Learning with Leo: Drones—Meeting Demand Without Compromise
Nolan’s Notes: Our Spotlight on North America
Global Sourcing Spotlight: Building a Supply Chain That Bends, Not Breaks
Wriggling Out of ‘the Squeeze’
August 27, 2024 | Timothy McLean, TXM Lean SolutionsEstimated reading time: 2 minutes
At some point in the growth cycle of most businesses, they inevitably face “the squeeze”—when increasing complexity starts to overwhelm the business processes and management systems. The business then gets squeezed by rising overhead costs, falling efficiency, capacity constraints, and cash flow challenges. These often combine with poor delivery and quality performance to constrain the growth of the business.
When faced with “the squeeze,” many manufacturing businesses make these same five mistakes, only making their problem worse.
1. Seeing the Solution in Software
Figure 1: Software systems such as ERP systems are essential tools in most businesses. However unless your underlying business processes are under control, implementing software can just make the confusion worse.
Recognizing the confusion in their business and frustrated by a lack of clear visibility into what is going on in their markets, many business leaders seek solutions in software. Usually, this involves ERP software, which is often sold as the “all singing, all dancing” software solution to everything. In fact, software does not fix broken business processes, it just automates them. Therefore if your business processes are not robust then implementing ERP software will most likely make internal confusion worse, meaning that you may just have spent a lot of money automating chaos.
2. Looking for the Superhero
Another common mistake is to look for a brilliant operations manager or general manager who will come in and put everything right. Sometimes, you might get lucky, but usually, “the squeeze” eats managers for lunch. No leader or manager, no matter how good they may be, is a magic bullet solution for more deeply rooted and foundational problems. We know businesses that have changed operations managers 10 times in 10 years. Unless you live in the world of Marvel or DC, there are no such things as superheroes. Soon, you will see your brilliant, highly-paid executive as part of the problem, not part of the solution, and start looking for a new superhero.
To read the entire article, which originally appeared in the August 2024 SMT007 Magazine, click here.
Share on:
Testimonial
"Advertising in PCB007 Magazine has been a great way to showcase our bare board testers to the right audience. The I-Connect007 team makes the process smooth and professional. We’re proud to be featured in such a trusted publication."
Klaus Koziol - atgSuggested Items
Northrop Grumman Honors Top Suppliers Driving Industrial Innovation
05/04/2026 | Northrop GrummanNorthrop Grumman Corporation continues to build on its spirit of innovation, honoring suppliers who are critical partners in advancing the defense industrial base for the U.S. and its allies.
It’s Only Common Sense: The Phone Is Still Your Competitive Advantage
05/04/2026 | Dan Beaulieu -- Column: It's Only Common SenseI know this is about the millionth column that I’ve written on this subject, but salespeople still aren’t getting it. Let’s stop pretending that the phone stopped working. You just stopped using it. Salespeople have convinced themselves that email is efficient, LinkedIn messages are strategic, and that marketing automation is scale. Yes, maybe, but none of that replaces a real conversation. The phone, it turns out, may be your unfair advantage.
Foxconn's New Rotating CEO, General Manager of the Business Group, Chiang Chi-Heng, Takes Over, Focusing on Profit Expansion and Operations
04/08/2026 | FoxconnFoxconn Technology Group, the world's largest technology manufacturer and service provider, held a rotating CEO handover ceremony this week.
The Right Approach: Reflections on 50 Years in the Business, Part 3
03/31/2026 | Steve Williams -- Column: The Right ApproachWaking up that first day in 2013 after being informed my position of 15 years had been eliminated, I realized that everything I had done in my career had positioned me for a new chapter. This included the hands-on leadership experience in PCB manufacturing, learning from over 1,000 global companies, and my industry exposure while working at Plexus. My passion for writing, educating, speaking, and passing along my experience to others made it clear that this was the time to pursue my dream job: owning a consulting company.
MVTec Appoints Rob DeMellier as North America Business Development Manager
03/30/2026 | MVTec Software GmbHMVTec Software GmbH, a leading international manufacturer of machine vision software, announces the appointment of Rob DeMellier as Business Development Manager for North America.