In Part 1 of this series, we discussed the importance of growth. In 2014, it will be critical for Michigan’s manufacturers to focus on growth initiatives… developing or improving products, increasing productivity and competing in new markets.
Growth doesn’t come overnight, but it’s worth the investment. That’s why it’s so important to set the foundation for growth through benchmarking and planning.
Part 1 includes details about benchmarking, but to recap, benchmarking is the first step to growth. It boils down to this: if you don’t evaluate your specific strengths and weaknesses, you won’t know where to invest your resources. Furthermore, your evaluation must be backed up by specific metrics, not arbitrary feelings about your operations and organization.
Along with benchmarking, your business needs transformation planning. The goal of transformation planning is to outline the path your company needs to take in order to achieve growth. An organized plan is required to clearly define your journey to improved profitability.
However, many manufacturers may be hesitant to develop a strategic plan for growth; they may believe that growth initiatives will interrupt their productivity or involve too much investment in new machinery or products. MMTC has a Transformation Planner that can help.
The Transformation Planners provides insight into 9 key metric areas in comparison to other companies within your sector:
- Inventory Turns
- Scrap and Rework
- Premium Freight
- Days Receivables
- On-Time Delivery
- Machine Run Hours
- Schedule Bumping
- Employee Turnover
The Transformation Planner is beneficial because it enables manufacturers to estimate opportunities for growth that can occur with no additional investment in machinery or an increase in production hours. For more information, click here.
Next year will be an excellent year for growth…but only if you plan ahead and start making it a priority now. Focus on benchmarking and transformation planning in the near future so that you can hit the ground running with action items that will help you become more competitive and profitable!
Since 1991, MMTC has assisted Michigan’s small and medium-sized businesses compete and grow. Through personalized services fitted to meet the needs of clients, we develop more effective business leaders, drive product and process innovation, promote company-wide operational excellence and foster creative strategies for business growth and greater profitability. Find us at www.mmtc.org