continuous improvement

Is It Time to Change How You Allocate Resources within Your Service Center?

February 5, 2014 / , , ,

One of the most common pain points for metal service center executives is allocating resources in the most efficient and economical way. From a strategic standpoint, it would be ideal for managers to make continuous changes within their operations, in terms of both equipment and human capital resources. However, budget and time constraints have made that a challenge for many industrial metal-cutting operations.

As stated in this article from McKinsey Quarterly, most executives find themselves stuck in the trap of allocating resources the same way over and over again and expecting different results. Specifically, the management consulting firm states, “Every year, they turn the handle on the same strategy-development, capital-planning, talent-management, and budgeting processes, and every year the outcome is only marginally different from the one they reached in the previous year and the year before that.” Alternatively, McKinsey suggests that managers who refocus these processes have an opportunity to deliver different results.

A separate article from goes one step further and says that 2014 should be the year that executives dump all “tribal knowledge”— the tendency to do things simply because “it’s the way we’ve always done it” — and start using actual facts and data to make decisions. “The bottom line in today’s mobile-enabled, hyper-connected world: Companies that continue to rely on tribal knowledge and myths alone are falling further behind enterprises that are dealing in reality and actionable fact,” the article says.

Perhaps it is time to take a closer look at how you are distributing resources within your metal-cutting operation. Do you find yourself using the same resource allocation strategies you have used for years? Are you using facts and hard data to make those decisions? Are those decisions improving efficiency? And, last but definitely not least, do you know what other metal service centers are doing?

A recent white paper from the LENOX Institute of Technology (LIT) lists several ways leading metal service centers are choosing to reallocate their resources to improve efficiency. Below are two examples from the paper that show how technology investments like software can pay off:

Of course, managers can make other, non-technology related investments in areas such as training and safety and also get a high return. Every operation is different, with its own unique strengths to build on and weaknesses to improve.

The first question managers need to ask themselves is whether or not it is time for a change. Are you making strategic, proactive decisions for your industrial metal-cutting operations, or are you simply doing things “the way they’ve always been done?” As suggested in the McKinsey Quarterly article, today’s unpredictable market requires managers to be more agile in all of their business decisions, including resource allocation.

continuous improvement

What Does It Take to Be an Industrial Metal-Cutting Leader?

January 30, 2014 / ,

Like every other U.S. manufacturer, industrial metal-cutting companies have spent the last few years focusing on mere survival. Most companies have been forced to run “lean” and, in turn, have had to make some changes. However, a few organizations have risen above the fold and emerged as industry leaders. The question is how? While your goal may not be to make it onto IndustryWeek’s Manufacturing Hall of Fame, the fact is that today’s competitive market will continue to weed out companies that remain stagnant. In other words, “getting by” just isn’t going to be enough.

So what does it take to be an industrial metal-cutting leader? Below are a few of the common traits found among best-in-class companies:

Industry leaders understand the importance of continuous improvement. Experts like consultancy McGladrey continue to find that thriving manufacturers have a “relentless focus” on continuous improvement. According to McGladrey’s latest Manufacturing & Distribution Monitor Report, this is especially true as the economy emerges from the recession. As stated in the report, industry leaders are starting to realize that continuous improvement is vital because “increased profitability will likely need to come as much from productivity improvements as it will from revenue growth.”

Industry leaders invest in training. Investing in the right machinery is an important aspect of every metal-cutting operation; however, leading manufacturers know that productivity starts with the operator. All three of the industrial metal-companies featured in this series of case studies from LENOX Institute of Technology (LIT) have thorough training programs for both new and seasoned operators. Metal Cutting Service, Inc. (MCS), for example, offers an intense 40 hours of training when operators are first hired, as well as ongoing training at least once or twice a year. According to MCS president David Viel, “You are no better than your employees.”

Industry leaders work closely with key suppliers. Perhaps one of the greatest benefits of an increasingly competitive market is that many suppliers are offering value-added services to differentiate themselves—a trend that is especially beneficial for smaller manufacturers. Support in areas such as preventative maintenance, troubleshooting, and even software tools can help improve productivity and, ultimately, save costs. As stated in this article from ThomasNet, suppliers possess deep knowledge about the products they produce, and manufacturers should tap into this expertise and use it to their advantage. Global manufacturing giants like Unilever have even established long-term supplier partnership programs to help achieve specific company goals. To read how this can work in an industrial metal-cutting environment, check out this white paper from LIT or this case study on Aerodyne Alloys, a leading metal service center.


continuous improvement

Why You Should Invest in Your Operators

December 10, 2013 / , ,

Over the last few years, the industrial metal-cutting industry has invested heavily in technology to ramp up productivity. While this is certainly moving industrial metal-cutting forward, it has also exacerbated the workforce challenge that has been threatening the industry for years. As confirmed by a joint report from Deloitte and The Manufacturing Institute, skilled production workers are one of the largest workforce segments facing retirement in the near future, which will clearly have an impact on the number of experienced workers on the shop floor. This does not bode well for an industry that just ramped up its need for advanced skills.

The good news is that the solution is quite clear: You need to invest in your workers. While having the right tools for the job is important, it is perhaps even more critical to have people with the right skills operating those machines. In a band saw cutting environment, for example, an operator running a saw at the wrong speed and feed settings will drastically reduce blade life, increase the chances of maintenance issues, and create potential quality issues, all of which add up to wasted time and money—the exact opposite of productivity.

The only way to increase skills is to provide training. Unfortunately, this is not always as simple as it sounds. A good training program should provide new employees with a solid foundation, while also making sure seasoned employees know the latest techniques. Below are some suggestions that will help take your training program—and your workforce—to the next level.




continuous improvement

Improving Workflow on the Shop Floor

December 5, 2013 / ,

As customers continue to demand faster delivery, metal service centers have no choice but to optimize every aspect of their industrial metal-cutting process. This means squeezing out any inefficiencies that could be holding up production—a task most managers would admit is a lot easier said than done. While every operation wants to run as “lean” as possible, the challenge is finding the time and resources to identify workflow bottlenecks and then pinpoint the areas of improvements that will have a real impact on the bottom line.

As metal service centers juggle issues like multiple shifts, tight production schedules, and a high product mix, it can be difficult for managers to make any broad efficiency improvements. In fact, many companies don’t even know where to start and, in turn, end up pushing orders through instead of taking the time to reevaluate their processes. While this may work in the short-term, the long-term costs to areas such as quality and even maintenance can be detrimental to the economic health of a metal service center.

While efficiency initiatives are no small undertaking, even a few changes can make a difference. The key is knowing where to start. The following are some tips to help managers improve workflow on the shop floor and, even more so, start on a path toward continuous improvement.




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