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AdviCoach Helps Screen Printing Business Save $70,000 Each Year?
Overview• Efficiency is vital when it comes to running and growing a
profitable business and it can often be very difficult to pinpoint the root of the problem. • A screen printing business in Ohio had an undiagnosed efficiency
problem and was looking for the root of the problem once they realized there was a way to maximize efforts to succeed.
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Overview• Larry Lamphier, AdviCoach business coach in North East, Ohio
was contacted by the owner of this screen printing company after he discovered a productivity issue.• Although his business was bringing in $1 million in sales each
year and grew from a home-based operation to a 25,000 sq. ft. building with 35 employees and 7 printing lines, his business’ labor costs were 17 percent higher than the industry’s average.
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The Problem• Historically for the screen printing business, each production
line was organized in teams of 2-to-4 people, depending upon machine size and capacity. Team leaders were given the responsibility to organize and run production efficiently at their machines.
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The Problem
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• However, Lamphier soon discovered that the owner wasn’t effectively delegating tasks, and instead was micromanaging. The owner of the screen printing business spent 70 percent of his time providing detailed instructions to the team leaders demonstrating how each order was to be run and describing every detail. It was a classic case of not delegating responsibilities.
The Solution
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• Lamphier’s observation period was conducted hand-in-hand with the owner, discussing the observation openly, candidly and occurred in real-time. When it came time to make recommendations and suggestions, Lamphier and the owner decided to implement a methodical approach, providing the Team Leaders with empowerment and the authority to make decisions.
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The Plan
• Step 1: Detail all order information in a job order sheet by inside sales and order entry people. Included on the job order was a bill of the necessary materials to complete the order, (shirt required, inks required, art required, etc.)• Step 2: Allow the Team Leaders to pull the shop orders as
delivery times and work load demanded. Team leaders arranged for shirt inventories, inks, etc. to fill the orders to be delivered to the machines.• Step 3: Weekly team meeting were implemented and allowed
open communication among employees.
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The Results• After 90 days working with the new system, the conversion
was complete. After eliminating his micromanaging habit and learning to delegate, the owner found that Lamphier had helped him free up half of his day to work “On” the business rather than “In” the business.
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The Results
• Production rates went up 33 percent because the presses were working faster. However, with this increased efficiency, the business had to hire three more material handlers to keep up with the increased productivity. As a result, labor cost went down 7 percent, totaling $70,000 savings per year.
Contact AdviCoach Today
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• If you would like to learn more about how you can lead by example, contact an AdviCoach small business coach today http://www.advicoach.com/contact-us.aspx.
