building quality first to meet customer schedules. The new focus required that employees spend95% of their time on the activities that customers valued – a quality product within schedule.
A distribution and warehousing client improved truck throughput by nearly 35% when itrequired its employees to use 90% of their time building truck loads rather than searching for merchandise with the highest selling prices to load first. Excessive overtime costs, truck waitingtimes, and late delivery penalties were immediately eliminated, while revenue miles drivenincreased by 27%.
A department store client improved its gross profit sales per square foot by 37% over a sixtyday period when it correctly identified the 20% of its merchandise that had the highest gross profit levels. The store allocated additional selling space to this merchandise, and increased itsinvestments in advertising and employee training.
An extrusion manufacturing client reduced machine breakdown by 65% and improved plant productivity and quality by 35% by focusing employees' attention on machine running timerather than machine speed. As a result, machine breakdowns became infrequent and overtimeshifts were eliminated to the delight of the employees. Productivity soared and the companychanged its mind deciding not to purchase additional liens to keep up with productivity. Thissaved several thousands of dollars while productivity improved.The problem solving platform is built off of the 80/20 rule, which indicates that 80% of business valuecomes from 20% of the activities of customers, employees, business focus, and customers. Theremaining 80% of input produces a mere 20% of business value. The approach detailed in this book requires businesses to find the right 20% of inputs and focus on them like a laser pointer. Thismaximizes and expands the 80% output set of factors.You're not only going to learn theory, you're going to learn application by learning what the bestcompanies do to become and stay the best. You will have everything you need in order to build alasting organization such as the following:
Tools to stress test your business – This will assist you in better reading your operational andfinancial strengths
Tools to analyze the financial costs of operations – This will highlight your company's best andworst performances, automatically laying out the best cost, profit, and expense strategies.
Tools to help you evaluate the effectiveness of management – This will focus you on the secretsof the best companies out there today.
Tools for developing cash flow statements – This will help you with break-even and overheadanalysis, inventory calculations, pricing and employee incentive systems. This includes specificsystems to help manage retail, service, distribution, and manufacturing companies.
Case studies – This will provide invaluable insights, effectively bringing focus on general areasof weakness while peering into what you can expect in your business.
Special access – You will have access to all of the best online financial tools, calculators,systems, and efficiency tools.Your typical problem-solving professional will spend a disproportionate amount of time working on problems that make noise, but that do not add a shred of value. This new approach focuses almostexclusively on solving problems that will contribute the most business value using the 20/80 rule,which creates approximately 80% of continuing business value in organizations as follows:
A retail business solves and focuses on problems of: