Let’s consider two perspectives when analyzing the physical plant that contains your business. Those two perspectives are location and contents.

LOCATION

The old real estate maxim has a lot of weight when considering your business. The three most important elements to consider are Location, Location and Location.

Is the location of your building(s) best suited for the customers you serve?

Do they know where you are and can they get to you?

Can your employees serve your present and future customers from the location you have selected?

If visibility is important for your company, can you be easily be seen and remembered as people pass by?

If the answer to any of the four questions is “no” you might consider relocation as a solution.

CONTENTS

The function of each element of the business helps to define the requirements for the form the structure takes. The interaction among departments in a business helps to determine the location within the four walls for each department.

Asking those who are involved with the situation their opinions as to how best to arrange the space is a most effective approach.

At Gabrilson Heating in Davenport, IA Tom Gabrilson decided to get the employees involved in planning the layout of the shop.

Plastic covered blueprints of the warehouse/ shop were posted on the wall. Employees could draw their suggestions on one of the blueprints and the other blueprint was used to present ideas to be implemented. After several months of drawing and decisions a final layout was adopted. Tom believes that this method got better results than if he had used an architect or an engineer.

In one company a plan for reorganizing the shop was submitted not on paper but on a piece of sheet metal cut in the shape of the space and drawings of machines was indicated with a blue magic marker.

Dominic Volpone of the H.J. Ziegler Company, in Ashtabula, OH. spent over a year researching the best arrangement for the space in his new building. He asked for and received the input of employees, staff and vendors involved in all areas of his business. The final outcome resulted in one of the most functional buildings we have witnessed.

If your business includes vehicles that are used for service, installation, delivery of your product or service they should be included in the scope of Physical Plant.

The arrangement of contents of vehicles should receive the same focus of organization and planning that traditional building space receives. They are seen as a representation of your company from the inside the outside and are one of the most powerful marketing tools provided you can own.

Next: Management – Final Accountability

In the past 21 years Business Navigators has worked in over 37 different industries and while the first four divisions of business do have very strong similarities at the first blush the fifth division, Production, would seem to be radically different

The product that a governmental agency “Children’s Services” provides would seem to be quite intangible while the product of a manufacturing plant certainly could be more easily weighted and measured.

Product that is installed or delivered might be counted by statistical means, but how can “Children’s Services” enumerate their production?

in every business I have encountered for the ultimate success of the business, counting production must take place.

Some of the assets, which incorporate all production, are: People, Time, Materials (raw or finished), dollars and quality.

PEOPLE

Measurement of people can include:

• How often do they miss or attend work?
• How many times does their work need to be redone?
• Is their attitude toward what they do positive?
• Have they added ideas or actions, which improved production

TIME

Evaluation of time can focus on:

• Is the time allocated to a part of all of production sufficient to allow the work to be completed? Should more time be allotted?
• Can the time be reduced without losing quality?

MATERIALS

Counting of materials can be directed toward:

• Do we have a sufficient supply of materials to complete the work anticipated?
• Can we reduce the amount of inventory without losing production?

DOLLARS

The observation of money needed for production could concentrate on:

• Will our current cash flow provide us with the revenue needed to support both Cost of Sale and Overhead requirements?
• Do we have resources outside of current and anticipated revenue?

QUALITY

The assessment of quality conditions might include:

• Are our quality standards clearly defined and are they measurable?
• Is the impact of decisions made in the other six areas supporting our quality standards?

The simple questions I have recounted will have an impact on the types and methods used in counting production.

Production is what you sell and your focus on measuring company success has to include this element. Counting Production will guide you toward success. Ignoring it will help failure.

Next: Physical Plant Also Counts