Freeing up capacity for innovation and growth has never been more important than today. Companies are being asked to bring products to market in half the time and reduce their cost of operations up to 50% to succeed against aggressive global competitors. In hi-tech manufacturing businesses, this means eradicating the pernicious habit causing consistently low utilization – generally in the range of 15% to 25% – as well as process disruptions and bad moods that limit people’s ability to invent and move with velocity.
That One Bad Habit That Costs You Millions.
The habit is hoarding, and we write about it extensively in our blog because it is so damaging to cost competitiveness and speed. Hoarding is a human phenomenon and is the most significant contributor to asset costs in every hi-tech engineering operations we’ve ever seen. It was 20 years ago at Sente’s founding when we first encountered it and, aside from the places we (or others) have eradicated it, it remains today. Hoarding results in excess costs that slow businesses down and can make them uncompetitive.
They spend 25% to 50% of their capital budget on unnecessary equipment…they could be investing it in better equipment or other capabilities
They overspend by 25% to 50% calibrating and repairing equipment they don’t even need
User can spend as much as 10% of their time being distracted searching for or dealing with non-value-added administrative burdens
Our Results are Uncommon. Our Approach is too, by Definition.
Our approach is not traditional. We are the only enterprise asset management company with a significant focus on human intentions and behavior because, as it turns out, people drive results. Knowing what focuses are most critical to producing truly game-changing results is just as critical for asset management as it is for any other endeavor. Our CEO writes about this in “Is Your Team Ready for its Moneyball Moment?” “Moneyball” is the story of how a new approach to baseball enabled the Oakland A’s to set a record for consecutive wins, tie for total wins, and do it all spending 80% less than their competition. They changed the game of baseball as we are changing the game in asset management.
The Scireo Algorithm That Ends Hoarding.
Asset management customer and user Intentions → aEAM Accountability Practices → Trust → Truth → End of Hoarding → Game-Changing Results.
Customers of asset management intend to develop products rapidly and at a low cost. To do this they intend to have the equipment they need, when they need it, with the capabilities they need, in good working order. They don’t want to have to worry or expend any energy outside of their mission: to design highly valuable products quickly.
When asset management customers can anticipate they will get these concerns cared for by the asset management process and tools they will trust it and they will tell the truth because they won’t be concerned with being betrayed – they know the truth will help them – and hoarding stops.
Accountability Practices Enable the Algorithm to End Hoarding.
Accountability practices produce visibility to know if people are keeping their commitments and, at the same time, produce incentives for them to keep their commitments. The mechanisms that produce distrust and lead to hoarding are well understood. Practices for making and fulfilling user requests to standards agreed to with metrics that measure performance are established and reported. Once trust builds in this process the opening to end hoarding exists. Hoarding is measured with other proprietary algorithms so when a person still hoards but they are getting what they need, when they need it, there is an opening for a conversation. Sometimes engineers and users still hoard mindlessly because it is a habit. They just need reminding. Other times they are hoarding because they are still habitually distrustful but in an ungrounded way. Over time and reinforced by incentives, compelling narratives, and reminders the hoarding stops.
When Hoarding Ends, New Possibilities Open.
We call it, “Working Together, Better”. When people stop hoarding equipment it’s because their team’s mindset has shifted and their openness to sharing improves. They can begin to see measurable improvements to their performance that aren’t just incremental but step change. Utilization doubles, speed begins to increase and resources that were wasted on unnecessary equipment acquisition, equipment services, or the administrative burdens and time wasted in both of those processes are applied to improved testing capability and growth.
Scireo aEAM: Your Asset Management Happy Place.
With Scireo aEAM solutions people work on what they love working on and have the equipment to do the job right, the way they know it needs to be done. Management begins to notice the improvements and recognize them for the improved outcomes they are producing with promotions and management awards. We’ve even seen team awarded with trips. They’ve freed themselves from “The Grind” we’ve recently written about. Work becomes a happy place not a place to be crushed under expectations you have no idea how to fulfill.
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See how Scireo aEAM Software drops asset and support costs by 50% while accelerating time-to-market 2X.
Accelerated Enterprise Asset Management (aEAM) is an award-winning software and services suite used by companies with complex, asset-intensive operations and demanding competitive requirements for better than incremental improvements to speed, agility, and cost-effectiveness. The same old solutions won’t work. This is where Scireo aEAM comes in! The Operating Environment The assets requiring management we write…
According to the dictionary, when you grind something you use force to wear down, crush, or pulverize it. When we use “grind” to describe our work the characterization is stark. The “grind” produces moods of resignation, distrust, cynicism, and fatigue that are as unrelenting as the forces producing them. We don’t have to work in…
This company had a leading market share and wanted to solidify its position with its strategic customers by installing test capabilities on their sites. See how a 40% increase in bench utilization funded the project.
The company was growing double digits but needed to free up investment from operations for growth projects. See how they tripled utilization, freed up capital and resources to enable that investment.
“We wanted to understand Sente’s Total Cost of Ownership model – which was very detailed – and make sure the cost savings were real. Our own analysis confirmed that TRM would save us money. But at the end of the day, we moved forward because of the increased capacity the solution would provide to our engineering organization.”
Director of Finance