{"id":1222,"date":"2021-12-23T15:01:17","date_gmt":"2021-12-23T15:01:17","guid":{"rendered":"https:\/\/www.degencpa-titan.com\/test\/?p=1222"},"modified":"2021-12-23T15:01:23","modified_gmt":"2021-12-23T15:01:23","slug":"reduce-labor-costs-by-30-in-90-days","status":"publish","type":"post","link":"https:\/\/www.degencpa-titan.com\/test\/reduce-labor-costs-by-30-in-90-days\/","title":{"rendered":"Reduce Labor Costs by 30% in 90 Days"},"content":{"rendered":"

 <\/p>\n

For many Manufacturing, Trades and Tech Companies labor is the single largest expense item in their operation. Labor costs are often the difference between profit and loss and the quality of life the business owner will enjoy.\u00a0 Here we talk about some ways to reduce labor costs.<\/span><\/p>\n

 <\/p>\n

First, it is absolutely imperative that labor costs are tracked to the point of micro-managing.\u00a0 Without information it is impossible to make \u201cinformed\u201d business decisions.<\/span><\/p>\n

So how can you reduce labor costs by 30% in 90 days?\u00a0 By reviewing all process and looking for unnecessary steps.\u00a0 I am reminded of a situation where I was reviewing a plant with about 35 production personnel.\u00a0 I stood one day and watched how the product was moved through the facility and noticed that product was moved from one spot to another, to only be moved again a short time later \u2013 a couple times. \u00a0I asked the shift supervisor why this was being done. His answer was, \u201cthat\u2019s the way we have always done it\u201d.\u00a0 I asked him to let me know what the impact would be if we removed the steps from the process.<\/span><\/p>\n

 <\/p>\n

A couple days later the shift supervisor came to me and said \u201cwe can reduce our labor cost by 30% without losing any throughput.\u00a0 I have to be honest; I was a little surprised as I only expected to see a 10 \u2013 15% reduction.\u00a0 This example may be a little unusual, but the lesson remains.\u00a0 What unnecessary processes are in your operations? Here are a few tips to get you started.<\/span><\/p>\n

 <\/p>\n

    \n
  1. Breakdown your processes into every minute step.\u00a0 For each step ask yourself \u201cwhat value does this step add to the process?\u201d and \u201cwhat would happen if we removed it?\u201d Keep removing unnecessary steps until the operation is a lean as possible.<\/span><\/li>\n<\/ol>\n
      \n
    1. Be prepared to kill \u201csacrificial cows\u201d.\u00a0 Don\u2019t accept answers like \u201cthat\u2019s the way we have always done it\u201d.\u00a0 You will be amazed at how many people always questioned the traditional methods but just didn\u2019t bother saying anything.<\/span><\/li>\n<\/ol>\n
        \n
      1. Create expectations. Unless there are external expectations placed on us it is natural to work within our \u201ccomfort zone\u201d leaving unused productivity. \u00a0By establishing productivity expectations you will challenge your team to rise to the occasion and you may be pleasantly surprised by the results.<\/span><\/li>\n<\/ol>\n
          \n
        1. Get Out There! Do a ride along with your Techs or walk the shop floor. Keep an open mind. You may notice things that will shock and surprise you.<\/span>\u00a0<\/em><\/li>\n<\/ol>\n

           <\/p>\n

          Running a business is like working on your golf swing or your slap shot.\u00a0 It will never be perfect but if you keep finding ways to improve it every day you will be able to look back and see the significant progress you have made.<\/em><\/span><\/p>\n

           <\/p>\n

          ***<\/p>\n","protected":false},"excerpt":{"rendered":"

            For many Manufacturing, Trades and Tech Companies labor is the single largest expense item in their operation. Labor costs are often the difference between profit and loss and the quality of life the business owner will enjoy.\u00a0 Here we talk about some ways to reduce labor costs.   First, it is absolutely imperative that<\/p>\n","protected":false},"author":2,"featured_media":1221,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44,59,3,60],"tags":[],"yoast_head":"\nReduce Labor Costs by 30% in 90 Days<\/title>\n<meta name=\"description\" content=\"For Manufacturing, Trades and Tech Companies, labor is the single largest expense item in their operation. Labor costs are often the difference between profit, loss, and the quality-of-life business owners enjoy.\u00a0 Without information it is impossible to make \u201cinformed\u201d business decisions. Reduce Labor Costs by 30% in 90 Days.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.degencpa-titan.com\/test\/reduce-labor-costs-by-30-in-90-days\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reduce Labor Costs by 30% in 90 Days\" \/>\n<meta property=\"og:description\" content=\"For Manufacturing, Trades and Tech Companies, labor is the single largest expense item in their operation. Labor costs are often the difference between profit, loss, and the quality-of-life business owners enjoy.\u00a0 Without information it is impossible to make \u201cinformed\u201d business decisions. 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