IWF Education: What is slippage and how does it impact my bottom line?

31. March 2020 10:00


By: Marc Sanderson, Owner: INNERGY

We are all in business to make money. What we do determines if we fall short, meet or beat industry average profitability. It’s our actions, decisions and behaviors that define our organization’s performance. I regularly ask the following question when I speak before large, industry gatherings: “What would happen to your business’ profitability if you could consistently (a) release clean, complete shop drawings, (b) provide 4-6 week lead time, and (c) have all material ready in inventory awaiting production?” 65% of the industry responds that achieving this trifecta would cause profitability to more than double! What would you do to double your profitability?

Most of the industry focuses on the sawdust producing portion of the process. Production is viewed as the holy grail to incremental profitability and operational effectiveness.  And this belief makes sense given that ~90% of the capital employed is on machinery and production activities. 50-75% of our staffing is also on the shop floor and thus warrants managerial attention.  However, what prevents clean drawing, reasonable lead-times and raw material availability?  It’s not the shop floor. The factors that can double one’s profitability are defined prior to release, prior to sawdust production. Problems manifest themselves on the shop floor, but their genesis is in the office.  How do we think through and structure the office workflow towards the trifecta?

I am excited to be with you at IWF 2020 and grateful for the opportunity to present.  There are many things that impact and prevent us from achieving the conditions that would double our profitability.  The big questions I will address are, “What is slippage?” and “How does it impact my bottom line?”

Together, we will explore:

  • What slippage is
  • Both positive and negative examples of slippage
  • Causes of slippage in the architectural woodwork industry
  • Tools to impact slippage
  • How to reduce/prevent slippage
  • How to create your own Slippage Action Plan

I’m excited to be with you all and explore how we can mitigate slippage in our businesses during the "How Does Slippage 
Impact Your Margins?", session at IWF 2020.

 

Comments are closed