The Profit Equation
Has Changed

What You Need To Do RIGHT NOW To Eliminate Hidden Manufacturing Waste And Inefficiencies
To Stay Ahead Of The Competition

At one point in time the profit equation looked like this:

Cost + Profit = Price

It worked pretty nice. You simply added 'cost' to your desired 'profit' to calculate your asking 'price' (and people paid it!). Well, those days are long gone.

Today, the new profit equation looks more like this:

Price - Cost = Profit

The reality is the drastic increase in competition (and globalization) gives buyers more choices than ever before. The days of 'brand loyalty' and simple selling are over – today, the company with the best product (and the best price) wins.

As a result, the marketplace forces a 'price cap' – an upper limit buyers are willing to pay for your products. And the trend isn't likely to change anytime soon. So, with prices capped, the best way for you to increase 'profit' is – you guessed it – to CUT COSTS!

Depending upon how you look at it, this is good news or bad news.

It's bad news if decide to continue with business as usual. The chances of you remaining 'king of the hill' are slim to none.

So what's the good news?

The good news is you have the opportunity to capitalize on change – right NOW. This is your chance to look inwards and turn over every stone to find ways to eliminate waste and inefficiencies AND ways to build and deliver the best product possible to your customers.

What was just described to you is the essence of LEAN Manufacturing practices.

Keep reading ...

How Implementing Lean Manufacturing Practices Consistently
Produce ROI Results of 5:1 to 7:1

If spending $100,000, in turn, saved you $700,000 over a year, you would make that investment every time, wouldn't you? Of course you would. That's a return on investment of 7:1.

And, if spending the same $100,000 also created a safer, cleaner, more productive, and satisfying place to work – that makes things better for everyone at your company.

Well, such results are VERY possible. See for yourself – here are just a few examples of REAL results our company, Leadership Excellence International, Inc., produced for REAL companies that implemented LeanPlus™ Manufacturing practices:

CASE STUDY #1: AVIATION PARTS MANUFACTURER , USA

February - December, 2003: LEAN Manufacturing Training & Mentoring/Coaching LeanPlus™ provided: 2-Day Executive Lean Training 5-Day LEAN Implementer's Course Rapid Improvement Process An aviation parts manufacturer who provides parts for Boeing and Lockheed Martin used training to start their culture change to Lean Manufacturing and immediately saw results. Their executives attended a 2-day class and 15 key managers attended a 5-day class to start their Lean manufacturing journey. Within two weeks after class, the following improvements were made: TUBE BENDING SHOP TEAM: 60% Reduction in Material Handling 15% Productivity Increase MANUFACTURING SUPPORT TEAM: Reduction of 29 miles of walking 60% Change-over Time Reduction CNC MACHINE SHOP TEAM: 75% Set-up Time Reduction 25% Machine Utilization Increase

THE RESULTS ...

$346,000 First Year Cost Reduction 5:1 Return On Investment Over $200,000 Second Year Savings

CASE STUDY #2: MEDICAL DEVICE MANUFACTURER , USA

November, 2004 - April, 2005: LEAN Manufacturing Training/Mentoring LeanPlus™ provided: 2-Day Executive LEAN Training 5-Day LEAN Implementer's Course Rapid Improvement Process A medical device manufacturer that needed to double production in the next 12 months wanted to remove roadblocks that were preventing smooth production flow and increase efficiency. LeanPlus facilitated eight (8) RIP events that provided a new layout and removal of hidden wastes after laying the ground work with training for the implementers and senior staff members: THREE KEY IMPROVEMENTS WERE: Work-in-progress was reduced by 80% Buffer stock reduced from 5 days to 1 day Overtime was reduced by $31,000

THE RESULTS ...

$237,000 Annual Operational Cost Savings Over $1 Million Employment Cost Savings (avoided need for 2nd shift of labor) 12:1 Return On Investment

CASE STUDY #3: HEAVY EQUIPMENT MANUFACTURER , INDIA

June, 2005 – December, 2006: LEAN Manufacturing Training/Mentoring LeanPlus™ provided: 2-Day Executive LEAN Training 6-month Certified LEAN Expert Training 3 Rapid Improvement Process (RIP) A heavy equipment machine manufacturing division that makes small quantity of large machines for global market sales needed to REDUCE CYCLE TIME to meet customer demand. LeanPlus™ facilitated a 5-day RIP event that provided a new layout and removed hidden waste.

THE RESULTS ...

Process cycle time reduced from 41 days to 29 days (29% reduction) 1st year savings of Rs 22 Lakhs and increased sales potential of Rs 2.56 Cs in 5 days

CASE STUDY #4: PHARMACEUTICAL MANUFACTURER , INDIA and SRI LANKA

August, 2001 – July, 2002: LEAN Sigma Training/Mentoring LeanPlus™ provided: 6-month Lean Expert Training Course 6 months of Mentoring/Coaching A pharmaceutical manufacturing company used Lean Manufacturing Practices and Six Sigma techniques to: Reduce scrap/waste from 6% to 1.5% Savings was equal to 5.7% of their annual sales after just 9 months More than 14 "just-do-it" projects identified and implemented by shop floor personnel   September, 2001 – June, 2002 LEAN Sigma Mentor/Coach A nutritional food supplement manufacturing company used Lean Manufacturing Practices and Six Sigma techniques to change their layout and improved processes.

THE RESULTS ...

5.7% production increase Savings was equal to 6.1% of their annual sales after just 9 months

CASE STUDY #5: TITANIUM PARTS MANUFACTURER , RUSSIA

October, 2004 - January, 2005: LEAN Manufacturing Mentoring/Coaching LeanPlus™ provided: 4-month Certified LEAN Manufacturing Expert Training 3 Rapid Improvement Process (RIP) A titanium parts manufacturer who provides parts for Boeing and Lockheed Martin aircraft, Rolls Royce and General Electric engines used training to start their culture change to Lean Manufacturing and immediately saw results. Their 6-person team identified production bottlenecks and then removed them. They wrote new operating procedures and trained the workers. Within 2 weeks following the RIP, these improvements were made: KEY IMPROVEMENTS WERE: Productivity increase 18% from 64 to 82% Change-over time reduced 83% from 30 minutes to 5 minutes

THE RESULTS ...

Value of 1st year increased production $3.3 million (USD) 300:1 Return On Investment

We can't guarantee these results every time, but they are typical. And keep in mind that Lean Manufacturing is NOT for everyone ...

Here's how you can determine if Lean Manufacturing is for you and your company:

• Do you want to simply be told what you want to hear?
• Do you just want a program that fills in the squares?
• Do you just want someone to walk around in fancy business suits and point out the obvious?
• Are you just going to ignore good advice and not take action?

If you answered “Yes” to any of these questions, then Lean Manufacturing is NOT for you and Leadership Excellence International, Inc. is NOT your lean manufacturing consultant or training company. You'll have to get help from someone else.

But, if you answered "Absolutely NO” to the above questions, then we can help you.

You see, we require YOU to make significant changes to how you run your operations. But the entire time, we roll our sleeves up, get dirty, and work WITH you to eliminate hidden waste and inefficiencies. And a successful change requires the understanding and acceptance at every level of the organization.

And you'll be glad to know that almost NEVER do we recommend you cut employees. No, more often than not, you have EXACTLY the team you need to make a change for the better.

Please, contact a LeanPlus™ professional right away – there is a lot more information about Lean Manufacturing practices and what we do for you to share with you. It's the first step to eliminate hidden manufacturing waste and inefficiencies and to turn your organization into a world-class operation.

Time is money. Don't delay.

» Contact A LeanPlus™ Professional