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by:
Patricia K. Wilson, CITEC's Marketing Manager
Have
you ever eaten at a chicken fast food franchise? Undoubtedly,
you were probably treated there to the amazing plastic eating
utensil known as the "spork" -- a combination spoon & fork.
Can't
say that I ever remember seeing them anywhere else, though. Certainly
never in a Lechters or Crate & Barrel store. For that matter,
I'm sure the other big-name fast food eateries never really latched
on to the spork.
But,
it was a great way to scoop those potatoes and tear at that chicken!
What's
the point? If you don't know your market, and the appropriate
ways of reaching that market, you're not going to sell as many
sporks and it will cost you a whole lot more!
Industrial
Marketing is the business activity which allows a company to
know what its customers (or potential customers) want. Critical
elements of Industrial Marketing allow your company to identify
key customers, and guide you toward developing more of those
customers.
Shotgun
Marketing, or the idea that "any customer is a good customer" may
have a place in the consumer marketing world, but it is way too
costly for industry. Shotgun Marketing results in low repeat
business, high selling costs, customer service problems, lower
product quality, pricing problems, etc.
Sure,
in tough times you may think just adding any customer is good.
But how can you satisfy all customers and make the desired profits
when you are selling everything to everyone?
Shotgun
Marketing is often the strategy of choice for small and medium-sized
enterprises (SMEs) because it is easy to do and fits the sales-driven
mindset, rather than a customer-driven strategy. It focuses on
sales volume rather than profit, the needs of the company rather
than on the needs of the customer, and more customers rather
than the right customers.
You
know you're a shotgun marketer when...
- Your
company tends to solve most production, cash flow and business
problems by seeking more sales...
- Repeat
sales from existing customers are low...
- Your
company hasn't identified the Most Valuable Customers with
the best future profit potential...
- Price
discounting is a common sales strategy...
- New
products don't always sell well and they haven't been developed
with specific end user benefits in mind...
- Sales
volume rather than profits are the general goal.
Sure,
you can probably stay in business if you adhere to a few of these
philosophies but you are not realizing the profits you could
be.
So,
what do you do to improve your marketing and bring those profits
up? You do your homework.
That's
right. It's high school all over again. And, this homework is
just as painful and eats up time that you'd rather spend doing
something else. And, just like that homework from long ago, not
doing this homework will mean the difference between passing
with flying colors and failing.
An
Industrial Marketing Assessment is one such homework tool that
allows you to take a snapshot of your company with a really wide-angled
lens. That is, it not only looks at what you're doing in the
way of marketing right now, it also looks at areas of influence.
The
company completes the assessment, with guidance as needed, gleaning
key information from throughout the company. Structured in Five
Parts, the assessment tool asks questions about:
- basic
company information, including goals for sales and profitability;
- specifics
about accounting, production control, and systems that measure
marketing and sales capabilities;
- internal
information available to the company to find out how much it
knows about customers, customer satisfaction, customer service,
and the company's marketing objectives;
- the
kind of external information the company gathers on markets
and competitors; and
- specific
strategies and marketing functions, and how they operate in
the company
The
completed assessment is then 'scored' by Georgia Tech's Economic
Development Institute. Working with CITEC, the findings of the
assessment and recommendations for improvements are presented
in a written report and reviewed with the company.
The
company can then tackle those issues using its internal resources,
or contract with CITEC, to implement those improvements.
Remember...the
best time to do the homework is before the test. So, don't wait
until your company is in a survival mode -- get started now.
PKW
For
more information or to schedule your Marketing Assessment,
contact:
wilson@citec.org or 315-268-3778
x23
The
Space Alliance Technology Outreach Program (SATOP) provides business
owners with access to consultants from the space industry to
help solve technical challenges when they can't find that assistance
locally. It's a free program with some limitations (like a maximum
of 40 hours for assistance, and solutions typically provided
in 90 days) but it may be just the program to help your business.
More information is available in person. Call CITEC's main office
to schedule your meeting at 315-268-3778 x24 or e-mail solutions@citec.org.
Lean
Manufacturing is becoming a hot topic these days. Toyota, and
in particular Mr. Taiichi Ohno and Mr. Shigeo Shingo, developed
the techniques now known as the Toyota Production System (TPS)
some 40 years ago. TPS has become known as Lean Manufacturing.
Just
like 20 years ago with the U.S. Quality movement, some people
believe you can copy what the Japanese have done and achieve
the same results. Well it didn't work with Quality, and it won't
work with Lean either!
Of
course you can spend your time and money working on the individual
techniques, but even though you may achieve some short-term gains,
the sustained results won't be forthcoming. Sustained results
like:
- 99% on-time,
in-full, error-free deliveries
- 75% reduction
in materials waste
- 50% improvement
in product quality
- 66% reduction
in cycle times
- 80% reduction
in manufacturing floor space
- 75% reduction
in setup & changeover times
- 50% reduction
in cost of goods manufactured
- 100% improvement
in safety
In
order to achieve the above, you must understand Lean as a system,
not just a collection of individual techniques.
Lean
is a system designed and managed to achieve waste elimination
and continuous improvement. That system is a collection of interdependent
parts working together in pursuit of common goals; and those
parts must work interdependently (not independently) in
order for it to truly be a system!
- Production
according to a flow. Organization should be determined
by the process; products should never be taken out of the
process; process speeds should be adjustable.
- Piece-by-Piece
production. Defects should not be brought forward to
the next phase; any worker should be able to halt the process.
- Elimination
of "aqualung" inventories. Inventories should
not be the "drug" of production; one hour of inactivity
is better than an hour of production that must be inventoried.
- Economical
production run equals one item. Setup times should diminish
toward zero; setup reduction is the priority objective in
identifying waste.
- Micro
mix equals macro mix. The product mix in each small unit
of production should match the total mix demanded by the
market; leveling of production is necessary.
- Units
instead of work locations. A unit's output matters more
than the worker's efficiency; systems that provide individual
incentives must be avoided.
- Inexpensive
run for resupplying equals one item. No warehousing of
raw materials; a comprehensive relationship with suppliers
is essential; fixed purchasing costs need to be eliminated.
Lean
Manufacturing is a system that must be implemented in 5 discreet
phases...each one building on the successful completion of the
preceding one.
Phase
0: Learning
Phase 1: Stability
Phase 2: Continuous Flow
Phase 3: Synchronous Flow
Phase 4: Pull System
Phase 5: Production Leveling
CITEC
is dedicated to helping you transform your own manufacturing
enterprise from traditional to Lean. We have the skills and experience
to work with you on every phase of Lean Manufacturing implementation,
to help you achieve the high performance results you are capable
of. Contact:
Eric
Myers 518-563-7565, myers@citec.org
Jeff Vincent 315-782-3444, vincent@citec.org
Jim Myers 315-268-3778 x30, jmyers@citec.org
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With
34 years of experience as an industrial engineer/management
consultant with a Fortune 100 company in Rochester, New
York, Jim recently joined the CITEC team as Lean Manufacturing
Analyst - working with North Country companies to achieve
better performance in bottom-line impacts through lean
systems training and implementations. Along with Lean Experts
Jeff Vincent and Eric Myers, Jim will serve companies throughout
the six Northern New York counties.
Jim,
an upstate New York native, is a 1976 graduate in Mechanical-Industrial
Engineering and a 1980 graduate with a Masters in Business
Administration (Accounting Major), both from Rochester
Institute of Technology. He is a past senior associate
member of the American Institute of Industrial Engineers.
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Does
your company manufacture products that could be sold on QVC? If
so, there may be an opportunity to have those products featured
on the QVC home shopping channel.
QVC
is holding a national product search at the Mall of America in
Minnesota, April 26th-28th. QVC's National Product Search will
provide manufacturers, inventors and designers with a forum to
share their innovative consumer products with QVC representatives
from the merchandising, product development and vendor relations
divisions.
Some
of the products they are looking for include: Food Products,
Apparel, Wood Products, Furniture, Toiletries, Cutlery, Audio & Video
Equipment, Photographic Equipment, and more.
Advance
registration is necessary to schedule and confirm an appointment.
To learn more, and for a complete listing, by SIC numbers, of
products sought by QVC, follow the Hot
Topics link or call CITEC's Marketing Manager Tricia Wilson
at 315-268-3778 x23 to request information by fax.
With
$80 billion in automotive parts being traded between Canada and
the U.S., most of which are used in just-in-time plants, it has
become imperative to create fast border crossings, according
to a study commissioned by the Canadian Department of Foreign
Affairs & International Trade.
The
study, conducted by the Center for Automotive Research at the
University of Michigan, "underlines the importance of developing
a 'smart border' built on technology and increased coordination," said
Canadian Consul General John Tennant.
The
recently signed "Smart Border Declaration" outlines
a 30-point action plan to "allow the safest, most efficient
passage of people and goods between Canada and the U.S." Copies
of the report are available at www.dfait-maeci.gc.ca or www.altarum.org. |
