The video starts with Chuck Ceccarelli stating that other than towing services, they also manufacture custom-made tow trucks and towing accessories. Their first invention that had real merit was the sidepuller, which allows tow trucks to pull vehicles from the side. Lean manufacturing allowed Chuck Ceccarelli to reduce production time significantly. In 6 months’, production time for the side puller went from 35 hours to 8 hours. This resulted in a 77% increase in overall efficiency.
In this approach, every tool box is set up exactly the same. Each employee is required to come up with ingenious ways of ensuring a two to three second improvement every day. Chuck Ceccarelli believes that if they continue with this momentum, they can increase efficiencies by 10% by the end of the year. This translates to $800,000 in pure profits.
All this can be achieved without increasing sales by even a cent. Chuck Ceccarelli believes that the real money lies in efficiencies. True to this, Chuck Ceccareli is a great example of a blue-collar millionaire. If you are thinking of starting a 24 hour towing company, consider including lean manufacturing in your strategy.