Archive for the ‘Manager’s Desk’ Category

I can do WHAT and get a raise?

May 1st, 2013
By: Vicki Bell

You want a raise; I want a raise; we all want raises. Even corporate heads who take pay cuts to show how much they empathize with their workers probably want and think they deserve raises, but that’s a topic for another day.

What would you do for a raise, besides doing the best job you can every single day? Take on more responsibility? Work longer hours? Endeavor to meet and exceed all performance appraisal metrics? Probably easy yeses for most of us, right? How about getting a tattoo? (more...)

Manufacturing forecast: Sunny days ahead

April 12th, 2013
By: Dan Davis

Is current economic news making you unenthusiastic about the rest of this year and 2014? The editors at The Kiplinger Letter say not to fret. Manufacturing's future in the U.S. appears to be pretty good in the near term.

In the early April newsletter, editors suggested that, even though manufacturing may appear to be losing some of its momentum this year, it will continue to be a strong driver of growth during this "feeble" economic expansion.  Manufacturing growth is expected to be 2.2 percent in 2013, just a little higher than the forecast GDP growth of 2 percent, but could be greater if public pressure forces lawmakers to moderate the effects of budget cuts related to the federal sequester. In 2014 manufacturing growth could hit 3.5 percent. In fact, manufacturing production levels should reach 2007 levels in 2014.

To dig deeper into the forecast, The FABRICATOR talked with Karen Mracek, a Kiplinger Letter associate editor. (more...)

Hands off the merchandise!

April 4th, 2013
By: Eric Lundin

In early March, my colleague Vicki Bell wrote a blog about a common and highly dreaded problem these days: Metal theft. I am sure the main target is copper, which typically fetches more than $3.00 per pound (spot price), and it probably started with stealing plumbing pipe from abandoned buildings. Thieves have gotten bolder and, while the evidence is largely anecdotal, fully functional HVAC systems and other copper-rich items have become targets.

And the thieves have gotten bolder still. Vicki cited a specific instance at Metcam, metal fabricator based in Alpharetta, Ga. In this case, the suspect was loading sheets of metal into his truck and, when questioned by a deputy whether he had permission, he said, “I didn’t know I couldn’t do this.” Hiding behind a building, on private property, under cover of darkness, taking things that didn’t belong to him. And he didn’t know it was wrong. Bold. (more...)

Metal fabrication, a people business

March 12th, 2013
By: Tim Heston

In an upcoming print edition of The FABRICATOR, columnist Dick Kallage, principal at KDC & Associates, Barrington, Ill., asks this fundamental question: Why do customers buy from you? As Kallage explains, “the answer often revolves around soft, generalized terms, such as quality, precision, or service. Those are great attributes for use, but who told you that? Unless you know exactly why your customers choose your company, you cannot possibly improve in a focused, economical manner.”

Those are wise words. Kallage’s column focuses on company valuation. It delves into not just why customers buy from you, but why another company or investor would want to purchase a custom fabricator. As Kallage explained it, investors will pay more for a fabricator with new equipment, because they know they won’t have to update equipment during the near term. But they don’t view equipment as a key differentiator because--unless a shop uses proprietary, custom machinery--other fabricators can buy the same or similar machines.
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FABTECH 2012: A reason for optimism

November 16th, 2012
By: Dan Davis

The year was 2008. FABTECH, North America's largest metal fabricating and forming technology tradeshow, was making its first visit to Las Vegas. The opening day of the event generated a lot of excitement because more visitors attended that first day than had ever attended a FABTECH opening day, which included the typically larger Chicago shows. Many attendees were uncertain about the economy cooling down, but plenty of others blamed such talk on the liberal media trying to sabotage the economy. Several weeks later, however, any enthusiasm soon faded; the U.S. economy seemingly fell off of the cliff.

The year is 2012. FABTECH returned to Las Vegas, Nov. 12-14. The opening day generated similar numbers as the show four years ago. Attendees still don't know how much their taxes will go up in 2013 or just how much the federal government's new health care mandate will cost them. Meanwhile, some attendees point the finger at the liberal media for not recognizing that the metal manufacturing sector is operating at near-full capacities. Business is good, but uncertainty remains high even after the presidential election. Can the Republican majority in the House of Representatives work with the Democratic majority in the Senate to provide a roadmap that helps the federal government avoid the huge mandatory budget cuts that are linked to the "fiscal cliff"?

It appears what is old is new again—much to everyone's frustration. But there is good news, and that is fueling quiet optimism among the metal fabricating community walking the floors of FABTECH 2012. Everyone is lean and means to grow the business. Everyone is waiting on the right moment to do it, however.

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Busy or slow, manufacturer never stops improving

October 28th, 2012
By: Tim Heston

If tragedy has a silver lining, it is that it brings everything else into stark clarity. Those who suffer usually either wallow or emerge triumphant. Chesterfield, Mo.-based Cambridge Engineering did the latter.

As Vice President of Manufacturing Michael Mueller put it, “We had a new spirit, and we had to survive.”

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Getting up to speed on "soft" costs

October 18th, 2012
By: Dan Davis

I've got a friend that coordinates purchasing relationships between U.S. manufacturers and Chinese part suppliers. That may rub some people the wrong way, but his current occupation is just part of a natural evolution. He once acted solely as a manufacturer's rep for manufacturing service providers in the Midwest, but had to change his approach as everyone began to seek overseas sourcing connections. In typical American success story fashion, he saw an opportunity and jumped on it.

But this story isn't about him; it's about one of his customers. This one in particular had been a very satisfied customer until the arrival of new company management. The new regime wanted a review of all existing supplier relationships. In short, management wanted to see what cost savings could be gained by intensely scrutinizing current contracts.

My friend has been through these scenarios before, and he prepared a plan. How could he improve his position while helping out the customer? He knew it wasn't just about parts and prices; it was about solving a customer's pain—even if the company didn't know it had one. (more...)

Fab reporter notebook: In lean manufacturing we trust

October 16th, 2012
By: Tim Heston

Yesterday I spoke with a production manager (on background) with a not-so-uncommon challenge. He had been brushing up on the basics of continuous improvement, including lean manufacturing methodologies adapted for the high-mix, low-volume environment.

All the talk of efficient part flow, shorter lead-times, and less inventory seemed great in theory. And the shop has made some initial steps. He had worked to reduce batch sizes to combat the large pile of work-in-process building up around the press brakes, a common bottleneck. The fabricator also revamped its material ordering to ensure raw stock for a job arrives a day or so before when needed, not a week or more.

But the fabricator had yet to launch a formal improvement effort. The shop is busy, to be sure, and managers expect the shop to be even busier next year. But this isn’t a reason not to launch a lean initiative. Indeed, improvement initiatives may make life easier. The shop performs numerous one-off jobs--a subassembly of, say, 10 or so components. All too often, jobs arrive at the assembly department incomplete, with one piece missing. Further improvement efforts may clear WIP, ease flow, and make it much less likely to lose a critical piece during an upstream process, like at laser cutting or punching.

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Why supply chain innovation matters

October 2nd, 2012
By: Tim Heston

Innovation has been said to be at the heart of business success, but in a contract fabrication shop that often doesn’t entail product design, where is that innovation? According to a recent publication by the consultancy Plante Moran, titled the 2012 Innovation Quotient Survey, innovation doesn’t necessarily mean product innovation. It also can be process innovation, like innovative manufacturing methods or technologies. And there are innovations within supply chain relationships.

Jeff Mengel, leader of Plante Moran’s manufacturing group, described how such innovation changes customer relationships from one that’s simply a matter of convenience into one that is intimate-- not in the romantic sense, of course. Instead, Mengel uses “intimate” to describe a business relationship that would be very inconvenient and disruptive to break.

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Where is your career going?

September 5th, 2012
By: Vicki Bell

We hear a lot these days about the plight of employers looking for skilled workers and job seekers who can’t find jobs. What we don’t hear about too often—mostly because they are so grateful to be employed and want to remain so—is how the employed among us really feel about their jobs and careers, beyond gratitude.

According to a new survey from Randstad, the second largest HR services and staffing company in the world, half of U.S. workers believe the economy has impacted their careers negatively. Forty-three percent believe their careers have slowed down, and it will be harder and will take more time to achieve career growth. Half of employees surveyed also believe the only way to help grow their careers is to switch to a new company. (more...)