This past week I had the opportunity to tour the new Urschel Laboratories Inc. located in the Coffee Creek complex in Chesterton.
Urschel Laboratories, thanks to CEO Rick Urschel and Chairman Bob Urschel, opened their new manufacturing facility to the Valparaiso and Chesterton Rotary clubs. Rotarians had a guided tour of this state-of-the-art manufacturing facility.
The privately owned company that started in 1910 is the leading global manufacturer in food-cutting technology. Where other manufacturing firms have adopted the assembly line approach, Urschel Labs remains one of the few where one person is responsible for assembling each machine. This process for them has allowed Urschel Labs to maintain its high standards without having a separate quality control department.
Urschel is unique in that they have taken control of their manufacturing processes to ensure there are “no dog processes.” Other manufacturing businesses, as well as non-manufacturing businesses, could learn from this forward thinking business.
Mid-size to small businesses, to quote Michael Gerber, author of “The E-Myth,” spend too much time working in the businesses instead of on the business. During the tour, Bob Urschel shared where Urschel’s application of the “lost wax” casting process has allowed them to cast their parts even though they were told back in the 1970s they would not be successful. Bob’s father realized to improve their quality he had to rethink their processes.
Documented processes are essential from hiring to invoicing to shipping to inventory control along with safety. Without those processes being documented, errors increase from inaccurate billing to return goods because of quality issues.
Far too often I hear from businesses they do not have time to document their processes. These are the same firms that complain about “dumb employees” to demanding customers to shrinking profits.
Yes, documenting processes take time. When executive leadership demonstrates forward thinking, as demonstrated by Urschel Laboratories, they begin to move ahead of the flow instead of in or behind it.
The other reason for eliminating “dog processes” is for that future action of “For Sale.” Acquiring businesses want turn-key operations much like those homeowners who want move-in ready. When processes are documented, this allows the acquiring leadership to see there has been an effort made to improve quality and reduce costs. Additionally, documenting processes makes it easier to train new employees.
If your small business has not invested the time to document its processes, now is the time to start, especially if you are thinking of selling your business or wanting to improve the bottom line.
Depending upon the complexity of your business, the time frame for this action may range from several months to even a year. However, once completed, you will discover increased productivity to profitability.
Leanne Hoagland-Smith is an author, speaker and executive coach. Her weekly column explores issues that impact the bottom line of firms with fewer than 100 employees. She can be reached at 219-508-2859.
