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Here are some recent examples of
how Focused Management has added value to the clients we work with:
An
Focused Management
client found that the capabilities of their Product Development process
were grossly inadequate given the strategic plan objective of 25%
business from new products within 5 years.
An
Focused Management
client working at full capacity found product contributions ranging from
$zero to $4,000 per hour of bottleneck manufacturing process time. The
zero contribution product line consumed 50% of bottleneck capacity.
Mix changes doubled profit within six months.
An
Focused Management
manufacturing client found that the product complaint resolution
activity cost exceeded the cost of the entire Product Development
process. Resources were redeployed to Product Development in order to
increase customer satisfaction by preventing product problems at
customer sites.
An
Focused Management client in a highly competitive custom manufacturing marketplace found
that the production process was only 50% of total operating cost; and
that 40% of the production process itself was non value-adding. The
executive team has sponsored process redesign projects for the
Procurement and the Order Fulfillment processes in order to improve cost
effectiveness. This is tied directly to the critical business issue
leading to the ABM engagement – customer feedback that cost-plus bids
were too high versus competitors.
An
Focused Management
client reversed a plan to sell-off a significant portion of its
business, after realizing that the decision was based on gross
misallocations of cost & revenue. As a side benefit, cost improvement
opportunities in excess of 20% were identified during the course of the
project.
An
Focused Management
client found that small customers were unprofitable because the cost to
process orders exceeded the minimum order size. A new Order Fulfillment
process specifically for small orders was designed & implemented. This
enables the client to profitably service a strategically significant
segment of their market.
An Focused Management client with a capacity problem commissioned an ABC project in
order to prioritize which customers to serve. The results showed that
their basic product line contributed approximately $1k per hour of line
time; while their value-added advanced product lines contributed $6k -
$10k per hour of line time. The client was able to continue serving the
entire marketplace by outsourcing the basic product to a less advanced
competitor; thereby freeing capacity to increase production of their
value-added product lines. Profit increased by 50% within six months. |
