Showing posts with label direct costs. Show all posts
Showing posts with label direct costs. Show all posts

Thursday, August 9, 2012

No Pain, No Gain, No Instant Pudding...Driving World Class Excellence into Your Organization



 Webinar Education Announcement:




The genesis of the Japanese 5S principles is (TQM guru) Dr. Deming's belief that "it's not enough to just do your work or work hard, you must know what to work on".  5S is the mantra to streamlining work flows and office cycle time, a performance measurement for rapid response systems and Über customer service. 

Learn to integrate 5S principles into the work environment (the pain) and achieve multi-fold, value-added increases in productivity levels (the gain).  Discover how 5S leads to savings for the organization and your customers and there's no instant pudding involved.

I invite your participation to this webinar.  I promise you it will be an hour well- spent!

Please check your system’s ability to participate.\\ http://www.anymeeting.com/webconference/systemtest/AnyMeetingSystemTest.aspx



Registration Form URL:

Saturday, July 14, 2012

The ABCM OF EMPLOYEE RETENTION - The company’s performance appraisal



Factoid:  Employee turnover is the largest hidden cost in organizations.

“A penny saved is a penny earned.”
Activity Base Cost Management (ABCM) allows us to quantify the wasted dollar$ of yesteryear’s casual “hit the door” policy.  I’ve designed a worksheet to help measure how well your organization is doing. 

Once completed, you can begin to problem solve.  (i.e. Should we change our interview process?  Have we identified problem departments?)




Ê  Just fill in the blanks.  Add or delete to customize. 


DIRECT CO$T$
Recruiting                            

Training (Basic)                  

Relocation/Moving              


$ ________________

$______ __________

$ ________________
+
+
INDIRECT CO$T$

Lower Productivity Levels   

Lower Employee Morale   

=
Lower Revenues



$ ________________

$ ________________

=
$ ________________
+
+
HIDDEN CO$T$

Training costs, including management time     

Paying full salary and benefits during training, before full productivity is reached 

Lost sales and alienated customers during off-site training   

Cost of mistakes made by new inexperienced employees      

Loss of customers loyal to departing employees      

Loss of knowledge and experience built by departing employees     

Lost or damaged relationships with suppliers    

Employee morale and customer perception of that morale    



$ ________________


$ ________________


$ ________________

$ ________________


$ ________________


$ ________________


$ ________________


$ ________________

TOTAL TURNOVER CO$T$                            

$ __________________________

Versus



EDUCATION  INVE$TMENT                             

    $ _________________



The moral of this exercise
Education is an investment.  It's a value added line item!

http://www.pwickman.wix.com/education