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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 – The Free Dictionary) The Lean...

Every consultation is different, yet some things remain the same. People are creatures of habit, and some of the issues that are dealt with during the consultations are very similar. Three key obstacles or areas are so common that I have yet to find a company not struggling with each of...

Let us assume that you are having problems with a truck’s transmission and it must be repaired or replaced. The local mechanic explains the hourly rate for service and that the cost of any parts needed to fix the transmission is extra. The hourly charge he is billing is to cover his...

In lean terminology, there is a term called Poka-Yoke, which, roughly translated from Japanese, means to mistake-proof the manufacturing process. A more accurate translation could be “inadvertent error prevention.” In a nutshell, one tries to make any manufacturing process...

A current trend in our industry is that the component manufacturers are being advised that one should have a fully automated lumber retrieval system linked to an automated linear saw that pushes the cut lumber directly to the assembly table with an auto puck system. This type of setup is often...

Growing a smaller company’s sales to that of a mid-size company has many challenges. The additional staffing and departmental growth can face unexpected roadblocks. Two key fundamental areas present themselves in unexpected ways. Communication – Communication is the act of...

It has taken our industry quite a few years, but once again it is common for wood component companies for a 15%+ EBITDA in normal markets, in which the sales exceed a two-week lead time. Many are exceeding 20% EBITDA. Do you know how well your company did in comparison to the average? Perhaps...

For many companies, properly staffing and retaining employees to meet their needs is a never-ending struggle. Let’s summarize what human resources gurus require years of training to understand and disseminate it to the masses for better results. Let us start by understanding some basic...

There is nothing like the scheduling of orders to bring out the worst in people. Timely delivery of orders naturally creates a division between salespeople on one side of the issue and production on the other. Management normally plays the role of referee, with a tendency to favor the...

Too often a repeated mantra within our industry is that everyone sells components at too-low margins. The blame is always on the other guy, meaning the competitor, for selling at a lower margin than what should be market pricing. Well, what can your company do to raise margin pricing? During...

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...

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...

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...

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:...

We’ve heard the old adage, “This isn’t your father’s business anymore,” implying that things have changed since the “old days.” Well, things are going to have to change in the housing industry if we ever intend to get out of the corner of this room we...

This year’s Show, some 45 years after my first, brought some amazing revelations. The most awesome sight was an actual working truss plant on the Show floor. The most intriguing experience was being transported inside a robotic plant. And, the most welcome sounds were good economic...