A Manufacturing CEO's Secret Tips for Improving Profit

"Companies that make a profit grow and create new jobs while those that do not make a profit shrink, reduce employment, and in the worst case, close their doors."

"If a change is needed in something, it is usually a good idea to establish goals and develop a process or plan that will lead to reaching those goals."

"Simple or complex systems may be designed for reporting data, depending on the complexity of the business, management's sophistication, their needs, and the desire for visibility."

"Establishing prices can be a complex procedure, and it is an area where many businesses sow the seeds of failure."

"The two overhead categories, factory overhead and general and administrative overhead, have an immense impact on total cost and, as a result, on the profitability of a firm."

"If management can determine that there are problems early enough in the program, they might be able to alter the firm's approach to the project."

"By providing training that is task oriented, the company enhances the probability that the employee will be able to complete assigned tasks more effectively and efficiently."

"In designing systems to encourage the employee's support and cooperation, one must remember that people are generally more likely to be motivated by their own personal desires and interests than someone else's."

"The optimum level of inventory is the level that allows the company to provide excellent service to its customers while, at the same time, keeping the costs of carrying it to a minimum."

"A key method to establish which inventory to reduce and which inventory to maintain is called the A, B, C Analysis."

"TQM describes a system that helps management either increase sales or decrease costs or both."

"Intelligent people can prepare themselves to be successful in the leadership role."