The Science & Art
of Managing for
Every company wants better teamwork. QPS promotes teamwork, first by creating a system in which everybody can see how all workstations are performing all the way through operations, from order entry to completion. Second, the same visibility of operating profit removes suspicion of company issued financial data.
Yes, QPS has software, but it’s not magic by itself. It’s a guiding template for a 21st century way of thinking. All personnel should think of it that way.
IS IN THE
Each order accepted is checked to be sure that the company is capable of doing it; then management assigns a planned profit to each order. Using a company’s own chart of accounts, the planned profit for each order breaks down into “equivalent dollars,” which are profit progress markers to be hit at each workstation.
Hit all the markers and you hit the planned profit. In addition, the tracking system tells everyone whether they are on target to hit that profit. If not, the alerts point to places that need attention – now, not later.
Once orders are accepted, profits are planned into both the backlog and to orders in process. From that point on, you are not forecasting revenue and trying to control cost. Both revenue and cost are embedded in the planned operating profit. To make the plan come true, execute the plan. QPS thus goes a long way toward closing the gaps between market, finance, and operations. Everybody is on one system.
This is a revolution in basic business thinking. Once you have engineered a plan, everyone goes by that plan; no more “I did my job; now you do yours.”
Ideas Matter – World Vision
The QPS idea can certainly change your world. There is no conflict between QPS and well-known programs to improve both workflow and quality. QPS does not displace the basics of process improvement. Instead, it stimulates them all every day. As you close up wasteful gaps in the flow of work, you will increase the capacity of your operations, while spending little or nothing on capital improvements.
Filling this newly released capacity gives you “capital free” profit – just by everyone becoming much better at what they do. They will become better problem detectors and better problem solvers.
When well executed, QPS nudges you to use the strategic importance of flexibility. Cross-trained people and flexible equipment and tooling are a big advantage. They not only improve efficiency following the plan, they give you resilience to adapt to changes, whether from customers or from other disruptions.
If you can turn on a dime and your competitors can’t turn on a football field, you get the work. When you confidently know what you can do, you become a better negotiator.
being Out Of
in the BOX.
QPS greatly improves what you can do inside your box – and to be confident of what you have in your box. As your operational capability improves, it may free up time so that you come up with out-of-the-box innovations to help your customers. Follow QPS and learn to do what others can’t.