The Smarter Way to Double Output without Doubling Headcount
When a manufacturer sets a goal to double output in five years, it’s tempting to think about adding square footage or headcount. But George Nelson, WMEP Consultant, warns that this approach can backfire. “If you don’t make improvements, you’ll need twice the people to double your business—and that’s not realistic with today’s labor market,” he says. “The growth plan has to start with process improvement, not payroll.” An investment in proven Lean principles provides the insights and roadmap to accomplish this.
How Could We Possibly Identify That Level of Productivity Improvement?
It may feel daunting to focus on process improvement as the first step toward doubling productivity, but there’s a proven place to begin: the Quote-to-Cash Value Stream Map. Why? “It gives you a big-picture view of every step from the customer request to the money in the bank,” George explains. “That’s where you find the delays, redundancies, and non-value-added work that’s slowing you down.” These insights allow leadership teams to prioritize and act. George emphasizes that the opportunity to eliminate what doesn’t add value is bigger than most leaders realize. “A great majority of the activities we perform daily aren’t value-added. That’s where the capacity is hiding,” he notes. By targeting those activities, companies can increase throughput without hiring more people or expanding facilities.
Clear Priorities and Ownership Matter
The challenge is deciding what to fix first. Tools such as impact-versus-difficulty matrices can help leadership teams focus and get aligned. “Rank initiatives based on how much they move the needle and how hard they are to do,” George says. “That way, you tackle the high-impact, lower-difficulty wins first to build momentum.” Equally important, improvements can stall if no one owns them. George advises companies to create effective action plans and clear ownership with a steering committee that regularly reviews progress and re-prioritizes projects. “If you don’t have a way to manage and re-prioritize, you lose traction fast,” he says. “Sustaining growth is about discipline, not just good ideas.”
Sustainable Growth Starts with Smarter Operations
Manufacturers that want to scale can’t afford to simply add space or staff and hope for the best. By streamlining processes, eliminating non-value-added work, and prioritizing the right projects, companies can position themselves to grow faster, more efficiently, and more profitably. As George puts it, “Growth that’s built on disciplined improvement—not just more people—is growth you can sustain.”
WMEP is a nonprofit consulting organization with a simple mission: help Wisconsin manufacturers succeed. Our advisors bring real-world industry experience and deliver practical solutions across three key focus areas: Growth, Operations, and People. Contact us to explore how we can help you significantly improve productivity and prepare your operations for sustainable growth, or learn more about our Lean solutions for productivity improvement.