Friday, September 14, 2007

How Can We Implement Operational Excellence Without Alienating Our Work Force?

Implementing operational excellence frequently equates with reducing operating costs. In most manufacturing environments reducing costs means reducing labor costs since "people" costs are typically a significant percentage of overall plant costs. We think a great effort to reduce "people" costs includes the following elements:

- Terminate poor and marginal performing employees.
- Do not replace workers lost through resignations, retirement, etc.
- Reduce or eliminate contract labor. Use current employees even when retraining s required.
- Reduce or eliminate overtime - a smaller paycheck s better than no job!
- Accept and incent voluntary reductions in work force.
- Aggressively reallocate employees for new or different jobs, even if retraining is required.

Please be advised that Synchronous has transformed our service offering to providing industry and operational excellence concepts and advice, but we are currently unable to provide on-site consultations or engage new clients. Current clients can continue to expect the same fully dedicated support and advice, but on limited hours of availability as we have already communicated to designated company contacts - usually the project manager. Thanks to all of our loyal and dedicated clients, who have allowed and honored us to be part of their transformation efforts...

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