Issue link: http://www.insightdigital.biz/i/372574
w w w . i n s i g h t o n b u s i n e s s . c o m S e p t e m b e r 2 0 14 • I NSIGH T | 41 making a million spark plugs or something, then you don't need the QRM methods. But if you're really doing a low volume/high mix, like (Mountain-based) Nicolet Plastics is doing, then QRM does work. We have companies that make small plastic parts all the way up to those that make oil drilling equipment, huge rigs that are on offshore platforms – and anything in between. Q. Why is it more important now for American companies to make this shi to QRM practices? A. First of all, the world is changing. Everybody wants an individualized product. e second is if you look at competition from low-cost countries that have low labor costs, we have a huge advantage because there are three to six months of lead time in shipping products from those countries. If I could make a custom pump in a few weeks, then I've really got a competitive edge. e last thing is, it turns out that labor costs are only 5 to 7 percent of what a customer pays for when they buy a product. Let's say you're a manufacturer and you pay $1,000 for an aircra component – chances are only $50 went to some guy on the shop floor who was doing the machining. A lot of that other $950 is related to lead time. Q. What do you hope to convey to New North companies at the Manufacturing First conference? A. Companies here in the Midwest that have really truly adopted a mindset change and have said "Yes, we're going to find a new way of running a business," have achieved some truly amazing results. We're not talking about 5 or 10 percent. Companies in the Midwest, other small- and medium-sized companies have achieved some pretty amazing results, and what it requires is a willingness to step back and open your mind to new ways of thinking about how to run your manufacturing business. "It's better to know some of the questions than all of the answers." – James Thurber Sharing Wisdom, Experiencing Growth As business leaders, it's easy to find answers. Finding the right questions that can lead to right answers is more difficult because we are too close to the problems, and our perspectives are limited. We need others to help us see what we can't see and to ask questions we wouldn't normally ask. Imagine belonging to a trusted group of high-performing peers willing to ask difficult questions and confidentially share their cross-functional experiences for one reason: to enlarge perspectives, unearth core issues and generate personally relevant learning and insight. There is such a community: Executive Agenda, Wisconsin's oldest and largest membership organization dedicated to executive development across diverse business functions. If you are a senior-level executive, other than a CEO or president, and the kind of business leader who seeks the right questions and has a thirst to learn, join us for breakfast. You will not only learn why 500 of Wisconsin's best belong to EA, you will also experience the EA process and the power of peer learning. Thursday, October 16 – Holiday Inn Stadium, Green Bay Tuesday, October 21 – Holiday Inn, Appleton This breakfast is a guest participation meeting so seating is limited. To reserve a place, call Executive Agenda toll free at 877-MY GROWTH (877-694-7698) or 262-821-3600, or e-mail us at ea@executiveagenda.com ■ www.ExecutiveAgenda.com