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How to Calculate the Cost of Poor Quality

4 March, 2010 by James Lawther 1 Comment

Coat of Quality

Do you ever have quality problems? Here is a technique to help you work through the cost of poor quality.  Get a group of people in a room and the ask them to estimate the answers to the following questions. How many customers do you treat badly each year? How many of them complain? When […]

Filed Under: Blog, Operations Analysis, Tools & Techniques Tagged With: cost of poor quality, cost saving, poor service, waste

The Enemy

3 March, 2010 by James Lawther Leave a Comment

I am all for e-mail, it is usually short sharp and to the point.  No wasted energy. But sometimes the e-mail bounces back two or three times.Sometimes more and more people get copied in.Sometimes you start to dread opening the response.Sometimes you spend hours crafting a reply. Sometimes it is wise to just pick up […]

Filed Under: Blog, Employee Engagement Tagged With: communication, e-mail

Complex Coffee

2 March, 2010 by James Lawther Leave a Comment

I came across this youtube video for Baileys Coffee and I started to wonder, do Baileys actually make any money out of it? How much does the extra complexity cost them. First there is the product complexity: extra labels, different flavours, extra SKU’s… Secondly there is process complexity: change overs, work arounds, reduced forecast accuracy… […]

Filed Under: Blog, Operations Analysis Tagged With: complexity, manufacturing, marketing, video

Rebranding, Reshuffles and Reorganisation

1 March, 2010 by James Lawther Leave a Comment

The National Audit Office states that “the Government has reorganised 91 departments across Whitehall since May 2005, at an annual cost of £200 million”.  The article goes on to say that “25 central government departments had been created since 1980 but 13 of these no longer exist.” Clearly this isn’t just a Labour issue. That […]

Filed Under: Blog, Operations Analysis Tagged With: form follows function, government, no substitute for experience

Next!

23 February, 2010 by James Lawther Leave a Comment

waiting

I love the Daily Mail; it always has such inflammatory articles.  Today I found one that I agree with whole heartedly. Apparently the London NHS has engaged some management consultants to tell them how to save money.  One of the solutions they have come up with is to cut appointment times between GPs and their […]

Filed Under: Blog, Employee Engagement Tagged With: bureaucracy, medicine, purpose, targets

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