Ramping Up Production Efficiency
Production is really where the rubber meets the road. The people involved in production are a huge part of the customer experience — and it’s also where your money is won or lost.
Three Major Goals of the Production Department Include:
- Complete jobs on time,
- Within budget,
- Resulting in a highly satisfied client
This is a challenging list of goals but when they are accomplished, life is beautiful! Clients are happy and send referrals. You are happy because the company made money, your team is happy because they accomplished a difficult goal.
Tips to A Successful Production Department:
1. Hire Great People for the Department.
Depending on the market, it can be a challenge to find talented production members. I caution you, however, that even if it’s tough and takes time, don’t rush your decision. These front line workers are too important to the company. Use all of the tools at your disposal to spread the word and then vet each candidate carefully. I always recommend hiring the best person you can find. The stumbling block for some remodeling company owners is the fact that great people demand higher compensation! Yes, they do and that’s because they earn it by delivering better results more efficiently, earning money for the company each step of the way. You’ll never grow into a top company if you will settle for mediocrity in your people because you’re afraid to spend the money on greatness.
If you’d like to review a sample job description for a Production Manager, click here.
2. Set Expectations Clearly.
Expectations start with the job description you’ve created for each position. Let’s focus on the Production Manager. The person in this role typically has the most influence on the results of any job. One of the common problems I see is that the people in these positions are not meeting their responsibilities — possibly because they don’t have the expertise, the owner won’t let them do their job, communication within the company is weak or non-existent or they have never understood what their goals are.
If you have a production manager who is not living up to expectations, take an hour or two and review or write job descriptions. Include a list of their responsibilities such as “Produce all jobs to meet stated Gross Profit Margin.” Getting everyone on the same page will be very helpful as you move forward.
3. Monitor Progress Regularly and Consistently.
This monitoring includes regular meetings with the production team (we recommend weekly meetings) and regular productivity reports (job cost reports produced weekly as well) that you and the Production Manager or Lead Carpenter will use to check estimated costs against actual costs as the job progresses.
Isn’t it time you joined the industry’s top peer group for motivated remodeling company owners-Remodelers Advantage Roundtables™? Our members see higher profits, lower turnover, fewer work hours, and a better life than non-member peers. No matter where you are in your career, we have a program to help you see better results from your company.
Wondering where to start? Give us a call for a no-obligation consultation with one of our experts who will help you determine if the Roundtables™ Peer Groups are right for you.