Volume: 2   Issue: 23 NEWSLETTERJune 2010



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Message from the President

All of us here at MANUFACTURERS RESOURCE are extremely pleased at how well the new FORUMS network within our website has been received.   Since its inception over 100 professionals have joined the site and are already taking advantage of the experience of others.  New members are signing up every week, which is key to the long term success of this project.

Over the years I have noticed that the learning process in most industries and organizations is somewhat haphazard at best.   Newer workers are normally given a cursory orientation to the basic workings of the company and assigned to an employee in their department to help "train" them.   What usually happens is that the new employee is assigned the more mundane responsibilities within his/her group and is pretty much left to their own devices.   These "newbies" ask a lot of questions in the beginning, but then as time passes they become hesitant to ask for fear of seeming to be a slow learner or just not very smart.   We were all newbies once and went through this right of passage, but let's face it, we're still here.

The problem with this training is that it doesn't really prepare us for the challenges we are about to face and too often we learn best from the mistakes we make.   Our success therefore comes from being able to do better (make fewer mistakes) than our peers who are struggling to survive (or excel) in the same system.   The sad thing is that the mistakes we will make have been made countless times before by others in similar situations.   Overall the process of making the "best" decision in any given circumstance is not very efficient or productive.   Unfortunately we do not have the wisdom of others at our fingertips.   Imagine, however, if you were able to communicate directly with others that could give you the advice you were looking for to make the right decision.   This is exactly the purpose of the FORUMS network.

We hope that those visiting this site for the first time will make it a habit to visit the FORUMS network page on a regular basis.   Need help with a decision right now?   Go ahead and ask, what have you got to lose?   (Only the opportunity to possibly make the right decision!)

Sincerely,

Kevin Gilmore

U.S. Manufacturing Recovering

A recent article in the Wall Street Journal reports that the recovery in the U.S. manufacturing appears to be gaining momentum.�� It also addresses the issue of productivity during this period of growth.

��� While the past two growth cycles restored jobs, they didn�t recover all that were lost.� Nor is this one expected to do so, as productivity gains and automation have enabled companies to make more with fewer workers.� �

If your organization is facing growth, but you are either leery of hiring new workers just yet or you need to become more productive, then we may be able to help you. Our expertise in all aspects of manufacturing operations and the systems that monitor and control them allows us to quickly evaluate and optimize the output of your work force. Let us show you how you can do more with the employees you have and possibly avoid that costly, and possibly unnecessary, process of hiring new people.

Let Manufacturers Resource perform a Productivity Audit for you now and show you how to take charge of your labor problem and get the most from what you have now. Contact us now and let us go to work for you!


Productivity Audit

What is productivity?
Productivity is defined as "Efficiency(%) X Utilization(%) ". Efficiency is a measure of how quickly a person or machine performs a task. Utilization is a measure of the percentage of time the person or machine is working compared to the total time available to work.

Why is an audit necessary?
Audits need to be performed to investigate and confirm the following:

  • inventory quantities are reported correctly and verified
  • the standard labor rates seem reasonable
  • the overhead rates are calculated properly
  • all critical operations are being monitored
  • quality program is being implemented properly
We will also check to see if:
  • there are operations that can be improved
  • any indirect activities can be standardized and monitored
  • information flow can be streamlined or automated

How is the audit performed?
Each and every activity or operation, including those that are indirect, will be identified, monitored, and then evaluated to determine the actual productivity. The system for collecting and reporting the data will also be reviewed to confirm that the data and reports are reliable and accurate. MANUFACTURERS RESOURCE will also review your overhead rates. This can be done for one department or the entire plant.

What it can mean for you?

  • Improvements can normally be made in every operation. When this is repeated throughout the factory the labor savings can be significant.
  • Reports now become more meaningful which creates confidence in management decisions.
  • A reliable reference will be established from which further improvements can be measured.
  • Product costing will be more accurate.
  • Confidence in knowing that your facility is as productive as it can be.