AdviCoach Larry Lamphier Helps Screen Printing Business Save $70,000 Each Year
Efficiency is vital when it comes to running and growing a profitable business and it can often be very difficult to pinpoint the root of the problem. A screen printing business in Ohio had an undiagnosed efficiency problem and was looking for the root of the problem once they realized there was a way to maximize efforts to succeed.
Larry Lamphier, AdviCoach business coach in North East, Ohio was contacted by the owner of this screen printing company after he discovered a productivity issue. Despite the fact that his business was bringing in $1 million in sales each year and that the business grew from a home-based operation to a 25,000 sq. ft. building with 35 employees and 7 printing lines, his business’ labor costs were 17 percent higher than the industry’s average. Lamphier was inspired to get to the bottom of the problem and help his client run his business effectively and save costs.
Historically for the screen printing business, each production line was organized in teams of 2-to-4 people, depending upon machine size and capacity. Team leaders were given the responsibility to organize and run production efficiently at their machines. However, Lamphier soon discovered that the owner wasn’t effectively delegating tasks, and instead was micromanaging. The owner of the screen printing business spent 70 percent of his time providing detailed instructions to the team leaders demonstrating how each order was to be run, when it was to be run and describing every nitty, gritty detail. It was a classic case of not delegating responsibilities.
Lamphier’s observation period was conducted hand-in-hand with the owner, discussing the observation openly, candidly and occurred in real-time. When it came time to make recommendations and suggestions, the owner was fully informed and on board because he had been part of the process. It took very little explanation to convince him change was needed. Lamphier and the business owner decided to implement a methodical approach, providing the Team Leaders with empowerment and the authority to make decisions. The plan was as follows:
- Step 1: Detail all order information in a job order sheet by inside sales and order entry people. Include on the job order was a bill of the necessary materials to complete the order, such as shirt required information, inks required, art required, etc.
- Step 2: Allow the Team Leaders to pull the shop orders as delivery times and work load demanded. Team leaders arranged for shirt inventories, inks, etc. to fill the orders to be delivered to the machines.
- Step 3: Daily huddles with teams and weekly team meeting were implemented and allowed open communication among employees.
Although it took time and training to allow the team leaders to become accustomed to the new system and there were bumps, mistakes and customer errors, after 90 days working with the new system, the conversion was complete. After eliminating his micromanaging habit and learning to delegate, the owner found that Lamphier had helped him free up half of his day to work “On” the business rather than “In” the business.
As a result, production rates went up 33 percent because the presses were working faster. However, with this increased efficiency, the business had to hire three more material handlers to keep up with the increased productivity. Despite these added costs, labor cost went down 7 percent as a percentage of sales, totaling $70,000 savings per year.
The business owner is grateful for reaching out to Lamphier, who helped him save his business and increase productivity. For more information on how you can find what’s hindering your business’ growth, visit AdviCoach today.