Charts illustrating analysis for customer profitability

By Rob Tracy, Founder of Rob Tracy Consulting In a moment of frustration about lower-than-deserved profits, you may have uttered, “Let’s just fire our unprofitable customers!” While that may be overkill, the thought process has merit. All customers are not the same, and preferential treatment to the highest-value customers is warranted. In the 1980s, Illinois…

Read More
Typewriter

Welcome to Issue #2 of “The Manufacturing Leader”, a newsletter aimed at small and mid-size manufacturers.  The newsletter is 4 pages long, with 4 articles, and it will take about 10 minutes to read.  Click the link below, and it will pop open in a PDF reader. The Manufacturing Leader – November 2020 The newsletter…

Read More
Black sheep amid flock of white sheep

EOS®, the Entrepreneurial Operating System®, has become a popular system for entrepreneurial businesses. According to the EOS® Worldwide website, 80,000 companies have installed EOS®. For those considering EOS®, I recommend calling one of their professional implementers to learn more. However, I am reaching out to the people that are NOT choosing EOS®. Despite its popularity,…

Read More
Pencil sharpener

The situation A few weeks ago, a quote request arrived for a new product.  It had high volumes, and it was an excellent fit for your facility. You ran it through your estimating program, submitted your price, and then you got the dreaded call.  The buyer told you, “Your prices are double-digits too high.”.  You…

Read More
Typewriter

In October 2020, I published the inaugural issue of “The Manufacturing Leader”, a newsletter aimed at small and mid-size manufacturers.  The newsletter is 4 pages long, with 4 articles, and it will take about 10 minutes to read.  Click the link below, and it will pop open in a PDF reader. The Manufacturing Leader –…

Read More
Young Girl learning to ride a bike with Mom

I’m reading the book “You Can’t Teach a Kid to Ride a Bike at a Seminar” by David Sandler and David Mattison.  The book is mostly about sales, although I think it has lessons that extend beyond the selling profession.  At its core, the book is about the hard work of practice. I grew up…

Read More
Football play on chalkboard

It’s mid-October, and as I write this I’ve had an item on my to-do list for a month that says “Update 4th quarter plan”, and another that says, “Prepare 2021 plan”.  My brain tells me that I should do it, but I always seem to find something else that is supposedly more pressing to work…

Read More
Glasses calculator and phone on a messy desk

I hear it all the time.  We’re losing our tail on this product.  Should we kill it?  The question is well-intended, but often the analysis that leads to the answer is misguided.  Companies that rely on standard cost systems to understand product costs, which is the vast majority of manufacturers, can easily fall victim to…

Read More
Bla-bla-bla

Jargon and acronyms fill the business world.  Lean has an entire vocabulary such as 5S, kaizen, Kanban, and hoshin kanri.  EOS™ uses terms like rocks and Level 10™. Then we can throw in the acronyms: DOH, OTD, DSO, PPM, TTM, CAGR, PM,  just to name a few. We could go through every department in a…

Read More

This weekend, I started reading a book about behavior change by James Clear called Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones. Early in the book, Clear comments on how frequently people and organizations try to achieve better results by goal setting, pegging this as the default approach…

Read More