RIP Example 3: Wash Away Warranty Work
This RIP was designed in an organization that provides painting services to commercial and residential buildings and homes. The goal was to reduce warranty work (cost) that was caused by errors (wrong color, poor quality of paint or stain, and so on).
■ KPI: Warranty Cost.
■ Quantifiable Objective: To reduce Warranty Cost by 50 percent.
■ Financial Effect on the Company:
• Decrease labor and material costs by $13,000 per month ($156k annually).
• Free up labor being used on warranty work for income-generating work and/or sales calls.
• Increase incentive pool by $36k per year (if minimum threshold is met).
• Improve customer service.
• Increase potential for repeat business.
■ Actions:
• Receive clear, accurate ...
Get Ownership Thinking: How to End Entitlement and Create a Culture of Accountability, Purpose, and Profit now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
