If you’re like most Lean Six Sigma belts, you’re always looking for your next project. And like most Lean Six Sigma belts, there’s one place you likely haven’t looked: forklift power.
Smart Power Blog
Most of us are careful about the way we treat our precious cell phones, taking care to ensure that the batteries last as long as possible (even though cell phone batteries are designed so overcharging isn’t a worry).
However, when it comes to forklift batteries—which cost so much more and are crucial to keeping a company running—most people may not know how to maintain them optimally, or may be actively destroying the batteries through incorrect business processes.
It’s not intentional, of course. Many times, it is due to a lack of knowledge. After all, forklift batteries are electro-chemical devices and their maintenance can depend upon many factors, such as type and usage. Maintaining them properly is a lot more complex than just plugging your phone into a charger.
Supply Chain Management Review released an excellent case study cross section done on large, public manufacturers with large supply chains. Their purpose: to discover whether supply chain-driven companies are more or less prepared for the coming recession than in the Great Recession of 2008.
I was fairly shocked at the results. Overall, most companies fare worse on most metrics that matter: see figure 2 and 3. Specifically, while most have increased revenues, they’ve done it at the expense of profit margins and have added more people than their revenue growth dictates they should. So much for the more productive worker impacting the supply chain industry over the past ten years!
In addition, businesses have a higher percentage of fixed costs today, meaning it will be harder reduce them—much like it will be more difficult to downsize personnel—when the time comes as revenues fall.