You can invest in yourself in a lot of ways. Here are just a few examples of goals you might set for your investment:
• Reduce utility usage.
• Increase capacity.
• Enable faster changeovers.
• Develop operating dashboards that enable plant workers to make on-the-spot decisions.
• Speed time to market for new products or packages.
• Improve agility so the plant can respond “on the fly” to changing economic conditions and customer demands.
• Rationalize the supplier base.
• Transform, integrate and optimize business and manufacturing processes.
• Perform system upgrades.
• Reduce total cost of ownership.
• Develop business models and explore “what-if” scenarios.
When properly positioned and deployed, internal investments drive shareholder value and enable a “double-dip” profit potential. Consider these three outcomes:
1. You could potentially receive a 20–100% return on your capital, depending on your current operating and business conditions.
2. As your business becomes more profitable, you will earn a higher bonus multiple on the additional EBITDA generated.
3. As your economic value added (EVA) and cash flow increase, you may even have additional leverage to raise capital for acquisitions, to repay expensive debt or to make other favorable balance sheet improvements.
No matter what type of investment you make or how high you set your expectations, you can pretty much guarantee that it will impact your bottom line. You’ve really got nothing to lose.
So, let’s get the ideas flowing. If you could invest in your facility today, what would you do? What would you hope to get out of it? Let us know in the comments. If you’d rather talk one-on-one about specific opportunities at your company, contact MAVERICK or e-mail me directly.
Next week we’ll look at DCS migration as one way to invest in yourself.