Capital expenditures can result in operational improvements but they can be
expensive. Before spending more on capital expenditures, first ensure that
your current capital equipment is being maximized. Depending on the facility
this might mean maximizing volume or it could be a strategy to realign
production to lower cost or perhaps a combination of both opportunities.

In some instances, often to avoid potentially upsetting employees on the floor,
management will look to capital improvement projects instead. Managers have
told us they often would rather buy a piece of equipment that means layoffs for
some junior employees versus telling high seniority employees their schedules
might change. While trying to change schedules can be an emotional event
you owe it to your facility and your employees to explore better ways to use
your existing capital equipment.

Contact us to learn more at Operationsmanagement@corepractice.com or call
1-866-663-7056.