Are you frustrated because your customer service people are STILL busy, even though you’ve invested a lot of time and energy in quality initiatives?
If you’re a manufacturer, the most likely problem is that you’ve been going DEEP in the manufacturing process to drive quality when what you need to do is to go BROAD across the value chain. Why? Because just 5 categories of costs account for 80% of the profit leaks coming from costs that shouldn’t be there. One of those categories is referred to as “Tangibles” – these are the obvious physical defects that conventional quality initiatives are supposed to catch and eliminate. That one is probably off your list unless you still have a lot of re-work issues.
If rework isn’t an issue for you, then you’ve already gotten most of the “efficiency” boosts to profitability that you can get from conventional quality approaches.
It’s those other 4 categories of issues that are the ongoing source of your profit leaks AND your biggest opportunity to have significant impact on profits. Unfortunately, they’re sprinkled across the rest of the value chain, beyond your manufacturing operations.
I had a 2nd Fitbit HR, and experienced a “tangible” problem for the 2nd time, where the rubber strap came apart from the Fitbit unit in just a few weeks. Crazy glue was of no help, so I contacted them for a replacement. Clearly they have a tangible problem with product quality that they’ve yet to resolve, but that’s not where the real problems surfaced. Although the initial customer satisfaction handling was great (“just upload a photo of the problem here, we’ll send you a replacement”), it all fell apart in the follow through when they sent me the wrong product. It took 24 emails over 30 days and 9 different people’s names on those emails to get a satisfactory solution. That’s the kind of WASTE that is often overlooked, and has a massive cost to your bottom line. And, I can guarantee that its in your business too.
If you’re ready to shine a spotlight on the 5 categories of issues accounting for 80% of your unnecessary costs-to-serve and get that sludge out of your system, just book a time in my calendar and let’s talk. I’d like to help you create a flywheel effect in your business by sharing the approaches that I’ve used to drive a 16-38% increase in profitability for my clients.
#1 Bestselling Author, International Speaker, and Accelerator Anne C. Graham is on a mission to help business leaders and their teams double their profit per employee – or more – in less than one year, in less time per week than they’re spending on email per day. She is the Founder of ProfitU(tm), an innovative online university that helps leaders and their teams operationalize all the how-to’s from her book Profit in Plain Sight and see massive results. Connect with Anne on LinkedIn.