“I Can Get It Done Cheaper”.

Linda LaitalaBusiness, EmployeesLeave a Comment

Linda here.

Mike’s manufacturing company employs 50 people. For years Mike and his employees have been frustrated with inefficiencies due to cramped space and disorganization.  One major area of concern is the tool room.
His company needs a space dedicated to storing tooling and fixtures.   

Mike recently contracted to put an addition on his shop; plans included a new tool room.  Everyone was excited at the prospect of a decent storage area.

Early in the construction, Mike got a quote for hanging drywall and installing shelves in the new tool room.  The price wasn’t outrageous, but Mike thought, “I can get it done cheaper”.

As the addition progressed, Mike added extra touches: heavy duty hoists, a wall around the compressor to keep noise down and an extra outside access door. Unfortunately, by the time the loan money was depleted the tool room had not even been started.

There are down-sides to Mike’s story:

  1. Inefficiency will continue to be an issue because there is no organized area for tooling
  2. Employee morale is down; Mike shared his plans and his employees looked forward to the organized tool room
  3. Mike blamed himself for disappointing his employees and was frustrated by his inability to manage project costs more effectively.

Mike was so wrapped up in the project and with keeping up with the day to day activities of his business that he never had time to get another quote.  The lesson to learn is “I can get it done cheaper,” isn’t always cheaper.

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