The article focuses on the trend towards re-shoring of some production runs back to the United States, especially in sectors where automation can reduce labor costs, and quality is critical. The article is online at http://www.csmonitor.com/Business/new-economy
Product Development: Finding the Right Path
March 7, 2012 By
KCMN’s March meeting featured three speakers who shared their company’s path from innovation to revenue for new product development. The consensus shared by all three speakers is that there is no ‘one path’ to success. However, there were some key themes that emerged during the discussion:
Get the whole company involved. Drew Lericos from Robbie Manufacturing follows a stage gate process that includes a development team from diverse areas of the company, from sales, marketing, production, procurement and human resources where all have input throughout the process. Jason Grove from Dimensional Innovations discussed their internal process innovation team who works in parallel with the manufacturing team to develop new products as well as custom projects. While Steve Hall from Boelte-Hall noted that they are less formal in their process, all functional areas are responsible for continual innovation, as they operate in a rapidly changing market, where their top customers are buying products and services that were not even offered by the company 3 years ago.
Make your message consistent. A real challenge to the process of product development is finding the balance between encouraging enthusiasm from all areas of the company and making sure that customers aren’t getting confusing messages, and competitors aren’t getting a front row seat to your new strategy. Boelte-Hall uses a color coding system to note confidential projects to all employees. All three companies noted it’s important to make sure that the sales force is educated/trained on the new products, and can learn to approach different buyers within the same company. The key to getting sales staff on board is for one or two sales people attaining success with a new product or market, which then helps the rest of the team realize that they too need to get on board or miss the boat. Overall, internal marketing is just as important as external marketing.
Expect flexibility in the budgeting process. Regardless of the process used, knowing the true cost for a product development process can be a challenge. There are specific costs, such as equipment purchases, education and training, product development personnel time and raw materials. It is more difficult to measure the opportunity cost, of time spent on one product when there are competing priorities for everyone’s attention. Something that is projected to have 3 trials may end up needing 8. However, there are federal R & D tax credits available, so documenting and tracking costs is an important part of the process.
Listen to your customers – sometimes. While getting customer input throughout the process is important, it is also important to think about unmet needs that customers may not be telling you about. Robbie has found success by taking a product that solves a problem in one area, that can also be used to solve a different customer problem with minor changes. Steve Hall from Boelte-Hall noted that conversations with customers indicated they had no interest in a new process Boelte was considering. Boelte-Hall invested anyway and now those same customers buy products using that process on a daily basis. While all 3 companies vary in their depth of research, they all agree that some level of customer and market research are important to guiding the both the decision to move forward, and the changes that need to be made along the way. The key is to focus on solutions, vs. preferences.
Failure is an option. Some product introductions may not meet expectations. Drew Lericos from Robbie noted, “if your culture does not permit failure, you will not succeed at innovation”. Jason Grove from Dimensional Innovations said they try to use the “fail fast, fail cheap” mantra to guide their process in order to try new developments with a smaller scale vs going company wide all at once. Steve Hall noted “Every one of our successful innovations had an element of failure somewhere in its development.” When things do not work out, it’s important to look at what areas can be improved the next time around so mistakes are not repeated.
Don’t give up too early. Lastly, Steve Hall reminded the audience not to give up too early. In some cases minor changes can make a doomed project viable. In other cases, it makes sense to consider timing in the marketplace. An innovation that was not successful one year may be resurrected as market conditions shift in the future.
Maker Faire 2012 Applications Now Being Accepted
February 21, 2012 By
Fellow Makers, Hackers, and DIYers, Today is the Day!
Maker Faire: Kansas City 2012Call for Makers is officially open, and you are invited to participate!Now is the time to reserve your booth at this year’s expanded Maker Faire: Kansas City, June 23-24, 2012 at Union Station.
We want all types of Makers to apply to participate in this weekend creativity extravanganza. Art, Music, Creative Foods, Urban Gardening, Science, Math, Technology, Young Makers, Robotics, Hacker Space, Crafters, Woodworkers, Power Wheels, and more … Maker Faire: Kansas City is your chance to demonstrate your ideas, inventions, and creations. All applications must be submitted no later than 5 pm CST, Friday, March 30, 2012, Your application will be reviewed by a panel looking for diverse ideas and a good representation of makers in all categories.
Tell your friends, neighbors, co-workers, and other makers you know to check us out and apply to participate, or plan to attend this year’s event to experience the fun and excitement of Maker Faire: Kansas City. If you know someone who wants to exhbit at Maker Faire for the first time send them to www.makerfairekc.com/makers!
Connect with us on Twitter, Flickr, and YouTube using the tag makerfairekc. Like us on Facebook, too!
Questions? Visit us on the web at www.makerfairekc.com for FAQs and general information, or contact us directly at info@makerfairekc.com.
If you or someone you know is interested in sponsoring this year’s Maker Faire: Kansas City, direct inquiries to sponsors@makerfairekc.com.
Happy Making! See you at the Faire!
Marketing: It’s not just about the ads
February 20, 2012 By
KCMN’s February meeting featured two speakers who discussed the role of marketing in a successful manufacturing company. Speaker Rich Delaney, of 20/20 Marketing made the point: marketing is not just about running an ad somewhere, it’s about having a plan to respond to your customers, and to spread the word about what makes your company valuable. Rich noted that too many times marketing is ‘what those people in the marketing department do’. He believes that in order to successfully grow your top line, that all aspects of the company need to be involved in promoting the company and responding to customers. He gave the example of a company who wanted to spend $100,000 on a new customer service tool, but had never asked their customers whether this tool would benefit them, or result in their spending more money with the company.
Steve Hasty, with A & E Custom Manufacturing talked about the factors which have led to their growth over the past five years:
- Have a plan. Don’t be piecemeal in your efforts and understand how all of the things you do tie together around your brand or message.
- Have a website. Make sure the site reflects the image you want to convey, make it easy to reach a real person, and make sure you are able to measure your site metrics. (Can’t manage what you don’t measure)
- Ask your customers where they want to go, and then help them get there. Rather than focus on what you can sell them, make sure your solution is the best solution for them. This may mean re-training or rethinking your sales team.
- Use current technology. A & E has all but eliminated the use of brochures for video and live demonstrations and utilizes ipads for communication across all levels of the company.
- Network, network, network. Being involved in organizations both in and out of your industry gives you many more opportunities for collaboration. No one can do everything, so knowing how to work with other firms to offer your customers a complete solution is a win for both companies.
- Use the media. Public relations is more critical today when reporting and research budgets are being slashed, and reporters are increasingly looking for content to help them tell the story. A & E’s exposure in industry publications has brought them new opportunities, as well as re-enforced a positive image they have with current customers.
- Go to your customers. Steve stressed the importance of looking to current business for growth, not just trying to find new customers. Make sure you have regular and open communication, and serve as a resource. One example is A & E has started looking at trade shows not only in their industry, but at shows that their customers are attending.
Of course many of the headlines revolve around social media. Social media can be a great vehicle for staying in touch with customers, but is not a panacea, it is just another channel. Ad Words campaigns typically have little value, unless they can be focused around a particular competency, skill or product that is unique or in high demand. Bottom line, the value of a particular marketing tactic is only as good as the overall plan that is developed with all functional areas of the company’s input.
A & E Custom Manufacturing Technologies Featured on NBC Action News
February 13, 2012 By
KCMN members A & E Custom Manufacturing Technologies was featured in a story highlighting some of the many themes we have discussed in recent meetings:
- the opportunity to grow your business with shorter lead times
- the need for skilled workers
- the trend towards work returning from overseas
Education and Training for Manufacturing Success
January 16, 2012 By
KCMN’s January 2012 Education Forum featured four higher education institutions, and for manufacturing companies, who discussed their approach on building a 21st century manufacturing team.
The four presenting schools Johnson County Community College, Kansas City Kansas Community College, Metropolitan Community College – Business & Technology, and Pittsburg State University, all emphasized their desire to be responsive to the needs of the region’s manufacturers. For example, Pittsburg State utilizes an industry review board to look at ways to improve the curriculum and respond to changes in the marketplace. KCK Community College, JCCC and MCC can tailor customized training programs for even small employee groups. The community colleges emphasized that a program of study could be developed outside of a traditional degree program, which traditionally has more appeal to a working adult with additional responsibilities. For employees looking to take their careers to the next level, Pittsburg State has developed a program to work with students who have earned a technical associates degree to earn a Bachelor’s degree that includes both technical and managerial coursework.
One area of discussion was improving front line supervisory skills. Torotel was very pleased that their partnership with JCCC greatly improved all measures of behavior and leadership skills of their supervisory people, as measured by a pre and post training employee survey. As a result of better supervisory behavioral and leadership skills – communication, problem solving, delegate, interpersonal skills, feedback, change, authority, and accountability the percentage also improved in 25% and better in five months. This was accomplished despite a limited budget for training.
Cost of training programs is always a concern in an era of tight budgets. JCCC works with KS Workforce Partnership and can help you determine if training funds from the state are available. The school also can serve in partnership with MCC when there is a cross state need identified, and they are working towards more cooperation. KCK Community College’s Rich Piper will identify the right institution for your needs, and will recommend another institution if the in-state tuition makes the program too expensive. Pittsburg State offers in-state tuition to MO residents in counties in the Metro KC area.
An extended discussion focused on the needs to increase the worker pipeline. Ben Boone of ATK Small Caliber Systems says that going through the process of Lean increases stress on the labor force, and increased skills attainment by the workforce is critical to making the effort successful. Forty percent or more of skilled workers are eligible or approaching eligibility for retirement. Rich Piper noted the declining state of shop classes and other hands on programs at the high school level. In schools without these kinds of outlets, there is a much higher rate of drop-outs, especially among boys. Tom Goodpasture of Pride Manufacturing stated that getting involved in education and the development of the next generation of workers is critical as well. He noted that ‘If you are not at the table, you are likely to end up on the menu”
All of the manufacturing company panelists agreed that having a plan for both current and future workers was important. As Dr. John Iley of Pittsburg State noted, classroom work can only cover so much. Students also need co-op and internship opportunities to apply what they are learning.
Jason Grove with Dimensional Innovations has hired and continues to hire Pittsburg State interns and grads, and has been very happy with the results. Developing and running an intern program is challenging, but it also carries many rewards, including new perspectives on the business and new enthusiasm from the younger workers. He stressed the importance of forming a two-way relationship with your educational partner. When both sides benefit, the outcomes are greatly improved.
Tom Goodpasture with Pride Manufacturing has had an active training program in his facility in order to respond to growing demand for skilled workers. It is vital to cross train employees, and to utilize training as way to keep workers engaged. Tom also strongly recommended involvement in both the national and local dialog. Elected leaders need to understand the concerns of industry, and appreciate the feedback.
Ben Boone emphasized that it is critical to capture the knowledge of older workers, and a key way to do this is by training them to capture their processes. For example, MCC offers a course in digital literacy where older workers can learn to use excel and other technology to help document their work. The manufacturing panelists strongly emphasized talking up education to your workers, and making sure that the culture values those who continue to improve their skills.
All of the speakers emphasized that the worker shortage is only going to get worse. It is important to do what you can to encourage both improved skill sets/cross training of current workers, but also finding ways to advocate for earlier involvement, at the high school and even junior high level. As a nation, we have avoided tracking kids into particular areas, but a range of skill sets is being ignored at the peril of our future competitiveness in manufacturing in the US. If all of the jobs that went to China returned to the US, we would not have the workforce to fill them.
Robbie Receives 2011 Best of Lenexa Award for third consecutive year
September 29, 2011 By
For the third consecutive year, Robbie has been selected for the 2011 Best of Lenexa Award in the Flexible Printer for Bags, Pouches & Films category by the U.S. Commerce Association (USCA).
The USCA “Best of Local Business” Award Program recognizes outstanding local businesses throughout the country. Each year, the USCA identifies companies that they believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and community.
Nationwide, only 1 in 120 (less than 1%) 2011 Award recipients qualified as Three-Time Award Winners. Various sources of information were gathered and analyzed to choose the winners in each category. The 2011 USCA Award Program focuses on quality, not quantity. Winners are determined based on the information gathered both internally by the USCA and data provided by third parties.
Sales and Operations Planning – What Is It? And Why You Should Care
May 17, 2011 By
KCMN’s May meeting featured John Boyer, President of J.E. Boyer Company, and Eric Krichbaum, Vice President of Operations for Milbank Manufacturing discussing the benefits and process of Sales and Operations Planning.
John described Sales and Operations Planning (S&OP) as:
The activity for effectively balancing demand and supply on a regular and formal basis.
It can also be referred to as:
Top Management’s handle on the business.
While the discipline of Lean focuses on the business’s execution, the effectiveness of the execution is limited by the effectiveness of the planning process. Plans for both the supply and demand side of the business require a balance to avoid too much inventory vs. too many out of stocks. The primary problem with accurate plans is the lack of the right data needed and communicated across functional areas.
The Eight Steps To Sales and Operations Planning Are:
- Day 1 – collect actual data – orders shipped, inventory, production, etc. by demand manager
- Day 1 – sales demand/forecast by sales force submitted
- Day 1 – sales data aggregated
- Day 2 – corporate sales review by VP of Sales
- Day 3-4 – sales and operations analysis by the demand manager
- Day 4 – Pre- S&OP meeting by VP of Operations
- Day 5 – S&OP meeting by President
- Daily/weekly – communication and feedback with the demand manager
The expected and/or realized benefits of the S&OP process were measured in a survey of manufacturing companies across the US. Among the benefits were improved cross-functional communication, fact-based management decision processes and better labor and capacity planning. The survey results are downloadable at www.jeboyer.com
Eric Krichbaum shared Milbank’s impetus for undertaking a better S&OP process:
The old process was labor intensive, elements were disconnected, and the company viewed planning as an important business process. Their goals focused on reduction in inventory, increased stock availability and process efficiency. The process took a little over a year to implement, beginning in January 2010; the first full S&OP review took place in February 2011.
The benefits Milbank has realized from their improved S&OP process included:
- Improvement in the level and accuracy of information for both sales and operations (“VP is learning things they didn’t know before”)
- The monthly load plan that used to take 2 days to prepare now takes 2 hours.
- Production plans are aligned with sales forecasts.
- Improved communication between the demand and supply side of the business.
Eric also shared Milbank’s ‘lessons learned’ from the process, which were tied closely to John Boyer’s four keys to success:
You must have active and visible participation from the executive team – this is key for keeping people engaged and on timeline
Get knowledgeable expert help – if you are self-taught you don’t always know what you don’t know
Change management is important (The only person who likes change is a baby with a wet diaper)
Create a cross-functional design team
Don’t short-change the IT resource – you will likely need IT resources to improve data quality
Publish an annual calendar – a rolling 12 month S&OP meeting schedule ensures that key participants are at the meetings
While Eric acknowledged that the process was neither cheap nor easy, he was a strong advocate for the process as a way to stay competitive in what is an increasingly competitive and demanding marketplace.
KCMN Member Milbank Manufacturing in the news
April 21, 2011 By
When Milbank’s traditional product line was impacted by the construction industry slowdown, they developed a new product offering – wind turbine components. To highlight their new product line, Milbank has installed a wind turbine at their training facility – the first wind turbine to be installed in Kansas City. Milbank’s efforts were recognized with a feature story on NBC Action news. To view the clip, click here.
Congratulations to Lavon Winkler, CEO, and Eric Krichbaum, COO and KCMN advisory board member, and the team at Milbank!
Robbie Recognized for Innovation
April 21, 2011 By
KCMN congratulates member company Robbie Flexibles for their prestigious Highest Achievement Award in Technical Innovation from the Flexible Packaging Association.
Robbie was a Gold Award Winner for both Packaging Excellence and Technical Innovation for their recently released Fresh N Tasty Produce Pouch.
Fresh N Tasty Produce Pouches, designed with freshness in mind, offer processors and retailers an opportunity to brand their produce and to increase repeat sales by improving the consistency of the produce quality throughout its shelf life. And, consumers love the resealable zipper and easy carry handle. The added sustainable benefits this flexible package demonstrates over other packaging formats includes saving fossil fuels, reducing CO2 emissions and the weight of solid waste being introduced into landfills.
To learn more visit Robbie on the web.
