Can I Afford to Work with MAMTC?

By Joe Torrago on November 15, 2016 | Topics > Growth

This is a question I believe many clients ask themselves or discuss among themselves. However, they very rarely ask us directly. If and when they do, I would answer as follows. The short answer is yes and in most cases, we are free. Before you start thinking we don't charge for our services, let me give the longer answer.

I say we are free or at least cost neutral to your current expenses. MAMTC helps small to medium size manufacturers in Kansas improve productivity. Improving productivity means you will either spend the same money and get more, or spend less to get the same amount. Doesn't matter whether we are talking about labor, materials energy or any other resource your company has at its disposal. We WILL help you achieve greater productivity. So, yes, we charge for our services. However, any engagement fees we charge will be easily offset by increases in productivity. Truth is, you are already paying for our services so no need to go looking in your budget to determine how much you can afford. It's already being spent by not improving productivity.

Let me give you a few examples. I worked for a small printing company in Kansas as the Plant Manager. The company had a combined budget of about $7MM between direct labor and materials. Whenever I would ask what the budget is for a new piece of equipment, to invest in a technology, or make process improvements, his answer was "$7MM". His answer may have been extreme, but the intent was understood. Don't think in terms of budget, think in terms of Return On Investment (ROI).

I am currently working with a small plastics manufacturer. Their material spoilage is about 20% annually. We have done some Lean activities and have discovered ways to significantly impact this spoilage. However, there are some one-time costs and some on-going costs to maintain equipment and tooling. Initially, there was resistance to spending additional money without approval. I asked the question, "Do operators have to request approval everyday to make 20% spoilage?". If not, then why are approvals required to not make 20% spoilage? Granted, there has to be a substantiated ROI. Once there is, the question should be "How can we afford NOT to do this?".

Any company looking to improve productivity through a sustainable program of Continuous Improvement will find the efforts to improve productivity will be self-funding. This means the total effort, including external and internal costs, will easily be offset by the resulting ongoing productivity improvements. If you are thinking about working with MAMTC or another consulting firm and struggling to find the funds for the effort, just remember it's already being spent. So they real question is not "Can I Afford to Work with MAMTC". The real question is "How Can I afford NOT to work with MAMTC"?

Give us a call and we can discuss your situation.