January 25, 2017 / best practices, continuous improvement, emplo, Employee Morale, lean manufacturing, LIT, maintaining talent, productivity, skills gap, strategic planning
Teamwork is essential to any manufacturing operation. Most experts agree that it is the cornerstone of any successful improvement initiative, and many of today’s industry leaders understand that collaboration and decision-making go hand in hand. From the shop floor to the executive office, everyone’s input carries value.
Unfortunately, building strong teams isn’t as easy as sitting a bunch of people in a room together once a week. As one article from IndustryWeek points out, just because a company works in teams doesn’t mean it is good at teamwork. Simply building a team isn’t enough. The goal has to be building an effective team.
What does this look like in a forging environment? For many companies, it starts with creating a sense of unity. According to an article from Reliable Plant, the goal is to remove the barriers that often exist between the departments by taking a one-plant, one-team approach. Specifically, the trade publication suggests removing any team or function name that directs the function of the team to one specific department or function. For example, change the name of total quality management to total quality manufacturing and then develop improvement teams consisting of personnel from each department within the plant. “This begins to create a common workplace interest and supports a one-plant, one-team environment,” the article states.
Another important step is for managers to consistently ask employees for input and, more importantly, to make some of their ideas a reality. According to the white paper, The Top Five Operational Challenges for Forges that Cut and Process Metal, communicating with shop floor employees and actively including them in operational decisions promotes a team atmosphere, and, therefore, motivates employees to achieve company goals. To see this principle in action, check out this video, which shows one manufacturing floor operator’s reaction to implementing a high-performance team culture in his organization.
An article appearing in the Harvard Business Review confirms that effective teams are hard to build, especially in today’s diverse, dispersed, and digital world. However, it is possible. Quoting research from J. Richard Hackman, a pioneer in the field of organizational behavior who began studying teams in 1970, HBR says there are three “enabling conditions” that lead to strong, thriving teams. The following is a quick summary of those conditions, as described by HBR (You can read the full article here.):
- Compelling direction. The foundation of every great team is a direction that energizes, orients, and engages its members. Teams cannot be inspired if they don’t know what they’re working toward and don’t have explicit goals. Goals should be challenging enough to motivate, and they also must be consequential: People have to care about achieving a goal, whether because they stand to gain extrinsic rewards, like recognition, pay, and promotions; or intrinsic rewards, such as satisfaction and a sense of meaning.
- Strong structure. Teams also need the right mix and number of members, optimally designed tasks and processes, and norms that discourage destructive behavior and promote positive dynamics. High-performing teams include members with a balance of skills. Every individual doesn’t have to possess superlative technical and social skills, but the team overall needs a healthy dose of both.
- Supportive context. Having the right support is the third condition that enables team effectiveness. This includes maintaining a reward system that reinforces good performance, an information system that provides access to the data needed for the work, and an educational system that offers training, and last—but not least—securing the material resources required to do the job, such as funding and technological assistance. While no team ever gets everything it wants, leaders can head off a lot of problems by taking the time to get the essential pieces in place from the start.
The HBR article goes on to describe a fourth condition—shared mindset—which is similar to Reliable Plant’s suggestions for creating a one-plant, one-team environment. This condition requires managers to facilitate shared information among departments and to be intentional about building bridges among team members.
Like any company-wide initiative, building an effective manufacturing team takes time, intention, and a little trial and error. By encouraging unity, fostering collaboration, and implementing strong foundational elements such as diversity and incentives, today’s forges can create a team-centered manufacturing environment that truly benefits everyone.
How are you creating a team environment in your forging operation?
January 20, 2017 / best practices, blade failure, blade life, blade selection, Cost Management, LIT, productivity, ROI, strategic planning
In any manufacturing operation, having the right tool for the job is critical. The challenge is that there will always be instances when the “right tool” won’t be a clear-cut decision.
For example, in metal-cutting, bi-metal band saw blades have been traditionally used for easier-to-cut metals such as aluminum and non-ferrous metals, carbon and structural steels, and some alloy steels. However, blade technology is evolving, and there are now carbide-tipped band saw blades on the market that have been designed specifically to cut aluminum and non-ferrous alloys. This begs the question: Is the new technology worth the investment, or would it be smarter to stick with a tool operators already know?
Answering those types of questions is never easy and takes careful consideration, especially when there is some investment necessary. In today’s competitive market, even a simple tooling decision is strategic.
To assist managers with the task of selecting the best machine tools for their operations, the LENOX Institute of Technology offers the following tips:
- Form an internal team. Good strategic decisions are very rarely made alone. As a recent article from Modern Machine Shop explains, even a decision like buying a new machine tool should include input from every department it may impact (i.e., engineering, production, maintenance, etc.). This, the article states, is why forming an internal machine-tool buying committee is a good idea. “During the machine-buying process, some companies will form committees, especially when numerous departments will be involved in and responsible for the daily operation of the machine,” the article states. “Buying committees allow each department to have input, conveying their requirements and concerns prior to machine selection.” You can read more about this best practice here on Modern Machine Shop’s blog.
- Work closely with suppliers. More and more managers are finding that collaborative supplier relationships are critical to business success. In fact, according to the book, Strategic Supply Chain Management by Shoshanah Cohen and Joseph Roussel, companies that strategically utilize their supply chains realize better business results than their competitors. This can include your tooling suppliers. When looking at a new machine tool, a trusted supply partner should be willing to provide informational and educational materials about new tools and technologies, as well as additional services such as short-term trial runs and training support. Some may even be willing to help you measure and analyze the success of a new tool. No one knows your equipment and tooling better than the people who designed it, and a good supplier should be willing to share their expertise with you—no questions asked.
- Look at the total cost. Like any good purchasing decision, tooling selection needs to take into account the total operational costs of running the tool, including maintenance costs and equipment requirements. Case in point: While carbide-tipped band-saw blades are more advanced in the right application, they do not perform well with a lot of vibration. Therefore, they can only be used with certain types of saws—a critical purchasing consideration. As explained in the white paper, Selecting the Right Cutting Tools for the Job, making the “right” blade choice requires managers to weigh three key factors:
- upfront costs against overall operating and maintenance costs
- long-term productivity of a machine and its intended use
- equipment and blade life, as well as cost per cut
What best practices does your team follow when choosing a new machine tool?
January 10, 2017 / best practices, continuous improvement, customer delivery, customer service, industry news, LIT, quality
Like many industrial metal-cutting companies, fabricators face the constant challenge of balancing speed with quality. Although most managers understand that both are critical, tight schedules and rising customer expectations are making it more and more difficult for companies to keep up.
According to the brief, “Strategies for Improving Customer Service and On-Time Delivery in Industrial Metal Cutting,” managers need to be sure that when push comes to shove, quality comes first. “While speed and agility are certainly key attributes of any leading metal-cutting operation, they cannot come at the expense of accuracy,” the brief states. “In sawing, for example, if an operator increases the speed of the saw to get more cuts per minute without considering the feed setting or the material, the end result will be decreased blade life, possible maintenance issues, and lower quality cuts. In the same way, companies focused solely on speed and delivery without considering the quality aspect of customer service will likely see other areas of their business suffer, including customer retention and costs.”
Leading fabricators understand the benefits of keeping quality high, and many continue to invest in this part of their operations. Madden Bolt, a fabricator based in Houston, TX, recently announced that it has earned its AISC certification from the American Institute of Steel Construction (AISC). The goal of the certification, the company states, is to further demonstrate to customers its commitment to delivering quality steel products—a step Madden says only half of the steel fabricators in its category have taken.
According to a company press release, the six-month AISC certification process was worth the effort and directly benefits customers. Specifically, the certification requires Madden Bolt to implement effective procedures that safeguard the specifications and agreements within customer contracts, including a system that would resolve discrepancies or deviations from contract requirements. Madden is also required to ensure that material ordered complies with design and drafting specifications and that the materials are inspected to meet ASTM standards.
Many fabricators are also in the process of undergoing ISO 9001:2015 certification. The quality standard, which was recently updated, is a best practice for many industrial metal-cutting organizations, including Metal Cutting Service, Inc. in City of Industry, CA. David Viel, president of the specialty metal-cutting shop, admits that while it is hard to pinpoint the dollar benefit ISO 9001 certification has brought to his bottom line, it has definitely offered a return on investment. “Our quality, if I had to make an estimate, would be in the range of a 20% to 30% improvement,” he says here in a case study.
Of course, certification is just one way fabricators can invest in quality. There are several technologies available that help industrial metal-cutting companies enforce quality control, such as the inspection tools used by companies featured here and here in Modern Metals.
Regardless of how you decide to ensure quality within your shop, the point is that you put in the time and resources necessary to make it a top priority. In today’s fast-paced market, slow and steady does not win the race, but fast and sloppy doesn’t stand a chance.
In what ways has your fabrication shop invested in maintaining high quality standards?
January 5, 2017 / best practices, continuous improvement, industry news, LIT, strategic planning, supplier relationships, supply chain
As metal service centers and other industrial manufacturers find new ways to stay competitive, the role suppliers play is becoming more and more critical. Now more than ever, manufacturers need to be in tune with what is happening within their supply chain.
One major trend companies need to be aware of is the shifting dynamic within the supply chain, much of which has been caused by cost pressures. “Competitive pressure to reduce costs is forcing changes in supply chain operating models, creating more complexity and dependence in the value chain,” notes PricewaterhouseCoopers (PwC) on its website. “The number of entities and interdependence between parties is increasing and expectations regarding reporting are also becoming more burdensome.”
Another trend is increased collaboration with suppliers. Many service centers are looking to form strategic relationships with suppliers that can provide value, not just low-cost services or products. A white paper from the Lenox Institute of Technology discusses how this is happening within industrial metal-cutting:
“Operations managers increasingly find that to be successful, they must establish a collaborative vendor relationship that moves far beyond the sale of a product. By leveraging all of the assets their vendors can bring to the table, companies can form strategic partnerships that not only help fulfill their customer demands, but that also help optimize other aspects of the business such as cost management and employee training.”
A recent article from ThomasNet confirms this trend, stating that supplier collaboration will be crucial in 2017. The article, which you can access here, lists three more trends worth noting:
- Increased Emphasis on Ethics and Transparency. In 2016, many companies came under fire due to a lack of ethical practices within their supply chain. As consumers become more environmentally and sustainability conscious, supply chain professionals will be under enormous pressure to ensure that their products are safe, ethical, and environmentally friendly. As a result, procurement teams will invest in technologies that provide greater visibility into their suppliers.
- Digital Will Become Standard. For years, the supply chain has been shifting away from the paper-and-technology model of information management to an all-digital approach. In 2017, that shift will go from optional to essential.
- The Supply Chain Will Get Agile. Today’s intricate, global supply chains are inherently risky, so supply chain managers need to be able to plan ahead and react quickly when a disruption does occur. Thanks to the advent of real-time data, it’s now possible. Leveraging data, supply chain professionals can make quick decisions that can resolve potential crises.
Of course, only time will tell how much of an impact these trends will have on your service center this year. Some of them may have no impact at all. However, for those companies that want to have an edge up on the competition, it is critical to keep a pulse on every aspect of your business, including your supply chain.
January 1, 2017 / best practices, industry news, LIT, productivity, quality, ROI
It’s a new year, which means companies are getting a jump start on major projects and working toward new goals. For many manufacturers, this includes transitioning from the ISO 9001:2008 quality management standard to the updated ISO 9001:2015 standard. Although the revised version of the standard was published back in September 2015, companies have until September 2018 to complete the transition. The following is a quick summary for industrial metal-cutting companies that are considering recertification.
While many would say that ISO’s most recent revision is “significant,” as explained here in an article from the Association of Manufacturing Excellence (AME), the changes are more evolutionary then revolutionary. “These new guidelines are less prescriptive than previous versions – an effort to adapt to the working conditions of the 21st century,” the AME article states. “ISO 9001:2015 is the result of the intensive study from experts in about 95 countries throughout a three-year period. It’s a tool to help improve efficiency while maintaining the ability to adapt to today’s quickly changing work environments.”
Some of the key updates in ISO 9001:2015 include the introduction of new terminology, restructuring of some information, and increased leadership requirements. Another key change is that the new update incudes ten clauses, whereas the previous version included only eight. According to Luc Marivoet, a quality expert at Paulwels Consultant, the first three clauses in ISO 9001:2015 are largely the same as those in ISO 9001:2008, but there are considerable differences between ISO 9001:2008 and ISO 9001:2015 from the fourth clause onwards. More specifically, the last seven clauses are now arranged according to the PDCA cycle (Plan, Do, Check, Act). You can read more about the clause changes here.
Overall, most experts agree that the newly updated standard is more relevant and has been written for the benefit of organizations, not auditors. ISO says that the revised standard was designed to bring companies the following benefits:
- Puts greater emphasis on leadership engagement
- Helps address organizational risks and opportunities in a structured manner
- Uses simplified language and a common structure and terms, which are particularly helpful to organizations using multiple management systems, such as those for the environment, health & safety, or business continuity
- Addresses supply chain management more effectively
- Is more user-friendly for service and knowledge-based organizations
Steps to Update
As noted above, companies have a three-year transition period from the date of publication (September 2015) to move to the 2015 version. This means that, after the end of September 2018, a certificate to ISO 9001:2008 will no longer be valid.
Why go through the recertification process? That question is discussed in more detail here, but in general, it is widely accepted that ISO 9001 certification provides companies with several benefits, including improved quality and cost savings. In fact, the eBook, Five Performance-Boosting Best Practices for your Industrial Metal-Cutting Organization, lists ISO 9001 certification as a key strategy for industrial metal-cutting companies that want to improve their performance.
There is no question that transitioning to the new standard will take considerable time and resources. ISO offers the following tips for companies that are transitioning to ISO 9001:2015:
- Familiarize yourself with the new document. While some things have indeed changed, many remain the same. A correlation matrix, available from ISO/TC 176/SC 2, will help you identify if parts of the standard have been moved to other sections.
- Identify any organizational gaps which need to be addressed to meet the new requirements.
- Develop an implementation plan.
- Provide appropriate training and awareness for all parties that have an impact on the effectiveness of the organization.
- Update your existing quality management system to meet the revised requirements.
- If you are certified to the standard, talk to your certification body about transitioning to the new version.
To further assist industrial metal-cutting companies that are seeking ISO 9001:2015 certification, the LENOX Institute of Technology has gathered a few helpful resources:
- Click here to download and purchase ISO 9001:2015.
- Click here to download ISO’s transition guidance document.
- Click here to watch a video describing why ISO decided to update the standard.
- Click here to download a checklist to assist you through the transition.
How might recertification benefit your industrial metal-cutting organization?
Engaging Employees Is Key to Continuous Improvement in Your Ball and Roller Bearing Manufacturing Operation
December 30, 2016 / best practices, continuous improvement, Employee Morale, LIT, maintaining talent, operator training, strategic planning
There is no question continuous improvement is critical to succeeding in today’s market. Case in point: two of the three industrial metal-cutting companies featured here in a case study on top performers listed continuous improvement as an imperative operational strategy and best practice that sets their operations above the rest.
It’s also widely accepted that continuous improvement efforts require “buy-in” from the top-down to truly be successful. This isn’t always an easy task. Articles like this one from IndustryWeek discuss the challenges improvement teams face in getting upper management on board. Perhaps the larger challenge, however, is getting operators and other employees committed to improvement efforts. While upper management support is needed to secure resources, employees are the ones carrying out the efforts, making them absolutely critical to success.
The key, one expert states, is to intentionally engage employees. “For any effort directed towards continuous improvement or innovation to succeed, your employees must feel that their suggestions…are genuinely wanted and in fact encouraged,” Chris Ruisi, leadership expert, writes here in a blog published by the Association for Manufacturing Excellence (AME). “They must willingly take ownership in the future of their organization—continuous improvement is everyone’s responsibility.”
To facilitate this, Ruisi offers the following strategies:
- Review Outcomes. Ruisi suggests that managers adopt his “study your game films” approach. At the end of every important project, regardless of the outcome, teams should meet and ask questions that encourage improvement: If we had to do this again, what would we start doing; stop doing; do more of or do less of? This simple process ensures that you learn something from every event to make you better the next time.
- Explain the Big Picture. Most employees know what they must do, when to do it, and how to do it. Many do not know why they do it, who they do it for, and where it fits in to the total picture. Armed with the “why, who, and where,” they are better able to identify and suggest ways they can improve and contribute to the company’s larger goals.
- Gather Feedback Regularly. Start meeting with small groups of your team members on a regular basis to actively solicit their feedback on how their work is produced. Start with only one question: What’s one thing we can do today to produce a better result tomorrow? Take the same approach with your better customers. They have a lot to offer as long as you ask and show them that you sincerely want their feedback.
- Encourage Ownership. At the end of every staff meeting, ask “what’s one thing we could do better?” Once an idea is identified, ask the person who suggested it to “own” that project. This encourages feedback and empowers your team members to take ownership in the continuous improvement effort.
If your ball and roller bearing operation is dedicated to continuous improvement, it may be worthwhile to consider some of Ruisi’s suggestions. In addition to helping continuous improvement efforts stick, taking the time to engage employees often builds new levels of trust among employees and management—trust that can provide invaluable benefits like improved morale and employee loyalty.
Does your current continuous improvement plan actively engage employees?
December 25, 2016 / best practices, bottlenecks, continuous improvement, KPIs, lean manufacturing, LIT, performance metrics, workflow process
Lean manufacturing is nothing new. Principles based on continuous improvement, streamlining production, and machine efficiency have long changed the way manufacturers operate. Industry leaders like Jorgensen Forge have been using lean manufacturing tools like 5S and Total Productive Maintenance (TPM) for years to lower costs, improve responsiveness, and increase efficiency.
However, as stated in the eBook, Five Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, lean manufacturing is evolving. “Companies that ‘got lean’ years ago are focusing on continuous improvement, and a growing number of high-mix, low-volume operations are tweaking traditional methods to fit their specific situation,” the eBook states.
A recent article series published by IndustryWeek takes this idea further, arguing that lean manufacturing should be evolving. “I am convinced that for Lean to remain relevant as a strategy for improving manufacturing effectiveness it needs to evolve to the point where expert practitioners are NOT needed for most typical Lean transformations,” consultant Paul Ericksen states here in the first article of the series. “Lean shouldn’t be a mystery or black art that is only successfully conducted by an elite group of practitioners. For this to happen, additional Lean concepts, strategies, metrics, processes, and tools need to be developed.”
Specifically, Ericksen argues that the lean evolution needs to go beyond simple “tweaks” and instead, should change its current emphasis on waste elimination to one of total business performance (i.e., revenue). He calls this Next Generation Lean.
- Lean’s current focus on reducing Cost-of-Goods-Sold waste needs to be expanded to cover all waste associated with Order Fulfillment.
- Introducing an overriding strategy of lead-time reduction to Lean practice will change it from a methodology that produces isolated tactical impacts to one that delivers more comprehensive strategic transformation.
- An industry-wide, customer-focused metric for lead-time needs to be adopted to support strategic Lean practice.
- Market specific (customer-based lead-time expectations and competitor order fulfillment proficiency), build-to-demand capability is a company’s Lean end game.
- A lead-time metric could then be used to quantify a company’s current Lean status, as well as to define what it means for a specific company to be considered Lean. The difference between their current Lean status and their Lean end game goal quantifies a Lean-ness gap, finally giving Lean practitioners a concrete way to say where a company is in its Lean journey.
While Ericksen’s theory may or may not make sense for your shop, one key point is worth noting: Your approach to lean manufacturing should be continuously improving and evolving right alongside your operation. If your forging operation has been using lean manufacturing tools for years, perhaps it’s time to re-evaluate and reconsider how those tools could better serve your company.
December 20, 2016 / best practices, bottlenecks, continuous improvement, lean manufacturing, LIT, operator training, productivity, quality, workflow process
With a slew of improvement strategies, tools, and technologies available, many managers have lost sight of one of the simplest ways they can optimize the performance of their operations—standardized processes.
In fact, according to the Lean Enterprise Institute, standardized work is one of the most powerful, but least used lean manufacturing tools. “By documenting the current best practice, standardized work forms the baseline for kaizen or continuous improvement,” the organization explains here. “As the standard is improved, the new standard becomes the baseline for further improvements and so on. Improving standardized work is a never-ending process.”
As defined by iSixSigma, standardized work is the most efficient method to produce a product (or perform a service) at a balanced flow to achieve a desired output rate. It breaks down the work into elements, which are sequenced, organized, and repeatedly followed.
There are several benefits shops can gain from standardizing processes. The following are just a few:
- Reduced re-work due to errors in the production process or between operators
- Reduced wasted time looking for tools, documents, or required inputs to complete tasks
- Better, more comprehensive, training procedures for new staff and retraining of existing operators
- Improved quality, if implemented throughout the production process and focus on quality at the source
Many shops are experiencing these and other benefits of standardized processes. Hard Milling Solutions (HMS), a shop featured here in Modern Machine Shop, standardized its parameters for specific material and cutting tool combinations to manage a highly varied workload with minimal labor. “Our primary goal with this system is to ensure every programmer cuts the same way, and gets the same results,” Corey Greenwald, owner of HMS, tells Modern Machine Shop. “We want customer needs to dictate what comes out of this company, not the experience and ability of any one individual.”
Quality Industries (QI), a metal fabricator based in La Vergne, TN, have seen the benefits of standardized work processes across several business areas. “For QI, the move to standardized work created positive scenarios and brought both obvious and underlying benefits to the business,” the fabricator says here on its website. Below are just a few of the ways QI has made standardization work in its operations:
- Process Documentation for All Shifts. Historically, many of QI’s productive processes were understood only inside the heads of experienced team members. Creating precise documentation to supplement and replace this “tribal knowledge” helps the fabricator to critically evaluate each manufacturing process to ensure that the most productive sequences and work practices were being documented. In addition, the documentation ensured that a given process could be duplicated on all shifts, and in all work cells and departments.
- Reductions in Variability. Once production processes were standardized, variability in product characteristics and quality was greatly reduced. While slight variations still existed due to different machine types, makes or models or tooling types, QI says most of these variations were eliminated because of the achieved consistency of steps and sequences in both material work and downstream activities. This aspect of Standardized Work also delivered tremendous value to the customer, who could rely on consistent finished goods.
- Easier Training for New Operators. In any manufacturing environment, bringing new personnel up to speed quickly is a challenge. For QI, standardized work and well-crafted documentation simplified the process. The best process documents not only spelled out steps in clear language, but were also highly visual—with images, charts, drawings and any other helpful illustrations. This training resource provided a continuous reference for the operators and enabled a new communication system for the team. In the QI shop floor environment, team leaders and others from outside the department were able to determine the level at which each operator is qualified on machines, work cells, and specific operations.
In today’s fast-paced market, process control is essential for shops that want to stay competitive and maintain the high quality customers demand. As stated in the industry brief, “Strategies for Improving Workflow and Eliminating Bottlenecks in Industrial Metal-Cutting,” today’s industrial metal-cutting companies can’t afford costly mistakes that can slow down or stop production. By implementing standardized work processes, many shops are finding they can not only increase productivity, but reduce variable(s?) variable overhead? and improve several other business areas that contribute to the bottom line.
Are your shop’s metal-cutting work processes standardized?
November 30, 2016 / best practices, continuous improvement, Cost Management, industry news, LIT, operator training, preventative maintenance, ROI, strategic planning
In today’s challenging market, any edge you can carve out against the competition is beneficial. While traditional improvement strategies such as lean manufacturing, ongoing training, and preventative maintenance can help improve your operational success, top performers are looking beyond long-established methods to differentiate themselves from their competitors.
According to the brief, “Resource Allocation Strategies for Leading Industrial Metal-Cutting Organizations,” industry leaders understand the importance of thinking outside the box. “In the spirit of continuous improvement, best-in-class managers need to explore all of the ways they can save their operation time and money,” the brief states.
Enter sustainability—the latest initiative manufacturers are using to reduce costs and gain a competitive advantage. Whether implementing strategic energy plans or adopting more environmentally friendly processes, today’s industrial manufacturers are finding that “going green” can provide bottom-line savings.
For example, according to The U.S. Green Building Council report, LEED in Motion: Industrial Facilities, more than 1,755 industrial facilities have received a voluntary green building certification system called LEED – Leadership in Energy and Environmental Design. As stated here in a blog from Frost & Sullivan, experts believe that the operational efficiencies gained by following LEED building principles are real and measurable.
Take Fiat Chrysler’s Trenton South Engine plant as an example. The Michigan-based facility was the world’s first engine plant to achieve a Gold LEED rating, which has helped cut the plant’s annual CO2 emissions by 12,000 metric tons, reduced energy consumption by 39%, and saved about $1.6 million a year.
Ball and roller bearing manufacturers are following suit. For the last 17 years, industry leader SKF has been listed as one of the most sustainable companies by the Dow Jones Sustainability World Index (DJSI). “Our long-running inclusion in the DJSI is something that we are all very proud of within SKF,” stated Rob Jenkinson, director of corporate sustainability at SKF. “Sustainability issues for businesses have evolved during this period, with an ever increasing focus on reducing negative environmental impacts and doing more for society as a whole. We maintain our focus on understanding these issues and the role we can play to help address them—now, and in the future.”
New Hampshire Ball Bearings, Inc. (NHBB) is also focused on sustainability as a strategy and has a formal Energy Management Plan in place. “Energy management is at the core of our strategy to achieve sustainability because it is so vital to our long term health,” the company says on its website. “Rapid economic growth, especially in the developing world, is expected to increase global energy consumption 40% by 2035. The expected increase in energy costs and the potential for supply disruptions compels us to identify and implement aggressive energy efficiency improvements.”
Instead of embracing sustainability as something that’s just “good to do,” more and more manufacturers are realizing that there are practical short-term and long-term financial benefits to implementing environmentally conscious improvements, according to a blog from the Manufacturing Extension Partnership (MEP). The industry group lists five key business advantages to adopting sustainable practices. The following are the top three: (You can read the full list here.)
- Reduce Energy-Related Costs. Energy and water costs are a prime concern for manufacturers. Focusing on improvements can reduce these expenses, typically on an annual basis. In addition, switching to energy-efficient lighting and adjusting lighting levels in accordance with your production schedule will reduce your long-term electrical costs. Regular equipment inspections can also prove beneficial.
- Attract New Customers and Increase Sales. Green and sustainable practices can make your company more marketable. Consumers are more conscious of the environment, and making improvements will strengthen your reputation. Whether you’re an OEM or a supplier, highlighting your initiatives to the public will help you attract a whole new base of customers, resulting in increased sales.
- Tax Incentives. There are a variety of tax credits and rebates on both the federal and state level for manufacturers who proactively implement more sustainable improvements. There may be incentives available to your business. Check out the U.S. Department of Energy’s website and the Database of State Incentives for Renewables & Efficiency.
Of course, the bigger picture benefit of sustainability is its positive impact on the environment. However, as Fiat, SKF, NHBB, and many other industrial manufacturers are discovering, developing and integrating a detailed sustainability vision into your long-term strategic plan can have real, measurable business advantages that contribute to the bottom line.
November 25, 2016 / agility, best practices, blade life, continuous improvement, customer delivery, customer service, LIT, quality, strategic planning, workflow process
There is no question that customer expectations are changing. Companies like Amazon have raised the bar on what customers should expect from a service provider, whether that means Sunday deliveries or using the latest technology to improve the purchasing experience.
Not surprisingly, the so-called “Amazon effect” has found its way into industrial manufacturing. Supply chain consultant Lisa Anderson says she has seen this first hand with all of her manufacturing and distribution clients. On-time deliveries, she says, are no longer enough. Today’s customers are looking for suppliers that can offer faster lead times and value-added services that will benefit their bottom line.
While same-day delivery may not yet be feasible, industry leaders are finding several ways to enhance customer service. According to the brief, “Strategies for Improving Customer Service and On-Time Delivery in Industrial Metal Cutting,” the following are just a few of the strategies industrial metal-cutting organizations are using to better meet the demands of their customers:
- Put Quality First. Balancing speed with quality has always been a pain point for manufacturers, but as any metal-cutting company can attest, customers are now asking for tighter tolerances in half the time. Growing demand has made this an even greater challenge. While speed and agility are certainly key attributes of any leading metal-cutting operation, they cannot come at the expense of accuracy. In sawing, for example, if an operator increases the speed of the saw to get more cuts per minute without considering the feed setting or the material, the end result will be decreased blade life, possible maintenance issues, and lower quality cuts. In the same way, companies focused solely on speed and delivery without considering the quality aspect of customer service will likely see other areas of their business suffer, including customer retention and costs.
- Standardize Processes. Standardization is one of the key aspects of lean manufacturing. However, experts believe it is often the missing link within many so-called lean factories. By taking the time to standardize manufacturing processes, metal-cutting operations can keep production moving smoothly while also maintaining consistency. This is especially true for shops that run multiple shifts. For example, managers can create standardized cut charts so operators know the right blade to use for every process and type of job. Procedure checklists, sign-off sheets, and training reference documents are additional tools managers can use to maintain quality throughout the production process.
- Consider ISO Certification. Many industry leaders are finding that becoming ISO 9001 certified helps them maintain quality standards during times of high volume. The ISO standard is based on a number of quality management principles, including a strong customer focus, the motivation and implication of top management, and continuous improvement. The basic goal of the ISO standard is to help companies provide customers with consistent, good quality products and services, which, in turn, often brings business benefits like improved financial performance. In most cases, it is used to strengthen existing quality programs by making it a formal, documented procedure.
- Engage Customers. As many leading companies are discovering, the voice of the customer can be a valuable tool. According to research from consulting firm Aberdeen Group: “The customer has become much more than a product delivery channel and instead has morphed into an integral stakeholder with the clout to determine the viability of the organization, and their voice can no longer be taken for granted.” Of course, customer feedback requires some form of measurement, which can mean anything from tracking every call to your service center to having your sales team proactively reach out to customers for input. The goal is to both gather and leverage customer feedback to identify problem areas and reveal new service opportunities.
Many forges and other industrial metal-cutting companies are also diversifying their services to better serve new and existing customers. In fact, Ampco-Pittsburgh Corporation has built diversification into its corporate strategy. Earlier this month, the Carnegie, PA-based forging operation announced the acquisition of ASW Steel, Inc., a steel producer based in Welland, Ontario, Canada.Commenting on the acquisition, John Stanik, Ampco-Pittsburgh’s CEO, said:
“This acquisition is a very important element in Ampco-Pittsburgh’s strategic diversification plan. ASW’s proven broad expertise in flexible steel refining methods will provide us with the capabilities to manufacture the additional chemistries needed to expand our reach in the open-die forging market. The transaction also enhances our ability to grow in markets in which we currently participate and to add new markets for customers in the oil and gas, power generation, aerospace, transportation, and construction industries.”
What does it take to keep your customers satisfied and, more importantly, gain their loyalty? In today’s demanding market, most industrial metal-cutting companies would say high quality, competitive costs, and on-time delivery. However, those have always been the hallmarks of any good manufacturer, and some might argue that the last few years weeded out any companies that even remotely lagged in these key areas. How you “amp up” your customer service game will largely depend on what you already have in place, but the above strategies are just a few ideas to get you started.
What is one thing you could do to improve customer service in your forging operation?