Scoreboarding: Planning to Win! Part 1 (Includes Video)
Below is Part 1 of a two-part series of blogs on “Scoreboarding.” Each part will be linked to different videos to demonstrate what I’ll be sharing in these blogs.
Click on the YouTube video below to see PART 1 Benchmarking Lean Manufacturing:
Can you imagine attending a sports event that doesn’t have a scoreboard? You wouldn’t know what inning, quarter or round the game was in, or how much time was left in the game. You wouldn't know who was winning or losing! You simply wouldn’t know the SCORE!
How long would you stay interested in the game? I know I’d get bored and leave. I’m thinking you would, also!
Now, with that in mind, do you know if you are winning or losing in your business at any given moment? No, I'm not talking about whether you're losing or making money.
I’m talking about several vital statistics most owners and manager do not know—unless they have a good MIS system with report capabilities to provide them the information. In most cases, by the time a report is pulled and given to the owner, it’s usually last month's statistics.
These VITAL STATISTICS are what gives owners and managers ulcers, and keeps them awake at night. They’re also what can determine if you are winning or losing in your business.
HANG WITH ME NOW—this information could be vital to growing your business!
Consider the following vitals:
- Do you know what each employee in your organization is doing, EVERY minute of EVERY workday; and SHOULD they be doing what they’re doing? In other words, what processes are they working on (or should be working on), and are the processes chargeable or un-chargeable?
- Do you know instantly if the things employees are supposed to be doing are taking more time than what you have charged a customer for?
In other words, are you tracking the estimated versus actual time it takes anyone to do a process in a job?
- Do you know immediately how much waste you have; who's responsible for the waste; what the waste ratio is to your company's total sales, and what the total amount of waste is, in dollars?
First, let’s define waste: Errors that cause rework, bottlenecks, slowdowns, lost information, lost tools, equipment breakdowns, miscommunications; taking too long to complete a process, plain ole "lollygagging" by employees, receiving or entering poor job specifications, poor housekeeping; not having the correct tools or materials in time to do a job, etc. etc. etc.
Philip Beyer, founder/president of Ebiz Products LLC and founder of Beyer Printing Inc. in Nashville Tenn., is a chronic entrepreneur, business systems analyst and consultant. Author of "System Busters: How to Stop Them in Your Business" and recipient of an InterTech Technology Award for the design and development of System100 business process management software. Beyer speaks to business owners across the country on how to bring lean, sustainable order to their businesses. Contact him at (615) 425-2652.