The Drummond Short Schedule Time-Standard System
Using Man-Minutes to Manage Your Labor
Industrial engineering – “The branch of engineering that is concerned with the production of industrial goods, especially by the design of efficient plants and procedures and the management of materials, energy, and labor.” (Source:...
Employee Hires, Equipment Investment, and Making Changes
Another year has come and gone, and what an invigorating year it has been for most companies. Net profits after taxes for most component manufacturers were in the high teens to mid-twenties—at least for those who do not allow for never-ending excuses. Once again, it is time to reevaluate...
Independent CMs Still Have an Edge Over Multi-Location Companies
Since the home building crash of ‘08, there has been a huge spike in mergers and acquisitions of wood truss and wall panel component manufacturers. With all the big players in the market, independents naturally have concerns about staying competitive. Believe it or not, independents still...
When Your Company’s Manufacturing Labor Pay Rate is Causing Labor Shortages
“Good judgement comes from experience. And experience? Well that comes from poor judgement.”
Some of us are old enough to remember Dean Martin. Whether he stated this quotation about experience and poor judgment, I will never know. But let’s face facts—it has...
Banner Sales Year Should Help the CM Division Make Mid-Teens or More for EBITDA
New building sales across the US are way up, which shows in the long lead times of the wood truss and wall panel manufacturing companies for new orders. However, too many of these manufacturers are not showing healthy profits despite the long lead times. Lead times greater than four weeks are a...
Increase Your Post Frame Sales
Nearly every U.S. and Canadian metal plate connected wood truss manufacturer has one or more clients who either construct pole barns or sell kit packages. Not much excitement though in dealing with typical orders of usually anywhere from 4 to 10 trusses per building.
Money can certainly be...
Estimating Truss Labor Using Board Footage Versus Proper Man-Minute Time Standards
For many years, I have been beating the drum that board footage (BF) is an imperfect unit measurement that our industry should abandon. The better alternative is the proven method of time estimations which uses man-minutes (MM). Man-minutes are derived from time-in-motion practices that have...
Are Your Salespeople Selling Your Company into Eventual Bankruptcy?
Most people have a mistaken belief that my services are all about making component manufacturing more efficient. Actually, more than half my time during a consultation is taken up reviewing things like management practices and the sales process. Fact is, sales—correction, healthy...
A Tale of Two Dealers, and Why One Far Surpasses the Other
Most think lack of time is their biggest barrier to achieving their goals, but they are mistaken. “Culture eats strategy for breakfast.” This quote by Peter Drucker is one of my favorites. While providing consulting services for over one hundred companies, I have witnessed and...
Why It’s Time to Add Component Manufacturing to Your Lumber Business
We’ve all seen the predictions: Component manufacturing is going to grow ever bigger as labor remains tight and big builders get more efficient. And with component manufacturing gross margins being higher than what you get for selling commodities, it’s a good time to ask:...