March 20, 2017 / best practices, continuous improvement, Cost Management, human capital, industry news, LIT, operations metrics, operator training, optimization, performance metrics, preventative maintenance, productivity, resource allocation, ROI, strategic planning
As we reported in a previous blog, capital spending among machine shops and other metalworking companies has been down for the last several years. This has been largely due to an unstable marketplace and low business confidence among shop owners. The good news is that industry reports suggest a rebound in the near future.
However, this dip in spending has caused many shops to take a closer look at the value of their existing equipment. When new equipment isn’t in the cards—and even if it is—it is important for today’s managers to understand the total cost of running their metal-cutting equipment and, even more so, what their total worth is from an operations standpoint.
Below are just a few ways shops can be sure they are looking at the value—not just the cost—of their existing equipment:
- Look at profitability, not just productivity. As explained here, overall equipment efficiency (OEE) is a critical metric that measures the percentage of production time that is truly productive. It takes into account all six types of loss, resulting in a measure of productive manufacturing time. According to a recent article from Modern Machine Shop, OEE is helpful, but it may not be enough on its own. “Managers have to balance decisions about maximizing the part-making capability of their equipment with decisions about the money-making potential of this equipment,” the article states. “OEE ratings alone provide an incomplete picture.” The article goes on to describe a measurement called Financial OEE (FOEE), a trademarked name for a new feature of a communications platform from Memex, which accounts for profitability. As stated in the article, “FOEE helps a shop understand how machine performance is helping (or hurting) profitability. This insight provides guidance—and incentive-to focus on the most appropriate productivity improvement efforts.” More specifically, FOEE is the current-state hourly profit divided by a value representing a world-class level of profit. This ratio compares what profit a company made with what profit could have been made at world-class levels. This information can help shops see the financial value of improving the machine’s performance. To read more about this metric, check out the full article here in Modern Machine Shop.
- See existing equipment as an asset. A common struggle among many shops is finding enough working capital to invest in new equipment. To help fight this battle, a recent article from Canadian Metalworking discusses how shops can use the value of existing equipment on the floor. “An asset-based lender, one who has experience in the manufacturing industry, will recognize that a good, brand-named machine tool that has been paid for in full, is an asset that can be leveraged,” the article states. “The equipment is used to provide collateral for financing new machinery, or as a resource to raise working capital to cover the additional costs of product development using existing equipment.” This does require the shop to have a full understanding of how existing equipment is evaluated and how it can be leveraged. To read some tips on properly evaluating and grading your machinery, click here for the complete article.
- Consider the value of maintenance. It’s a pretty simple fact: Equipment that isn’t running is pretty much worthless. This seems obvious, but many shops still put preventative maintenance (PM) and other housekeeping tasks on the back burner in an effort to stay productive. The irony is that this usually ends up hurting productivity in the long run. As stated in the brief, Cost Management Strategies for Industrial Metal-cutting Organizations, there are several aspects of equipment maintenance that contribute to overall costs. “From an operations standpoint, managers can keep costs under control by making sure metal-cutting equipment is operating as optimally as possible,” the brief states. This includes ensuring that equipment is running at the proper settings and that fluids are adequate. Closely monitoring blade life and maintenance reports are also critical. Perhaps the most important consideration is a strong preventative maintenance program. Programs can be as detailed as a shop feels is necessary, but a few checkpoints are outlined here in a white paper from the LENOX Institute of Technology. If limited personnel is the issue, check out this blog about getting equipment operators involved in daily PM tasks.
What other factors contribute to the value of your metal-cutting equipment?
March 5, 2017 / best practices, industry news, LIT, maintaining talent, operator training, productivity, quality, skills gap, strategic planning
Data from the U.S. Labor Department continues to show that the skills gap is real. As reported here by the Wall Street Journal, the number of open manufacturing jobs has been rising since 2009, and 2016 registered the highest number in the past 15 years.
Why does this continue to be an issue? According to the eBook, Five Performance-Boosting Best Practices for your Industrial Metal-Cutting Organization, there are several layers to the current workforce challenge. First, skilled production workers are one of the largest workforce segments facing retirement in the near term, which will have an impact on the number of experienced workers on the shop floor.
Meanwhile, the current talent pool isn’t what it should be. Streamlined production lines and more process automation have changed the nature of manufacturing work, and the incoming generation of workers either isn’t interested in working anywhere near a production line or lacks the necessary skills and technical knowledge.
The question continues to be, then, how can companies fill the gap? While the issue is too complex for one “sure-fire” solution, many believe that training and, more specifically, apprenticeship programs are an effective way for companies to fill their employee pipeline and build their team’s skill set.
An article from IndustryWeek argues that while colleges may turn out students that may know things, manufacturing companies need students that can do things. This is why apprenticeships are key. “Perfectly positioned at the intersection between knowledge and training, apprenticeship programs are ideal talent incubators,” the article states. “The positive outcomes of skills training are many: stronger communities, a skilled and confident workforce and an increase in the number of career opportunities for our young people.”
The U.S. Department of Labor defines apprenticeships as “an employer-driven, ‘learn while you earn’ model that combines on-the-job training, provided by the employer that hires the apprentice, with job-related instruction in curricula tied to the attainment of national skills standards,” according to its web site.
With hands-on jobs like metal-cutting, it’s hard to argue against the benefits of on-the-job training. However, the problem is that many companies don’t want to pay for it. The apprenticeship model typically involves progressive increases in an apprentice’s skills and wages, which can be viewed as costly to organizations, especially if they are afraid employees will take their skills elsewhere.
The good news is that there are several new initiatives out there that are trying to alleviate that cost by joining the industry and government together. Below are two examples:
- One initiative, called Incumbent Worker Training, is funded by the Workforce Innovation and Opportunity Act. The program is helping Kentucky companies like metal stamper Tower International cover training and apprenticeship program costs. The program reimburses 50 to 90 percent of training costs, depending on the size of the company, for in-demand sectors and occupations, including manufacturing, technology, healthcare, food and beverage production and transportation, distribution, and logistics. Employers can qualify for as much as $10,000 per year to cover costs such as non-company instructors, tuition, curriculum development, textbooks, supplies and more. Tower has used the money to help cover training costs for three employees in the company’s registered apprenticeship programs. You can read more about the program here.
- Another proposal, called “Toward a New Capitalism” from the Aspen Institute’s Future of Work Initiative, is based on the idea of “pay for performance.” According to an article from The Atlantic, the government-backed corporate retraining program is set up to help companies pay for training, but only for curricula that raise a worker’s wage. For example, if a company spends thousands of dollars to train an employee on a specific skill that results in a pay raise, the company gets reimbursed by the government for the training costs, even if the employee decides to leave. “By training workers, businesses are essentially buying a small equity stake in their future wages,” the article explains. “If their wages rise, the company gets money, while the worker gives up nothing, purely benefiting from the training program.” You can read more about the program here and here.
While apprenticeship programs aren’t by any means a new idea, they could be exactly what manufacturing needs—again. For an industry that has spent a lot of the last few decades focusing on process and efficiency, it’s time to place the focus back on people. By investing time and resources into building a highly skilled workforce, you are ultimately investing in your company’s long-term success.
How is your company building a skilled workforce? Could an apprenticeship program help close the skills gaps in your operation?
February 20, 2017 / agility, best practices, blade failure, blade life, blade selection, Cost Management, customer delivery, industry news, LIT, maintaining talent, operator training, productivity, quality, resource allocation, skills gap, strategic planning
Thanks to an unstable marketplace, capital spending among machine shops and other metalworking companies has been down for the last several years. However, new reports suggest a rebound in the near future.
According to data from Gardner Business Intelligence (GBI), machine tool consumption peaked at $7.5 billion in 2014, and then contracted 3 percent in 2015 and 7 percent in 2016. Based on GBI’s Capital Spending Survey, projected total machine tool consumption in 2017 will be down an additional 1 percent. However, as reported here by Modern Machine Shop, the survey also shows that demand for core machine tools will increase in 2017 by 9 percent. In addition, GBI’s new econometric model for machine tool unit orders indicates that the rate of contraction in overall machine tool demand bottomed in July 2016 and will improve through the end of 2017.
Steven Cline, Jr., director of Market Intelligence at GBI, says the driving force behind the projected rebound is the need for increased productivity. “Shops need to increase productivity in order to remain competitive in a global manufacturing marketplace and to counteract the much-talked-about skills gap,” Cline writes in Modern Machine Shop. “More and more shops are turning to lights-out and/or unattended machining to achieve this increase in productivity, but new equipment, including machine tools, workholding and automation, is needed to run lights-out.”
As reported in the news brief, “Strategies for Training and Maintaining Talent in Industrial Metal-Cutting Organizations,” industrial metal-cutting companies have spent the last few years investing a lot of time and resources into their workforce. This has helped boost productivity and address some of the skills gaps, but the GBI survey suggests that shops are seeking a balance that requires investments in both human capital and equipment.
For example, Speedy Metals, an online industrial metal supply company and processor, recently upgraded its band saws to improve efficiency. “We had been searching for a reasonably priced, high-production band saw to add to our saw department and boost our production,” Bob Bensen, operations manager, tells Modern Metals. “We needed a reliable band saw that was going to stand up to the rigors of our fast-paced environment.”
Bensen went on to say that the new band saw, which has nesting capabilities and allows his operators to cut a variety of metals, has improved productivity. This, he adds, has given Speedy Metals a competitive edge and allows his company to continuously offer same-day shipping on quality parts and customized saw cuts that meet the closest tolerances.
Similarly, metal-cutting companies like Aerodyne Alloys are investing in new metal-cutting tools to further improve efficiency. Working with hard-to-cut metals like Inconel 718 and Hastelloy X, the metal service center decided to upgrade from bi-metal blades to carbide-tipped blades to get higher performance out of its band saws. After upgrading to a carbide blade, Aerodyne was able to tackle hard, nickel-based alloys, while also improving cutting time on easier to cut materials like stainless steel. According to a case study, this helped improve operational efficiencies at Aerodyne by up to 20 percent.
Of course, not all capital investments offer a good return. If your shop is considering investing in new equipment or tools this year, be sure to measure cost against productivity. According to the white paper, Selecting the Right Cutting Tools for the Job, managers need to weigh the following:
- 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
There is no question: Staying competitive in today’s market is tough. Demands for high quality and quick turnaround continue to increase, while cost pressures and issues like the skills gap remain. How will your shop respond? As the GBI survey suggests, it may be time to consider making some capital investments to ensure that your team is fully equipped to meet demands.
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 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?
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?
December 10, 2016 / best practices, customer delivery, maintaining talent, operator training, productivity, quality, ROI, skills gap, strategic planning
With all the buzz around connectivity and “smart” factories, it appears as if the manufacturing industry is on the brink of a major shift. Some experts, as we reported here, are calling this Industry 4.0. Even companies in more mature industries like metal fabrication are starting to realize that the demands of today’s customers are not only changing the scope of their work, but the way in which they actually need to do their work.
“Investments in fabricating technology, information systems, and employees will be necessary to stay on top of the growing complexity in the metal fabricating business,” Dan Davis, editor of The Fabricator, says here in a recent editorial. “There’s no other way around it in this world of massive customization in manufacturing.”
While most industry leaders understand the capital and technology investments that may be necessary in the near future, many fail to realize the growing importance of investing in employees and, more specifically, in their training. In today’s lean manufacturing world, metal fabricators and other industry metal-cutting organizations have been conditioned to think in terms of efficiency. This means that secondary activities like employee training are often neglected because they don’t directly contribute to the bottom line.
However, as stated in the brief, “Strategies for Training and Maintaining Talent in Industrial Metal-Cutting Organizations,” research shows that investing in areas like training can provide a host of benefits, including better quality, faster on-time customer delivery, higher revenue per operator, and lower rework costs. “Put simply, companies can’t afford to neglect one of its greatest assets,” the brief states. “By investing resources into the workforce, industrial metal-cutting leaders can better equip themselves for today, as well as the future.”
For shops that want (or need) to beef up their training programs, an article from Foundry magazine provides some insight on what it takes to create an effective training program. According to the article, training programs should include a strong combination of education, engagement, and use: “Training must educate by teaching skills, transferring knowledge, cultivating attitudes and hitting other specific targets. But training that is purely educational doesn’t get results. That is why training must present information in ways that are engaging, interactive and require the learner to think and use the information learned.”
The article goes on to describe a method often used in training known as VAK Attack. VAK is an acronym describing the three ways people learn, as spelled out below:
- Visual learning happens when people watch materials that can include videos, PowerPoints, charts and other visual elements.
- Auditory learning happens when people learn by listening to people who might be other trainees, compelling trainers, visitors and others.
- Kinesthetic learning happens when people get out of their seats and move around as they take part in work simulations, games, and other meaningful exercises.
According to the Foundry article, effective training should include all three of the VAK principles so that employees can better learn and absorb the information presented. The author also suggests hiring an outside trainer to ensure long, impactful results. (You can read the full article here.)
It would be hard for anyone to ignore the advancements of the manufacturing industry; however, too many companies are ignoring the role employees play in today’s increasingly complex production environments. By investing in employees and their training, today’s metal fabricators can prepare for the future and, more importantly, stay competitive today.
How is your fabrication shop investing in employee training?
December 5, 2016 / best practices, bottlenecks, continuous improvement, industry news, operator training, Output, productivity, Safety, workflow process
Workplace safety is a priority for nearly every manufacturer. However, when industrial metal-cutting organizations need to do more with less to stay competitive, safety priorities can sometimes fall to the wayside—creating severe and costly consequences for workers and businesses alike.
Here’s the good news: According to OSHA’s “Survey of Occupational Injuries and Illnesses,” private industry employers reported 48,000 fewer nonfatal injury and illness cases in 2015 compared to the prior year. Unfortunately, the bad news is that the manufacturing industry had the highest proportion of accidents. As reported by OSHA’s Severe Injury Reporting Program, manufacturing accounted for 57% of all amputations and 26% of all hospitalizations, closely followed by construction, transportation, and warehousing. In addition, of the Top 25 industry groups reporting severe injuries, architectural and structural metal and fabricated metal product manufacturing came in at 17 and 20, respectively.
Of course, workplace injuries come with a cost—not only to employees’ health but to businesses as well. According to the 2016 Liberty Mutual Workplace Safety Index, the most disabling, nonfatal workplace injuries amounted to nearly $62 billion in direct U.S. workers compensation costs. That’s more than a billion dollars a week.
Workplace injuries also create production inefficiencies. As reported in the white paper, Accounting for Operator Inefficiencies in the Metals 2.0 Environment, a cleaner, safer work environment is a more productive, profitable environment. Often times, safety incidents may be rooted in issues such as lack of training, an unorganized shop floor, or poor workflow layout and ergonomics. Neglecting safety issues can lead to reduced output and, ultimately, a lower profit.
One way manufacturers can reduce workplace injuries is to not only make safety a priority, but to create a culture of safety throughout the organization. Tire manufacturer Goodyear, for example, reduced worldwide incident rates by 94% by creating an engaged safety culture in 49 facilities across 22 countries for its 66,000 workers.
In an interview with New Equipment Digest, Michael Porter, Global Environmental Health & Safety Director at Goodyear, said the key to building this type of culture is integration from the top down. “Starting from the highest levels of the company, we tie our EHS strategy down into our company’s overall strategy roadmap,” Porter explained. “Then that cascades down into how we operate on a manufacturing level.” This, he adds, includes everything from workforce organization and equipment care to continuous skills development.
To help create a culture of safety, there are a few strategies metal service centers can consider. Dave Stauffer, director of SBM Management, recently told attendees at the 2016 Safety Leadership Conference the eight building blocks his company has used to create a culture of safety in its 500 operating locations. The following are SBM’s top four strategies (You can read all eight here, as reported by EHS Today.):
- Employee observations. Coach and mentor employees to validate that they are doing their jobs safely. Ensure employees are wearing their personal protective equipment (PPE). Observe employees to make sure they are working effectively.
- Safety engagement. Establish rapport with employees to help reduce unsafe conditions and at-risk behavior in the workplace. Actively involve all employees in the health and safety of the workplace. Verify employees are engaging in the correct safety behavior.
- Employee recognition programs. Reward employees for safe job performance. Reinforce and recognize positive work culture. Celebrate employee successes.
- Interactive audits. Supervisors and managers should complete the observations daily and document them. Engage in conversation about safety and assure each employee has the skills, knowledge and training to perform their job safely.
The Metal Service Center Institute also recognizes the importance of safety and recently partnered with the National Safety Council (NSC) to release new safety resources optimized for the metal industry. The new tools include:
- Access to NSC safety reports
- Local access to the NSC’s Advanced Safety Certificate program
- Resources and approved model programs to help members create their own safety programs
While there is no magic formula for creating a “zero-incident” service center, industry leaders are taking steps to ensure their operations are safe. Creating a culture of safety can help identify and eliminate process bottlenecks, improve production, avoid costly injury implications, and most importantly, keep operators and workers safe.
What safety programs do you have in place at your metal service center? Do you consider your center to have a culture of safety?
December 1, 2016 / agility, best practices, blade selection, industry news, material costs, productivity, skills gap, strategic planning
Over the last few years, uncertainty has plagued the manufacturing industry. Currency fluctuations, material costs, customer demands, labor shortages, and political issues are just a few of the factors feeding into an overwhelming feeling of doubt and apprehension among manufacturers.
Instead of fearing change, most companies have come to expect it. This has led many industry leaders to focus their efforts on becoming more “agile” so they can quickly respond to changing customer demands. As explained here in a blog post, “agile organizations operate on a ‘sense and respond’ mode rather than the ‘predict and control’ mode.”
An agile company is able to take advantage of short windows of opportunity and adapt to fast changes in customer demand. According to a previously published blog, this tactic can be especially attractive for industrial metal-cutting companies that are trying to gain an advantage over offshore competitors.
However, the question is whether this renewed focus on agility should come at the cost of long-term planning. While short-term goals and gains are important, is it really wise for today’s manufacturers to ditch long-term strategic planning because the future looks uncertain? Does it really pay to be shortsighted?
An article from Forbes suggests that the answer to that question is no. According to the article, one of the top-five questions managers should ask during a strategic planning session is where they want to be in the next three years. “While some might balk at long term plans, they help people to frame a future vision,” the article states. “When teams don’t articulate long-range goals, they get trapped into incrementalism. Each year a little more growth is expected, a few changes are made and revenue and profit targets are increased. The result is a business that probably inches forward.”
According to an editorial from IndustryWeek, there are also risks associated with companies that are fixated on the short term. In fact, the article asserts that short-term goals can often lead to long-term problems. “I am a firm believer in capitalism but capitalism cannot thrive if we remain focused on short-term profits at the expense of long-term sustainability,” the article author states.
From an operational standpoint, this theory holds some weight, as short-term decisions can have long-term consequences. The white paper, Tackling the Top Five Operating Challenges of Industrial Metal Cutting, gives two examples:
- Some metal-cutting operations use the “pick for speed” method to meet growing demand and improve short-term productivity. This means operators are grabbing fresh material every time and ignoring scrap. However, many industry leaders are finding that “pick for clean” is a better long-term solution. In most cases, using remnants first and striving to keep inventory low leads to increases in productivity and quality in the longer term because operators take the time to perform cuts right the first time. This also keeps material costs low, which affects the bottom line.
- One machine shop found that upgrading to a carbide-tipped band saw blade provided a substantial improvement in efficiency. Previously, the shop was using bi-metal band saw blades to cut stainless steel, which could take up to two hours. Now, with the carbide-tipped blade, cuts are performed in minutes, which has provided huge time savings and has freed up the sawing equipment to do more cutting. While the short-term cost of the newer blades was higher, the machine shop found that the long-term productivity benefits were well worth the investment.
While there is no question that today’s companies need to be able to adapt to change, long-term thinking and planning are still an important part of business success. An article from Harvard Business Review puts it this way:
“Don’t just say that the future is uncertain, and that you will act when it gets here. It is the responsibility of a forward-looking leader to share a point of view about the role the company might play in specific scenarios. Communicate how customers are changing, and how your organization can address those needs in the future.”
What is your company’s long-term point of view?