Job shops across the United States are trying to figure out how to beat the competition. While we all know there’s no panacea for the manufacturing industry, it never hurts to take a look at how others in the industry are succeeding. Toward that end, I recently caught up with four job shops – Brenco, Aacoa, Gamma Vacuum and Forrest Machining – that are thriving in the current economy.
These companies represent a diverse cross-section of the job shop industry. Their custom jobs range from fabricating aircraft parts for defense contractors to creating component parts for water ferries. So what factors are contributing to their success? And what role is software playing to keep these shops competitive? These are the questions I explore in this article. I’ll also share key insights from job shop leaders about how to maximize the value of a software investment.
Key Benefits of Job Shop Software
In talking with these four manufacturers, it was immediately clear that job shop software is the critical factor in driving operational efficiencies. Shop leaders noted that the most important features of the software were those that help manage the dynamic nature of production at a job shop.
According to Brenco President Steve Heim, “Our workload is changing constantly, customer demand changes hourly and the relationship between the various processes is very dynamic.”
During my conversation with Heim and other shop leaders, three areas surfaced as essential components to consider when choosing software: flexibility of bill of materials, work order features and the ability to deliver real-time, actionable data.
- A Flexible Bill of Materials Fosters Custom Production – Job shop production requires software that supports a dynamic bill of materials (BOM). As such, it’s important to look for BOM functionality that allows the production team to adjust materials during manufacturing processes. At the same time, there should be functionality to substitute alternative materials in an already defined BOM plan. This is a fundamental building block of job shop production and important feature for the high level of product variation in shops.
- Work Order Functionality Maintains Workflow – It’s not unusual for a mid-sized job shop to have 200 work orders floating around at a given time. Managing these manually is a paperwork nightmare – not to mention inefficient. With automated software, however, you can deliver work orders directly to machine operators at their work stations. This prevents operators from having to go to the production manager to ask for their next tasks.
- Real-time Data Creates a Proactive Environment – Having a flexible BOM and strong work order functionality does little good if real-time data isn’t accessible for employees to make the best decisions. The laundry list of information that needs to be kept up to date can be dizzying. A shop needs to know what’s being fabricated, what’s being scrapped, why items were scrapped, how many parts shipped and so on. Providing real-time access to this data clearly means gathering information in real time. One way to achieve this is to follow Forrest Machining’s lead: Put computers at or near every work station for workers to input data for analysis.
Beyond knowing which software components are the most important, it’s also necessary to understand how to get the most out of your system. In other words, the software alone cannot make your shop successful – you must also be able to make efficient use of the functionality to maximize your outcomes.
Shops Offer Advice from the Trenches
Getting the most out of your software starts with understanding your needs now and in the future. For instance, a system that addresses the needs of a small job shop with revenues of $2 million may not be sophisticated enough to handle the capacity of a shop pushing $15 million in annual revenue. As a result, successful shops often experience software growing pains as system functionality doesn’t always scale with production.
“What may look good and work for you well now may not work very well in 10 years if you double your sales. Conversely, if you were to buy software you think will work for you 10 years from now, you can almost guarantee that it won’t be exactly what you need right now.” Steve Heim, Brenco
Once you have the right system, you need to put in the time and energy to get a good return on your investment. The shop leaders I spoke with identified three categories to focus on in order to get the most out of your software. Collectively, shop leaders agreed that realizing the greatest technology benefits comes down to investing in employee training, following system specifications and asking your software vendor for help.
Training Employees Reduces User Errors
Making the software work takes a combination of technology, people and process. Even the best system requires skilled users to get the most out of the software. So it’s worth making sure that every employee that interacts with your job shop system is well-trained.
“In some cases we have the technology but we don’t have people trained to adequately run it. Sometimes there’s nothing wrong with the software, the problem is that untrained users are updating the system or misunderstanding the information, thereby corrupting the data.” – Ken McPherson, MIS Manager at Forrest Machining
Employees interacting with the software should have more than basic computer literacy (e.g. word processing and data entry skills). They should also understand the complexity of the system and be able to adapt to software functionality. Going to training seminars, investing in private company training and attending user conferences are all great ways to ensure your employees know how to make the most of your system.
Following System Specifications Improves Results
Equally as important as well-trained employees is following the specifications defined in the system. This boils down to two things: following the workflow the system was designed for and making sure the software is compatible with current systems in use. Taking shortcuts in workflows can lead to costly errors in things like labor costing and production planning.
“Before you do anything, make sure that the software you’re going to deploy is compatible with what you’re currently using. If you mess up the compatibility, then you’re going to be fighting a losing battle.” Tony Wynohrad, Gamma Vacuum
Meanwhile, if the current systems aren’t compatible with new software, you’re going to have trouble getting the right data – regardless of how well-trained your employees are and how rigorously you follow workflows.
Rely on Vendors for Help and Support
A final point is to rely on vendors for assistance. This is a logical suggestion but one that’s often overlooked. As Mike Mann, President of Aacoa, put it, “Don’t be afraid to ask for help and use the help that’s available.” Vendors should be working to keep your business and help you make the most out of the system. Since vendors designed the system, they’re one of the strongest resources for making the software work.
Most vendors offer an online portal where customers can ask for help troubleshooting a specific problem and find answers to frequently asked questions. Others offer support hotlines (really great packages offer 24/7 support) to answer questions and resolve system issues. Job shops should lean on these resources to learn how to best utilize their system.
These job shops are at the top of their game and are succeeding with a smart use of technology to help compliment what they do in the job shop. Running a successful job shop requires a smart use of manufacturing software. Critical to making the software compliment your job shop is understanding which features you need and then working hard to get the most out of your system.
But this is just the advice I was able to derive from a few shops in the industry. What has your experience been? Please share any other advice you have to offer.
The thumbnail for the article was produced by Ralph Bijkers.
