Automation – Don’t shy away from it.

Automation has been a cornerstone of manufacturing for years, evolving through numerous forms and innovations. This blog post delves into the significant advantages that automation, when combined with creative thinking and Lean Principles, can bring to businesses. It emphasises that while automation should not be shied away from, it is crucial to understand its impact, benefits, and justification for your business through thorough analysis.

The Evolution and Importance of Automation

Automation is not a novel concept. Its roots can be traced back to the Industrial Revolution when machinery began to replace manual labour, dramatically increasing efficiency and production capacity. Over the decades, automation has continued to evolve, incorporating advanced technologies such as robotics, artificial intelligence, and the Internet of Things (IoT). These advancements have transformed manufacturing, enabling higher precision, faster production times, and reduced human error.

In the mid-90s, as a Kaizen Engineer with McKechnie Plc, I witnessed firsthand the transformative power of automation. We invested in machines capable of auto-ejecting or unloading parts once a cycle was completed—a process known as Hanedashi in Lean terminology. This simple yet effective device saved associate time by allowing the machine to handle the unloading process, enabling the associate to focus on loading the next part. This innovation laid the foundation for Single Piece Flow production lines, also known as Chaku Chaku Lines.

Hanedashi - Auto Eject

The Mechanics of Single Piece Flow and Chaku Chaku Lines

Single Piece Flow, or Chaku Chaku (which translates to “Load Load” in Japanese), is a Lean manufacturing approach where each machine in a production line is loaded with parts sequentially. All necessary machines are positioned close together, forming a cell that facilitates seamless workflow. The goal is to minimise work-in-progress (WIP) and ensure that each part moves through the production process without delays.

In a Chaku Chaku Line, automation is employed wherever possible to streamline operations. For example, loading a part into a machine may require precise orientation and proper seating in a jig, tasks that typically demand human skill. However, once the machine cycle is complete, the part can be automatically ejected, eliminating the need for manual intervention. This approach not only improves efficiency but also reduces the risk of errors and defects.

Single Piece Flow - Chaku Chaku

Jidoka: Automation with Human Intelligence

Another critical concept in Lean manufacturing is Jidoka, one of the two pillars of the Toyota Production System, along with Just-In-Time (JIT). Jidoka, often referred to as “automation with a human touch” or “autonomation,” involves integrating human intelligence into automated processes. The essence of Jidoka is to enable machines to detect and respond to problems autonomously, ensuring that production stops immediately when a defect or issue is identified.

By incorporating Jidoka, manufacturers can address the root causes of defects, leading to continuous improvements in product quality and process efficiency. This approach empowers equipment to distinguish between good and defective parts without constant human monitoring, further enhancing productivity and reducing waste.

jidoka - autnomation

Real-World Applications and Benefits

The implementation of Load Load Lines and Autonomation yields substantial benefits, including the elimination of WIP, defect-free production, and significant productivity gains. For instance, an associate can manage multiple machines simultaneously, a practice known as multi-process handling, thereby optimising labour utilisation.

In my experience at McKechnie Plc, we established a highly efficient production cell, not so creatively named Cell 7, which manufactured fasteners. The traditional production route involved multiple stages, including Header Machine, Turn, Centreless Grind, Fillet Roll, and Thread Roll, with parts moving as batches through various departments. This approach was fraught with inefficiencies and waste.
By adopting the principles of Single Piece Flow, Load Load Lines, and Autonomation, we transformed Cell 7 into a fully autonomous production line. The process began with bowl feeding fasteners into the system, after which the line handled everything else, from loading and unloading to quality inspection using visual cameras. This comprehensive automation minimised human intervention, with associates only required for machine consumables, tooling changes, and addressing any significant issues.

The Strategic Role of Automation in Modern Manufacturing

The integration of automation in manufacturing is no longer a luxury but a necessity for businesses aiming to stay competitive in a rapidly evolving market. The modern manufacturing landscape is characterised by increasing demand for customisation, shorter product life cycles, and heightened quality standards. Automation addresses these challenges by enabling manufacturers to produce high-quality products at scale, with greater flexibility and efficiency.

Customisation and Flexibility

One of the most significant advantages of modern automation is its ability to facilitate mass customisation. Advanced automated systems can be programmed to handle a wide variety of products and configurations without extensive downtime for retooling or adjustments. This flexibility allows manufacturers to meet diverse customer needs and respond quickly to market changes.

Quality Assurance

Automation also plays a crucial role in maintaining consistent quality. Automated systems equipped with sensors, cameras, and other monitoring devices can detect defects and deviations in real-time, ensuring that only products meeting stringent quality standards proceed through the production process. This capability is particularly valuable in industries where precision and reliability are paramount, such as aerospace, automotive, and medical device manufacturing.

Efficiency and Productivity

Efficiency gains from automation extend beyond the production floor. Automated systems can optimise supply chain operations, inventory management, and logistics, reducing lead times and minimising the risk of stockouts or overproduction. These improvements contribute to overall productivity and cost savings, enhancing a company’s bottom line.

Overcoming Barriers to Automation

Despite the clear benefits, some businesses remain hesitant to embrace automation due to perceived barriers such as cost, complexity, and potential job displacement. However, these concerns can be addressed through strategic planning, careful analysis, and a focus on long-term gains.

Cost Considerations

While the initial investment in automation technology can be substantial, the long-term benefits often outweigh the costs. Businesses should conduct a thorough cost-benefit analysis to assess the potential return on investment (ROI). Factors to consider include increased production capacity, reduced labour costs, improved quality, and shorter cycle times. In many cases, the savings and efficiencies gained through automation can lead to a rapid ROI.

Skill Development and Workforce Transition

Another common concern is the impact of automation on the workforce. While automation can reduce the need for certain manual tasks, it also creates opportunities for new roles that require advanced technical skills. Companies can mitigate job displacement by investing in training and development programs to upskill their employees, preparing them for higher-value tasks such as programming, maintenance, and quality control.

Complexity and Integration

Integrating automation into existing processes can be complex, particularly for businesses with legacy systems. However, advancements in technology have made it easier to implement and integrate automated solutions. Collaborative robots (cobots), for example, are designed to work alongside human operators, enhancing productivity without the need for extensive modifications to existing workflows. Additionally, modular automation systems can be scaled and adapted to meet evolving needs.

The Future of Automation in Manufacturing

The future of manufacturing is undeniably intertwined with the continued advancement of automation technologies. Emerging trends such as Industry 4.0, the Industrial Internet of Things (IIoT), and artificial intelligence (AI) are set to further revolutionise the sector.

Industry 4.0 and the Smart Factory

Industry 4.0 represents the fourth industrial revolution, characterised by the integration of digital technologies into manufacturing processes. This paradigm shift encompasses the use of IoT devices, data analytics, and AI to create smart factories where machines communicate and collaborate autonomously. These connected systems enable real-time monitoring, predictive maintenance, and data-driven decision-making, leading to unprecedented levels of efficiency and flexibility. This is something our sister company offers FactoryIQ – The Smart Factory Made Simple

Artificial Intelligence and Machine Learning

AI and machine learning are poised to play a transformative role in manufacturing automation. These technologies can analyse vast amounts of data to identify patterns, optimise processes, and predict potential issues before they occur. For example, AI-driven predictive maintenance can significantly reduce downtime by identifying when equipment is likely to fail and scheduling maintenance proactively.

Collaborative Robotics

Collaborative robots, or cobots, are designed to work safely alongside human operators, enhancing productivity and flexibility. Cobots can handle repetitive, hazardous, or ergonomically challenging tasks, allowing human workers to focus on more complex and value-added activities. As cobot technology advances, their capabilities and applications will continue to expand, making them an integral part of the modern manufacturing landscape.

Additive Manufacturing

Additive manufacturing, commonly known as 3D printing, is another technology that complements automation. It enables the production of complex and customised parts with minimal waste and reduced lead times. When integrated with automated systems, additive manufacturing can streamline prototyping, reduce inventory costs, and accelerate product development cycles.

Case Study: Transforming Manufacturing with Automation at McKechnie Plc

To illustrate the impact of automation in a real-world setting, let’s revisit the case of McKechnie Plc, where I worked as a Kaizen Engineer in the mid-90s. Our journey with automation began with the introduction of Hanedashi devices, which automated the unloading of parts from machines. This initial step laid the groundwork for more extensive automation initiatives.

Setting Up Single Piece Flow and Load Load Lines

Recognising the potential of Single Piece Flow, we restructured our production lines to create Chaku Chaku Lines. By co-locating all the machines needed for a product in a single cell, we minimised the time and effort required for material handling. Automation played a crucial role in this transformation, with machines automatically ejecting finished parts and readying themselves for the next cycle.

Implementing Autonomation for Quality Assurance

To further enhance our production process, we integrated Jidoka principles, enabling machines to autonomously detect and respond to defects. Visual cameras were installed to inspect parts in real-time, ensuring that only high-quality products moved forward in the production line. This autonomation approach not only improved product quality but also reduced the need for manual quality checks, freeing up associates to focus on other tasks.

Achieving Full Autonomy with Cell 7

Cell 7, our fastener manufacturing cell, became a showcase of automation excellence. By combining Single Piece Flow, Load Load Lines, and autonomation, we achieved a fully autonomous production process. Fasteners were bowl fed into the system, and the line handled everything from loading and unloading to quality inspection and defect rejection. Human intervention was required only for machine consumables, tooling changes, and addressing significant issues.

Results and Benefits

The results of our automation efforts were nothing short of remarkable. We experienced a significant reduction in work-in-progress, virtually eliminating delays and bottlenecks. Product quality improved dramatically, with defects identified and addressed in real-time. Productivity soared as associates could manage multiple machines simultaneously, optimising labour utilisation. Overall, the integration of automation led to substantial cost savings, higher efficiency, and enhanced competitiveness.

Conclusion: Embracing Automation for a Competitive Edge

Automation, when combined with creative thinking and Lean Principles, offers immense benefits to businesses. From improving efficiency and productivity to enhancing product quality and flexibility, the advantages are clear. However, it is essential to approach automation strategically, conducting thorough analysis to understand its impact and justify the investment.

As the manufacturing landscape continues to evolve, staying ahead of the curve requires embracing automation and leveraging advanced technologies. By doing so, businesses can unlock new levels of performance, reduce costs, and remain competitive in an increasingly dynamic market.

At TCMUK Limited, we are committed to helping UK manufacturers embed strategies that reduce costs, increase sales, and boost profits. Our expertise in automation and Lean Principles enables us to guide businesses through the complexities of implementing and optimising automated systems. Whether you are looking to enhance your existing processes or embark on a comprehensive automation journey, we are here to support you every step of the way.

If you are ready to explore the transformative potential of automation for your business, contact us today to learn more about our services and how we can help you achieve your goals. Don’t shy away from automation—embrace it and unlock the full potential of your manufacturing operations.

 

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Improve Productivity

Copy and Deploy the ultimate productivity swipe file to reduce costs and increase efficiency of your processes.

OEE (Overall Equipment Effectiveness) is a “best practices” metric for monitoring and improving your manufacturing processes (i.e. machines, cells, production lines…). OEE is simple, practical and powerful. It takes the most common sources of manufacturing productivity losses and places them into three categories: Availability, Performance and Quality.

This swipe file will help in understanding the data required to monitor your machines and manufacturing processes in shifting towards IR4.0 and taking the next step in fully automating the data collection.

For further reading on OEE “click here

OEE - Improve Manufacturing Productivity

Benefits of OEE

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Operationalise your Strategy – FREE Download

OOperationalise your Strategy
Benefits of Policy Deployment

Organisations with the capability to consistently execute their plans through the adoption of Strategy Execution outperform the market. Forget all the meaningless buzzwords and fancy dashboards, you need context and a trackable action plan to drive real performance improvements.

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Sales and Operations Planning – is it a missing link in your business???

Benefits of Sales and Operations Planning

  • Increased customer service levels
  • Improved profitability
  • Reduced time to market with new products
  • More products to increase revenue
  • Lower inventories and obsolescence
  • Reduced lead times
  • Quicker responsiveness
  • Top-down management control
  • Predictable operating performance for shareholders

The Sales and Operations Planning process is the primary tool by which there is a systematic review of the business, out of which plans are established. It brings Sales, Marketing, Manufacturing and Finance together to agree on the volume of products to be produced over the next sales horizon. The process should be incorporated into the business calendar to coincide with the key activities of, strategic reviews, budget preparation, quarterly forecasting, monthly performance reviews and MRP/ERP timing.

Alignment from S&OP Process goes beyond just the meeting, the entire company is aligned to a given direction. This is one of the huge benefits from the S&OP Process. The Master Scheduler is implementing the decisions made by the S&OP team. The planners and buyers are aligning to the Master Scheduler. Capacity is being increased and decreased in accordance to the plan. Changes to the financial plan are made in advance given the decisions from the S&OP meeting. The monthly meeting allows for issues to be raised, tracked and resolved. Key department heads are present so that the entire company can be aligned behind a decision and as it is cascaded and communicated to the levels below.

The sales and operations plan looks 12 – 18 months into the future, this level of visibility opens the door to a different way of thinking: a longer term view. The process facilitates the bringing together of data from different departments and presents it to the team (Operations has visibility to Sales plans. Sales have visibility to the supply plan. Finance has visibility to expected revenues and expenses)

Finance are an integral part to making the process successful, they ensure the alignment of the financial plan to the operational plan so ultimately the objective of making money is achieved and on track. It’s no good planning to ramp up 30% if you only have the resources to ramp up 10%.

New product introduction (NPI) can be a headache (new suppliers, ramp up, technical issues, capacity, obsolete inventory, etc) but again the S&OP process facilitates the discussion. It enables all stakeholders to be aware when a new product introduction is happening. Sales needs to be talking to Operations. Operations needs to be talking to Finance. Many companies deal with NPI separately and have a project plan dealing specifically with new product introductions With NPI on the agenda within the S&OP process, issues can be raised, actioned and tracked, (releasing of capacity for trials, product traceability, etc) are managed carefully.

A big part of the S&OP agenda is reviewing the key business metrics in order to identify and resolve performance issues, when issues are raised, the key stakeholders are in the room to get things done.

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The saying goes “Culture eats Strategy for Breakfast” Drucker

The weekend of October 22nd I was watching the Austin Texas F1 Grand Prix, this is one programme that everyone knows in my house not to disturb me watching. This weekend Mercedes were all but clear of winning the constructors championship as long as Ferrari didn’t outscore them by 17 points, something in the end that Ferrari couldn’t do. Congratulations MercedesAMGF1!

Now what pricked my ears up was the interview with James Allison at the end of the race, a number of questions were asked around the differences between Ferrari and Mercedes, James (Ferrari man from 2000-2005 and returning 2013-2016 to Mercedes 2017) an absolute professional and held in high regard within F1 would not be drawn on the comparison, but what he did say regarding Mercedes summed it up in 28 seconds of video (click the image below for the interview).

If you look at Ferrari’s take on things in the past few races when things have been going wrong, their behaviour seems to be one of blame and bullet a few people, you would almost say “Manage by Fear”.

As James Allison put, by being Brave to Ultimately Prosper and the culture they have embedded at Mercedes to succeed clarifies the saying “Culture eats Strategy for Breakfast

Culture is hard to collate, classify, categorise and it’s certainly hard to measure, it also seems one of those things Businesses seem to shy away from, even borderline not accept. It’s the invisible glue that you can’t touch or feel, so we’ll ignore it.

BUT IGNORE IT AT YOUR OWN RISK THOUGH!

Quite often, businesses think culture is some flowery-fluffy stuff that doesn’t make any difference in the end, or even if they think it does matter, they have an excruciatingly hard time describing what theirs is.

This invisible glue that holds the organisation together is probably the most powerful entity you can tap into, it’s part of your businesses DNA, the same as how I describe Policy Deployment, it becomes part of your business DNA. The “How you get things done”

The “How you get things done” drives performance.

Culture is not what we say, but what we do without asking. A healthy culture allows us to produce something with each other, not in spite of each other. That is how a group of people generates something much bigger than the sum of the individuals involved.

So don’t underestimate “YOUR BUSINESSES CULTURE

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Operationalise Your Strategy

Benefits of Policy Deployment

  • Organisations with the capability to consistently execute their plans through the adoption of Strategy Execution outperform the market.
  • Organisational capabilities will be aligned to support the achievement of your company objectives.
  • Resources will be allocated to business processes in priority order (according to the importance/contribution the process makes to your business)
  • Your company can excel in the business/commercial sector in which it operates.

The Policy Deployment process has yielded some unbelievable benefits for me in my career and it’s one of those processes I recommend all businesses leaders introduce, (but I will also state if you are not prepared to apply the rigorous PDCA management process that goes with it, it’s not for you). I’ve been using Policy Deployment for 15+ years across multiple businesses, as an example: £1bn Turnover business, achieving £200m EBITDA across 38 sites globally, including Lean Savings within the first year of £21m. Done well, it works!

Some of you are probably getting to the stage or are currently producing budgets for your coming year. Now wouldn’t it be worthwhile aligning your Strategy and your budget requirements and drive some break through thinking into the process.

The process itself comes from a technique called Hoshin Kanri, which is a method devised to capture and cement strategic goals, well for me it does more that cement goals, it disseminates those goals into tactical projects that are owned, timed bound and measured.

There have been a number of English translations Policy Deployment, Goal Deployment, Hoshin Planning. I prefer Policy Deployment Process or PDP, but as you probably know from me by now, call it what you want just as long as you use it.

So What DOES it do?

  • It forces the clear identification of “How” we move ourselves towards our Strategic objectives.
  • It creates an alignment of all facets of the organisation on the key strategic initiatives (cross-functional teamwork).
  • Fosters a data-oriented, fact-based culture.
  • Reinforces the vision, but also clearly defines how we will get there (Based on “Who” does “What”).

What it DOESN’T do!

  • Achieve results if the management process isn’t changed (Moved to rigorous PDCA).
  • Achieve results if the “How’s” (Improvement Priorities) aren’t the right ones.
  • Achieve results if the “How’s” aren’t clearly defined.
  • Replace the need for solid Business Fundamentals (also known as Daily Management).

The process is intended to help an organisation:

take the Company Vision (desired end state, aspirations, business scope); the Strategy (3-5 Year Strategic gaps/objectives, high level plans for competitive advantage) and creates a One year distillation of these 3-5 year objectives.

It creates improvement priorities and metrics for tracking progress and indicates the resource responsible and accountable for them. A tactical implementation project if you like (you can go further with the process and state which projects need to be completed within each quarter of the year, to add additional focus).

Detailed action plans (A3’s) are produced for each one of the improvement priorities and reviewed on weekly/monthly/quarterly basis through monitoring of the PDP metrics.

These reviews should be held by a cross functional team who challenge each other, learn from each other and drive execution of the improvement priorities.

Typical Strategy Objectives may be:

  • Double Top Line Sales in 5 yrs
  • Double OP % to Sales in 3 yrs
  • Reject PPM Reduction by 90% in 3 yrs
  • Reduce Lead-time by 75
  • On Time Delivery to 100% in 3 yrs

Typical Annual Objectives may be:

  • Grow Top Line Sales by 15%
  • Increase OP by 25%
  • Reject PPM Reduction by 50%
  • Reduce Lead-time by 50%
  • OTD +20%

Improvement Priorities may be:

  • Quality: Create & Implement Rapid Defect Reduction Process, Implement DFSS on Critical Products
  • Delivery: Apply Lean ‘Tools to XYZ to Reduce LT, Implement Back-Office LT Reduction Process
  • Cost: Develop & Implement LCR Sourcing Plan, Launch Productivity Improvement Std Work Series in Assembly

So Why Use it?

97% of Businesses have a Vision
80% have a clear Strategic Plan
52% some Execution/Success
33% Significant Execution Success
Where do you think Policy Deployment is having an Effect?

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Key Performance Indicators – Always an Emotive Subject

You may have seen my recent post if you follow me on linkedin regarding measuring Production Output with Value (£). With over 11000 views and numerous comments, this got me thinking about KPIs (key performance indicators) and business.

KPIs drive behaviour (no doubt in that) getting the wrong KPI can have a massive negative impact, the image below sums it up, wrong KPI with Targets = Lost at Sea, Wrong KPIs and No Targets = Shipwreck.

A good KPI should act as a compass, helping you and your team understand whether you’re taking the right path toward your strategic goals.

KPIs are key for any business and impact on a number of facets,

  • TO COMMUNICATE STATUS – ACTUAL v TARGET
  • PLANT LEVEL
  • BUSINESS LEVEL
  • WORK STATION LEVEL
  • TO DRIVE IMPROVEMENT BY FACT NOT GUESSWORK
  • TO HELP PRIORITISE IMPROVEMENT ACTIVITY
  • A CONTINUAL HEALTH CHECK FOR THE BUSINESS
  • TO CONNECT THE CUSTOMER TO THE PROCESS (something that gets forgotten)

One of the best ways to understand and align your KPIs is through generating a KPI tree, a KPI tree has 2 main purposes:
To clarify the responsibility (at each level) to ensure achievement of the correct result or activity that will deliver the Company’s and Customers goals, objectives and values.
Definition of responsibility: The responsible level is the lowest level that has the authority and the ability to 100% achieve the required result or activity.
To clarify the link between each result and activity to ensure appropriate prioritisation of activities

The KPI tree structure is separated into four different categories, these are as follows –

High level KPI – The key measure which drives achievement of the Company and Customer goals, objectives and values
Result KPI – The management tool used to measure the effectiveness of the activities completed to support the achievement of the goals and objectives
Activity KPI – The enabler to improve the current situation. (What you can see you can fix)
Activity – Either the physical actions taking place at any level in order to achieve the goals or the understanding of the current situation by Go Look See

Here’s a typical example of a KPI tree for “Delivery”

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Get your Changeovers out of the Slow Lane

Benefits of SMED  (Single minute exchange of dies)

  • WIP and lot size reduction.
  • Finished goods inventory reduction.
  • Improved machine/resource utilisation.

Whether you are high volume or low volume business, changeovers is one of those things that can sap the living life out of your manufacturing process.

An unstructured/wasteful approach to changeovers (SMED, set-up, etc) has the uncanny ability to grow arms and legs, and those arms and legs can even grow arms and legs.

I first witnessed a set up reduction back in the early 90’s as a Kaizen Engineer manufacturing Aerospace Fasteners, we were being trained by a Japanese sensei in Lean Manufacturing, running three events on different machines; a centreless grinder; a header machine and thread roller.

Our team had the header machine, we videoed the actual set up so we could observe the waste within the process, much to our surprise there was 8 hours of it????? A WHOLE SHIFT WORTH OF CHANGEOVER for a production run that would probably last no more than 30/60mins depending on batch size, and batch size we were talking thousands. It was running three shifts.

Now bearing in mind, a major customer had flagged this as an high risk to their operation due to capacity and were forcing discussions on us purchasing another machine?????

At the start of the week, we we’re thinking a 50% reduction would be excellent, never in a million years did we think we’d get to sub 30mins, but we did!

Long Changeovers drive so much waste within your business, WIP, Overproduction, delays, waiting, transportation…..so they need to be focussed on.

The main benefits are as shown

Key Principle of SMED

INTERNAL SET UP

Internal set up activities can only be performed when the process is stopped and must be kept to the absolute minimum in number and time taken to complete. Internal set-up activities should be limited to the actual fitting or removing of the Tool or Die or Material ONLY.

EXTERNAL SET UP

External set up activity can be performed with the process running and therefor does not affect the core changeover time.

As many changeover activities as possible should be external, leaving as few as possible as internal activities.

The statement that always sticks in my mind from my early SMED activities is ELIMINATE, COMBINE, SIMPLIFY.

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This is how not to make a Sale!

This week I was contacted by a Corporate Merchandise Company, a cold call asking for me. When I picked up they went straight into overdrive asking me about my company…it’s a debt collecting business isn’t it?

Me??????????? NO.

My brain starts going a million miles an hour (this is a bad opening, their process is way off of how to truly build a relationship, they’re not listening),

As I piece together his opening statement “so you’re a debt collecting agency” I’m thinking, so you did a google search for “TCMUK” then picked the first one, “TV channel” no wouldn’t be that, next one nah!!!!!   It must be the third one…

What a PRIME example of how not to know your customer avatar…..I actually appear third and fourth, but they still picked the wrong one????

Sales 101

Know your Customer. (your avatar)  

What they want and what motivates them to buy. Clarify who your market is, What is it your perspective customer is looking for but doesn’t perceive to be available. Where do they hang out?

Develop your Marketing Message

Market – Message – Media

Don’t just cold call, shout at them down the phone, then get abusive.

It doesn’t have to be in order but it is certainly a PRIORITY knowing your customer avatar.

Now this business does look as though they’ve had some success (financials), but their customer reviews/feedback is 1.4 stars out of 5, and reading some of them

“Would never use this company again! Used them once for diaries for clients and ever since we have been bombarded with hundreds of phone calls, despite telling them we would contact them should we ever need anything in the future. Constantly having to put the phone down on them. Safe to say we will not be using *&^%$ again. There is persistent and then down right harassment. STAY AWAY FROM THIS COMPANY!”

They certainly have room for improvement, 1.4 stars out 5!!!! Imagine what they could achieve with a completely different customer orientated approach. I think there will be a KPI driving that Sales behaviour some-where. Wrong KPI, Wrong Behaviour. (KPI – key performance indicator)

Getting and Keeping Customers

Focus on Customer Satisfaction then Profitability, DON’T focus on Profitability at the cost of Customer Satisfaction, you will have limited success and you won’t be in business for very long.

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Processes, Growth and Scalability.

I’ve had a number of discussions this past few weeks regarding GROWTH and SCALABILITY.

One recurring theme is regarding processes, and when I mention that processes should be standardised, I get the normal “we’re growing and that one size standardisation doesn’t fit and this is a back-office environment

Process Standardisation

Let me explain, every business is individual and has its unique way of doing things, but that unique way can still be standardised. Having a room full of 20 Service Call Associates operating in their own way results in 20 different outputs and potential chaos.

If you were to standardise the process (optimised, least way way of doing things) written procedures, your 20 Associates now operate in the same way and give a repeatable, stable output.

This standard way, considers;

  • Tasks and activities
  • Decision points
  • Cycle times
  • Work in process
  • Flow time
  • Sequence
  • Loops
  • Travel / distance

Standardisation and Growth

A business has 555 calls coming into its service centre, it’s normal work hours/week are 37 hours (excluding breaks, etc).

Our TAKT Time

37 x 60 = 2220 mins/week

2220 / 555 = 4 mins TAKT

Let’s say our Standardised Process has a manual cycle time equalling 24mins

Therefore, our number of employees to match demand and capacity is

Total Manual Cycle Time/TAKT which is 24 / 4 = 6 Associates

Growth

our calls increase to 740/week so our TAKT = 3 mins

As our process is standardised this SCALABILITY is relatively easy to accommodate

24 / 3 = 8 Associates required

So, our PROCESS IS SCALABLE!

PS: these standard processes are TRANSFERABLE, think McDonalds.

Many thanks for viewing my post and would you please share it with anyone you feel would benefit from the advice provided. 

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