26 May

Manage Waste Through Velocity and Give Yourself the Time and Profit You Want

Managing Waste is done through a process called Velocity.  Most often this involves Materials you use and keep in your inventory.  However, you can also experience waste in Machines or Equipment, Manpower, or your actual workplace design.

Materials and Inventory that are not at the right place at the right time in the right amounts affect Velocity.  When Inventory must travel long distances to get to the point of use or the user must wait for additional materials to round out the needs of the job, this delay and wait time is wasteful.

This could be as simple as an ink cartridge for a copier. What is the actual cost per Man Minute for a person to fetch a $20.00 ink cartridge that is in a cabinet 1,200 feet away round trip?  If an average adult  walks 400 feet per minute and every minute costs $1.80, you may add another $5.40 to the cartridge.

 Now the cartridge becomes a $25.00 item. If you multiply every little task in a day by the non-value added space and time it takes to accomplish and you have a pretty nice little amount of money being thrown out the window. Now, some new jobs comes in and rather than looking at where you can be more efficient with the same people, you keep the waste in place, and hire another person which loses even more money.

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19 May

Cost Containment Equals More Profit

Velocity Management in a Business is very easily a full-time job because Velocity concentrates on Cost Containment for the entire company so that as more jobs are taken on, and more are getting out the door quickly, on time to meet Customer demand, without more expense.

The goal of Velocity is the process of producing more Production at better Value for the Same Cost. Velocity is about Cost Containment.

We will be talking about  Velocity Management using LARGE examples to make obvious points beginning with manufacturing. However, Velocity applies to every single company on the planet. A day care center, a barber shop, a video company, An Accountant or law firm.

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