QUALITY - YOU ARE ONLY AS GOOD AS YOUR LAST JOB

By Mark Porter

Quality is a key component to your company's corporate image, a large part of your mission statement and vital to your continued success.

Equipment manufacturers are continuing to incorporate quality control features into their machines.

There are certification programs such as ISO that can install procedures and policies that maintain high quality standards.

Software can also help in maintaining high quality control levels that will ensure you continue winning jobs and maintain an excellent reputation.

1. Customer Profiles

Typically only the CSR or company owner knows exactly the ways a customer wants their jobs produced. By creating a company profile you make this information accessible to all employees 24/7. This ensures that jobs are produced correctly and on time.

What overs are acceptable. Is a PO required to start. Won't accept deliveries after 5pm. Must use their truck. 5 Samples must be supplied. The demands go on and on.

Whenever there is a question about a job the answer is at every employees' finger tip.

2. Electronic Orders

Electronic Job Tickets vs Paper Job Tickets provide immediate delivery of job information to the plant. Think of the process you must go through when there is a change to a paper ticket. The change is received in the office and made on the ticket. The ticket is the printed 3-4 times and a CSR must distribute these revised tickets through out the plant and find the old tickets to ensure no mis-information is present. This represents a time delay in production working with accurate information. The result is potential extra costs and incorrectly produced product.

With an electronic order the revised production information is distributed to plant employees the second it is received from the customer. The changes are highlighted and in fact can change right before your employee's eyes. No delays - Greater Quality Fewer Costly mistakes.

3. Automatic Email Job Confirmations

Automatically confirming the specifications of the Order you just opened with the customer ensures that the job is started properly and it shifts the responsibility back to the customer. If there is a mistake in the information used to open the job it can be caught immediately.

Also if a confirmation is automatically generated for each change made to the order then you have a complete history and approval of each change or lack of change. If the customer knows he will get a change order for each change conveyed to your company and makes a change and does not receive a change order he knows to check up.

4. Problem History / Non Conformance

Tracking problems and solutions associated with jobs, customers, vendors, employees, departments and even processes can maintain a high level of quality.

First you are creating a knowledge base that can be used by all employees to solve future problems. Flagging problems that result in waste that exceeds allowable tolerances ensures Management is made aware of issues that may result in short counts.

Video can be attached to non conformance issues to help substantiate claims of problem with materials provided by the customer or demonstrate proper procedures to maximize quality.

Lastly a Non Conformance program can be used as a teaching/training tool to educate customers on the ways to prepare jobs to ensure maximum quality. Not only does it help quality but strengthens essential customer partnership relationships.

5. Job Inquiry

A strong Job Inquiry program puts information on all aspects of a job at your finger tips.

- This ensures information is not lost

- It encourages employees to look up information because it is easy to do. This avoids employees relying on their memories and making mistakes.

- Information is made accessible to all employees as soon as it is received improving quality and reducing errors and extra costs

Quality is a vital portion of any successful company's strategic approach to business. A combination of good equipment, certification programs and software can maximize your quality assurances.

ARE SAMPLES DRAINING YOUR COMPANY?

By Mark Porter

Samples are a necesary evil in the businesses of Print Finishing, Trade Binding and Die Making. Due to the three dimensional nature of the products these industries produce and peoples general inability to visualize the need for samples is large.

But do you collect revenue for these samples or do you know how much the production of Samples can cost you in any given year. It is vital that a business either collects revenues for all the goods and services it produces or at least is aware of costs that it should build into the overheads to ensure they are captured indirectly.

Our experience with members of these industries is that are neither collecting revenues for this service either directly by rebilling or indirectly by building these costs into overhead. Therefore samples is a direct drain on your profits.

You should open a job for each sample this will allow you to do several things.

1. You can have a unique numbering system for Sample Jobs as opposed to regular jobs so employees no they are working on a non rebillable job and will be more aware.

2. You can have information on the Job Ticket that is specific to a Sample. The information is not mixed in with other "regular" job information. Employees do not have to risk confussion or waste time hunting for sample information.

3. The information on the Job Ticket is specific to Samples and therefore jobs can be found and managed based on on that information. You can for example is how many times the file was resubmitted etc.

4. Track costs associated with the sample. Even if you are not going to rebill the customer it is important that you know how much each sample cost you to produce and more importantly how much sample making as a whole costs you each month and each year.

5. If you do rebill sample costs you can then track this through profitability because you have your costs from Job Costing and your Sales from Invoicing. Profit = Sales - Cost.

6. Track costs by customers. Track progress of Sample through Production.

7. Based on costs either work with customers that are incurring large portions of the expense or build your sample costs into your overheads to ensure you are recovering Sample making costs and not just watching your money go down the drain.

 

 

As we look for more and more ways to watch expenses and capture more sources of revenues - Samples can be an excellent place to start.

SOFTWARE BENEFITS WITHOUT UPFRONT COSTS

By Mark Porter

We are seeing more and more software companies offering their products on a monthly basis as opposed to a purchase/license basis.

 

One of the reasons for this is that software systems can be a large investment. There is the cost of the software and sometimes hardware purchases as well. In todays economic environment coming up with a large outlay or borrowing of cash can be difficult and most companies in our industries have a very production equipment first oriented attitude.

 

By commiting to software on a monthly basis you can get the many benefits software can bring to your company without the large initial outlay of cash that may take away from other parts of your business.

 

By commiting on a monthly basis you get benefits that can contribute to a better managed and therefore more profitable business immediately rather than waiting until you can afford to make an outright purchase.

 

The money saved doesn't have to go to an information system now the money saved can go to other production enhancing investments

 

Some of the benefits you can realize immediately are:

 

1. Information that allows you to make better and faster decisions

 

2. Identify trends and patterns sooner so you can react more timely

 

3. Increased efficiencies so that more work can be done by less people and done in a more accurate method.

 

4. Better Communication between office, plant and customers. Better communications reduces errors, improves quality and increases production efficencies

 

5. Improved Customer Service because data is at your finger tips

 

6. More convenience for customers with features such as On line Inquiries that provide 24/7 access to their data. Strengthen the bond with your best customers

 

Paying monthly also allows you to see more immediate return on your investment. If you are paying say $400 per month for software you can very quickly justify that expense as opposed to $10-$15,000 upfront investment.

 

The downside is that over time you will pay more for your software but if the software continues to deliver the desired benefits then it doesn't really matter. If the software does not bring the benefits you were expecting it is easier to remove that software and try another.

 

Whether you pay monthly or make the purchase/license decision it is vital that your company gain the benefits that software can bring to it.

 

SCANNING YOUR COMPANY FOR SAVINGS

By Mark Porter

As companies continue to look for ways to cut costs and become leaner it is more important than ever to have information at your finger tips.



With less staff to do the things that need to be done - any search for information or dcuments can take away from important production tasks and may result in costly mistakes or missed delivery dates.


If you can reduce the amount of time you spend answering the same questions for customers each day your productivity and savings would dramatically increase.

Having information at your finger tips is great but sometimes the customers questions require access to the original documents and paper work. At that point you must get up and find the actual job bag and hope the documents have been correctly filed.


With scanners today it can be quick and affordable to store original documents in your computers for future access.

Ideas of documents you may want in your system are


Quote Sent to the Customer


It is great to know the price you sent the customer but if the customer calls with questions you will want to be looking at the same document he is looking at when you answer his questions.



Customer Fax You Based Estimate On


We all get the hand written drawing faxed or emailed to us which we base our estimate on so it would be great if the drawing was electronically attached to the estimate file so it could be referenced easily when questions arise about the quote



Original Customer PO

Questions arise regarding the customers original specifications or requirements that can only be answered by the Purchase Order supplied to you by the customer. Allowing access to the original purchase order on the screen without having to find the physical job bag can save time and avoid mistakes






Signed Packing Slip


Customers always want to know when and how their job was shipped but often they need to know who signed for the job. When your driver returns from his deliveries the signed packing slips can be entered into the system for easy reference later on.



Other Images



As they say a picture is worth a 1000 words and therefore it can be very beneficial to include images of other parts of the Production Process.

Other images and files that you should consider for quick access are die images, finished product images and video documentation of problems and training material.

Access images from your CAD/CAM system or scanning images of the die into the system gives all employees access to the specific information they need to produce the job correctly.

Images of the finished product can help in the production of job.

Video of problems encountered in the past and video of ways to preventing the same mistakes can reduce costs and keep schedules on track.


Making Videos of difficult job setups or less used features of equipment immediately available to employees can save vital production time.

Therefore we can see that technology that allows us to add or scan images into our computers and allows employees to quickly find those images can help companies save time and money.

SOFTWARE SAVES MONEY: SMALL INVESTMENTS - BIG RETURNS

By Mark Porter

Well the summer is over and the fall is always a time to get re-energized. With the current news we are hearing it looks like there are more challanges waiting for businesses in the coming months.



Companies in the Print Finishing, Trade Binding and Die Making industries must continue to find ways to save money and increase revenue.


I think it is safe to say that software and computers are here to stay and they are an excellent way to achieve these goals.


Companies can get caught up in thinking they have to purchase a full MIS/ERP type system to see any benefits. Although full MIS/ERP systems can bring tremendous savings invidiual modules and programs can also provide tremendous benefit in reducing costs and/or increasing revenues.


Software such as gotomypc can give you access to your office computer 24/7 from any location you have access to the internet. The cost is approximately $20/month. How many trips do you have to save to the office each month to get a return on your initial investment.


Email blast software can allow you to reach your customers and potential customers very quickly. Software like this is often $20 or $30 per month. It does not have to generate many sales to provide an excellent ROI.


There are many Software APPs that can automate processes you require each day. Many apps are free or very low cost.


Individual Modules from full MIS/ERP systems can provide tremendous savings even if not fully integrated with the rest of the MIS/ERP system.


Customer Profile modules that captures the specific information for how each customer requires their jobs to be produced. Whether those jobs are Finishing, Binding or Die Making. The more informed your employees are the fewer mistakes they will make and that saves money.

Customer Profile $995 how many mistakes need to be avoided to return your investment.




Estimate History Programs can analyze estimates to see what type of work you are getting and losing. Track big desirable jobs to ensure you don't lose them for a stupid reason. 80% of revenue comes rom 20% of customers make sure your good customers aren't starting to look elsewhere.


Estimate History $995. How many large jobs do you need to win to return your investment




Order Entry programs can track changes to job after the job has been openned and can dat/time/employee and reason stamp the change to greatly increse your chances of collection legitimate extra charges.


Order Entry $1995. How many chargable extras do you need to collect to return your investment.




Purchasing modules can track POs, Receipts and Vendor Invoices. This provides and excellent cross check to ensure you only pay for what you have received and what you were quoted. How many wrongly billed items does it take to payback a purchasing system.


Purchasing $995. How many mistakes in Vendor Invoices do you have to catch to return your investment.



Receiving module for Customers dropping off Printed Goods. Emails notify you and your customer as soon as goods are delivered to your Shipping Dock.

Receiving Module $995. How many hours of lost production time because you were unaware goods were in your plant to you need to save to return your investment



Shipping programs that require a supervisor passwords to release the packing slip if the customer is on credit hold. Shipping Programs that allow you to put the Printers logo on your shipping documents that allow you to meet a tight deadline


Shipping $995. How many Jobs do you need to hold to return your investment



 Die Mgmt modules allow users who have a large inventory of dies in their plant the ability to find these dies is often a time consuming if not time wasting exercise.


The result is remaking dies that already exist and that wastes thousands and thousands of dollars and cuts into profits.

The condition of the die is monitored to ensure that we are aware of any retooling requirements. Automatic notification goes to the Die Shop foreman when a die needs attention.


We no longer have to lose valuable press time and risk late jobs because a die was not ready to be used at the beginning of a press run or a press......


Die Mgmt $995. How many dies do you need to avoid remaking and how much press down time do you need to save to return your investment.



Data Sharing allows you to account for every minute of every day and every material used in your plant. Accountability leads to greater productivity and less waste. Even a small 5% savings on $2,000,000 dollars of labor and material going through your plant results in a $100,000 savings. You also get productivity tracking, Chargable and Non Chargable hours and much more.

Data Sharing starts at $4995. How long will it tak you to return your investment




BHR modules calculate the true costs of your business. Now more then ever it is important to know your true costs. After all Profit = Sales - Cost. If you don't know your costs how do you know your profits.


BHR $1295. Knowing profitability on every job rather than year end can quickly return your investment.

When thinking software you don't have to think a full system to get tremendous benefits. Sometimes small investments bring Big Returns

DIE MGMT - LOCK UP BIG SAVINGS

By Mark Porter

A large number of companies in the Print Finishing, Trade Bindery Die Making, Packaging and Diecutting Industries use steel rule, foil and embossing dies.


Any user of dies can save a tremendous amount of money by simply managing those dies correctly.

Generally users of dies have a large inventory of dies in their plant but the ability to find these dies is often a time consuming if not time wasting exercise.

The result is remaking dies that already exist and that wastes thousands and thousands of dollars and cuts into profits.

By providing systems with extensive searching and sorting provisions we can find if you have a die that will meet the customers needs. These sorts are not just on the die specs but on the finished product specs as well.

Images of the die and the finished product will allow you to quickly identify that you have the correct die.

By using a bar coding system, a location finder and computerized take out and put back process we can ensure dies are located where we expect them.

Once we find dies we can record all specifications about the press run to ensure we can quickly get the die up to speed on the next run.

The condition of the die is monitored to ensure that we are aware of any retooling requirements. Automatic notification goes to the Die Shop foreman when a die needs attention.

We no longer have to lose valuable press time and risk late jobs because a die was not ready to be used at the beginning of a press run or a press run has to be stopped during production to retool a die.

This can save thousands of dollars in lost press time and / or overtime charges to keep jobs on schedule. Not to mention risking your relationship with the customer by delivering the job late.

A good system also tracks the disposal of dies and automatically notifies your customer and your own employees if I die is destroyed or returned to customer.

Die Management can also track the components ie type of rule, punches wood etc including costs that make up that die and track all employees that assemble or maintain the die.

This can be a very easy way for any user of dies to see substantial savings in their operations.

JOB COSTING = VALUABLE BUSINESS INFORMATION

By Mark Porter


In any business knowing your costs is important. After all isn't Profit = Sales - Costs. If you don't know your costs how do you know your profits. Sure at the end of the year you can say I made money or I lost money but if you control your costs and use your cost data to make better business decisions you may not lose any money or be able to say I made more money.

March's blog discussed the importance and ways to collect your cost data. Now we can look at what we can do with that data once you have it.

May's blog discussed the proper Job Closing routines and the type of reports you should generate when a job is complete.

The last in this series of Job Costing Blogs will deal with the value of the data you have collected. Information is a valuable asset and when you are collecting information on every minute spent by every employee and machine, every material used and every purchase made you have a great deal of information that can be analyzed to identify better, more efficient ways to run your company.

The type of reports you can generate with this type of information are:


1. Production Analysis



It is important that you ensure that makeready times and run speeds you achieve on the plant floor clearly reflect the data you use in your estimating process.


If you are estimating a piece of equipment at 5000 per hour but infact you are only achieving 4000 per hour on the shop floor you are losing money every time you win a job. Conversly if you are estimating at 4000 per hour and are actually achieving 5000 per hour on the shop floor you are losing jobs you could produce profitably.



2. Employee Analysis



Not all employees are equal and monitoring production results from an employee angle allow you to identify which employees may need more training.



3. Historical Information


Capturing all data about a job provides an excellent foundation for estimating and production in the event the job is re run in the future. This can provide your company with a competitive advantage as to where costs can be saved or allow you the knowledge to requote the job in a manner that will ensure you re coup all costs.



4. Time Analysis



By capturing every minute of time spent by each employee and each machine we can analyze that time to make decisions. For example examine how many hours each employee worked and what percentage of those hours were chargable time. If you have employees that work less then say 65% chargable time you may have to examine their role in the company.

A good job costing system will record the hours spent make-readying, running, cleaning up, repairing, maintaining or having no work for a machine. A machine with increasing repair and maintenance time may need to be replaced. A machine with large amounts of down time may be an asset that can be sold.


Job Costing not only allows you to analyze how a certain job ran at a specific time but also allows you to analyze all aspects of your business in a very historical way.