As Captain Kirk demands more power, Chief Engineer Montgomery Scott, in his classic Scottish brogue, delivers the iconic line, “I’m givin’ her all she’s got captain!”. Facing the impending doom of a Klingon Death Ray is not a good time to discover a capacity constraint, but fortunately for Captain Kirk and the rest of the Starship crew, crisis is miraculously averted and the crew lives on for another episode.
For mid-market manufacturing firms, when customer fulfillment problems and past due order issues arise, a CEO may act like Kirk and “ask for more power”. New equipment, a bigger facility, new technology systems, a new production line, etc. are all natural requests when these problems occur and capacity appears constrained. While these are viable solutions, increasing capacity is costly, takes a long time to implement and may not be necessary. Before committing to more capital expenditures, look for other ways to fix the problem.
In Part 2 of this month’s Hidden Value Series on Past Due Orders, we will dive deeper into the root causes of persistent fulfillment and past due order problems … what to look for and how to devise creative solutions.