is ending - how much closer are you to success?

If you have been with us all month, you know we have been railing against the politicians and bureaucrats for acting arbitrarily in response to the pandemic; and any illusion they are making data-based decisions should have been dispelled by now. This is not about a specific political party or group, it is about the arbitrary use of power at the expense of the most important global community - you.

People like us, Living the Life, employ 57% of the planet's population and yet are treated as the source of its problems. Not here, we celebrate the contribution you make to a better society and our focus is to improve your chances of success. 

This week we continue the new programming structure. We use a Balanced Scorecard to format our weekday shows: Finance (Monday) = Operations (Tuesday) + Sales (Customers) + People (Employees) with Fridays dedicated to Owners. Look at the week this way - Monday through Thursday is working IN the Present, Friday is working ON the Future.

Also, we just built a new community, our version of a Chamber of Commerce. Join Up and gain access to our Hosts and access our library of best practices.

Have a great business week.
​
Listen>Apply>Engage
​
Show Objectives
The big moment is here. You dreamed about it and fought your way through all of the challenges of an early startup, now it is time to reap the rewards.

You should have a stable foundation and platform to build upon. The critical question "how much can we do?" and "how do we do it?" are where you are seeking answers. Building a capacity plan is the result. Your goal right now is maximizing all of your resources to generate as much revenue as possible without putting yourself out of business.

Key Issues - ​Owner Perspective: 

1. Estimate the total capacity of the business - 100% - if everything used to it potential.
2. Decide on target percent for this Growth Stage - 90% is a solid number, avoid anything under 85%,
3. Based on uptime (OEE), is there any preventive maintenance or replacement required that will fail to produce or breakdown?

What You Need to Know

• EPISODE E3.002 CREATING AND IMPLEMENTING GROWTH FOUNDATION PLAN
• EPISODE E4.002 SELL SOON OR REINVENT - THE CAPACITY AND SALES PLAN FOR HOCKEY STICK GROWTH
• EPISODE A.010 PRICING STRATEGIES & METHODS

What You Need to Do​​
Building the Plan

1. Review your numbers;
   1. Scheduling Metrics
   2. Efficiency Metrics
   3. Waste Metrics
   4. Monthly Cash Demands
   5. AP and AR Aging reports
2. Quick hits, where can you make immediate improvements without reengineering everything?
3. How are you going to get personally involved without interference?
4. Based on where you have the greatest potential capacity to grow - select a market and customer for marketing.
5. Scenario spreadsheet on the right amount of growth.
6. Create a marketing plan to create the volume of interest required based on sales close rates and time in the funnel. 

Shows

• Previous: EPISODE B4.002: INTEGRATING AGILE AND LEAN - AGILEAN TECHNIQUES FOR GROWTH
• Next: B4.004 Production (Products and/or Services) Flexibility