“With aerospace function and safety criticality, we absolutely need to know the status and location of every piece that could be considered a part. We have definitely upped our performance in the accuracy,  flow and knowledge of status of “what’s in the bin.””- Tammy Wilson.
Permac Industries recently announced that they were just awarded their AS9100 certification, on their first try.  AS9100 Certification is required by many OEM’s in the Aerospace industry.

Lots of Teamwork.
Lots of Teamwork.

I asked  a group of employees at Permac what were the unexpected challenges and what made their efforts work.
If you are a manager, you might want to jot a few of these down.
Challenges

  • Weren’t able to foresee many of the additional requirements.
  • Weren’t able to understand the impact of some of these requirements on our processes;
  • Weren’t really expecting additional paperwork- Our previous experience with Quality System implementations were that they helped us lean out our paperwork;
  • Really had to embrace the Authority of piece count and build processes based on count.

Enablers of Success

  • We really did have the right people  in place;
  • Those people had both the responsibility and authority to make the system and process improvements demanded by the AS9100 standard;
  • They had management support when the changes were difficult to implement
  • They felt that management was confident in their ability to make the changes.

Members of the team told me that

  • Having strong existing systems made their job easier- they didn’t have to reinvent anything.
  • They did need to tighten up procedures;
  • They did need to add some additional procedures;
  • They have focused more on supplier and production control

Congratulations to the team at Permac for getting this done right first time.
Do you have a success story to share?

The Three Rules of Thumb are:

  1. Does this action attempt to deceive anyone or allow anyone to be deceived?
  2. Does this action gain or allow the gain of privilege or advantage to which I, or someone else would not otherwise be entitled?
  3. Would I be dissatisfied by the outcome if I were on the receiving end of this action?
 If you answered No to each of these, you are good to go.

If you answered “No” to each of these, you are good to go.

When I started in manufacturing, “The Gals” were in the office- not the shop.

122  women who make a difference in Manufacturing today
122 women who make a difference in Manufacturing today

The inaugural group of 122 STEP honorees recognized by the Manufacturing Institute on February 5th in Washington D.C.  showed me that the times have changed and that there are many, many ways  that women can and do meaningfully contribute to manufacturing at their companies as

  • Plant and Production Managers,
  • Operations,
  • Engineers,
  • Technologists,
  • Process Control,
  • Regulatory Affairs,
  • Certified Welders,
  • CNC Machine Operators,
  • Weld Process Specialists,
  • Quality Control,
  • Health,
  • Environment,
  • Process Safety,
  • Chief Financial Officer,
  • Designers and Design Engineers,
  • Compliance Officers,
  • Chief Scientists,
  • Safety,
  • Quality,
  • Black Belts,
  • Training and Apprenticeship Instructors,
  • Manufacturing Lead,
  • Product Development,
  • Sales and Marketing,
  • Information Technology,
  • Lead Analyst,
  • Business Development,
  • Continuous Improvement,
  • Planning and Shipping,
  • Designer,s and Design Engineers
  • Information Security,
  • Assembly,
  • Legal and Corporate Affairs,
  • Systems Development,
  • President,
  • CEO
  • Owners

I am certain that I missed a few…

PMPA is proud to recognize our member and Vice President Darlene Miller, CEO of Permac Industries in Burnsville MN as one of this inaugural group of honorees.

Darlene Miller Nak“Darlene’s leadership  reaches far beyond PERMAC. As a member of the President’s Council on Jobs and Competitiveness she recognized the need for trained high skill workers and led the creation of Right Skills Now training program and helped support the 10,000 Engineers nationwide engineering student retention program. She was named small business person of the year in 2008 by the U.S. Chamber, and serves as an officer and board member at PMPA as well as a number of other nonprofits.”

Congratulations to Darlene and all the women recognized for their vital role in manufacturing today. And thanks to the Manufacturing Institute for helping raise the awareness of the vital need for the talents that these and all women bring to our shops.

Yes, I would like to see my daughter get into manufacturing. Wouldn’t you?

Guest post by Steve Staub, Made In Dayton Blog

Steve Posts on Made In Dayton Blog
Steve Posts on Made In Dayton Blog

We have enjoyed many of Steve’s posts via Linked In, this one I just HAD. TO. SHARE.

I was contacted recently by a potential customer asking for our hourly shop rate. When I asked him why, he said it was so that he could compare our services against that of our competitors. I told him that our hourly rate doesn’t really matter when looking at the overall cost of manufacturing a part and choosing the right supplier.

He did not understand what I was talking about so I went on to explain it like this. Let’s say that Company X has a new state of the art Whatzit machine and Company Z has a 10 year old Whatzit machine. Company X charges $ 100.00 per hour on their machine, Company Z charges $50.00 per hour on the machine that they have. Which company are you going to choose?
I’m guessing that you have decided to go with Company Z because they charge only $50.00 per hour. But, did you know that with technology improvements a new Whatzit machine is actually 50% faster than they were just 10 years ago? This actually makes the price the same between the two companies… or at least close.
But what if the pricing wasn’t the same? Let’s say that two companies quoted production of a part and Company A came in around 10% cheaper than Company B. Do you automatically give the project to Company A? If you do, you’re certainly not alone. Many companies do this all the time and the lowest price always wins. But is it really a lower price if you have a lot of rework? Is it truly a better price if the project is late?  Here are some questions I like to ask to really find the lowest overall cost:

  • Does this company have a track record of on-time delivery?
  • How is their quality and what is their rejection rate?
  • Can they track my material and offer material certification?
  • How easy are they to deal with?
  • Will a real human answer the phone?
  • Are they convenient to get to or are they located in the middle of nowhere?
  • Are they ISO certified and do they have a Continuous Improvement plan?
  • Are they the newest kid on the block or are they an established, stable company with an Outside Board of Advisors?

All of these questions (and likely more) need to be answered to make sure that you are dealing with a reliable and reputable company that is going to provide you with a good value and be around to service you for years to come. I’m not saying this is the only way to evaluate a supplier. I’m just sharing some things to think about.

So… how do you choose?

In the precision machining business, nobody sets up their machines based on the quality or price of your barstock. They set up their machines based on your delivery (service).

We don't set them up because of your price.

Ability to provide your product on time and to specification is the true determinant in the real world of execution. Thats why there is a gap between the dream world of  business plans (what we think we can get) and the real world of monthly operating statements (what we got).

The delta (difference) between the two is a failure of some supplier to service (provide what needed as needed as planned.)

  • Quality: Either the quality of the product meets requirements, or else you will get claim/return and won’t get the order (again).
  • Price: You will meet the market price for whatever comparables exist for the same requirements- or else the lowest priced comparable product will be selected.
  • Service is the only differentiator in my experience;

 Therefore it is only your ability to serve the customer with immediate delivery/ provision as needed that is a differentiator.

PS.:  Consumers consider service to be part of the landed cost, and don’t want to pay extra for it. In the industrial sector, service  is a given.

PPS.:  Everything else is Marketing B.S.

Connecting with fellow members is always at the top of the list when we survey our members about why they belong to PMPA.
But our connections aren’t exactly Pitcher – Batter adversarial relationships.

Yes, we need to connect with what our customers are pitching us but...

Our members like to connect because they are on the same team- the “Lets keep good paying, high quality of life, advanced manufacturing jobs here in North America” team.
We sell to many different customers, and while we might be competitors  at one or another, the chances are pretty slim that any two shops directly compete.
We all want our industry to succeed– so when a member needs an assist – to borrow a gage that’s 6 weeks out, or trying to figure out why a reamer is cutting oversize, many people respond with offers to help or advice.
We all want to improve our knowledge and execution of our craft– thats why we connect at PMPA’s National Technical Conference and local meetings.
We all want to know what are the issues that can affect our business decisions– market, supply, customer, regulatory. PMPA members call this “Business Intelligence” and connect at our Management Update, Local meetings and on our online listserves.
As an industry, we have some of the sharpest and experienced minds in our field, all connected through various means. So we welcome connection. We share. We collaboratively problem solve. We work together on trying to resolve regulatory issues.
We connectOur business is better for it. Our employees are better for it. Our quality is better for it.
Our world is better place because we collaborate, identify and share best practices, and  come to the aid of our team mates to help keep jobs here in North America.
Planes fly. Cars stop safely. Utilities are delivered. Food packages assure no contamination. Medical Devices make a difference in thousands of lives every day.
Because we’re all on the same team. The quality team. The best for our craft team. The mentor our up and coming talent team.
We don’t call it “Team PMPA.”
But that’s how we connect.
Are you connected?

Satellite image of oil spill in Gulf. (NASA)

Here are a couple of tips to keep in mind when your company becomes involved in a crisis.

  1. Communicate. At the very least, make a fact sheet of basic company information and your products.  Answers to”Who, What, When, Where?” is a great template for a fact sheet.
  2. Use your website to keep insiders and outsiders informed. Your website is on 24/7 worldwide. Why not use it to help you provide facts and minimize rumors.
  3. Don’t oversell quality. Zero defects has an almost magical ring to it. But the fact is that in complex systems  even redundant backups don’t always work. Statistically, outlying events can and will occur.
  4. Do demonstrate your sincerity, and discuss the steps that your company is taking to identify the problem, get the problem contained, and the immediate and long term corrective actions that your team is working on.
  5. Don’t speculate on “Cause” nor “Blame.”

As of noon May 3, 2010, Cameron International’s Website has nary a mention of the fact that their company’s Blow Out Preventers may be involved at the BP- Deepwater Horizon spill ongoing in the Gulf of Mexico.

No news. No Comment.

The first quarter earnings release conference call seems to be the only “newsworthy” item on Cameron’s webpage.
No mention of any work or involvement by the Cameron Team to get the situation in the Gulf fixed.
No “Who, what, when, where?” information. No spokesperson.
The Washington Examiner meanwhile reports that Cameron has been named among other companies in “lawsuits seeking damages.”
The AP reports Cameron is the manufacturer of the “fail safe device on the well that is spewing crude into the Gulf” and that Cameron has “$500 million in liability insurance for legal claims.”
That would have probably been good info to have on their own site…
The website provides a company with a powerful means to get the facts out. To show their customers, their employees, other people who may be affected what efforts are being taken to get things under control and restore normalcy.
Guess what BP is talking about on their website?

The best bargain in education is when you learn from other people’s mistakes.
Watch how this one works out.
Meanwhile, how about sitting down with your team  and asking “What if this happened to us?
Share

No.
I’m really more focused on Quality.
On draining the swamp, not swamp beautification.
Quality Assurance.
Organizational Improvement. (People and Processes.)
Lean is just another way of saying eliminate waste.
Six Sigma uses statistical jargon, but how many people in top management can even get close to describing the area under the normal curve at +/- 3 sigma? Or know that a sigma is a standard deviation? And what that means?
Let alone recognize non-normal data?
(“Six Sigma” is just another term for “Magic ” to the guys wearing ties at the OEM’s…)
I’m not into cute names for serious tools. We were using  powerful  statistical techniques before they got new cute  names and became safe  Okay fashionable  to say up in the carpeted front office.

Draining the swamp doesn't need tools with cute names.

However, if you are serious about Quality. Quality Assurance. Organizational Improvement. And Tools You Can Use to drain the swamp, instead of reading crap of unknown provenance from the web,  here’s your reading list:
1) Competing Against Time by Stalk and Hout
2) Toyota Way by Jeffrey Liker.Frankly, if you haven’t already read
3) The Goal, by Eliyahu Goldratt, (get this one first it will give you key insight into how to think about manufacturing.)
4) The Machine That Changed The World by Womack is also worth your time.
Take these tools, and love it.
Excavator photo credit.