If you were unable to attend my educational session at BCMC, Component Manufacturing Should Not Be Operated as an LBM Supplier by TDC, or if you attended and still have questions, I invite you to download the presentation, now available as a PDF.
During the presentation, we discussed what should be industry norms but are not. If your group is open to exploring this new information, you may gain a fresh perspective on your business.
Key Topics Covered:
- Work Minutes: Learn why work minutes offer better pricing, scheduling, and effective incentive programs, making them a superior measurement for wood trusses.
- Employee Demographics: Understand the differences in employee issues and explore what can be done differently.
- Potential Net Profit Gains: When implementing better practices, learn what are the potential net profit gains.
- Additional Considerations: Explore related topics, including why Just-In-Time is the number one lean tool, often misunderstood and misapplied.
Highlights from the educational presentation, “Component Manufacturing Should Not Be Operated as an LBM Supplier by TDC,” include the following:
1. The Fallacy of Using Board Foot Units vs. Work Minutes (R.E., S.U., Man-Minutes)
Component Manufacturers (CMs) are in the business of creating manufactured products, not simply reselling lumber units. This approach is based on proven methods from Ph.D. Industrial Engineers.
It’s crucial to explore the significance of using work minutes as a much more accurate measure for pricing, scheduling, and assessing productivity.
Discover the typical gains that can be achieved when employing proper work minutes based on Industrial Engineering practices.
2. Two vs. Three Assembly Crew Labor and Productivity
Consider the economic aspects of employing two assembly crew members vs. three for labor savings and potential gains.
Reflect on why your group might be led astray in terms of equipment recommendations and the design of new facilities.
3. Independently Owned CM Locations vs. LBM-Owned CM Locations
Gain an understanding of the net profits typically achieved by independently owned CM locations in comparison to their LBM-owned counterparts.
Challenge the misconception that LBM operators can afford to sacrifice a few net profit points in exchange for gaining additional sales.
4. Challenges in LBM-Owned CM Operations
Approximately 50% of CM operations owned by LBM companies face significant challenges in their relationship between LBM sales personnel and CM operations, even after years of operation.
5. Impact of High Employee Turnover
High turnover results in a workforce divided into thirds: 1/3 with three or more years of experience, 1/3 with 1 to 3 years, and 1/3 with continuous turnover.
Understand that high turnover leads to sales and net profit losses and that addressing personnel issues is more effective than simply investing in additional equipment.
6. Employee Practices and Profit Margins
Find out how much CM operations with poor employee practices lose in potential net profits.
You can download the complete 20-page educational presentation, which contains easily comprehensible information, by accessing this link to TDC’s SugarSync PDF file: Component Manufacturing Should Not Be Operated as an LBM Supplier by TDC.
If you and your team aspire to achieve more in less time, consider TDC’s proven results in process improvement of employee practices, pricing, truss labor estimation, and other best-in-class practices. Tailored solutions are designed to meet your specific needs, going beyond typical software and equipment vendor recommendations. Embrace the Drummond Method, and your company can realize cost savings and net profit gains that typically take months or years to accomplish, all within weeks or months, resulting in an average of 3 to 6-point net profit gains for CMs. All areas are addressed, not just manufacturing. Don’t just take my word for it—read testimonials from satisfied clients with decades of expertise and experience: TDC Testimonials.
Website: www.todd-drummond.com • Phone (USA): 603-748-1051
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