With the imminent announcement of a possible Level 3 restricted environment, we find ourselves like many businesses, focussing and planning on what this could look like for Page Macrae Engineering, our staff and of course, our clients.
A balance with restarting or ramping back up should be struck for all businesses, for the much-needed cash-flow and business continuity and ensuring staff and their families stay protected. A knee-jerk reaction at this point and the threat of a subsequent return to lockdown is not even worth considering.
By all accounts, Treasury has run the numbers and the cost to New Zealand staying in a Level 3 situation for a longer period pales in comparison to a return to full, or even multiple, recurring lockdowns. That, of course, doesn’t provide a lot of comfort to SME’s who are hurting.
For those that are looking to restart or continue under a Level 3 restriction, I encourage you to consider the Theory of Constraints (TOC).
I was fortunate to participate in a very powerful webinar yesterday on TOC, hosted by HERA (Heavy Engineering Research Association) and facilitated by Arrie Van Niekerk (with many thanks).
If we use the traffic chaos analogy, pre-COVID-19 (sorry Auckland), in a motorway traffic snarl-up when traffic finally moves, not everyone can take off at the same time. Invariably there is a bus or truck which causes a time lag. This takes the things out of your control and this chokepoint or constraint, removes any control you may have, but still impacts you nonetheless.
If we use the traffic chaos analogy, pre-COVID-19 (sorry Auckland), in a motorway traffic snarl-up when traffic finally moves, not everyone can take off at the same time. Invariably there is a bus or truck which causes a time lag. This takes the things out of your control and this chokepoint or constraint, removes any control you may have, but still impacts you nonetheless.
Business is much the same. It’s pointless unloading a truckload of steel and having a glut of welders ready to go when it is cut to length if you only have one slow cutting bandsaw.
We do a multitude of maintenance shuts, and critical path tasks are highlighted early and focussed on as plant start-up is dependent on them.
In the current environment, we are applying this thinking now. Current projects, suppliers, freight, painters, site-works, staff risk and skills – the list goes on. Where is our bottleneck, and what are our constraints? How do we plan now so we can all hit the ground running, or at least at a fast-paced walk?
Let’s have the conversation now and let’s talk through your plant start-up, your project or restart. Let’s not let any constraints that you can control now, control your business.
If I could offer one piece of business advice, it would be to talk to your clients. They need you to understand them and their business challenges, now more than ever.
We have been actively contacting our clients to show them our support, if and when needed, and have had some powerful and supportive conversations. Think about success for your client and the relationship will be a long and mutually beneficial one as you navigate this uncertain landscape.
Talk to me today, and together let’s plan for tomorrow.
Peter Swan | GENERAL MANAGER – SALES & MARKETING
