Friday 22 August 08 - 01:19
 

For example, in the rush to satisfy customer demand and fulfil orders, continuous improvement can be put to one side or pushed down the agenda. This relays a bad signal to the workforce who may have committed themselves to the value of continuous improvement in the workplace. Another pitfall can be the route of response to increased demand. Companies can focus on increasing output but ignore the impact of additional labour and resources resulting in less operational profit.

So, consider the increase in demand as an opportunity to enhance productivity by embracing continuous improvement. Instead of getting extra labour in, this is a golden opportunity to see what the workforce they can do to deliver more from the same. A good old-fashioned finance-controller adage goes: ‘When output is falling, fixed costs should become variable but when output is rising, variable costs should become fixed.’

www.swmas.co.uk

Stevens Rowsell is a specialist precision sheet metal engineering company in East Sussex