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Answer Upon - Understand What Flows Through Your Business to Find Improvement
Owning a trucking company or logistics company (freight brokerage) can be very profitable. At the same time, transportation companies tend to be cash hungry. There are fuel expenses, employee expenses, operator expenses, repair expenses and many other expenses that need to be paid quickly. However, most customers don’t offer quick-pays and usually pay their freight bills in 30 to 60 days.This creates a major challenge.
The final flow is time. Time is, of course, a factor in all the other flows. Since we can’t change time, rather than looking at how time flows; we need to see how the organization flows through time. How long does it take to accomplish things? Can the time be reduced? By reducing the time it takes to do our work, we reduce or eliminate the wasted things we do. E
"Manage more, supervise less." - Bryce's LawWhen I got into the work force back in the mid-1970's it seemed everyone dressed in a suit and tie, drank black coffee, smoked their brains out, and worked their butts off. Today, golf shirts have replaced suits, herbal tea and bottled water have replaced coffee, nobody is allowed to smoke, and rarely does anyone work beyond 5:00pm. More importantly, we used
The first flow is, of course, cash flow. This comes in two varieties, money coming into the organization, revenue, and money going out, expenses. Understanding cash flow is not as easy as it appears. Throughput accounting and Lean accounting are two methods some companies are using to try and get a better understanding of how cash flows through a business.
The second flow is the product or service flow. This starts with how the product or service is designed. The next step is how the product is built or the service delivered. How is the product or service used? Finally, what happens when the customer is done is the product discarded, recycled, or consumed.
How does information flow through the organization? How does it come into the company and how does it leave? How is it used in the organization, does it follow the work or pull the work forward? What types of feedback is received?
How does material flow in the company? If a product is built, how are the raw materials or parts brought to the point of assembly. For a service, how do the necessary information, materials, and people get to where they are needed?
How does the movement of the workers flow? Is the motion smooth or does it start and stop like rush hour traffic? Are there any wasted motions, like retrieving a paper file from a cabinet in another room or walking over to get a tool which is required for product assembly? Why is the tool at the point where it is needed? Why is the file located in a cabinet in another area?
Creative flow is important to understand. Creative energy, like any other kind of energy, can be harnessed and managed. Does a research and development department create everything and the rest of the people just do what they’re told? Or are all employees thinking about innovation, how to reduce costs, looking at safety issues, reducing wastes, and improving the environment. Are people developing skills to identify, articulate and communicate those kinds of things?
The final flow is time. Time is, of course, a factor in all the other flows. Since we can’t change time, rather than looking at how time flows; we need to see how the organization flows through time. How long does it take to accomplish things? Can the time be reduced? By reducing the time it takes to do our work, we reduce or eliminate the wasted things we do. El
A parasite is medically defined as an organism that lives on within another organism at the expense of the host. Bureaucracy is an administrative system, which places undue emphasis on adherence to complex procedures and inflexible rules of operation. It is an administration characterised by excessive red tape and routine. This impedes effective action, slows down decision-making and adds unnecessary layers of costs.
The second flow is the product or service flow. This starts with how the product or service is designed. The next step is how the product is built or the service delivered. How is the product or service used? Finally, what happens when the customer is done is the product discarded, recycled, or consumed.
How does information flow through the organization? How does it come into the company and how does it leave? How is it used in the organization, does it follow the work or pull the work forward? What types of feedback is received?
How does material flow in the company? If a product is built, how are the raw materials or parts brought to the point of assembly. For a service, how do the necessary information, materials, and people get to where they are needed?
How does the movement of the workers flow? Is the motion smooth or does it start and stop like rush hour traffic? Are there any wasted motions, like retrieving a paper file from a cabinet in another room or walking over to get a tool which is required for product assembly? Why is the tool at the point where it is needed? Why is the file located in a cabinet in another area?
Creative flow is important to understand. Creative energy, like any other kind of energy, can be harnessed and managed. Does a research and development department create everything and the rest of the people just do what they’re told? Or are all employees thinking about innovation, how to reduce costs, looking at safety issues, reducing wastes, and improving the environment. Are people developing skills to identify, articulate and communicate those kinds of things?
The final flow is time. Time is, of course, a factor in all the other flows. Since we can’t change time, rather than looking at how time flows; we need to see how the organization flows through time. How long does it take to accomplish things? Can the time be reduced? By reducing the time it takes to do our work, we reduce or eliminate the wasted things we do. E
ESOPs have become an effective tool in corporate finance and tax planning. Not only do they provide retirement benefits and incentives to employees but an ESOP can provide unique ways to transition company management in tax favored environments. An ESOP can even be used to increase cash flow or convert debt to a pre-tax environment.Why do we need to engage an outside party to value our ESOP shares?how does it leave? How is it used in the organization, does it follow the work or pull the work forward? What types of feedback is received?
How does material flow in the company? If a product is built, how are the raw materials or parts brought to the point of assembly. For a service, how do the necessary information, materials, and people get to where they are needed?
How does the movement of the workers flow? Is the motion smooth or does it start and stop like rush hour traffic? Are there any wasted motions, like retrieving a paper file from a cabinet in another room or walking over to get a tool which is required for product assembly? Why is the tool at the point where it is needed? Why is the file located in a cabinet in another area?
Creative flow is important to understand. Creative energy, like any other kind of energy, can be harnessed and managed. Does a research and development department create everything and the rest of the people just do what they’re told? Or are all employees thinking about innovation, how to reduce costs, looking at safety issues, reducing wastes, and improving the environment. Are people developing skills to identify, articulate and communicate those kinds of things?
The final flow is time. Time is, of course, a factor in all the other flows. Since we can’t change time, rather than looking at how time flows; we need to see how the organization flows through time. How long does it take to accomplish things? Can the time be reduced? By reducing the time it takes to do our work, we reduce or eliminate the wasted things we do. E
Issues such as team conflict or project delays are often directly attributable to people through not delivering, being unsupportive, hiding mistakes and so on. Issues that are not directly attributable to people (such as contract delays or high levels of snagging) are then put down to specification, structure, process, systems, tools, contract, politics, etc.But in each case, someone has designed, developed, maintained
Creative flow is important to understand. Creative energy, like any other kind of energy, can be harnessed and managed. Does a research and development department create everything and the rest of the people just do what they’re told? Or are all employees thinking about innovation, how to reduce costs, looking at safety issues, reducing wastes, and improving the environment. Are people developing skills to identify, articulate and communicate those kinds of things?
The final flow is time. Time is, of course, a factor in all the other flows. Since we can’t change time, rather than looking at how time flows; we need to see how the organization flows through time. How long does it take to accomplish things? Can the time be reduced? By reducing the time it takes to do our work, we reduce or eliminate the wasted things we do. E
1. Be on time. Despite what you may have heard about Southern European customs, Spaniards are punctual (at least as punctual as traffic snarls permit). If you arrive first, either wait in the bar or ask for the table that has been reserved.2. Lunch rarely starts before 2:30 p.m. Spain runs on a different schedule than the rest of Europe. Most Spaniards begin the day with a light continental breakfast on the way to work
The final flow is time. Time is, of course, a factor in all the other flows. Since we can’t change time, rather than looking at how time flows; we need to see how the organization flows through time. How long does it take to accomplish things? Can the time be reduced? By reducing the time it takes to do our work, we reduce or eliminate the wasted things we do. Eliminating wasted brings us closer and closer to excellence.
By observing the flows in our work, we can see where things run smoothly like a tranquil river. Bottlenecks in the workflow create turmoil, much like the rapids in a river.
“Oh, this ol’ river keeps on rollin’, though,
No matter what gets in the way and which way the wind does blow,
And as long as it does I’ll just sit here
And watch the river flow.”
- Bob Dylan (Watching The River Flow © 1971 by Big Sky Music)
Any process, any product, any service can be made better in some way, somehow. So observe and understand the flows of your organization, it will lead to improvement opportunities.
Copyright © 2005 Chuck Yorke - All Rights Reserved
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