Overcoming Lack of Space Less Costly to Grow Up?

Automobile Dealership’s Experience Applicable to Many Operations
Auto Dealership Parts Departments often encounter the same problems that many different industry’s warehouses or distribution centers, for example, can encounter…lack of space and/or lack of a safe and efficient way to move material between different levels.

Parts Departments oftentimes are one of the last departments to be allocated space to when design plans are prepared, with more space often allotted to showrooms and service departments. Because of this, Parts Departments often are designed with plenty of overhead space to allow for future expansion. When parts rooms start to get crowded, a second or third level is often added utilizing a free-standing mezzanine.

Once a mezzanine is added, however, the issue of how to move parts between the levels efficiently and safely needs to be considered. Some parts rooms have utilized conveyor belts, forklifts, or hoisting mechanisms. One of the most cost-effective, safe, and efficient methods of moving parts from level to level is a vertical reciprocating conveyor (VRC). Recently a VRC was placed in a dealership that needed a new, safer way to move their inventory from floor to floor.

With inventory ranging from $350,000 - $540,000 and a variety of large sheet metal parts that needed to be stored on an upper level, the dealership’s parts room needed a more efficient and safe way to move parts from level to level than what their current system allowed. The dealership was using a hoist to move wholesale parts to a second level in their parts room.

The hoist, although it did the job, posed a few problems for the parts room. The hoist was getting older and the parts manager was finding that it was difficult to get anyone to service it. The parts manager stated that the biggest problem, however, was that the hoist had to be weight balanced making the lifting process “a bit of a hazard when in use.

The dealership’s decided on a vertical reciprocating conveyor to solve its parts room material handling needs. In the end, the dealership has replaced a lifting mechanism that was at times difficult to use and hard to service, with a VRC that was both easy to install and service as well as efficient and safe to use.

If you would like a Morrison Company Account Manager to view your new construction, remodel, or expansion plans contact Morrison Company for an assessment of your operation.

You Do That? - Kwik Ship Program

Popular Racking, Beams and Wire Decking Stocked
Does your operation use racking? Do you have times when replacing a frame or beam becomes extremely urgent? Has a crisis called for a quick expansion and waiting for the typical production schedule seem not practical? Now you have a solution!

The Kwik Ship and Stocking program provides popular beams, frames, accessories, and wire decking at your beckon call. In stock and waiting for your phone call or email, this inventory of new material can either be picked up by your truck or shipped within 48hours of ordering.

“This program is designed to meet a growing need of our clients,” remarks Jim Green, President of Morrison Company. Sometimes circumstances dictate a quick response and time is of the essence. “We’ve made every effort to stock the most popular sizes and configurations”, said Mr. Green.

Taking advantage of this program can begin in any one of two ways. Clicking on the Morrison Company website, you’ll see the main navigation link. Once on the Kwik Ship program page, click to view and or print a listing of the available inventory. Not near the computer? Call 440-946-8505 and ask for the Kwik Ship Department. We’ll be happy to walk you through the inventory and pricing.

Concerned that this Kwik Ship inventory is less superior to the products you’ve come to depend on? The racking and beams are the same high quality Interlake products, just stocked in a different location. The wire decking is Nashville Wire’s products; ready to ship to your location.

Perhaps you should bookmark the Morrison Company website and save it as a “favorite” on your browser. Next time an urgent need arises for racking, check out the Kwik Ship and Stocking Program.

Test Your Knowledge

Facing Your Fears
Almost without exception, every business success story starts with an idea – a concept fueled by a dream. Everyday we read about how these dreams take shape and come to fruition.

Unfortunately, many of these great ideas never get traction because we all suffer from the “F of F syndrome”, or Fear of Failure, which almost always surfaces with a slam-bang big idea. On the other hand, we’ve all experienced – or at least observed – the effects of analysis paralysis, where, through constant and obsessive study, we beat an idea like a dead horse, with self-recriminations of woulda, coulda, and shoulda.

At the end of the process, you’re exhausted and frustrated and you’ve taken your rags-to-riches dream and turned it into a fading fantasy bordering on a nightmare. So how do you stop this downward spiral?

The best way is to start with the concept and ask yourself a few simple questions:

• Does my idea fill a niche and provide a solution that no one else does?
• Can I take an existing concept and make it better, more efficient and more effective and do it more economically than anyone else?
• Does the concept have staying power?
• What will I need in terms of resources and how much money will it take to test out the concept?
• Can I commit it to writing and describe it simply?

Some of the simplest ideas have become the biggest winners for those persistent enough to stay focused and create their own story of success. Because of that always lurking doomsday fear of failure sentiment, or perhaps more aptly put, fear of winning, you become afraid to try. The most successful people are those who have something to prove to others or, more important, to themselves.

Have Steel Surcharges Reached Their Peak?

Leading Indicators Signaling Downward Pressure on Pricing
This may be one of those “is the glass half full?” stories. For almost two years, the price paid for anything made from steel has sky-rocketed. Most manufacturers of material handling products chose to respond to this upward price pressure by assessing a surcharge in addition to the price charged to their clients.

In recent months, some steel industry indicators are signaling a change in market conditions. What does this change mean for companies looking to expand by purchasing racking, mezzanines, etc.? It won’t be the “prize patrol” visiting your office with your sweepstakes check, but it may be in the form of a letter indicating either no price increases or a reduction in the surcharge.

If this comes to fruition, it will be good news for all involved in the material handling industry. Pent up demand for any size of material handling project is a realty. Companies needing to add to or build a new distribution facility may have lower prices to work with.

Here is where the “glass is half full” comes in. Steel producers NUCOR and Inland have already announced a reduction in their “structural steel” product. Although racking can be made from structural steel, much of the racking used is manufactured from roll form steel. No news on the price of this commodity, but industry insiders say watch for an announcement soon on the price of roll formed steel.

What does this mean for you? Cost justify why a project is being considered. If the project cost justifies (ROI) within an acceptable timeframe act now. If the cost of waiting for the price to decrease justifies delaying the project make sure you consider the ROI. If waiting means just taking a few more months, why not act now? If waiting still makes sense, keep in contact with your supplier to monitor the pricing for the project. Do you have a ROI calculation spreadsheet? If you’d like one, click here to obtain a copy.

The Survey Says . . .

Readers Confirm Relevance of Material Handling BIZ
Since it’s inception in May of 2004, Material Handling BIZ has focused on meeting the needs of material handling industry professionals. With the one-year anniversary passing recently, a survey was sent asking for feedback.

Here is what was reported. Decision-makers are reading this online publication. 93% of readers are in either senior management or staff manager positions. As such guiding the direction of their department or company takes much of their attention. When asked what the single biggest change was occurring in their business in the past year, 38% indicated pressure to lower margins. Surprisingly the second most common answer (25%) was difficulty finding qualified people. Even in a competitive environment, companies are still growing and looking for the right person to fill out their team.

Not surprising as well was Material Handling BIZ readers’ have purchase authority. 83% of respondents indicated they recommend or authorize purchase decisions. Their experience level within the material handling industry varies. Although 32% of respondents have 20 or more years’ experience, 26% have less than 10 years experience.

When asked what topics are of most interest, 31% indicated “management” best practices, 29% said learning about material handling equipment applications, and 27% reported learning how to justify projects using ROI tools were critical. Using these findings, more future articles will be focused on management best practices and on using ROI tools to justify projects.

Is all of your team receiving Material Handling BIZ? Adding a team member or colleague is simple. Click here and enroll then now or forward this newsletter to them and have them complete the form. Not convenient enough? Send and email to news@morrisoncompany.com with their name, company name, and email address. Thousands of industry professionals are taking the relevant information found in Material Handling BIZ and using it to better run their companies. Overall 85% of survey respondents said email forms of newsletters either valuable or time efficient. An additional 24% indicated they preferred an email newsletter to receiving a hard copy. Until next month . . .

Improving Employee Productivity

The following article is submitted by Sedlak—providing independent, client-focused supply chain consulting services. Find out more at www.jasedlak.com.
“You can’t manage what you can’t measure,” the old adage goes. Words to the wise, especially if you manage a distribution center.

While effectively managing labor is the easiest way to reduce costs and increase productivity, it’s nonetheless becoming more and more complex. Recently two large, nationally recognized companies asked Sedlak to implement a labor management program in their distribution centers.

Why? For the same reasons as other companies. They know they can:

• Control labor costs, reducing the cost-to-sales ratio
• Have a management tool that allows resource modifications to operations and tasks on a real-time basis
• Plan resources more effectively
• Bolster safety, efficiency and accuracy
• Maximize individual productivity and accountability potential

Imagine a blank computer spreadsheet with hidden formulas in each cell. You enter your company-specific operations information into cells, press a few buttons and the program gives you answers. Now imagine how much more helpful your answers will be if you analyze and improve the operations before entering it into the computer spreadsheet.

The second image is a full labor management program implementation. First, preferred methods and equipment speeds, occurrences, personal fatigue delay and other factors are measured. Keep in mind that every single physical motion is a measurable work element. Combined into what is required for tasks, they provide data about precise times required for the tasks, referred to as goal times.

The objective here is to establish guidelines for doing a job right—safely, efficiently and accurately. This is the information entered into the software designed specifically for labor management. The software program allows real-time visibility into the amount of work to be accomplished and resources needed in any area of the operation at any given time of the day as often as the manager wants to look.

An added bonus for companies with union labor, a labor management program can provide clear documented expectations which is fair to labor and management. Union or not, employees receive clear evaluations of their productivity. Management doesn’t have to rely on subjective judgment.

An industry expert estimates $6 billion worth of wasted productivity is “left on the table each year” in the U.S. As more businesses implement a full labor management program, that figure will shrink.

© 2003 Morrison Company. All Rights Reserved.