The National Association of Store Fixture Manufacturers asked me to adapt my legacy article for their members. Not only was they concerned about their business niche but wanted to know if legacies were good or bad. They also wanted solutions rather than just problem identification. So here are:
Bad Legacies / Good Choices
Inheritances are good: business legacies are bad! Yesterdays equipment and concepts have limited value and the time spent honoring them can be a costly mistake. Factory legacies typically are combinations of outdated equipment and methods but sometimes are new equipment used with the same old methods. I wont be polite because this equipment drains your wallet and even worse may drain some blood from your operators. Ive given them "name tags", not to be cute, but to fix these images in your mind.
Cowboys on horseback. Forklift trucks within production areas are destructive the least of their problems being when they drop a load. The sole function of forklifts is to deliver material to and from the factory. Roller conveyors throughout the shop are easy medicine to prescribe but may not be suitable for most fixture manufacturers. They add efficiency and discipline and are great for moving material within a machining work-cell (i.e., panel saw, bander and borer) but need to be combined with job carts for process and staging flexibility.
The tenoner from hell. Typically, a forty-year-old Greenlee that still does a great job of trimming and tenoning. It doesnt cost you a dime in maintenance but it takes twenty minutes rather than twenty seconds for an accurate size change. If setup time discourages its use, either junk it or upgrade it. (Invest less than $10,000 in computerized size control for quick setups with no wasted "trial" panels.) P.S. take a close look at these antiques because the safety switches that keeps someones hand from being dragged in under the pressure beam may have been removed a number of years ago).
Twin tearjerkers. Double sided edgebanders. Yes, they double production but with more than double the maintenance and half the quality (especially if the panels were sized on a panelsaw). Two single banders connected by a conveyor are a much better solution that eliminates setup time and quality headaches. If you have only one edgebander, an investment with great payback is a return conveyor. It gets rid of the off-loading helper; so one operator can load, unload and inspect.
Amazing maze. The above floor, pallet type, finishing line that resembles an amusement park ride. Its no joke to the operators who mess themselves up climbing up and down over the line. These lines are difficult to keep clean (essential for high quality work) and lack the flexibility of independent towline carts, the productivity of monorails, or the lower operating cost of flat line systems.
Amazing mess without a maze. More disheartening are the shops without a finishing conveyor where staining, sanding and topcoating are done in the same booth. The management of these shops just doesnt understand why they cant produce top quality products and why productivity is so low. No, you may not need a conveyor or a drying oven, but lets hear it for common sense; after all you dont dine in the bathroom.
One arm bandits. Crosscutting lumber with semi-automatic "Hydracut" saws has caused many operators to lose fingers, hands and arms. Replace them with fully guarded up-cut saws. If, for some reason you must use this type of saw, install a safety device requiring the operator to hold down buttons with both hands and activate a lumber hold-down before cutting, The tag of "one arm bandits" also refers to how your operator gambles with lumber yield. Lumber yield and usage patterns have changed dramatically over the past few years. You need todays equipment and methods to maximize yield and productivity.
Statues and monuments. Sometimes, I see a machine sitting in the middle of a shop gathering dust and have to scrape off two or three years of accumulation just to find out what kind of it is. When I inquire, the staff replies that they used the machine on only one job, but it saved them a fortune. Or, it was the first machine the owner bought. Your business is no place for either inertia or sentimentality. If you haven't used a machine in the last two years, it's time to get rid of it! Your floor space is valuable; besides, you have secondary costs like hooking it up to the dust collector, etc. If the machine is an antique, it belongs in a museum - not in your factory.
Clumsy and clueless. The ultimate putdown from computer hardware and software salesmen is referring to your existing system as a "legacy system". Thats a polite way of saying that although your system does its job; its really a dinosaur that just doesnt know its supposed to be dead. Too bad the salesmen didnt take a closer look at your shop the dinosaur is already dead and starting to rot. Yes, your system may capture costs but that is just after the fact: history! You need to synchronize these actual costs with those used for quotations (and then combine them with activity based costing). If not your bids are coming from "Fantasy Island". You also need this same system to be pro-active; interacting with what is really happening on the shop floor planning production and adjusting schedules to reflect the realities of late material delivery, labor shortages, rejects and machine down-time.
The list goes on legacy equipment, methods and systems are probably at the heart of your company. Further Investment in such dinosaurs by either maintenance or upgrades just postpones the date of the inevitable heart transplant. No you neednt run out and replace them today, but you need to tag them "DNR" and plan their replacement with cost-effective solutions that produce quality products.
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SIM*plicity tutorials:
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| Features that help your company | Examples from SIM*plicity | Discussion and Features |
| Customer
Orders
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| Customer Details: shipping information, history, etc. |
The utmost in options and feature controls. Automatic pricing with
more than 400 variables (size, color, add-on's etc.) Simple to set-up and easy to use.
More than an "Order Configurator":
these variables interact with dynamic (parametric) bills of materials to create complete manufacturing
documentation.
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| Item Details |
Options to enter and display product information.
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| Order Entry Tools |
Because we automatically transfer all
pricing variables and "engineering limits" to Order
Entry, SIM*plicity eliminates the typical delay for orders to first go to
Engineering and Pricing prior to Order Entry.
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| Batch Order Entry |
Input Customer Order details directly
from Excel.
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| Order-Project Costing |
Display actual costs during Order Entry
or during "material takeoff" -Quotations.
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Graphics display with real-time visibility of all in-process orders. | |
| Product Entry Instructions |
Guidance to the operator in entering complex items .
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| New Product Entry |
Add new customers and products on the fly.
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| Zip and Postal Code Tutorial |
Factors in entering address data for uniformity and to ensure automatic freight calculation
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| Sales Discounts and Commissions |
Information on entering discounts and sales commissions.
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| SPEED-UP |
Tips to increase order entry productivity.
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Invoice Details - Setting Variables
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Variables for printing (and exporting to
accounting software) invoices
Order Entry variables for display and printing |
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| Deposits and Payments |
Record and display deposits and partial payments
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| MRP2/ERP Planning and Shop Floor Control | Advance
Plan
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Customer and factory (internal) orders create inventory and labor demand for specific days. SIM*plicity schedules individual machines within each work station/cell and generates material requisitions.
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Planners can control and balance workload at every machine. | |
| Production Planner/Scheduler | Shifting production (date or workcenter) automatically updates all related processes. Graphics displays with drill-down" information effectively links Planning to Shop Floor Control. | |
| MRP2/ERP Tutorial |
Workstation Control allows supervisors to fine tune schedules and report production.
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| Purchasing and Inventory Control | Requisition/Purchasing
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New orders automatically updates long-term material plans. Shop floor control module interacts with purchasing to automatically flag needs that won't be met and adjusts schedules accordingly. Buy-out items are purchased as soon as customer order is processed - including automatic pricing of options and features.
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| Inventory Details |
Knowing the materials "on hand" and what they cost is not enough! SIM*plicity calculates the exact date needed, where it should be stored and details of its physical characteristics. |
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| Vendor Information |
Access complete contact information on vendors and their employees. |
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| Purchasing Messages |
Adding Standard and Text Messages to an individual item Requisition or to an entire Purchase Order Tools to record and adjust physical invnetories.
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| Accounting and Cost Control |
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Know the true cost of every item that you build! Automatically calculate the cost of "work -in-process" inventory. Instantly estimate the complete cost of every Order and Quotation. Change an option or feature and the cost is automatically updated! Please also read ABC Cost Control |
| Product Engineering | Bill of Material Flow Chart | Bills of Materials are the core of true manufacturing systems. They link together customer orders, manufacturing instructions with material and labor requirements. Dynamic (parametric) Bills of Material are used for entire families of products eliminating the need at most companies for 90% of individual Bills of Material. However, Static (Conventional) Bills of Material are still valuable and our system incorporates them with a full range of Options and Features |
| Plan and Perform | Project Takeoff | Estimate and control complex projects. |
| Sales
Management
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Sales by Customer and Product Line | Cost of Goods Sold report for every order. Volume and margin reports for each sales rep. For each customer select default discount programs, special product discounts and choose from multiple selling companies (OEM, etc.) |
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