Embed Size (px)
DESCRIPTION
Citation preview
You’re About To Discover…
with Douglas Crumb Profits Maximization Expert
3 Proven Pathways to Profitability for
Competitive Manufacturers
Have you ever wondered…
what it would feel like to step into the board meeting with:
25% increase in production profits in one week?
50% of your floor space “freed up” on every production line?
70% your raw material and WIP inventory costs reduced on average?
Reduce lead-time from hours to minutes?
labor costs cut up to 80% in less than 9 weeks?
A plan to outrun your competition on a continuous basis?
How would your income and lifestyle change?
How many of you would like me to share with you …
A step-by-step program to cut production costs by 25%?
A blueprint to reduce floor space by 50%?
A roadmap to cut inventories costs by 70%?
A proven step-by-step guide to reduce up to 80% in labor cost in less
than 9 weeks?
Most common Pitfalls to avoid on the profitability forecast and
implementation program
You’re About To Discover…
How to reframe your operation efficiency to
provide your company with a competitive edge
How to Integrate and optimize the value stream
A strategic framework to shift your manufacturing
profits to the next level
Cutting edge strategies on how to outrun your
competition
A secret formula to create a profitability forecast
and its implementation roadmap
How this proven system works for any
manufacturing company
Profitability Road Map
● I promise you, today you will take
with you 3 proven Strategies to
grow your profits, that I have
successfully used for more than 28
years.
● Your desire for profitability will
determine whether you use 1 or
the 3 strategies at once.
Why Profits Maximization in Manufacturing Companies?
Increase Profits
Gain market share
Better & more competitive products
Free up resources to invest on innovation
Separate your products from the
competition
Gain an unfair advantage
The Time Is NOW!
Your Customer is depending on you to be
more competitive
Competition is already doing it
We are in a global economy, which means:
more competitors
Innovation & cost competitiveness are your
new currency
It might be your last WAKE UP CALL
Douglas Crumb
Helping manufacturers to maximize
profits for almost 30 years
Personally and successfully took
operations to Mexico
Author of “3 Proven Pathways to
Profitability for Competitive
Manufacturers” and founder of Profit
Leaders MFG
International Speaker & Coach
Millions of dollars in production costs
CUT.
My Story
• Green engineer directly from college.
• Experienced and survived a 2 year
union strike.
• Experienced single digit gross
margins.
• Felt the pain of a large customer
leaving and duplicating our product in
China.
• Traveled to China to understand who
and how they were beating me.
My Story
• Started utilizing China as a
supply source.
• Experienced long and costly
transport time.
• Experienced quality issues with
no recourse.
• Real Frustration.
• I despise losing, there had to be
a way to win at this game
Turning Point For Me
I traveled to Washington D.C.
with my mentor to complain to
our New York State Senators
regarding our largest customer
copying our design and funding
a manufacturing facility in
China. This was when we
decided to stop complaining
and agressively attack this
situation.
Profit Improvement
Develop a low cost offshore
option.
Maximize production by “leaning out”
current operations.
Develop high margin innovative new products that customers want.
Profitability Model
Multiple Solutions
Different Approaches
• Rome Cable: After replacing the union we implemented self directed work teams and developed a CIP culture.
• DHD Healthcare:
– We fired up the new product development engine with our Phase Gate approach to release multiple new products every year.
– We implemented a Lean cellular 1-Pc Flow approach to reduce lead-times literally from days to seconds.
• ConMed:
– Through Lean we completely turned around our manufacturing.
– We utilized American Industries to open doors to low cost manufacturing offshore to allow us to compete in any arena.
International Experience
Let’s Turn the Focus to YOU
Now that I’ve explained what I experienced and how I overcame these problems, I’d like to focus on the issues you are facing every day, and how we can help you turn your situation around quickly.
Challenges Most Companies Are Facing
Production Costs going UP
Employment costs & Health insurance is up
Flat Quality & Efficiency metrics
Global economy: Offshore customers &
Competition
Threats to Intellectual Property
Lack of straight forward roadmaps to
optimize profit
Don’t know where, when or how to start
PROFITS curve change
3 Proven Pathways to Profitability
Pathway 1: Create constant new
profit streams
Pathway 2: Implement Tactical
Lean Manufacturing
Pathway 3: Move through a Fast
Track Offshoring
It’s important to make a thorough assessment to determine which products you could innovate, which you need to lean out, and which ones
you need to offshore to maintain leadership and competitiveness in the market.
3 Proven Pathways to Profitability
Pathway 1: Create constant new
profit streams
Pathway 2: Implement Tactical
Lean Manufacturing
Pathway 3: Move through a Fast
track Offshoring
Pathway 1: Create constant new profit streams: New Product Development
How would your company benefit if…
● You were recognized as the cutting edge new product provider in your market?
● Your product gross margins remained at or above your “sweet spot” ?
● You would have A pipeline of new product releases ON TIME and ON BUDGET?
● Your products were new and innovative with solid IP protection?
● Your competitors were always a step short?
Would any of this be of value to you?
5 Phase Gate Design System
Common Pitfalls
● Manufacturing a product that will not sell or with a lot of competition
● Weak supplier selection = back order and often times quality problems.
● Patent infringement law suits or inadequate protection
● Insufficient regulatory compliance/approval.
● Design creep
● Weak validation
● Poor documentation of design requirements and documents.
● Lack of a regimented system
Learning what your customer really desires:
A vibratory positive pressure respiratory device for
mobilizing secretions, developed on physician’s
desire for a device that could simulate the actions
of the cilia in patient’s airway.
This was learned through direct contact with
numerous customers through VOC sessions and
focus groups.
Needless to say this product has been a wild
success!
On the flip side:
I knew of a an organization that thought they
knew what the customer desired, rather than
asking:
–Complaints of patient discomfort
–Complaints of product not performing
correctly
–Competitor Infringement suit
–Eventual market removal
You really can avoid these costly pitfalls!
It's Your Money
● Develop the right product
● The system forces you to ask
the customer what they need
and then you leave them
waiting for you to deliver
● Why not do it on-time and
within budget and avoid the
pitfalls?
“people will start buying what you are
selling the moment you start selling what they
are buying!”
3 Proven Pathways to Profitability
Pathway 1: Create constant new
profit streams
Pathway 2: Implement Tactical
Lean Manufacturing
Pathway 3: Move through a Fast
track Offshoring
Pathway 2: Lean Manufacturing
How would your company benefit if …
● You could improve productivity on any product line by 25% in one week?
● you could free up 50% of your floor space on every production line?
● You could reduce by 70% your raw material and WIP inventory costs on average?
● You could reduce lead-time from hours to seconds or minutes?
● You could gather immediate attention of a processing defect at time of occurrence?
Key Disciplines: • Kaizen 5 day approach • 5 Ss • Value Stream Mapping • Flow Manufacturing
Lean Disciplines
● KANBAN – JIT Product line
replenishment by water spider, only
enough to meet Takt time.
● SMED - Single Minute Exchange of Dies.
● Visual Shop Floor: production center
performance hourly tracking
• One Piece Flow: Established to produce to the Takt time, Eliminates “batching” ( “Pull” methodology)
• Andon: Simple visible indication of product line status that sets the tone that production is the engine and we are the “pit crew”.
Waste vs. Value-Added
● Waiting (Man or Machine)
● Transportation
● Over Processing
● Over Production
● Excess Motion
● Inventory
● Poor Quality/Rework
Value Stream Map
A Real Spaghetti Diagram - Illustrating waste and redundant movement
5S - Your Choice!
Big Mess Storage
5S Storage
Kaizen Added Benefits:
● With one past employer I was responsible for a large engineering team where engineers worked on projects while production and maintenance were responsible for manufacturing.
● Once we transformed to the Kaizen culture, production became the engine and engineering, maintenance, quality, and materials became the support groups that kept the engine running smoothly.
● We accomplished this through……………..
Kaizen Culture
• Cross functional Kaizen teams working hand in hand.
• Morning “walk- throughs”.
• Andon System Notification.
• Line side cubicles.
3 Proven Pathways to Profitability
Pathway 1: Create constant new
profit streams
Pathway 2: Implement Tactical
Lean Manufacturing
Pathway 3: Move through a Fast
track Offshoring
Pathway 3: Three Steps to fast track your production lines to an offshore location
Step 1: Strategic Site Selection:
customer location, supply base,
community and real estate
Step 2: Materials, logistics &
excellent skilled labor
Step 3: Fast track, risk-free start
up in 9 weeks
Security Risks
Legal Complexities & Intellectual Property
Exchange rate risk
Pioneering vs. Leverage in an Offshore
location.
Currently established industry & Supply Chain
Industry Associations, Industrial Parks and
Infrastructure
University , Academic Infrastructure, Research
and Development
Industrial Real Estate & Utilities: leasing vs.
buying
Step 1: Strategic Site Selection
Step 2: Materials, Logistics & Labor
Supply Base: Who, What, Where Importation and exportation of
raw materials Free trade agreements Inventory: Constraints, Concerns, Solutions Logistics: accessibility & transportation Warehousing Labor: Skilled/Unskilled - Costs & Trends Productivity & Quality Indicators Union vs. Non-union: what to expect Engineering & Technical skills available Time Zone difference in a global market Bringing Expatriates Environmental, Health and Safety (Mexico’s OSHA Laws)
Step 3: Fast track, risk-free start up operations in Mexico in 9 weeks
How to get the best clock hour operation cost
Starting up without a legal entity in Mexico
Setting up the operation to SAVE on taxes: NO
VAT and NO INCOME TAX
Getting all the government permits to start up
Finding skilled labor for your operation
Importing all equipment & machinery
Setting up customs paperwork to save on raw
materials tariffs (taking advantage of Mexico’s
44 Free Trade Agreements)
I Did It and So Can YOU!
A Custom MFG facility designed and constructed to our needs within 8 months!
February 2008 September 2008
Ribbon Cutting with the Governor Nov 6, 2008
Production Begins Oct 2008
Will YOU Be My Next Success Story?
At Profit Leaders MFG we are on a Mission:
To help 10,000 Manufacturers to increase their PROFITABILITY
through our PROVEN PATHWAYS
Our Philosophy: once one becomes successful, he has the moral
obligation to help others walk the same road
When you work with Profit Leaders MFG, you will:
● Learn how to develop a product all
the way from concept to market
release.
● Get a vehicle for filling your new
product pipeline (Your own personal
HEN!)
● Learn a system that forces
communication and ensures timely
completion and budget control.
● How to Meet FDA & ISO regulations
with your new products
● Get the actual templates and Ebooks
for completing each action item
● Learn the 7 Wastes that plague
every manufacturer and how to
remove them.
● Ingrain a Kaizen culture, replacing
“status quo” with measurable
continuous improvement.
● “Can do” production environment
● Learn how to prepare production
lines, and your company, to offshore
operations to a low cost region
● Learn how to start up in Mexico in
less than 9 weeks, RISK FREE
When you work with Profit Leaders MFG, you will:
Approach
● Your time is valuable, so is ours.
● You are pulled in multiple
directions.
● You don't have time for lengthy
theory.
● I have been in your shoes......I
wanted the fastest clear path to
results.
● These methods are all about
results, if you crave theory, this is
the wrong discussion.
• More Time
• Bigger profit margin
• A Competitive & Unfair Advantage
• More Business Flexibility
• Reduced Production Cost
• “Done For You” Blueprints
Manufacturing Profits Blueprint
4 Week Online Academy Series
Week 1: Manufacturing
Profitability Blueprint
Week 2: Pathway 1 -New Product
Development
Week 3: Pathway 2- Lean
Manufacturing
Week 4: Pathway 3 - Offshore
Manufacturing
Manufacturing Profits Matrix
Product line profitability assessment
Market trends Analysis
Competitor Analysis
Supplier Analysis
Go to market strategies
Product line final strategies: which
ones to innovate, which ones to lean
out and which ones to offshore
Manufacturing Success Library
You will gain access to our exclusive
Manufacturing Success Library that
includes all the forms, templates,
contracts and more that you need to
begin the process of turning your
manufacturing plant into a PROFITS
CENTER while avoiding major pitfalls
during the process.
Manufacturing Profits Resource Rolodex
You will gain access to my personal
business rolodex which contains
information on the top resources I
use to grow manufacturing profits
with my customers.
Fast track your success by working
with people who know the
business
Jumpstart Offshore Comparison + Done-For-You Business Audit
Use our proven cost model to estimate the cost of
moving your business to Mexico
Determine the most cost effective region to land
your offshore operation
Utilize the comparison charts to determine the
right time to pull the trigger
Our team will analyze your current business and
find areas of hidden profit and more, all to save
you time and give you more flexibility within your
business
More Time, More Flexibility, More Profits Manufacturing System
4 Week Online Academy Series $8000
Week 1: Manufacturing Profitability Blueprint
Week 2: Pathway 1 -New Product Development
Week 3: Pathway 2- Lean Manufacturing
Week 4: Pathway 3 - Offshore Manufacturing
Manufacturing Profits Matrix $2000
Manufacturing Success Library $3000
Manufacturing Profits Resource Rolodex PRICELESS
Jumpstart Offshore Comparison + Business Audit $2000
Real World Value $15,000
Your Risk FREE Investment Only
$4,997
• [INSERT CERTIFICATE]
Take action now and try the complete
system for 30 days. If you aren’t
overwhelmed at how easy it is to do
this system simply send it back.
But I know once you begin,
you’ll see powerful opportunities.
My Personal 100% Iron-Clad
Money Back Guarantee
Personalized Offshore Blueprint
Have your full offshore plan laid out
for you
Discover if now is the right time for
you to make your offshore move
Visualize the numbers so you can
have a clear & precise plan of
action
Personalized for your business and
your success
More Time, More Flexibility, More Profits Manufacturing System
4 Week Online Academy Series $8000
Week 1: Manufacturing Profitability Blueprint
Week 2: Pathway 1 -New Product Development
Week 3: Pathway 2- Lean Manufacturing
Week 4: Pathway 3 - Offshore Manufacturing
Manufacturing Profits Matrix $2000
Manufacturing Success Library $3000
Manufacturing Profits Resource Rolodex PRICELESS
Jumpstart Offshore Comparison + Business Audit $2000
Personalized Offshore Blueprint $15000
Real World Value $30,000
Your Risk FREE Investment Only
$4,997
QUESTIONS?
Send us your comments and questions to
Or contact us at our US Number:
Sign up for our 3 Proven Pathways to Profitability Seminar at:
SIGN UP at: http://Seminar.ProfitLeadersMFG.com
Follow us:
Twitter: @Profitmfg
www.ProfitLeadersMFG.com
