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Constant, never-ending improvement builds net worth

Background

Gordon manufactured two styles of fiberglass boats: one for water-skiing and pleasure, the other designed specifically for bass fishing. Both boats were manufactured on the same production line, switching between the two models as orders and demand shifted.

Problem

Business was booming. Obviously, that’s the goal of any business so long as you can fill orders promptly. They were selling boats as fast as they could make them, about two boats per eight-hour shift. So they added a second shift running from 4:00 pm until midnight. At first, this second shift was unable to finish two boats per shift but caught up after several weeks. Nonetheless, production was still not meeting demand. (more…)

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