Recently, Steve Diebold, WireCrafter's President, spoke at The Family Business Center at the University of Louisville. He and a few other WireCrafters team members were honored to be on a panel about business improvement. Specifically, he spoke about how years ago some of the team learned about the 80/20 plan, which they brought back to WireCrafters. In the presentation, Steve gave a testimonial on how the 80/20 plan transformed WireCrafters for the better.
What is The 80/20 Plan?
The idea is that approximately 80% of a company’s value (measured by revenue) is derived from only 20% of its resources or efforts (its product lines and customer base). Pareto called it the law of the "trivial many and the critical few." The Pareto Principle has been widely touted as a business axiom for over a century, but few people appreciate its implications or implement it correctly. Bill Holl is an influencer to follow about this.
At WireCrafters, we are firm believers in constant improvement. We have implemented various ways to increase our productivity and efficiency. Here are three implemented models that have assisted us with our constant improvement motto.
- The 80/20 plan. We understand that 80% of our wire partition orders come from 20% of our partners/clients. So, we have been providing extra benefits to the top 20% of our clients.
- LEAN. We have increased efficiency by going LEAN, this means cutting out waste and trimming the fat. Making sure there's a system in place for everything and making sure that there's an easy flow from an order being placed to production to even being shipped. There's an easy and streamlined process on our shop floor!
- Green. If you need your wire partition to be powder coated, then we make sure that none of it goes to waste since we recycle all of the excess. We make sure that we assist the environment and decrease the amount of waste we produce.
We were proud to speak at the Family Business event and look forward to assisting other companies in the future. We loved sharing our story with the 80/20 planand hope that our various improvement models can inspire others to do the same.
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