Some business owners pay special attention to the waste management of visible objects, such as the reduction of hardware material costs and the disposal of dull materials.
Nowadays labor costs are far greater than material costs to a certain extent. For example, engineering personnel with high salaries, managers who are difficult to measure efficiency, etc., all wasted time will be converted into personnel wages.
A company’s employee compensation may eat up more than half of the company’s profits, some or even all of it, such as loss-making companies.
Therefore, how to improve working efficiency – work time halved becomes essential.
For example, the production cycle of a product is shortened from 4 days to 2 days or the mold change time of a machine tool is shortened from 30 minutes to 15 minutes, or the production cycle of a product line is shortened from 180 seconds to 90 seconds, or a certain product line is shortened. The length of the regular meeting is shortened from 2 hours to 1 hour, or the time of a certain task process flow is shortened from 1 day to half a day, etc… Time is money, and time is competitiveness.
The power of time cost reduction is far greater than material cost reduction.
Product Development Time Halved
The product development cycle of a new product determines its product development cost and launch cycle. The former cost represents the labor cost of product development project personnel, and the latter cost determines whether it can beat its peers and whether it can take the lead in the tide of market competition, reflecting unlimited business value.
Some companies are quick to launch new products without comprehensive market study and design thoughts, the engineering personnel works behind closed doors and thus the product needs years of revisions and some even die in the end. In such design problems or engineering negligence. the profit would have been lost to personnel costs or other administrative management costs.
It’s very tragic that sales increased year after year, but the gross profit margin of its products declined year by year. If the product development cycle can be shortened by 40%, the research and development cost can be reduced by 50%. New products can occupy the market in the fastest time.
Production Time Halved
The biggest time consumption of manufacturing enterprises should be on the front line of the workshop. There are many people and many product lines. Mass production will have a fixed manufacturing time every day.
If there are 300 people in the front line, working 8 hours a day, and 2,400 people a day, if it can be reduced by 10%, that is, the production efficiency can be increased by 10%, then 30 people will be saved, which will be a huge fortune.
Through the implementation of lean production, the efficiency is generally improved by 30-50%, and even 100% is no problem.
It’s not that the work is slow, but the waiting time is too much, and the effective working time is too little.
Some companies are losing money, while others are operating in difficulties, but they don’t know that they have a gold mine in their hands but turn a blind eye. A lean production is a powerful tool for streamlining production time.
Process Time Halved
The information flow in an enterprise is invisible and intangible. In fact, it may be a huge time consumer.
Business owners have high requirements for visible working hours and require repeated compression. Enterprise leaders often talk about the need to speed up the product development cycle, whether the design cycle can be shortened by a few days, whether the workshop manufacturing time can be faster, and whether the delivery time can be faster.
But there are still many black holes that they don’t care about at all. For example, sales does not go to the customer to verify the specific time of project delivery in advance. Everything is not groundless. Often customers rush to order. Sales do not actively follow the front-end information, allowing passing time of useful information. Some sales personnel receive the customer’s demand information, put it in the drawer, and forget to pass it across the organization. This time waste is not one hour or three hours, and some are counted by week and month, After the reaction, there is no way to improve the quality of the product by pressing the rigidity time of the product development (product design and engineering) side. The product development department is unwilling to disclose its own product development plan, as if this is a private plot of its own. After the product is developed, it is inconvenient to purchase materials and manufacture, and there is still much room for improvement in material application and process design. This is the result of information confidentiality, which will be paid with money later.
Some processes need to be approved by more than 20 people, which takes more than a month and is very time-consuming.
In today’s increasingly fierce market competition, it is very difficult to blindly rely on increasing sales to increase profits. It is often not your own final say. What you should do is try your best to reduce the cost of time.
Time waste is the most hidden, the most expensive, and the most bottomless.
If you can’t quickly reduce the product development time by 50%, the lead time by 50%, the production time by 50%, and the inventory turnover rate by one time, then you must have done something wrong.