13 Modules to Maximize Performance Improvement and Cost Reduction

Lance Latham is an executive with expertise in Operations Management and Process Improvement. Regardless of company size or business arena, Lance consistently demonstrated that the same management methods that raise output quality, increase productivity and efficiency, and drive down operational costs in one environment are equally effective when applied in another.

He’s a developed a set of 13 modules called “Robust Production Management (RPM),” which cover various frameworks related to Performance Improvement and Cost Reduction, listed below.

Module 1: Performance Culture
https://flevy.com/browse/business-document/robust-production-management-rpm-module-1-performance-culture-459
Learn more about the foundational elements of a strong “top-down / bottom-up” performance culture — and how it can drive profitability at any company, of any size, in any business sector, in any economic climate.

Module 2: Performance Framework
https://flevy.com/browse/business-document/robust-production-management-rpm-module-2-performance-framework-460
Learn and understand the secrets of an effective performance framework, and how it can help you spot hard-dollar opportunities in your company or for your clients

Module 3: Complex Planning Calculations
https://flevy.com/browse/business-document/robust-production-management-rpm-module-3-complex-planning-calculations-461
When it comes to managing teams to “get the job” done while also keeping costs under control, supervisors and managers sometimes err on the side of caution when it comes to scheduling. What if there was a simple way to pinpoint resource needs based on quality and productivity levels, and save money at the same even in complex, ever-changing environments?

Module 4: Time Studies
https://flevy.com/browse/business-document/robust-production-management-rpm-module-4-time-studies-462
This document shows you how to drive performance results and reduce costs using “capacity” instead of “quota.” Module also includes time study and task rate estimator templates.

Module 5: Staffing Models
https://flevy.com/browse/business-document/robust-production-management-rpm-module-5-staffing-models-463
Labor often represents 45% or more of a given company’s annual costs, and it’s the one variable that’s typically the easiest one for management to adjust quickly. This document provides the tools, formulas, calculations, and templates that can help managers in any company – of any size or type – optimize team sizes through the use of objective data.

Module 6: Unit Costs
https://flevy.com/browse/business-document/robust-production-management-rpm-module-6-unit-costs-464
Unit costs can tell more about the health of an organization than any other indicator. This module walks you through the calculations with examples and templates.

Module 7: Resource Alignment Matrix
https://flevy.com/browse/business-document/robust-production-management-rpm-module-7-resource-alignment-matrix-465
A Resource Alignment Matrix will help you award team members appropriately — from your top performer on down — based on team member skill levels, performance, and attitude/aptitude. This document shows you how to create your own spreadsheet version, so that you can KNOW who to reward on your team, who to develop, and who to encourage.

Module 8: Performance Distribution
https://flevy.com/browse/business-document/robust-production-management-rpm-module-8-performance-distribution-466
A performance distribution graph can depict amazing ‘before and after’ improvements in an organization – and best of all, they’re easy to create. Cross reference them with performance framework bar graphs from corresponding “before and after” time periods (see Module 2), and you’ll have irrefutable evidence that your project has delivered “the goods” for your company or client.

Module 9: Measuring “Before and After” Savings
https://flevy.com/browse/business-document/robust-production-management-rpm-module-9-measuring-andquotbefore-and-afterandquot-savings-467
So you’ve completed a process or performance improvement project at work, and now management wants to gauge the financial benefit of the project’s “after” state. This module is full of examples and templates featuring definite ways to show how your project has “moved the needle” for the organization in a positive direction.

Module 10: Small Warehouse Case Study
https://flevy.com/browse/business-document/robust-production-management-rpm-module-10-small-warehouse-case-study-468
In this case study of a small warehouse operation, Robust Production Management (RPM) techniques, tools, and concepts were applied to identify and quantify the spare capacity and operational savings opportunities present in the organization.

Module 11: Large Insurance Department Case Study
https://flevy.com/browse/business-document/robust-production-management-rpm-module-11-large-insurance-deptcase-study-469
This case study represents the multi-million dollar results achieved by using RPM in a large health insurance department – not over years, but within weeks. The hard-dollar operational savings realized by the company enabled it to remain “open for business” and independent at a critical time when competitors were being purchased by other companies, or were going out of business entirely.

Module 12: Selecting Viable Project Candidates
https://flevy.com/browse/business-document/robust-production-management-rpm-module-12-selecting-viable-project-candidates-470
It’s so sad to see companies waste money, time and resources on lean & six sigma programs that yield virtually no ROI from their respective projects. This framework outlines the profit-generating process and diagrams the concept in its entirety. Give it a try – it worked for Dale Carnegie and Henry Ford!

Module 13: Deriving Project Financial Value
https://flevy.com/browse/business-document/robust-production-management-rpm-module-13-deriving-project-financial-value-471
From cost reduction projects to initiatives that invigorate marketing and sales, this framework provides the “what” and “how” to embark upon projects with financial “teeth” that deliver profitable results, in any every time.

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