Mecanizing SMEs in machining

Group Vadillo has 60 years of history in the field of advice to companies on their backs. Its general director, José Antonio Gómez, contributed to meetings its vision on the situation of SMEs in machining, from an outside point of view but with the knowledge that give more than 400 customers year-round with consulting, many of them belonging to the sector. As the own Vadillo Gomez said in his speech: "there is unfortunately a crisis but fortunately there are market and fortunately we are going to learn." "From now on, we develop our ideas and fight for it."

After carefully studying SMEs (25 or fewer employees) that they have gone through his company, Gómez Vadillo reaches several conclusions.

The first is that the employer knows of his craft and likes. This is a common denominator of SMEs, not only in the tooling.

In the second of its conclusions, the term 'delusion' appears. According to Gomez Vadillo, when an employer of these features you are asked how many customers have responds that you between 25 and 30. "In most cases this is not true, because there is to tell customers that makes time not billed: If there is a more in-depth study, we see that they are actually 10 customers, and those 10"80% of the turnover is focused on 3. Customer is someone who buys in a systematic way, not one that I bought; "this could be customer".

The third conclusion is the pricing policy. "Currently there is no, what is lowered price." "It could be a strategy, but what is actually right now is 'Virgencita that I remain as I am that I want to enter cash', cash to my cash". This fall in prices is usually offset in time/machine, margin in materials, savings in costs of tools or oils.

The fourth point focuses on the unbalanced salaries. "The benefits are focused on a way out of salary that the owner and their children, or other partners, usually have an average of $ 3,000 per month and 14 pay and company car." "And the rest of the benefits of the entrepreneur that he has bought a pavilion to its name, which is becoming a rental and at the end and after paying the company".

For many entrepreneurs, his main strength lies in 'knowledge of the craft'. Doing well the work is a necessary and important, but not sufficient condition. And in addition, added Gómez Vadillo, "is not a distinctive advantage, as it is copied".

Until now to do the job well it has served, because there has been an expansive economic cycle without precedent, "while everything is going well and someone pulls us, we are going to tow". And also worked because there has been a sector very important tractor of the automotive industry.

Another point of self-deception of SMEs refers to the diversification of their customers. Diversification is not working for three customers of the automotive industry; diversify is to have customers in various sectors.

After observing customers, Advisors Group Vadillo have reached a series of conclusions on the dynamics of SMEs.

On the one hand, the micropyme / SME is closer to the philosophy and structure of a business or a trade to a company. "A limited society means nothing: is a legal way". In addition, it's a business that is given and that is not managed.

On the other hand, these companies market policy is "pseudofilial or subcontracts captive." If we rely on three clients, we are 'caught', captive, we are her contracted out of her being outsourced. "We are either self-employed in fraud law or ETT used by our large suppliers when they want".

Therefore, Gómez Vadillo likened the management of many of the SMEs which he advises with what he calls "the Eibar model of the 19th century". And how he thinks an eibarrés of the 19th century? "A person with a great desire to work, as all of you;" with great enthusiasm, as all of you; ready, like all of us; and who says: 'I pick up the machine and put to work the margin', as all of you. But the factor 'M', 'machine' and 'margin', are not all the factors of success to be put to work. "And Eibar is also going them on straws." "We have mental structures still in the 19th century and are in the 21st."

But, what happens when a market falls or when there are other sectors tractors?

When all the clients of a company belonging to the same sector, problems begin when one of them comes into difficulties, do not pay on time or closed. As does not enough liquidity begin to have difficulty paying the payroll. "Then it shows that work well is not enough to pay the workers or the fixed costs." And also if you encounter other sectors other than automotive tractors, often the employer does not know what to call new doors.

From this moment, what is what to do? What is the magic formula? "The magic formula is only one: Curran, Curran and currar." But Curran with intelligence.

The first point which proposes Gómez Vadillo is to continue doing the job well but directing his own destiny: "So far been directed my destiny my three major customers, or the engine of the automobile." "From now on I'll have to start to be master of my fate". A destination is to manage, and handle is more than managing resources; manage is to make things happen. "We will try to take a little bit of 'mentefactura' in addition to manufacturing".

How is it managed? "With common sense, and making what we think on facts and real action". This is what Vadillo called 'strategic vision': think about what we want to happen. The second point is the 'strategy', think about alternatives to determine how it can be done to make it happen. And after learning what and how, the following is to ask who will do, when is it going to do and with what means and what objective is pursued. "This is called action plan". Answering these questions is the first steps to address the very future.

The minimum to implement that they proposal from group Vadillo is:

1. Manage sales. "Market orientation.""If I do not buy, it should go out and sell, but we must continue taking care of customers."
2. Manage the numbers. We must review the method of calculating the cost per hour. "No confundáis cost - less oil, fewer parts, less light - with the structure of cost savings". The first thing is to know how the costs of the company and from there set a price. "Do you know that more than 50% of your customers give you losses?" do you know that you engañáis in the cost structure because her lengthen the repayment of the machine or we reduce? Let us not deceive ourselves. "We know our true costs." The company must have four financial indicators and work them.
3. Manage people. "People are more than just salary." "Now that we're in ERE, please, you have to care for those who remain, are those who will lift the company."