You know that your shop floor is extremely lean. It is efficiency in motion and something to be emulated across your industry. The real question is: when was the last time you took a look at your administrative offices? Can you say, with confidence, that your administrative offices are run with the same efficiency as your manufacturing floor? Did that give you something to consider?
Across the manufacturing industry, operations are still recovering from the recession. These operations are continually looking for ways to remain efficient, effective and profitable. Well, behind those doors over there could be significant opportunity, which remains largely ignored.
Even in your LEAN efficient organization, you may be burning profits that could be unimaginable to most. If you understand that that well over 50% of operating expenses are in labor and that 60%-80% of the costs of completing an order are administrative, you might be getting the hint of where to start. Administrative activities take place behind the scenes, but impact your bottom line far more that you can imagine.
This gives significant strength to the argument that a LEAN office is an important area of focus for those seeking higher profitability and customer satisfaction. Here are 3 steps you can take to create a LEAN office:
- Get a Grip Pinpoint and note every business process from design to delivery. Use the Kaizen event to discover answers to questions that arise.
- Get the Right Software Leverage technology to give you a strong advantage. Automate as many repetitive, tedious and time consuming functions as possible.
- Track Results Create performance metrics that count! Quantifiable metrics must be closely monitored to improve the people and the business.
Learn to trim the waist line of the administrative offices, with the same energy and focus as your manufacturing shop floor. Efficiencies with the administrative team can create a profitability never before imagined in manufacturing.