It is possible to give your shop employees a raise and actually achieve more capacity through greater productivity and make more net profit for your company by implementing an effective productivity incentive program. However, most of the incentive programs (IP) that are touted in the component...

The Designer Hiring Season is here and now, and with it comes overtime. It may be a Saturday or two, or even some 9–10 hour days. Short term, managing your labor needs with overtime is a great alternative to the expense and risks of hiring another designer. Long term use may cost you a few...

For the past three years, the housing industry has bemoaned labor as its primary deterrent to increasing productivity, i.e., housing starts. Framing crews suddenly vanished when detainment and deportation of undocumented workers became more prevalent. The initial impact on the housing...

Whether your company is a single-location or a huge multi-location operation, 2018 should have been a banner year for profits for your company. Most of my clients were in the high teens and many were in the mid-twenties for net profit to total sales. How well did your company perform in...

It is my belief that the lumber market trades in a repeating, predictable pattern. That pattern is created by the interaction between production and how the supply chain lumber dealers, component manufacturers, wood preservers, and wholesale distributors collectively prepare for seasonal...

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:...

Why are equipment sales booming when near-term housing starts are projected to be flat?  Possible reasons are: CMs know better and expect good growth and need more capacity. Some markets will grow well and others will contract. CMs buying equipment expect to do better on the same...

Not quite 20 years ago I interviewed for a position of managing a metal plate connected wood truss manufacturing plant for Anderson Lumber, in Coeur d’Alene, Idaho. For several years Anderson had been losing money from their truss operation and higher ups were searching for someone who...

What is the difference between companies which are stuck in the status quo and those which are transforming themselves into the leader in their industry? One significant difference is their focus on Continuous Improvement. By focusing on making things better—People, Projects, and...

We’re now at the point where everyone is on board with the idea of change. Management and staff have indicated a willingness to take steps to improve. So how do we proceed? What processes learned from Lean Manufacturing can we use to make progress? As discussed last month in the 5th...