by Dienamic MIS Software Inc.

1-800-461-8114
www.dienamicmis.com/





Thursday, July 27, 2017

BIOMETRICS - New Technology to Better Manage Your Biggest Cost - Labor

After successfully implementing the Dienamic Estimating, MIS and Online Inquiry Software System in over 100 Finishers/Binderies/Diemakers Dienamic can bring your company results on how to



Increase Sales

Increase Quality

Increase Profitability

Increase Customer Loyalty

By Mark Porter
Last months newsletter discussed achieving accountability on the shop floor to ensure you are aware of all costs you incur in the plant Shop Floor Data Collection ensures that people are accountable for every minute they are in the plant and every material that they use.
After all Profit = Sales - Costs
If you don't know your costs how do you know your profits
Technology can also allow you to better manage who is on the shop floor. To ensure a company is getting the maximum productivity out of their labor they have to ensure that employees are actually on the floor.

With simple punch card systems it is too easy for friends to clock each other in and out when in fact one person may not be on the premises.
This results not only in the wasted dollars of say paying someone for 2 hours @ $20 per hour but also results in the lost productivity on the press for 2 hours  that you are selling at $125 per hour.
Managing this type of activity gets much tougher once you start running 2nd and 3rd shifts.
Biometrics use an employee's fingerprint to activate the time card system for clocking in, starting lunch, finishing lunch and clocking out.
Requiring a person's finger to clock in ensures that you are paying employees for actually doing work for you and you are running at the efficiencies that you expect and base your cost structure on.
The Biometric Time clock can be used in conjunction with the data sharing as an employee cannot record time against a job if he has not clocked in for the day or as a standalone payroll system.
As a standalone payroll system it will stop buddy punching but it will also provide a log of everyone that punched in immediately after a shifts starts so you are immediately aware of staff shortages for the day and it can provide a direct link to payroll services such as Paychex Payroll Services to eliminate rekeying and calculating payroll.

Labor is by far the biggest cost our customers incur. By managing the employees attendance through Biometrics and demanding accountability of their time and materials while they are in the plant you can take control of your biggest cost. Even small percentage savings on labor can be substantial
5% on $2,000,000 is $100,000 savings

Thursday, June 29, 2017

Thursday June 29th, 2017

ACCOUNTABILITY ON SHOP FLOOR LEADS TO PROFITABILITY IN OFFICE


After successfully implementing the Dienamic Estimating, MIS and Online Inquiry Software System in over 100 Finishers/Binderies/Diemakers Dienamic can bring your company results on how to


Increase Sales

Increase Quality

Increase Profitability

Increase Customer Loyalty

  By Mark Porter
In any business knowing your costs is important. After all isn't Profit = Sales - Costs. If you don't know your costs how do you know your profits. Sure at the end of the year you can say I made money or I lost money but if you control your costs and use your cost data to make better business decisions you may not lose money and you may be able to say I made MORE money.


There are many benefits to a Job Costing System.

1. Capturing all costs incurred by a job for billing purposes
2. Analysis of Jobs to identify process or employee problems
3. Compare Estimate to Actual Values to ensure they are in sync
4. Production & Employee Analysis to ensure standards are met
5. Work In Process
6. Analyze time spent by all Employees and Machines
7. Payroll Benefits * New Finger Print Scanning and integration to Paychex

Last and certainly not least ACCOUNTABILITY - We will look at this aspect in our Blog


I don't think it matters if you are the person sweeping the plant floor or the president of the company - if you have to account for every minute of your day and every material you use you will become more productive and less wasteful.


This can add up to tremendous savings. Lets say we get even a modest 5% increase in productivity and 5% decrease in waste. Extend that to the money that flows through your plant each year. On $2,000,000 dollars that is a $100,000 savings.


There are several methods to record time and materials in the plant and each method has different levels of accountability.


1. Employees simply writing their time on the back of the Job Bag provides little value either in costing the job or in accountability. The employee can simply place the time and materials he thinks you want to see. You have no way of knowng if the time he wrote down reflects the true time spent.


2. Employees manually writing out time sheets is a step closer because at least the employee has to account for his time within the structure of his day. But again if he knows he took way too long on a process he can factor it in over the course of a day.


3. Real Time Tracking is the most accurate and therefore profitable method. The employee simply enters that he is starting or finishing a process. the system keeps track of start and stop times in real time. The employee knows he can be held accountable for every minute of the day.

Real time tracking means that you can see the location of a job, the activity of a machine or the process an employee is doing at any time from any pc. Not only is the employee accountable for his time - it can be viewed at any time. 

And accurate time collection leads to other benefits such as accurate analysis of employee and machine time. Job Costing provides many benefits, which we will look at in future articles, but accountability is a huge benefit that leads to greater profits which is good for you and the employees.


Thursday, May 25, 2017

PURCHASING ANOTHER PIECE OF THE PROFIT PUZZLE


After successfully implementing the Dienamic Estimating, MIS and Online Inquiry Software System in over 100 Finishers/Binderies/Diemakers Dienamic can bring your company results on how to

Increase Sales
Increase Quality

Increase Profitability
Increase Customer Loyalty

By Mark Porter

All companies have to purchase both materials and services in their day to day activities. The levels of those purchases can vary from industry to industry and from company to company. Certainly the industries of Print Finishing, Trade Binding and Diemaking are more labor based then material based but purchases must still be made.

These days anytime money leaves your company it is vital that you have accountability for that money and confirmation that you received the value you expected for the funds.

Purchase Orders should be generated for all purchases. This includes items for specific jobs, materials for inventory, any outside labor services and general office purchases such as supplies.

Issuing purchase orders whether written or verbal is the same as writing a check from your company to the vendor . Whether your company makes many purchases or only a few each one represents money leaving your company that should be controlled.

A Purchasing System should record every purchase order issued. This provides accountability of who is issuing purchase orders and where they are being sent to. By making people accountable for the purchase orders they issue you will ensure they are more careful with the purchases they make.

When goods or services are received they should be matched up to the original purchase order to ensure that you have received the full order, more than was ordered or if items are still to be received.

When the Vendor Invoice is received it should be matched up to the original purchase order to check that the prices on the invoice match the prices that were approved on the purchase order.

The Vendor Invoice should also be matched up to the receipt of goods to ensure that the vendor is not billing you for more goods than you actually received.

Our industries are so job based it is often a good idea to take a step back and view purchases by vendor and employees issuing POs.

By ensuring your company follows these procedures you can tighten your financial control of another aspect of your business to ensure you are maximizing the success of your company.


Friday, April 28, 2017

MINING FOR DATA GOLD

By Mark Porter
Job Costing - whether done via time sheets or shop floor data collection is the process of tracking every minute of every day of each machine and employee. This not only allows us to get accurate costing of how much each job actually cost us to produce but also allows us to analyze all aspects of our operations.

How much of employee John's Smith time last quarter was chargeable(rebilled) and how much was non chargeable. How many hours did we spend repairing that old Kluge press last year. Collecting shop floor data allows you to easily find this information out.

This type of information can allow you to control your labor costs and make more informed decisions regarding the machines in your company 

We can extend this further if we start to track characteristics of jobs. For example what was the average running speed on 28x40 sheets of 10pt coated stock 2 up on the Bobst press.

How much time did we spend waiting for Customer ABC to do press oks.

This type of information can help with providing more accurate estimates. This is very important because if we are quoting a job at 3000 per hour when we are only achieving 2500 on the shop floor we are losing money as soon as we get the order. Conversely if we quote at 2500 per hour and are actually achieving 3000 on the shop floor we are losing jobs we could be producing profitably.

You do not have to be limited by the analysis our software allows you to do. All this data can be sent to excel where you can sort and analyze the data in ways that answer questions that are specific to your company.

There is a wealth of information happening in your plant every day. You simply need to start collecting it and analyzing it to help you improve productivity and profitability

Thursday, March 30, 2017

Turn Problems into Positives

By Mark Porter

As the old saying goes "When life gives you lemons make lemonade". This can be applied to the daily problems you encounter in your business.

Software can help documenting and recording problems provides several benefits to your company and you can actually turn problems around to strengthen relationships with customers, vendors, employees and improve operating procedures.

Providing employees easy entry of information such as Job Number, Customer, Vendor, Employee, Department, Problem Type (Paper, MR, etc), Quantity effected, Problem Description, Problem Solution etc allows you to sort and analyze problems which can provide many benefits such as:


Don't Make The Same Mistake Twice
Becomes a Database of Problems and Solutions
Improve Relationships With Customer/Vendors/Employees
Documenting Problems Minimizes Damage


1. Don't Make The Same Mistake Twice 


Another old saying goes "Your not stupid for making a mistake just for making the same mistake twice."

By recording problems against jobs you can be immediately notified when re quoting or rerunning that job of the issues incurred last time. At the estimate stage it allows you to re quote the job based on the previous information or at Order Entry you have the option to not proceed with the job if the customer is not willing to incur the extra costs this time around.

2. Becomes a Database of Problems and Solution
s

Recording problems and solutions builds a knowledge base that can be accessed by employees in the future. By entering the problems with data such as department, problem type employee etc allows us to shorten the solution time to similar problems in the future.

Combine this with the ability to add video and images of the problems/solutions to the database and you can learn from your previous mistakes.


3. Improve Relationships With Customer/Vendors/Employees

Generate a list of problems you have with good customers each quarter and then discuss those issues and offer solutions with the customer. Continually refining the working relationship between your company and customers allows you to produce higher quality, better priced and better serviced products for them. This strengthens the bond with that customer ensuring it takes a bigger mistake or price difference for them to take their business elsewhere.

The same logic applies to vendors and employees. By discussing issues with people you strengthen the working relationships to the betterment of your company.

Trends can be seen with employees and certain operations. Say an employee is always having problems with MR a certain product. Additional training can be provided. Trends with Vendor materials continually causing problems can be identified and rectified.


4. Documenting Problems Minimizes Damage

If nothing else documenting problems can save money and relationships in the event of disputes. The more documentation you have the more you reinforce your position to the other party in a constructive and articulate way. This can reduce or eliminate your liability and open the possibility to future business.

So next time you make mistake make your company stronger for the experience

Thursday, February 23, 2017

CASH IS KING


By Mark Porter

Controlling your cash is vital in todays economy but you are probably also under staffed and over worked - a perfect combination that can lead to missing items that can greatly effect your cash flow.
Therefore it is vital that you have the check and balances built into your operations that will help avoid bad customers, missed charges, paying too much to vendors and maintaining cash flow.
We are not going to look at this topic from the accounting side. We will assume that everyone has an accounting system such as Quickbooks or Peachtree etc and is watching their aging process (the accounts not themselves). We will deal with the management side in this Blog.

Avoid Bad Customers
Chargeable Changes
Start Your Aging As Soon As Possible
Don't Miss Any Jobs (Shipped Not Invoiced)
Don't Over Pay Suppliers
Other Production Tips

Avoid Bad Customers: Debt from one Bad Customer can wipe out profit from a lot of Good Jobs so it is vital that you stay on top of COD and delinquent customers. These days this information can be continually changing and it is important that everyone is aware of a customer's status. There is nothing worse then shipping a job to a customer on COD before getting the money or calling a customer to tell them you are holding their job back only to find out they sent you a check earlier.

Allowing Management to make credit decisions on customers and to convey that decision immediately to other staff is very important. Management can simply flag a customer as COD or On Hold and immediately order entry people cannot open orders without a security password and shipping people cannot create packing slips without a security password.


Chargeable Changes: Profit margins on jobs are so thin these days that any extra work can turn a job from money maker to money loser. It is vital that you track your chargeable changes and collect them from your customer. Implement a system that will document all changes made to the order from the time you agree to do the job until you ship that job to the customer. The changes should be Date / Time / Employee and Reason stamped. Change Orders should be sent and immediately email notification to the customers of the changes. These changes should be immediately reflected on the invoice but allow for changes at that time.

If you keep record of every change and document the reasons for the changes you will collect your legitimate extra fees.

Start Your Aging As Soon As Possible: We all know that customers are going to take their time paying you whether that is 30, 60, 90, 120 days so the sooner you can start the clock the better. When you generate your physical invoice automatically email a pdf copy of it to your customer at the same time. This avoids any delay in mailing invoices and allows you to collect your money days earlier.

Customers will want your invoice asap so that they can bill their customers and keep their cash flow going. You may not get your money any sooner but you will become a more desirable vendor for them.

Don't Miss Any Jobs: Reduced staffs and hurried work schedules can lead to people doing things they forget about. Maybe a job is shipped and then your plant manager pulls the Job Bag to write something on it and then forgets to but it back in the billing file. Or maybe the job bag fell behind the shippers desk. The end result is a shipped job that isn't billed at all or billed at a much later date when it is found which is uncomfortable and embarrassing.

Run reports each Friday that provide a list of jobs shipped but not invoiced. Don't let any hard earned money slip through your fingers.

Don't Over Pay Purchases: Everyone makes mistakes including suppliers but you shouldn't have to pay for their mistakes. By issuing POs, recording receipts and entering Vendor Invoices you can be instantly flagged when the invoice price varies from the PO and the Quantity billed exceeds the Quantity received. You work hard for your money don't give it away to suppliers.

Tuesday, January 24, 2017

Customer Profiling Leads to Customer Profits

By Mark Porter

It has always been important to treat every customer as if they are your best customer. These days it is even more important that all customers are handled with the greatest of care.


There is no room for error because there is always another company down the street willing to pounce on your mistakes.


Great customer service does many good things


1. Avoid embarrassing Mistakes that lose Customers


2. Avoid re-doing work that costs you money


3. Avoid Production Delays that cost money and miss deadlines


4. Fends off competition that is willing to do a job for slightly less than your price.


The problem is that part of great customer service is knowing all the different details on how a customer likes to operate. What we call the Customer Profile.


This is often a knowledge base accumulated in a CSR or owner's head that cannot be easily dispersed to other members of your staff.


Samples of this type of information are:


Must have PO to Start Job


Must provide 2 samples to President


No Deliveries after 5pm, must use their truck


Dies for Bobst Press must use 3pt rule, Birch Board, Red Rhino Rubber


Never more than 35lbs per carton


Always Wrap skids


By making this knowledge base accessible to all staff members it means that Good Customer Service is not dependant on the availability of one person.


When a database of this knowledge or Customer Profile is accumulated it can be accessed by:


Estimating - Ensuring they have all details at the beginning of the estimate avoids embarrassing extra charges or worse additional costs you can't get back when the job is produced.


Order Entry - Access to the Customer Profile when a job is opened ensures production has a solid foundation to produce a profitable job. Changes to jobs once production begins leads to costs, production delays and missed deadlines.


Production - Production Employee access to the Customer Profile allows staff to make educated decisions on situations that occur in non office hours or when the CSR or owner are not available.


Administration - Office Staff can work with clients in terms of samples, deliveries invoices etc exactly as the customer demands.


Sales - Your knowledge base of customers can be a sales tool to gain more customers. When you do your plant tours and show prospects the equipment and employees that will produce their jobs, show a sample of the knowledge base and help support your claims of quality and customer service.


Companies find the Customer Profiling so important that the knowledge base is employee and date stamped whenever a change is made to it. This provides complete accountability to your customer service process.


Accumulating Customer Profile Information and making it accessible throughout your company leads to accumulating Customer Profits.