Mind your costs

Mind your costs

I recently came off a project with a metal fabrication company that was in severe distress. I was originally introduced to the company in October of 2020 by a mentor of the owner who thought they could use my help.  At the time, the owner believed he had the situation under control; he did not. …

Know what? So what…

Know what? So what…

There was a recent post in the Operational Excellence Group that I own on LinkedIn.  The post was about the National Aeronautics and Space Administration’s (NASA) Lean Six Sigma program and the benefits that were realized.  The person who created the post was rather excited that the program had saved NASA $1.3 million. Reading this got me pondering. …

Increase Quality, Increase Velocity – in Finance

Willie Sutton, a famous bank-robber during the mid-1900’s, was once asked why he robbed banks.  Willie responded, “Because that’s where the money is.” Contrast that with a commercial on television I saw, several years ago (perhaps it was even in the 1990’s) from a major American bank.  The President of the bank was speaking to…

Is your OpEx Program Suboptimizing your Profitability?

Many complex manufacturing businesses have come to understand that operational excellence is an on-going process in which companies strive to produce better results.  It has an inherent collaborative nature and typically includes participation from all parts of the organization.  But the challenge in manufacturing today is that the metrics upon which the business silos of…

Lean Finance; Breaking Down a P&L Statement and its Components

Nowadays, when we examine financial reports for small or medium sized enterprises (SME), we see that interpretations are being made based only on sales revenues and certain expenses. Since many vital decisions affecting the future of a company are determined by considering only these charts, many decisions are based on incorrect information.