Survival Tactics: Chapter 27
Boosting productivity:In the last post we explored options for increasing profits. All things being equal, the only way to boost profits is to increase productivity. Hiring more people to increase production is not really the answer. If the bottom line ( net profits) remain the same increasing the work force is a moot point.
How to increase production:
This is the easiest and yet the most difficult decision a plant owner has to make. The difficult part is the owner's mind set. A converting plant will not give any thought to hiring an additional salesman or hiring additional machine operators. An accounting analysis relating to additional man power has already been addressed in the last post.
However, when it comes time to make the decision to buy a new piece of equipment, often times the decision makers tie themselves up into knots. This process need not be too difficult, if a little research is done in advance.
The only way to increase productivity in a converting plant is to have the right machines for the job at hand.
This is where the nightmares begin. The plant workers resent any kind of change. They have grown used to doing things the old fashioned way. There is a pecking order that is well established in the plant. Any change in operating procedures will be fought tooth and nail. Iam sure you all know the routine. Pretty soon the union gets involved and threats of strike may be in the air.
Taking our example from the previous posts, it takes the master lathe operator 15 minutes to sharpen a drill bit. A fully automated drill sharpening machine can sharpen the same drill bit in 15 seconds. Plus it is safer, faster and idiot proof. Anyone can be taught to sharpen drill bits in less than 15 minutes. In addition the drill bits are sharpened perfectly, everytime. This indeed is a sore point of contention for the old master lathe operator. He feels impotent. He feels threatened. His job is on the line.
Every converting plant owner should be well aware of this fact. If the plant owner is not aware of this fact, then he is doomed to mediocrity. In most third world countries any automation is highly resisted. Since automation means reduction in jobs, the Governments will step in and actually ban the importation of such machinery.
This resistance to change is not a natural instinct but a force of habit. If you get up at 7a.m. every morning and suddenly the job calls for you getting up at 3a.m., this will make your whole life miserable. This state of misery will only last a few months, till your body acclimatises to this new routine. The same principle applies to getting new machinery. The operators dread this as this is akin to getting up at 3 in the morning. In addition there is the fear factor. The experienced operator feels like a total rookie. Yet this too shall pass.
So, the plant owner not only has to adjust to these new realities himself, but it is his job to make sure that the rest of the troops are with him. He has to lead the workers and assure them that there aren't any job or pay cuts in the works. The new machines will be faster and easier to operate.
