Auto Dealers Meet at NADA to Find Efficiencies

Architectural Firms Turning to Morrison as They Design Dealerships
Architects and the Who’s Who in the auto industry are gathering in Orlando for their annual conference. A spokesperson for NADA said of their industry, “we’re under extreme pressures to remain competitive. Modernizing a dealership is a big part of that objective.”

About ten years ago Morrison Company began working with architects and general contractors, hired by auto dealerships, design into dealership parts rooms greater efficiency. Over the years the “word” has spread about how Morrison Company has transformed how a parts room can operate.

Many times a dealership parts room transformation includes a freight lift. Sometimes called a vertical reciprocating conveyor, these lifts enable dealers to store parts on multiple levels. Using a steel mezzanine, Morrison Company will design and build these work platforms enabling dealer parts rooms to grow up. The lift is ideal for hauling bulky parts up leaving the lower levels for faster moving items.

A recent installation impressed this parts manager to say, “The VRC runs great – we have had no problems with it. The VRC and mezzanine system has increased our storage capabilities and we even modified the mezzanine later to accommodate some remodeling and that went very smoothly.”

The “buzz” is catching on so much that Morrison Company was asked to participate in the show. Presentations at the Orlando show will be made to architects and dealer groups about how simply their parts rooms can be transformed.

If you would like a facility assessment to determine if a lift or mezzanine might add storage capacity to your operation, select facility assessment on the contact us page.

US Chamber of Commerce Lobbying Efforts

Bankruptcy Reform
The House of Representatives on April 14, 2005, passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (S. 256). The U.S. Senate also passed S. 256, in the process derailing two amendments that would have raised the federal minimum wage on small businesses.

The bill was signed into law by President Bush on April 20, 2005, and took effect October 17, 2005.

How Your Business Is Affected

In recent years, the number of bankruptcy filings has sky-rocketed. A substantial factor driving the incredible rise in bankruptcies is not the need to get out from crushing debt, but a desire to walk away from debts that could otherwise be paid. This type of abuse transfers the debt burden from the individual consumer to businesses like yours.

About the Legislation

To combat bankruptcy abuse, S. 256 would institute a deliberate and straightforward “needs-based test.” This test would require wealthy debtors to work out a repayment plan under Chapter 13 of the Bankruptcy Code. This legislation constitutes meaningful bankruptcy reform and moves a step closer to rewarding personal responsibility and restoring fairness to the bankruptcy system, while protecting those who need the support that bankruptcy offers, such as a fresh start and protection from creditors. This bipartisan bill will stop the rampant abuse of the bankruptcy system that is harmful to consumers, workers, and small businesses.

U.S. Chamber Position

This legislation constitutes meaningful reform and moves a step closer to rewarding personal responsibility and restoring fairness to the bankruptcy system, while protecting those who need the support that bankruptcy offers, such as a fresh start and protection from creditors.

You Do That?

New Bolted Rack Technology Introduced By Interlake
Interlake Material Handling, the industry’s leading provider of pallet racking in the Americas, today announced the introduction of a new line of storage rack products. The new Interlock™ system features uprights constructed using bolted connections versus welded and is fully interchangeable with the existing Interlake systems that have become the industry standard throughout the U.S.

The modular upright design is the driver for providing end users with significant benefits in terms of lower landed cost, flexibility of reconfiguration, ease of repair and greater asset valuation.

Mike Gonzalez, Interlake’s President and CEO noted, “Bolted rack technology has been the accepted worldwide standard for a long time. Our conversion to bolted uprights at this point is significant because of the immediate increase in value it delivers to our customers and because of the additional opportunities and markets it opens up for our distributors. As the market leader, we’re proud to deliver this new offering to a market place long overdue for innovation. And we’re excited that this innovation helps lay the foundation for even more cost effective and dynamic material handling solutions from Interlake.”

Modular reconfiguration/relocation technology

The new Interlock bolted upright system features modular technology that provides users the flexibility to more cost effectively modify, reconfigure and repair their rack system, making it easier to incorporate a new picking system or accommodate odd-size SKUs. Or, even move the entire system to a new location.

Bolted connections versus welded

Properly designed and installed, both bolted and welded connections have similar safety factors. The Interlock™ system uses zinc-plated Grade 5 bolts with a limited thread engagement design that prevents over tightening of the matching serrated flange locknuts to create a positive, secure connection on tightening. The completed installation requires no incremental inspection or maintenance. Rack uprights feature recessed safety channel A specially designed recessed channel is incorporated in the steel rack uprights to eliminate any potential interaction of the hardware with product, pallets and operations personnel.

The strut supports in the upright assembly are formed out of pre-galvanized steel to provide Interlock system users not only with superior strength, but also with added protection against corrosion and rust. Upright assurance Upright “squareness” and structural integrity are assured both by component design and the manufacturing process. The Interlock™ product line has been designed to rigid tolerances and is manufactured to exacting standards at an Interlake ISO 9000:2001 certified production facilities to ensure exceptional quality and unyielding consistency. The Interlock system is engineered to meet RMI 2002 (Rack Manufacturers Institute) standards as well as AISI and AISC standards that govern steel design and construction. Bolted rack connections not new Interlake extensively uses bolted connections in all of its most complex rack systems that incorporate picking modules, push back carts and structural rack. Also, bolted rack is the standard in most of the world outside the U.S. Companies throughout Europe, Asia, Mexico, South America and Australia favor bolted rack because of its structural integrity, adaptability, ease of reconfiguration and repair, lower cost of transport, and higher asset value.

Full system compatibility a major customer benefit with the Interlock system is its full compatibility with other Interlake products. All beams and accessories that fit Interlake’s legacy Interack 30 system are also compatible with the new Interlock system.

You can request a demonstration of the new Interlock technology by selecting bolt works.

Operations Manager Issues

Motivating Subordinates
One of the greatest challenges—and achievements—for new managers is motivating their team members to give their best efforts. Here is what a recent new manager said of his team, "It seems that my staff waits for me to give them guidance on where to look for answers."

Before we look at some strategies that will create a motivating environment, here are a few things to keep in mind:

• Managers can't force their staff members to be motivated to do the best they can. The art of management involves creating the conditions that are most conducive to motivating individuals. People ultimately react in a motivated way based on their own internal needs, aspirations, and self-images. Effective managers are able to tap into those internal processes through the relationships they build with subordinates and the way they shape the work environment.
• There is no one theory or way to motivate people. Work motivation is one of the most studied issues in the management literature. The fact that motivation has been addressed so often suggests that it is a key element to the success of an organization. It also reveals the lack of consensus on what truly motivates people.
• There is more than one way to motivate your staff to work hard and to be innovative. Effective managers will develop an understanding of the opportunities and constraints available to them in a given work environment and focus on the things they can realistically do to motivate staff members.

Empower your staff to feel in control of their work
New managers will often micromanage their team because they lack confidence and experience and because they want to maintain the same high standard of excellence they had as a technician. If you find yourself constantly telling people what to do, try changing your approach. Effective managers will set the ground rules and expectations for their staff members and then allow them to do their jobs. Shift your focus from making sure that specific tasks are completed correctly to establishing standards and expectations.

Never assume that people know they are appreciated
One of the biggest mistakes a manager can make is to assume that people understand how important they are to the team or organization. Find ways to acknowledge the efforts of your staff, both internally (within your group or team) and externally (with your superiors and with other groups within the organization).

Keep in mind that it is not useful to compliment or acknowledge people when it is not warranted. People can see through such efforts, and it can often reduce your credibility. You should sensitize yourself to the opportunities you do have to reinforce the good work of your team and don’t let an opportunity pass without taking advantage of it.

Empathize with team members about the negative aspects of the work
Numerous organizational conditions can have a negative impact on work motivation. Poor pay, lack of opportunities for advancement, and noisy cubicles are just a few conditions that can annoy employees. Don’t be afraid to acknowledge and empathize with the frustrations your staff members have with the realities of the job. It is not useful to dwell on negative aspects of the work, but showing an understanding of the things that affect your staff members negatively can build morale and trust and improve motivation.

Business School Book Review

The Ohio State University
Are you a reader? If so this article will feature book reviews by some the county’s best and brightest business school professors. While they’re recommendations may not always be about business, the books do have something to say about perseverance and integrity. This month’s featured professor is Anil Arya, Dean's Distinguished Research Professor at The Ohio State University.

REAL OPTIONS: MANAGERIAL FLEXIBILITY AND STRATEGY IN RESOURCE ALLOCATION by Lenos Trigeorgis
"The theory of real options has proven to be insightful in evaluating investments. The traditional net present value (NPV) rule is expanded to include not only the passive NPV of expected cash flows but also the value of options from active management. Active management may allow a firm to defer, expand, contract, abandon, or otherwise alter a project at different stages during its operating life. Different projects provide a firm with differing degrees of flexibility. For example, a research project does not commit the firm to development or production. The decision to commercially develop a research project can be made contingent on the results of the research. Failing to account for the flexibility provided by a project can result in undervaluing projects. This book (and the author has significantly impacted the thinking of many in academics and practice."

MANAGERIAL USES OF ACCOUNTING by Joel Demski
"Accounting information is distinct from information produced by other sources. Some characteristics that make it special include the following... It is aggregated -- a small number of accounts summarize the information contained in a large number of transactions. It is prepared in accordance with double entry rules. It is audited. It is late (historical). It is tracked over multiple periods. It gives the preparer of accounting reports a curious amount of discretion (through the choice of accruals). While distinct, it is wrong to presume that accounting works in isolation. In fact, it often works best when used in conjunction with other information. In my opinion, this book does a terrific job of explaining 'why accounting is done' while at the same time being very appreciative of 'how accounting is done.

Biographical Info:

Professor Arya's primary research interests focus on developing theory in the area of management control systems. He serves as ad hoc reviewer for numerous professional journals. His research has been published in The Accounting Review, Journal of Accounting and Economics, Management Science, Issues in Accounting Education, and Journal of Economic Theory. He was awarded the Dean's Research Professorship in 1999 and the Fisher College Pace Setters Research Award in 1996. Dr. Arya teaches courses in managerial accounting and management control systems design for the college's MBA, PhD, and Master of Accounting programs. For more information on Mr. Arya, please visit: http://fisher.osu.edu/facultyguide/faculty/arya/arya.htm.

Industry Trends

RFID Update
Driven by customer and regulatory mandates, many firms in the consumer products, pharmaceutical, high-tech, and defense industries are plowing ahead with RFID projects this year. Most of these firms need to seek outside help with deployments due to new expertise required on RFID projects. So how can users find the right consultants and systems integrators? To answer this question, Forrester surveyed hundreds of North American executives about their RFID buying habits, conducted in-depth interviews with several RFID adopters, and analyzed the RFID consulting offerings of 28 vendors — including pure-play services firms and product vendors that deliver complementary services.

HOW TO PICK THE RIGHT RFID PROVIDERS IN AN EARLY MARKET
RFID service providers may look alike on the surface, but each has strengths and limitations based on their overall core expertise and previous RFID work. In this emerging market, users can protect themselves — and their RFID investments — by grilling providers on their methodology and commercial activity in each of the three new disciplines.

Physics Expertise Demands New Tools and Technology Partnerships
RFID hardware installation — and the corresponding physics expertise — is the most essential service, since every pilot requires readers and tags even if architecture and apps requirements are rudimentary. Solid hardware configuration results in better reliability and performance, so deployment experience — and proxy measures like the number of reference clients — is critical for creating the vendor shortlist. More experience also means that providers with strong physics expertise are likely to meet selection criteria like:

• Repeatable frameworks and tools for site and SKU assessments. The more times a provider has done hardware installation, the more likely it is to have standard methodologies and even software for testing tag orientation and configuring reader interrogation zones. For example, ODIN technologies offers its Trifecta software and testing methodology not only as an enabler of its consulting services but also as a packaged product that allows users to bring SKU testing in-house. Tools like these can reduce site and SKU assessments from weeks to days.
• Formal partnerships with hardware vendors. Major hardware vendors such as Alien, Intermec, and Symbol have preferred partner programs that include training and certification for system integrators. Users should value these partnerships as part of selection, since they help implementers stay abreast of the latest upgrades and releases. As a rule of thumb, hardware installation providers should have between two and four formal partnerships — a number that allows them to build a deep consultant bench while still offering some hardware choice.
• Fixed price agreements. Several providers have moved from time-and-materials to fixed-time/fixed-price contracts for all or a portion of their hardware installation services. Most often, previous experience has helped them identify a price range based on the time parameters of common deployments. For example, Xterprise offers a fixed-price Technology Feasibility Test for tag and reader configuration testing in its RFID solution center.