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M.B. Meek sees the most dramatic positive impact on clients when applying the DCA model, Direction, Communication, and Accountability of establishing leadership in conjunction with our preferred operational approach of Theory of Constraints. The combination presents a powerful change mechanism that can have an immediate and lasting impact on both morale and profitability.

Review the following statistics and stories regarding both M.B. Meek clients and historic research into the CDA and TOC and consider how your organization will benefit from applying these disciplines.

Manufacturing Company

During a time of change in their leadership a $100 million plastics manufacturing company faced a dilemma - they lacked unity of direction. If you wandered through the company at that time and asked people what the goal of the organization was, you would get a different answer from each person asked. This created a variety of behavior that kept the company from reaching its true potential.

M.B. Meek was invited to meet with the leadership teams and staff to discuss possibilities for improving the situation. The result of the discussions were the following:

The staff, from top to bottom, were invigorated at the prospect of working together to define one shared goal and a strategy that empowered each individual to contribute to achieving that goal.

M.B. Meek worked with management to identify and counsel a leadership team that would set direction, communicate that direction, and establish and implement accountability for each individual's contributions to the goal.

The leadership team included one person from M.B. Meek, and a representative from each key department.

This leadership team ran the company, without a President in place, for two years, continuously applying the DCA model to improve processes, clarify measurements, improve the culture and drive profitability upward. The company realized record throughput and profits and dramatically decreased staff turnover and inventory levels during this two year span.

The company now has a President, who came from that leadership team, as it became necessary to empower one individual with that role. The leadership team continues to drive the organization, functioning as a team, with the President now leading that team.

This company has now developed a highly sophisticated ability to apply the TOC and continuously improve its performance. They view this ability as a critical competitive advantage in their industry.

Real Results

The positive impact of applying the Theory of Constraints (TOC) has been proven in a variety of industries and environments. Some of the most impressive statistics come from applying the five-steps of on-going process improvement. Consider the following stories.

Furniture Manufacturer

Results after applying the five-step process (identifying the constraint, exploiting the constraint, subordinating the constraint, elevating the constraint, and going back to step one):

Work in progress inventory
Throughput
On-time delivery
Communication
Net profit
-
-
-
-
-
down 40%
up 18%
95% (was 5%)
100% improvement
up 25%

Computer Technology Components Manufacturer - results:

Water output
Inventory
Operating expenses
Throughput
Cycle time reduction
No layoffs
-
-
-
-
-
up 28%
down 40%
flat
up 35%
down 50%

Scientific Research and Development Company - results:

Throughput per month
Cash flow
Operating expenses as a percentage of sales
Inventory turns
Lead times
-
-
-
-
-
up 38%
significantly improved
down slightly
up significantly
"free falling"

Manufacturing Division of a Major Automobile Company - results:

Before:
Lead time at outset
Lead time after two years of just in time(JIT)
Scheduling process at outset
Scheduling process after two years of JIT

After:
Lead time after one year of TOC
Current Lead time
Customer satisfactory
Available floor space
Material handling/tracking
Scheduling process

-
-
-
-


-
-
-
-
-
-

10.6 days(Toyota was 5.3)
8.5 days
16 days
5 days


2.2 days
.67 days (less then two shifts)
up 75%`
up 20%
down 50%
1 day

Fortune 500 manufacturer of Industrial, Medical and Office Products

Market share
Net share value
Customer complaints
Customer order lead time
Inventory days on hand
Capital Deferment
-
-
-
-
-
-
up from 17% to 25%
up 23%
down 47%
down 80%
up from - 50% to 75%
millions of dollars due to increased capacity

Government Entity

Direction, Communication, and Accountability (DCA) implies a two-way street. The goal of establishing effective leadership through this system is not to create better pronouncements from the top. The goal is to establish a system in which direction is made clear and consequently contributions from all levels of the organization are more meaningful. This creates a system in which employees have a voice in the company, and consequently invest themselves in their work.

M.B. Meek recently worked with a local government entity to create such a system. A leadership team was established and action teams that implemented the leadership team's direction through ideas and improvements of their own were also created and empowered. Because the leadership team effectively set a clear direction and accountability for progress for the various action teams, over 85% of all action team proposals were accepted.

One of the early rewards in this process was an action team addressing water department issues that identified $100,000 of repeated annual savings.

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