Lifting profits in manufacturing
Manufacturing Money – How CEOs rapidly lift profits in manufacturing companies is a new book written by Jason Furness and Michael McLean of Hunter Company ‘Manufacturship’. The book is aimed at CEOs and Senior Managers in Manufacturing and Industrial companies who are under pressure to increase their firm’s growth and profitability.
There are seven key points in the book that apply to all of these businesses
1. You are a marketing company that makes things, not a manufacturing business that dabbles in marketing. Many manufacturers have incredible technical skills that are hidden away from the world. Recognising the need for effective marketing is essential to avoid being the ‘World’s Best Kept Secret’
2. There is one ‘weakest link’ that constricts your cash flow, all effort must focus there. Enterprise wide solutions are a common way to waste money and dilute precious management capacity. Focus is key.
3. Methodology solutions, Lean, TQM, Six Sigma, are not enough, and ‘template’ solutions fail. Each business is unique and requires a unique solution. These solutions must develop using the existing business resources and building on them, not imposing a new piece of software or methodology
4. Shorter lead times, more customisation, higher quality, and reduced cost can be achieved simultaneously. Markets are more and more demanding, every customer wants something a little bit different. Being world class in lead time, cost structure, and in product offerings is a highly effective form of differentiation and profit creation
5. The factory should be part of your competitive advantage, not a disadvantage. The purpose of a factory is to make Sales & Marketing look good by giving such a compelling offer that the products sell themselves
6. Innovation with a commercial focus is key. Everyone must relate back to improving the life of a customer in a commercially sensible fashion. Other activities are just indulgences.
7. Growth opportunities into Asia and within Australia are huge! Manufacturers who are globally competitive can thrive. 50% of global GDP will be from Asia by 2025. Australia’s population will grow from 24 million to 28 million by 2025.
There is no lack of opportunity.