PART VIII: MAKING CHANGE IN OPERATIONS TO ACHIEVE LOWEST COST PRODUCER - WILLIAM EASTMAN

Last week we moved from talking about the what and started on the how for gaining the expertise and commitment of the organization to Recession Proof the Business. In Part VII we covered the first SCRUMS and Sprints for Finance, this week we take the financial results and focus on operations.

Show Objective
Given Shows 28, 29, 30,31, and Part VII, create a SCRUM and a series of Sprints in Operations to improve quality and reduce production time to achieve Lowest Cost Producer in your market.

EPISODE 149: Summary
The Financial SCRUMS and Sprints were covered last week and the easiest. Now we are getting into the guts of the business. In Operations you have the same type of hard, tangible data with a real attention to detail. You must change the Cost of Production to make this work and that includes quality.

​Going faster with better products and services starts with eliminating defects, scrap, and rework. This alone will change the financial picture and reduce the time from start to finish.

Topics:

• Link to last weeks show - PART VII
• The Operations Team
• Start with Lowest Cost Producer
• 1st OPS Project

EPISODE 150: Get Your OPS Teams in Place
Build both a guiding team - the SCRUM and the working team Sprints. The criteria is the same, just the players change. You are looking for several different perspectives that will provide the greatest depth of knowledge and influence.

If you have to do this alone, skip creating the groups and go directly to the Backlog of tasks. It is your working list to make it happen.

Topics:

• Creating OPS SCRUM
  • Who
  • Mission
  • Charter
• Creating Sprint Team(s)
  • Who Mission
  • Charter
  • Backlog
• Building the first Backlog
  • Issues the Sprint Group must address
  • guidance on the Order

EPISODE 151: Lowest Cost Producer - Where to Start
We will start with this disclaimer one more time. The Lowest Cost Producer has nothing to do with price. It is all about costs and price is what the customer will pay and how much margin you will keep.

Another way of looking at this regardless of the economy, if you want a profitable and long term future - being the LWP is a significant element in making that goal a reality.

Topics:

• Impact of OPS on your Financial Performance
• Analyze the Cost of Production
  • Variable Costs - what you sell
  • Fixed Costs - support of what you sell
  • Total Cost - Variable + Fixed
  • Marginal Cost - producing 1 more
  • Average Cost - Total Cost / Units produced or Hours used

​EPISODE 152: First OPS Project
We have covered in many operations shows how to perform the value mapping process. Here is a link you can use as a refresher.

Your OPS SCRUM will supervise the Sprint Team on how they operate and where to start on the Backlog of tasks. As the group progresses your control of their task selection will be driven by what is the next obvious item. Remember once you start this is an iterative process.

Topics:

• Backlog
  • Review Process Maps or Map it now
  • Subject every major and minor step to the Value Test
    • would the Customer pay for it?
    • is it a Technical requirement?
    • are you Required to do it to meet a safety, environmental, or legal issue?
  • Eliminate all steps with 3 no's
  • Map a new process
    • review Quality tickets or poll customers and employees
    • challenge the group to start with 10% - increase in quality and decrese in time
  • Test the new process
    • does it work?
    • achieve quality and time objectives?

Next Part IX: Customer SCRUMS and Sprints

How to apply today's show to your business:

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