Lean Corner
Businesses want more cash to invest in new equipment and technologies. They need the right resources to leverage innovation and growth.
By Larry Coté
(As Published in Advanced Manufacturing Magazine)
Waste Not, Want Not
Every so often, you read in the newspaper that our manufacturing industries are doomed unless the government gives them more tax cuts or other financial breaks. Business owners want more cash to invest in new equipment and new technologies. I don't think any of us disagree that businesses need the right resources to leverage innovation and growth. Most governments hear this and hand out tax cuts or other incentives. Business conversations tend to focus on how often and how much the government should help.
Investing in our companies is, of course, essential to keep up with both new technologies and the maintenance of current equipment. Tax relief by itself, however, is not the answer. In fact, in some cases it is only a bandage on problems that need more than dollars to fix. Look at the quick fixes that these dollars represent more carefully. Are you really solving the problems that led to lower competitiveness and static technology ? Your competition will be getting similar government dollars and doing exactly the same thing. Their competitive edge has not changed and neither has your position in the food chain. The costs of maintenance for both the old and new equipment will continue to rise putting even more pressure on companies to survive in an intensely competitive, global market place.
Let's try a different approach - one that helps us focus better on which of our needs will truly leverage increased global market share and success. Why don't we have companies remove the waste in their system to qualify for more government rebates, grants or tax relief ? Removing waste through the right lean practices makes real needs (equipment, labour investment) leap off the page. It also shows us that some of the needs we thought we had are unnecessary or even counter productive to our business goals.
Once your plant systems are more productive, it's easy to determine the right equipment and new technology required to grow and thrive, not merely survive.
These two steps - removing waste system-wide and determining the right equipment needs - work hand in hand to clarify the essentials for financial and technical needs. In turn, this makes sure that the dollars invested have the right return on investment and really do boost competitive edge creating success in clear, measurable ways.
As Peter Drucker said "You can either take action or hang back and hope for a miracle. Miracles are great but they are so unpredictable (and so few)." Let's not waste our time (and money) on companies that just pray for miracles.
Let's support those that are truly working hard and, most importantly, working smart in order to be the best in their field. Cut the waste, make the right technology choices and truly grow as innovative enterprises!