Implementing fastlane ideas to an old school industry

[Kevin90]

I work in a very old school business. It's a small (under 50 employees) tool and die/metal stamping company. Metal forming has been around for thousands of years (blacksmiths, weapons makers, etc.). The metal stamping industry has been around since mass production was used in manufacturing. The biggest advancement in this business has been the technological improvements to the machines that produce the customer's parts. I'm having trouble implementing fastlane ideas and framework to really make a difference in the company I work for. The way material and components are purchased has been the same for a long time. The way the work flow functions has been the same for a long time. The process of acquiring new business has been the same for a long time. Besides new software the company recently implemented to improve job costing and inventory control, we do things old school. As one of two twenty-something year olds in the position to have direct communication with upper management, I feel I have the opportunity to shake things up and help grow the company.

I'm stuck on how to create rapid growth and profitability...to really make a difference. How do fastlane ideas apply to a business that has been around since the 1800's?

 

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[Niptuck MD]

business are always trying to revamp and get faster/ leaner more efficient. there is surely waste in older organizations. You can start by finding out where excess waste (from lean perspective) is headed whether it be outdated machinery or even downtime of machines, personnel issues (old labor is stubborn labor) maintenance costs etc

 

[Niptuck MD]

a lot of the people that work in your company i would assume are your atypical slow laners. their set in mind of way of thinking. They resent change. You want to make sure you craft your way around your motives to get them to either support the changes or to just abide by them. It is a challenging task but definitely manageable.

There is surely ways reach your business out via trade shows on social media to get and attract more business. perhaps the website can be altered if possible to attract legions of people. Maybe machine shop can do work out of state even. I know a lot about machining and machine shops as i was manufacturing engineer for big name corporation plants. If there is a reputable highly polished machine shop you can bet they will attract business from all over the country.

 

[miked_d]

Map out each process from order to ship and then look for inefficiencies. Wasted time, wasted material, etc. Think about improvements, even if small. If there are 20 steps and and you find 1% savings in a few, that adds up.

 

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[KLaw]

Perform a Kaizen Event. It's a proven method and helps the cross functional team "buy in" and take ownership. Be sure to collect plenty of data before the event. Before and after pics of the process and layout. Flow chart (value stream maps) the process before and after. This will pin point waste (muda) in the process. Study and become the go to guy for lean manufacturing principles.

 

[snowbank]

I work in a very old school business. It's a small (under 50 employees) tool and die/metal stamping company. Metal forming has been around for thousands of years (blacksmiths, weapons makers, etc.). The metal stamping industry has been around since mass production was used in manufacturing. The biggest advancement in this business has been the technological improvements to the machines that produce the customer's parts. I'm having trouble implementing fastlane ideas and framework to really make a difference in the company I work for. The way material and components are purchased has been the same for a long time. The way the work flow functions has been the same for a long time. The process of acquiring new business has been the same for a long time. Besides new software the company recently implemented to improve job costing and inventory control, we do things old school. As one of two twenty-something year olds in the position to have direct communication with upper management, I feel I have the opportunity to shake things up and help grow the company.

I'm stuck on how to create rapid growth and profitability...to really make a difference. How do fastlane ideas apply to a business that has been around since the 1800's?

Pretend there is a competitor, and their goal is to run you out of business. How would they do it?

Do that.

 

[Andy Black]

The process of acquiring new business has been the same for a long time.

Want to be seen to add value?

 

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[KLaw]

Pretend there is a competitor, and their goal is to run you out of business. How would they do it?

Do that.

Pretty much sums up all of the above.

 

[SparksCW]

Pretend there is a competitor, and their goal is to run you out of business. How would they do it?

Do that.

Awesome quote!

To the OP... you will never fast lane that business.

Ever.

Why?

Because it sounds like you work for someone else. Someone else who is old skool and doing their thing. That means you'll need to convince them and others to change, they won't see it the same way you do. There will be time and financial investments, risks etc.. I doubt they'd ever do the necessary. I tried in a similar situation for many years when I could have just started my own company and tried it for myself. Who knows where I'd be now?

However the industry can be fast laned. Everything can be fast laned one way or another. There is literally money in everything.

The question is, do you want to spend years trying to change others? and even if it succeeds what will you gain?

I'd suggest you look hard at the industry, look at what can be improved on and then create that product/software/whatever then sell it to multiple business in your industry.

 

[Andy Black]

Awesome quote!

To the OP... you will never fast lane that business.

Ever.

Why?

Because it sounds like you work for someone else. Someone else who is old skool and doing their thing. That means you'll need to convince them and others to change, they won't see it the same way you do. There will be time and financial investments, risks etc.. I doubt they'd ever do the necessary. I tried in a similar situation for many years when I could have just started my own company and tried it for myself. Who knows where I'd be now?

However the industry can be fast laned. Everything can be fast laned one way or another. There is literally money in everything.

The question is, do you want to spend years trying to change others? and even if it succeeds what will you gain?

I'd suggest you look hard at the industry, look at what can be improved on and then create that product/software/whatever then sell it to multiple business in your industry.

My first question would be "Can we get new business from digital marketing channels?"

"Sales solve everything." Start there rather than trying to cost cut, or do that idea extraction cr@p.

Does the website suck (seems big old school verticals are @Fox territory).

Are B2B/B2C clients/customers searching on Google? If so, who's capitalising? How are they doing it?

Who's quietly getting their ducks in a row online and slowly stealing customers from under the noses of the sleeping giants?


If you can find examples, print em out and "show, don't tell" your bosses. It's very compelling to see search volume and competitors mopping it up. I do this all the time (show them their bleeding neck).

If the business owner gets to see your report he might well be inclined to do something about it.

If they don't, well maybe just do it anyway for them, and then show the ad running. I do this sometimes too.

 

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[Scot]

Question: Instead of being an intrapreneur, why not be an entrepreneur? (Also, I totally just spelled entrepreneur for the first time without spell check, score!)

Instead of you and the other 20 something trying to improve the business, why not be the competitor trying to drive the company out of business.

Sit down and write down the process for everything: Supply chain, purchasing, production, sales, distribution.
Now take each of those processes and map out what is wrong, inefficient or outdated. How would you improve them?

Once you've figured that out, you have the model for a new business. Do with that what you will, but if its something you can get capital for, you may have created your fastlane business, not someone elses.

 

[KLaw]

My first question would be "Can we get new business from digital marketing channels?"

"Sales solve everything." Start there rather than trying to cost cut, or do that idea extraction cr@p.

Does the website suck (seems big old school verticals are @Fox territory).

Are B2B/B2C clients/customers searching on Google? If so, who's capitalising? How are they doing it?

Who's quietly getting their ducks in a row online and slowly stealing customers from under the noses of the sleeping giants?


If you can find examples, print em out and "show, don't tell" your bosses. It's very compelling to see search volume and competitors mopping it up. I do this all the time (show them their bleeding neck).

If the business owner gets to see your report he might well be inclined to do something about it.

If they don't, well maybe just do it anyway for them, and then show the ad running. I do this sometimes too.

First, you probably ought to determine the current production capacity. Getting more sales and not being able to deliver will not only cost you future sales but will damage your relations with your current customers and suppliers. Not to mention it's a surefire way to implode. Been there...Done that. If your not at full capacity then by all means go get you some sales.

 

[KLaw]

Question: Instead of being an intrapreneur, why not be an entrepreneur? (Also, I totally just spelled entrepreneur for the first time without spell check, score!)

Instead of you and the other 20 something trying to improve the business, why not be the competitor trying to drive the company out of business.

Sit down and write down the process for everything: Supply chain, purchasing, production, sales, distribution.
Now take each of those processes and map out what is wrong, inefficient or outdated. How would you improve them?

Once you've figured that out, you have the model for a new business. Do with that what you will, but if its something you can get capital for, you may have created your fastlane business, not someone elses.

I like this. /\ Most shops have parts they run for certain customers at a loss or break even margin. They do this to maintain that customer for the other parts they run at higher volumes and larger margins. Identify those losers, focus on just those parts and develop a more efficient / flexible process. Start small and provide those parts to your current employer via your own shop.

 

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[Walter Hay]

I know this industry well, and I am convinced that apart from minor tweaks, it will always be a relatively slow production process. One manufacturer I encountered some years ago was still using a stamping press that involved pulling on a rope to release the top part of the tool so that it would drop on the metal sitting on the lower part of the tool!

Unless your manufacturing processes are still in the 19th century like that one was, the only way I can suggest to improve production efficiency without compromising quality too much is to use photo etching. That won't suit many of your customers, but it can dramatically reduce production costs. I know of manufacturers using photo etching, but they don't disclose that to customers. Others spill the beans and tell customers too much about the manufacturing processes, generating an expectation of lower prices.

If you have the production capacity, improved marketing can almost certainly speed up growth, but aiming for the high end of the market could be used in conjunction with that. There is a high demand for superior quality corporate jewelry. Research that and see what you can do to improve profitability.

Don't hesitate to consider using solid Sterling Silver or even 9ct gold. Sterling Silver plated in 24ct gold could also attract customers. 24ct gold plated on base metals such as pewter or zinc is never attractive. Aim for the top. Pricing according to what the market will bear, rather than using a cost plus formula can lead to massive profits.

Walter

 

[KLaw]

I know this industry well, and I am convinced that apart from minor tweaks, it will always be a relatively slow production process. One manufacturer I encountered some years ago was still using a stamping press that involved pulling on a rope to release the top part of the tool so that it would drop on the metal sitting on the lower part of the tool!

Unless your manufacturing processes are still in the 19th century like that one was, the only way I can suggest to improve production efficiency without compromising quality too much is to use photo etching. That won't suit many of your customers, but it can dramatically reduce production costs. I know of manufacturers using photo etching, but they don't disclose that to customers. Others spill the beans and tell customers too much about the manufacturing processes, generating an expectation of lower prices.

If you have the production capacity, improved marketing can almost certainly speed up growth, but aiming for the high end of the market could be used in conjunction with that. There is a high demand for superior quality corporate jewelry. Research that and see what you can do to improve profitability.

Don't hesitate to consider using solid Sterling Silver or even 9ct gold. Sterling Silver plated in 24ct gold could also attract customers. 24ct gold plated on base metals such as pewter or zinc is never attractive. Aim for the top. Pricing according to what the market will bear, rather than using a cost plus formula can lead to massive profits.

Walter

So not true. Granted, we don't know enough about the specifics of this particular shop. But, if it's high volume a simple relocation or change in the way they load a press could shave a few seconds off of the cycle time. Multiply that by a few million cycles and well, you can do the math.

 

[Azure]

So not true. Granted, we don't know enough about the specifics of this particular shop. But, if it's high volume a simple relocation or change in the way they load a press could shave a few seconds off of the cycle time. Multiply that by a few million cycles and well, you can do the math.

What exactly isn't true about what he said ? Be specific, you glazed over the post with no real value add. He added industry specific information ; simply saying "not true" doesn't really add anything to the conversation.

Secondly, shaving a few seconds of labor costs by cutting production time by a few seconds per run doesn't really add any value either. Paying a cnc worker at say, 40$ an hour(well above industry standard), increasing production time by 25% saves only 16c per hour.

Watch the dollars and the cents look after themselves.

 

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[KLaw]

What exactly isn't true about what he said ? Be specific, you glazed over the post with no real value add. He added industry specific information ; simply saying "not true" doesn't really add anything to the conversation.

Secondly, shaving a few seconds of labor costs by cutting production time by a few seconds per run doesn't really add any value either. Paying a cnc worker at say, 40$ an hour(well above industry standard), increasing production time by 25% saves only 16c per hour.

Watch the dollars and the cents look after themselves.

I thought I was very specific. I was challenging his comment about the only way is with etching. Simply not true. Shaving seconds off of cycle times is absolutely saving money and increasing capacity. What part of that do u not understand?

 

[Azure]

"So not true".

That's specific?

I guess you would need to lay out for th rest of us what a "vague" response would be.

Saving seconds off a skilled labor job isn't going to get anyone anywhere quick. You're talking about literally next to no increase in capacity. Streamline sales, increase output, sure.

 

[KLaw]

"So not true".

That's specific?

I guess you would need to lay out for th rest of us what a "vague" response would be.

Saving seconds off a skilled labor job isn't going to get anyone anywhere quick. You're talking about literally next to no increase in capacity. Streamline sales, increase output, sure.

Ok. I agree with what you are saying. But, running high volume parts off a stamping press isn't skilled labor.

 

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[Walter Hay]

Ok. I agree with what you are saying. But, running high volume parts off a stamping press isn't skilled labor.

There's no unskilled labor operating stamping presses because all the unskilled ones have lost their fingers.

Regarding what is true: In many stamping operations there will be multiple stampings done per second, so shaving seconds off the cycle in those cases would be impossible.

We are hypothesizing because we don't know the product/s being stamped. I just made a suggestion that I have seen work in some factories. The OP would know if that's worth considering, those of us reading this thread wouldn't know.

I certainly didn't say the only way to speed up production is to use photo etching, but in those cases where it is appropriate the speed of production is vastly quicker, and using photo etching instead of stamping could just require thinking outside the box.

Speeding up stamping can also be done with a huge investment in a CNC controlled rotary stamping press, but that isn't suitable for a lot of types of product also.

Walter

 

[_Master_Shake]

I'm a manufacturing engineer, although my specialty is CNC machining (specifically milling/boring). You're right, you are in an old school industry. An industry that probably doesn't deal with retail customers, mostly B2B probably? Others have mentioned good ideas as far as Kaizen/5S/Lean. From experience I know that changeovers take up a lot of non-value added time. Maybe you could do a SMED (Single Minute Exchange of Dies) event?