The Manufacturing and Industrial Industry - Why Business Acumen is Essential from the Top Down
When you think of business acumen training, or the ability to read and comprehend financial statements you might not think it’s essential for manufacturing engineers, shop floor supervisors, or those responsible for the production in your manufacturing facility. However, I’d argue that not only is business acumen essential for the c-suite… but it could gave a huge impact on your production and shop floor.
Ok, picture this. The number one goal of your production team is to produce the most and highest-quality parts. But when push comes to shove, most production teams are concerned about the number of parts first - but sometimes when production is ramped up, the amount of parts that must be scrapped because of quality issues also increases due to the increased speed. So, where do the scales tip? At what point does it make sense to slow down production and decrease the number of parts to minimize the amount of scrap?
The costs associated with scrap rates can be huge and can have a big impact on your production costs, eating into your profits. To ensure your whole team is on the same page and understands the potential impact this can have on your organization, they need to have business acumen. With the understanding of the financials, and how things within the business work together to make your company money, your engineers, production managers, and the entire production team can make better business decisions. Thus, saving you (and your company) money! And, who doesn’t want that?
I know, when you’re researching business acumen training, it seems expensive but think of all the money that you could save if your team makes better business decisions? Can you afford not to do it? If you're looking for a partner in business acumen training, we'd be happy to help! Even better... we have a ton of experience in the manufacturing industry - check out our website!