Climbing up from 50,000 to 550,000

Back to my target: 1 POP which meant CHF 50,000.

When I looked at the activity lists I saw that there were lots of tasks of which I thought were not really value added. I handed those lists back to the purchasers and asked them to undertake an A-B-C Analysis. A tasks are vital, B tasks not too important but have to be done, and C tasks are of no value. They were stuffed with C activities.

I asked what they would do in case there were no C tasks anymore. And they came up with A tasks like more negotiating, tendering, and what else a purchaser does.

Since they knew I was after their naked lives, well, sort of, I suggested the following and we made a deal: They should write down all the projects which needed re-negotiating and tendering, come up with a nice savings amount, and we all get rid of their C activities.

The result was astonishing: They all could keep their jobs, we got rid of C activities, reserved time for more A activities, henceforth gained CHF 550,000 of savings, half a million more than targeted! Hooray!

Nonetheless, it must be said, I still found half a person in the warehouse (which also belonged to purchasing) and this one had to leave the company.