QDISC Explained: A 5-KPI System for Smarter, More Profitable Manufacturing, Ep #34
Release Date: 12/04/2025
The Cost of Quality — Why Getting It Right Is the Fastest Way to Get Paid, Ep #39
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Quality is often treated like a cost center in manufacturing. Something we have to do to satisfy customers, auditors, or certifications. But in my experience, quality is much more than that. It’s one of the biggest drivers of cash flow, reputation, and long-term profitability in a shop. In this episode of Buy the Numbers, I sat down with Mehul from Ground Control to talk through the real, often hidden, cost of quality. Our conversation starts with a simple but critical idea: parts don’t get paid for unless the paperwork is right. You can machine a perfect part, ship it on time, and...
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Owning the Problem: Why Accountability, Communication, and Culture Drive Throughput, Ep #38
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One of the patterns I keep seeing in manufacturing has nothing to do with machines, software, or technology. It shows up in how teams respond when something goes wrong. In this episode of Buy the Numbers, I sat down again with Josh McKain from Throughput Mastery to talk about the habits that actually drive throughput, especially accountability, communication, and culture. Josh has now hosted more than a dozen live conversations with manufacturing owners and leaders, and what stood out to me is how often completely different topics circle back to the same root issue. Whether the discussion...
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How a Fourth-Generation Manufacturer Measures Success, Ep #37
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What changes when you’re not building a business to sell, but building one to hand down? That’s the question that kept coming up for me in this conversation. In this episode of Buy the Numbers, I sat down with Jack Watson of HFW Industries, a fourth-generation manufacturer whose family has been operating the same business for nearly 80 years. Jack’s story starts with his great-grandfather in 1947, fresh out of World War II, taking a bet on an emerging technology that would eventually become the foundation of HFW’s identity. What struck me wasn’t just the history, but how that...
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The Inventory Blind Spot: How LIFO Can Unlock Massive Tax Savings, Ep #36
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Inventory is one of the most overlooked levers in manufacturing finance, yet it is often the single largest asset sitting on a company’s balance sheet. In this bonus episode of Buy the Numbers, Mike Payne is joined by inventory accounting experts Erica Parra and Cindy Houser from CLA to unpack why inventory accounting methods deserve far more attention than they typically receive. Most manufacturers default to FIFO or weighted average simply because that is how their ERP is set up. But in periods of inflation, tariffs, and volatile raw material pricing, that default choice can quietly...
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Innovation at the Speed of Trust: Why Real Progress Happens When People Connect, Ep #35
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Innovation in manufacturing is often framed as a technology problem. Better machines, faster software, smarter automation. But in this episode of Buy the Numbers, the conversation takes a different turn, one that looks past tools and toward the human systems that actually make innovation stick. Mike Payne is joined once again by Al Whatmough, CEO of Toolpath, for a wide-ranging discussion on why innovation truly happens at the speed of communication and why trust, relationships, and shared experiences matter more than ever in an AI-driven world. From AI-powered productivity to the limitations...
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QDISC Explained: A 5-KPI System for Smarter, More Profitable Manufacturing, Ep #34
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KPIs can feel like a buzzword—every manufacturer knows they should be tracking them, but few feel confident about where to start or what actually matters. In this episode of Buy the Numbers, Mike Payne sits down once again with Jon Hughes of CLA to unpack the real purpose of KPIs, why they’re so misunderstood, and how data-driven decision-making can completely change the way a shop performs. Mike and Jon dive into the QDISC framework—Quality, Delivery, Inventory, Safety, and Cost—and explore how these five buckets give manufacturers a clear, stable foundation for...
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Cash Flow Power Moves: Pricing, Terms & Tools That Protect Your Business, Ep #33
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In this special crossover episode of Buy the Numbers, Mike Payne joins Josh McCain on The Throughput Show for a fully interactive, live conversation about one of the most misunderstood and mission-critical topics in manufacturing: cash flow. Unlike traditional episodes, this one unfolds in real time with audience questions, open dialogue, and the kind of raw, honest examples operators rarely get to hear outside of private masterminds. Josh kicks off the episode with his hallmark energy and levity—complete with an unexpected “musical” intro for guests Mike, Jon Hughes,...
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The Section 179 Trap: Why Tax Breaks Shouldn’t Drive Your Equipment Purchases, Ep #32
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When Section 179 and bonus depreciation come back into play, it’s easy to get swept up in the excitement of “saving on taxes.” Every year around this time, I start hearing from shop owners who are ready to buy a new machine before the end of Q4—sometimes for the right reasons, but often for the wrong ones. Don’t get me wrong, I love a good deduction as much as anyone. But if you wouldn’t buy that equipment without the tax break, you probably shouldn’t buy it because of it. In this episode of Buy the Numbers, I sit down with my good friend Ty Willis from Verdant...
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How Foreign Trade Zones Can Unlock Millions in Working Capital, Ep #31
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When tariffs, trade policy, and cash flow collide, manufacturers are forced to think creatively—or risk being crushed by uncertainty. That’s exactly where Mary Buchzeiger, CEO of Lucerne International and Lucerne Global Solutions, found herself. With skyrocketing tariffs on imported automotive components, Mary realized the solution wasn’t to absorb the hit—it was to rewrite the playbook altogether. In this episode of Buy the Numbers, we dig into how Mary leveraged a little-known financial and logistical strategy: the Foreign Trade Zone (FTZ). By turning Lucerne’s Michigan...
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Building a KPI Culture That Drives Real Improvement on the Shop Floor, Ep #30
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In this episode of Buy the Numbers, host Mike Payne sits down with continuous improvement coach and Lean Six Sigma Master Black Belt Brian Karp to dig into the metrics that matter most for manufacturing leaders. Together, they explore how data can be used not just to measure performance, but to transform culture, drive engagement, and spark meaningful improvement across every department. For more than a decade, Brian has helped manufacturers simplify their approach to measurement—turning overwhelming spreadsheets and endless KPIs into tools that actually guide better decisions....
info_outlineKPIs can feel like a buzzword—every manufacturer knows they should be tracking them, but few feel confident about where to start or what actually matters. In this episode of Buy the Numbers, Mike Payne sits down once again with Jon Hughes of CLA to unpack the real purpose of KPIs, why they’re so misunderstood, and how data-driven decision-making can completely change the way a shop performs.
Mike and Jon dive into the QDISC framework—Quality, Delivery, Inventory, Safety, and Cost—and explore how these five buckets give manufacturers a clear, stable foundation for visibility. But they don’t stop at what to track. They go deeper into how to understand the story behind the metrics, how to trend progress over time, and how to set targets that actually mean something for your business and your customers.
Whether it’s measuring scrap and rework, calculating utilization, tightening cost control, or maintaining high on-time delivery, the two leaders discuss how the right KPIs help owners move from reactive firefighting to proactive leadership. They also break down the softer side of metrics: employee engagement, customer satisfaction, and the “why” behind the numbers that every team member needs to understand.
Most importantly, Mike and Jon show that KPIs don’t have to be complicated. In fact, the power comes from keeping them simple, actionable, relevant, and directly tied to your goals. If you're ready to elevate your operation by measuring what actually matters, this episode gives you the roadmap to get there.
You will want to hear this episode if you are interested in...
- (1:16) Introducing Jon Hughes and why KPIs matter
- (2:34) Why business owners struggle to start tracking KPIs
- (3:51) Learn how to grow your top and bottom line with CLA
- (5:46) How data reduces pressure and improves decision-making
- (7:41) KPIs as a living system that changes with your business
- (8:57) The QDISC framework: Quality, Delivery, Inventory, Safety, Cost
- (10:47) Safety metrics and examples of what to measure
- (12:15) Quality metrics: scrap, rework, escapes, and root-cause analysis
- (14:51) How to set meaningful KPI targets and benchmark well
- (16:55) Benchmarking challenges and looking at your own historical data
- (18:09) Trending metrics using percentages versus absolute values
- (19:44) Using yield and scrap data to price jobs correctly
- (22:48) Delivery and inventory KPIs, including OTD and cycle counting
- (24:26) Cost and capacity KPIs: utilization as a profitability lever
- (25:16) How ProShop ERP can help you achieve on-time delivery
- (26:15) Mike’s simple utilization KPI: billed vs. paid hours
- (30:28) Pricing strategy and understanding capacity
- (31:30) Tracking safety using workers’ comp modifier as a high-level metric
- (33:18) Why less is more when selecting KPIs
- (34:32) Financial review vs. weekly KPI review
- (36:26) Integrating KPIs into 13-week cash flow
- (37:39) Digging deeper only when KPIs show leakage
- (40:13) Measuring soft KPIs like customer concerns and employee satisfaction
- (42:48) Using employee surveys and tracking trends over time
- (44:00) KPIs as directional tools for improvement
- (45:12) Teaching employees how their actions affect KPIs
- (47:23) Using KPIs in all-hands meetings and bonus plans
- (49:16) Why we created Hire MFG Leaders (and why you should use it)
- (49:45) Final thoughts, how to connect with Jon, and closing
Resources & People Mentioned
- Learn how to grow your top and bottom line with CLA
- The KPIs to Help Manufacturers Improve Company Performance
- Your 6-Step Guide to Achieving Over 95% On-Time Delivery with Minimal Effort
- Cash Flow Power Moves: Pricing, Terms & Tools That Protect Your Business
- Why we created Hire MFG Leaders (and why you should use it)
Connect with Jon Hughes
- CliftonLarsonAllen (CLA)
- Connect on LinkedIn
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