One of the greats at this was a guy named Deming. I was reading an article by him. One of the stories he related was being hired by a clothing company to find out why they were losing money and production was always stalled. Mr. Deming spoke to the employees and found the problem to be cheap thread. He charged the company big time for information they could have got for free.
I once worked for a printing company that, when a new investor took over as the owner, actually tried hiring an efficiency expert to improve our production. Unfortunately neither the new boss, nor the expert knew anything about how the machinery worked (such things as why it takes a crew of 5 people to operate one of the bigger machines, or why it requires an extra 30 minutes per press per job, if jobs are grouped by size [ie. envelopes vs letterhead / forms vs greeting cards …] as opposed to grouping by the colors being run. After paying the so called expert’s fees PLUS the down time of approximately 2 hours per employee, and the resulting overtime to get us back on schedule it wound up costing the new boss almost $20,000 for the week.
So, about $20 “saved” a week? And how much extra time will be spent per week on compliance with these new ideas? Depending on who’s doing the work, an hour or two could cost more in payroll than they’re saving elsewhere. No, even in 20 years, they won’t be thanking her.
There’s a reason why amounts like this are called “immaterial” for businesses. It isn’t worth the cost to chase down that kind of savings. Not to mention the very real effect that employee morale has on both expenses and revenue. My math degree is always telling me that I need to be precise, but my accounting job forces me to recognize that it’s sometimes a terrible idea.
If management really wants to improve performance then get the managers to find their laziest person that completes their jobs and hangs around bothering others. If his work is completed correctly then copy what he/she is doing and have everyone do the same. If not then get rid of him and save money either way.
I’ve dealt with those before. Sometimes they have no expertise in the company’s business and of course are sent by the auspices of a corporate climber (out of touch with reality completely) looking to find something to justify their own corporate existence. Who knows maybe get a “feather in their cap”. Of course if the audit doesn’t effective, it has to be pushed through to avoid a “black eye”. Excuse my cynicism. I’m retired now and have earned the right.
Efficiency expert Frank Bunker Gilbreth filmed his own tonsillectomy to find how surgery could be made more efficient! (See “Cheaper by the Dozen” by Frank Gilbreth Jr. and Ernestine Gilbreth Carey)
Adiraiju almost 7 years ago
$11,500 for a week’s work? Must look into this…
Lee Cox almost 7 years ago
Actually, Roger wouldn’t be paying her bill — his boss would!
awgiedawgie Premium Member almost 7 years ago
Well, that answers my question from yesterday.
NeedaChuckle Premium Member almost 7 years ago
One of the greats at this was a guy named Deming. I was reading an article by him. One of the stories he related was being hired by a clothing company to find out why they were losing money and production was always stalled. Mr. Deming spoke to the employees and found the problem to be cheap thread. He charged the company big time for information they could have got for free.
h.v.greenman almost 7 years ago
I once worked for a printing company that, when a new investor took over as the owner, actually tried hiring an efficiency expert to improve our production. Unfortunately neither the new boss, nor the expert knew anything about how the machinery worked (such things as why it takes a crew of 5 people to operate one of the bigger machines, or why it requires an extra 30 minutes per press per job, if jobs are grouped by size [ie. envelopes vs letterhead / forms vs greeting cards …] as opposed to grouping by the colors being run. After paying the so called expert’s fees PLUS the down time of approximately 2 hours per employee, and the resulting overtime to get us back on schedule it wound up costing the new boss almost $20,000 for the week.
Knitterknerd almost 7 years ago
So, about $20 “saved” a week? And how much extra time will be spent per week on compliance with these new ideas? Depending on who’s doing the work, an hour or two could cost more in payroll than they’re saving elsewhere. No, even in 20 years, they won’t be thanking her.
There’s a reason why amounts like this are called “immaterial” for businesses. It isn’t worth the cost to chase down that kind of savings. Not to mention the very real effect that employee morale has on both expenses and revenue. My math degree is always telling me that I need to be precise, but my accounting job forces me to recognize that it’s sometimes a terrible idea.
SpacedInvader Premium Member almost 7 years ago
If management really wants to improve performance then get the managers to find their laziest person that completes their jobs and hangs around bothering others. If his work is completed correctly then copy what he/she is doing and have everyone do the same. If not then get rid of him and save money either way.
Bob. almost 7 years ago
Not even three bucks a day. Put in a company owned vending machine.
alangwatkins almost 7 years ago
I’ve dealt with those before. Sometimes they have no expertise in the company’s business and of course are sent by the auspices of a corporate climber (out of touch with reality completely) looking to find something to justify their own corporate existence. Who knows maybe get a “feather in their cap”. Of course if the audit doesn’t effective, it has to be pushed through to avoid a “black eye”. Excuse my cynicism. I’m retired now and have earned the right.
JP Steve Premium Member almost 7 years ago
Efficiency expert Frank Bunker Gilbreth filmed his own tonsillectomy to find how surgery could be made more efficient! (See “Cheaper by the Dozen” by Frank Gilbreth Jr. and Ernestine Gilbreth Carey)