| Case Studies

Performance Measurement – Employee Retention

The link below shows two Performance Scorecards, one for a manufacturing business and one for an accounting firm. Performance Scorecards Download Accounting Firm The accounting firm Client was working with us on improving their Audit process. This project successfully reduced the time to produce audit reports for their clients from 45 to 22 days.  As

| Case Studies

Lean in Services Case Study

Client Background Recently we had the opportunity to work with a client that doesn’t make or move any material goods.  Impact Group does the important work of caring for families that are being relocated because of the jobs of one of the adults.  28 years ago, Laura Herring determined that companies focus completely on the

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The Ideal Lean Scorecard (An Assessment Tool)

The Ideal Lean Process All employees show up to work every day, are motivated, can work at any operation and are constantly looking for ways to improve processes Supplies can be ordered and delivered immediately, in whatever quantities are needed and are defect free Equipment never breaks Processes have no variation and produce defect free

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Lean Meetings?

Do you ever feel like all you do at work is go from meeting to meeting? Is it a challenge to squeeze all of the meetings you are required to attend on your calendar? How many meetings should a healthy company have and when do we cross the line on healthy communications and too many

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Are You Brave Enough – “To Pay for Performance”

Pay-for-Performance: Quality & Throughput Many companies are worried about paying for performance because they are concerned that: 1) quality will suffer, and 2) it can inhibit teamwork.  Our case study for this e-newsletter shows how to balance quality versus throughput, and teamwork versus individual contribution. Designing a pay-for-performance system that everyone believes in is hard

| Case Studies

Measuring Customer Satisfaction

The case study below is a summary.  For more details click on the full white-paper. The problems with surveys Most companies that want to measure customer satisfaction create a survey.  These efforts usually fail for multiple reasons. The “annual” survey measures satisfaction during too short a duration Response rates are low There are too many

| Case Studies

Hospital HR Dept Performance Measurement

Lean Six Sigma in Healthcare The next few months’ newsletters will look at Lean Six Sigma applications in Hospitals. We all have a vested interest in seeing our hospitals continuously improve productivity and quality. These case studies will show how we used Lean Six Sigma tools to improve various aspects of administration and patient care.

| Case Studies

Hospital HR Dept. 5S Visual Management

Lean Six Sigma in Hospitals – 5S Visual Management Details: 5S Implementation 1). This HR department hoarded paper. Like many people the HR Specialists felt the messier their desks the busier they must be. It was cultural! Everyone’s desk looked like these pictures. 2) Once we did the initial 5S blitz, we created a 5S

| Case Studies

Evaluating Costs in the Entire Value Stream

Finding Cost Reductions in the Value Stream We used Value Stream Mapping to evaluate costs from “Field to Table”. All processing costs were analyzed. The scope was to attack overhead costs and processes that were increasing expenses or reducing sales. “Costs of goods sold” was excluded. Examples of processing costs were distribution direct labor, store

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Streamlining Warehouse Operations

Lean & Six Sigma in Distribution/Warehousing This Distributor began their Lean Journey in the middle of the Great Recession. Despite the fact that sales were down, they were willing to invest in reducing costs and improving Customer Service. They chose 3 problem areas of the company and combined Implementation Projects with Supply Velocity’s Lean Workshop.

| Case Studies

Streamlining Distribution / Transportation

Lean Six Sigma Tools Performance Scorecard 5S Visual Management Details 1) This project was totally driven by the Scorecard. Once the team created its Bulk Delivery Department Scorecard, they quickly realized what had to be done to improve performance. We came up with a saying that “the data will lead the way”. Download Delivery Lean

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Streamlining the Shipping / Accounting Process

Lean Shipping Process This company manufactured products for the construction industry and distributed highly engineered components produced by other companies.  Manufacturing and Distribution were separate businesses, which came together at Shipping. This project was driven by the company’s CFO, who felt that shipping processes, which had never been looked at, were wasteful.  As you will

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Inbound Freight Process Streamlining

Inbound Freight Savings Project Outline This project was fundamentally about getting two departments (Purchasing and Logistics) to see the entire process and determine how they could work together to save the company money on inbound freight. Our first objective was to understand the problem and the opportunity. We developed a problem statement. Download PowerPoint Presentation

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Six Sigma Sales – Ranking Customers

On-Target Sales Strategy / Six Sigma Sales We hope you find value from our examples of Lean Six Sigma at work. Due to the difficult economic environment many organizations face, we will spend the next few months looking at the application of Lean Six Sigma to Sales Strategy, or what we call On-Target Sales Strategy,

| Case Studies

Six Sigma Sales – Understanding Customers Better

On-Target Sales Strategy / Six Sigma Sales The economy is not getting any better… but you can buck the trend! Knowing your customer creates focus and focus creates success. Read below how we used Six Sigma to create a focused sales and marketing strategy by deeply understanding the best markets for our Client. Problem This

| Case Studies

Creating a Lean Sales Process

Sales is like any process, it operates by design or default. Using Lean Tools we redesigned a very successful company’s sales process to improve Sales Rep Productivity, getting more Profit from every Rep. Problem This month’s case-study Client sells transportation equipment, services this equipment and sells replacement parts. The owner had executed a successful growth

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Six Sigma Sales Rep Analysis

Lean Six Sigma Tools Cause & Effect Diagram Pareto Analysis Comparison Analysis (Box & Whisker Chart) This manufacturing/distribution company had 8 sales reps that covered specific geographic regions of the northeast United States.  The company manufactured several components and distributed others to a very specific industry-niche. We started the project with a Cause & Effect Diagram

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Six Sigma Pricing Strategy Analysis

Lean Six Sigma Tools Cause & Effect Diagram Scatter Diagram As stated above, the company’s sale force all wanted to lower prices to help them sell more (close more business). We analyzed what impact (good or bad) that might have on sales and profit. We started the project with a Cause & Effect Diagram of

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Sales-Estimating Strategy Analysis

Lean Six Sigma Tools Cause & Effect Diagram Performance Scorecards Scatter Diagram We started the project with a Cause & Effect Diagram of everything that impacts sales and close rate. Download Estimator Inside Sales Analysis March 2011 PowerPoint Presentation. This e-newsletter will focus on estimator effectiveness, which the team felt could be a significant area

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SKU (stock-keeping-unit) Optimization

One of the best aspects of pursuing (part time) my Ph.D in Supply Chain Management is that I get to research certain topics and apply them to help my valued Clients.  I am currently writing a academic paper on SKU Optimization.  It is based on a method that is case studied in this month’s e-newsletter. 

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Decoding the DNA of Customer Profitability

This month we will feature ground-breaking work in finding attributes that predict customer profitability.  This project was done for a Supply Velocity Client (products shown below) with the support of a Ph.D Supply Chain Management study at the University of Missouri St. Louis. The Ph.D program has been a great way to learn new skills

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Secrets of Winning Proposals

When it comes to winning proposals, we find that many companies, including this Client, over-estimate their Win %. Company executives stated that Win % was 80%. In reality it was 37%. Once we discovered this important fact they wanted to find out what helped them win proposal. Overall proposal data is shown on Slide 2

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Lean Operational Process Improvement

This Newsletter will case study Phase 3 of the improvements made to our custom cabinet and millwork manufacturing client. The prior few months we profiled the improvements they made in their business, via Performance Measurement and On-Target™ Sales Strategy. This month we will review the improvements they’ve made in Operations. They produce custom cabinets and

| Case Studies

Lean Scheduling & Order Delivery

This newsletter will case study Phase 2 of the improvements made at our Transportation Equipment Distributor client. Last month we reviewed how we streamlined the sales process to give Sales Reps more time to sell and grow profit. This month we will review how we delivered on the promises we made to customers, providing this

| Case Studies

Lean in Hospital Primary Care

Lean Six Sigma Tools Performance Measurement 5S Visual Management Spaghetti Diagrams Time Study Details – Performance Measurement The team first learned about Performance Measurement and then created their Performance Scorecards.   As you can see, On Time Delivery of service shows up twice as measures of seeing patients at their appointment times. (How may of you

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Biggest SKLUsers: SKU Rationalization

SKU Rationalization Project Outline Our initial analysis indicated that they had a high concentration of strong performing SKUs (70.63% of sales came from the top 25% of SKUs) and a significant number of low performing SKUs (1.47% of sales came from the bottom 25% of SKUs). SKU Analysis Presentation. The next analysis (slide #2) showed

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Lean Warehousing

Lean Six Sigma Tools Pareto Analysis Spaghetti Map Process Flow Map This valve manufacturer produced a semi-finished product that its customer final assembled / packaged for their original-equipment-manufacture (OEM) and distributor customers. The final assembly/packaging was being transferred to the valve manufacturer. Instead of producing 200 stock-keeping-units (SKUs) in larger lot sizes they would be

| Case Studies

Using Value Stream Mapping to Reduce Overhead

Reducing Overhead Labor with Value Stream Mapping This Plastics Manufacturing Company was caught in the Great Recession.  They had to reduce costs when some of their customers cut back, including an auto-plant that closed.  However, being a capital intensive manufacturer, the options were not obvious. Lean Six Sigma Tools This project used Value Stream Mapping

| Case Studies

Lean Six Sigma at a Custom Manufacturer – Performance Measurement

This custom cabinet and millwork manufacturer was the in-house manufacturing division of a larger residential construction company.  They grew very rapidly with a large multi-year order and were spun off as a separate company.  The large multi-year order ended and sales dropped precipitously.  The overhead costs from equipment and manufacturing space quickly created a loss

| Case Studies

Proposal Strategy using Strategic Filters

We will use as a case study the same Defense Contractor Client discussed in the April e-newsletter. One of the things we learned in that project was the significant labor that can be expended developing a proposal. Depending on the opportunity, engineering, materials and direct labor costs have to be estimated at a high degree