109 - Building A Lean Business with Colin Reed

Interview
Written By Guest User

This shouldn’t come as a surprise to you, but did you know there’s waste in nearly every aspect of your business? Waste can be found in the number of steps it takes you to reach a machine, find a tool, or locate a file on your computer – these inconspicuous and inefficient moments are what actually make the difference to your net profit. Today’s guest is the owner of Industrial Solutions, Inc., and leading Lean Consultant, Colin Reed. Listen to this episode today to learn how to build your business with a “lean” mindset and prevent wasted time, money, and product!

Show Notes

  • 00:00 - Intro

  • 02:45 - Meet Our Guest, Colin Reed

  • 05:00 - Colin’s Start With Lean Thinking & Consulting

  • 08:00 - How To Be Lean In A Grocery Store

  • 12:00 - The 8 Deadly Wastes That Can Kill Your Business

  • 13:15 - The 1st Deadly Waste - Overproduction

  • 17:00 - The 2nd Deadly Waste - Inventory

  • 21:20 - The 3rd Deadly Waste - Transportation

  • 22:15 - The 4th Deadly Waste - Defects

  • 29:00 - The 5th Deadly Waste - Processing

  • 34:00 - The 6th Deadly Waste - Motion

  • 42:00 - The 7th Deadly Waste - Waiting

  • 48:00 - How We Help Companies Eliminate Waste

  • 52:00 - How To Get Started


Quotable Moments

  • “Great benefits come from really small changes – if you increase your gross profit margin by 1%, the average company in the U.S. will increase its net profit by 14.5%.” – Martin

  • “If you increase your sales by 17% without increasing overhead, the average company in the U.S. will double its net profit.” – Martin

  • “Everything is a process — you can either spend more time and more money or you can spend less time and have higher quality.” – Colin

  • “The first deadly waste that threatens your business is overproduction. You can only actually work on one thing at a time. In order to prevent work from piling up and idling, you have to have a process and steps.” – Colin

  • “The second deadly waste is inventory. There’s inventory that functionally needs to be there and then there’s inventory to work on to stay busy.” – Colin

  • “The fourth deadly waste of defects is brutal because when there is a defect, it’ll cost you 30-100% more to get that product out correctly and done.” – Colin

  • “With small businesses, accuracy is extremely important.” – Colin

  • “If you were to watch a pit crew, everyone has their job. They are doing things in the right order and they’re synchronized.” – Colin

  • “I had my client walk down the aisle in his shop 100 paces while I timed him and found it took him 3.4 cents a step for him to walk around and chase things down. That’s motion waste.” – Colin

  • “The 7th deadly waste of waiting is exemplified when someone is ready, willing, and able to work, but can’t. This person is waiting for approval to go ahead or the right information.” – Colin

  • “We help the management develop the plan but we also train the operators and anyone who touches the process.” – Colin

  • “It frees up management and ownership to focus on things instead of micromanaging processes because these processes will start to run on their own.” – Colin


Resources


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