Tag: Business Tips

Capital Investments That Make Sense

It may be a bear market, but this is no time to hibernate. If you want to weather the pending economic winter, you can’t afford to crawl into a cave and wait for better times. This is a time when the old saying, “You snooze, you loose,” rings true. Competition gets more cutthroat when times are tough and only the smart survive. Everyone’s going to be reining in expenses to maximize their cash flow, and many will limp along with out-dated equipment or technology, afraid to make any capital investments until the economy eases up. Savvy businesspeople know this is faulty thinking. Even in a poor economy, certain capital investments not only make sense, but give you a critical edge over your competition.

What kinds of capital investments make sense? Industry experts say capital expenditures that give you both immediate and future value should get top priority.

  • Equipment and technology that make and keep you competitive are essential, especially in a tough economy. You can’t afford to lag behind competitors or you’ll be left choking in their dust. As U.S. industry moves ever closer to integrated automation, you’ll need to embrace state-of-the-art technology and equipment to remain competitive.
  • Equipment that decreases your fuel expenses will become increasingly valuable as oil production continues to drive world economy. Battery and electric-powered equipment not only produces immediate savings in fuel expenses, but decreases future dependence on fossil fuels. 
  • Businesses shouldn’t overlook the powerful message that energy efficiency sends to customers: that you care about the environment and the planet we live on. As global warming heats up, more businesses will be choosing environmentally-friendly partners over energy-wasting ones.
  • Ergonomic equipment that improves worker safety and significantly decreases medical, insurance and workers’ compensation expenses will gain even greater importance as healthcare costs rise. Both presidential candidates are furthering healthcare platforms that will force U.S. businesses to shoulder an even greater burden of our country’s healthcare costs. Equipment that decreases the direct and peripheral medical costs of worker injury will benefit your bottom line. 
  • As the U.S. workforce shrinks, ergonomic equipment will play an important role in maintaining worker satisfaction as well as safety. As competition for workers increases, businesses will need to offer workers more tangible job benefits. Use of ergonomic equipment shows your workers you care about their health, safety and comfort on the job. And it has the added benefit of making your operation more efficient and more productive.
  • Ergonomically-designed equipment that allows a single worker to accomplish a greater volume of work safely will also reap savings in a shrinking workforce. With presidential candidates promising to penalize businesses for taking jobs overseas, the ability to maximize productivity with a minimal American workforce will gain importance.

Lessons to be Learned from the Auto Industry Meltdown

The plight of the American automobile industry should serve as a cautionary tale for all U.S. manufacturers and businesses. To survive in today’s global marketplace, you must be flexible, embrace change, and constantly re-shape your business to meet future trends. Survival is as much about preparing your business for the future as it is about being competitive today.

Detroit’s problems are complex and have been exacerbated by a 15% sales drop as the economy has worsened, but at their core is the failure of U.S. auto executives to acknowledge the trend toward more fuel-efficient cars and to innovate. Rather than meeting the challenge posed by rising well-made, fuel-efficient Asian competition, Detroit continued business as usual, putting its efforts into advertising and Congressional lobbying to support bigger, better, fuel-guzzling cars. And until the rising cost of gas bit us in the wallet, the American public played along.

The sad thing is that back in 2000 Detroit did flirt with a program to push fuel-efficient vehicles but abandoned the effort as too expensive and unnecessary. It makes you wonder if the auto industry would be in cardiac arrest today if industry leaders had had the foresight to imagine the future and the courage to make the hard decisions necessary to prepare for it.

In the material handling industry, DJ Products faced this dilemma successfully. With the vision to spot new trends and the flexibility to act, DJ Products was one of the early responders to need for ergonomic material handling equipment. Well before the high price of repetitive stress injuries became a national cause, DJ Products saw a need to design material handling equipment that would reduce the potential for musculoskeletal injuries and improve the health and safety of workers.

DJ Products manufactures ergonomically-designed motorized carts and powered cart, equipment and vehicle movers that eliminate the pain and strain of manually pushing and pulling heavy carts and wheeled equipment. Our products are less costly, smaller, more maneuverable and more versatile than traditional material handling equipment used to move carts and equipment, such as forklift trucks, walkies and riding tugs. Forward-thinking business owners are revitalizing their operations and positioning themselves for the future by turning to ergonomic equipment to meet their material handling needs.

With an Obama administration expected to increase ergonomic standards and requirements in the next year, a proactive approach toward worker health and safety is a  smart business move. And it’s a decision that will have a positive impact on your bottom line. The cost of most ergonomic equipment purchases are recouped in the first year in savings on medical costs, insurance, workers’ compensation and lost work days. A move to ergonomic equipment also provides a substantial benefit in improved worker morale and increased productivity.

To find out how ergonomically-designed material handling equipment can help prepare your business to meet the challenges of the future, contact the ergonomic experts at DJ Products.

Use ETO Manufacturing to Differentiate Yourself from Competitors

Customer manufacturing may be a way for U.S. manufacturers to hold on to and even increase their marketshare and margin, Thomas Cutler wrote in a recent issue of Manufacturing & Technology eJournal. The ability to meet your customer’s engineer-to-order (ETO), build-to-order (BTO) and assemble-to-order (ATO) demands is one way to differentiate yourself from your competition. By building or redesigning products to meet customer specifications, you create a niche for yourself in today’s challenging industrial market and build customer relationships that can’t be easily transferred to competitors.

“Standard products are the easiest targets for competitors to attack,” Dennis Parass of Burlington, Ontario’s Questica told Cutler. “If the client feels that there are a number of alternatives, there is a devaluation of the supplier and profit margins fall.”

Clients value and are often willing to pay more for the problem-solving skills needed to redesign standard products to meet specific needs. “Successful ETO or customer manufacturing companies develop relationships with their clients who value the expertise they bring to a project,” Parass told Cutler. “They differentiate competitors and force the client to weigh more than just the ‘economics’ in making a choice. The margins are better. Reputations are built on successful projects with happy clients and the value of references cannot be overemphasized.”

Industry experts predict an increase in ETO manufacturing in coming months. DJ Products has long recognized the advantages and necessity of offering ETO services to our customers. We’re experienced at working with our customers to design solutions that meet their specific needs. Many of our ergonomically-designed carts, movers and tugs are adaptable to a variety of specific needs. Our innovative designs are engineered to help our customers get the greatest and most flexible use from their equipment. Recently, we came out with a motorized retrofit cart kit that allows you to instantly power all your carts with a simple, easy-to-install kit.

Our RaceCarCaddy, a redesign of our popular vehicle pusher, is manufactured to meet the specific needs of the race car industry. Our CartCaddyShorty Power Tugger features a spring hitch option and customized tugger attachment that eliminates the need to fabricate multiple attachments on each of your carts or equipment. We’ve created a variety of specialized attachments that allow instant customization of our standard products. But we also regularly design specific custom applications where our base products don’t match customer criteria. Call DJ Products’ sales engineer to discuss your ETO needs.

Part 6: Why Businesses Fail, the Conclusion

Today we conclude our six-part series on Why Businesses Fail (see our posts starting July 14). One of the primary reasons businesses fail is:

  • Faulty attitudes and objectives. Businesses fail when personal or company desires are placed ahead of customers’ wants and desires. You don’t run your business; your customers run your business. Customer satisfaction is the single-most important factor in driving business and repeat business to your door. Businessmen who forget that don’t remain in business long.

    Employee satisfaction goes hand-in-hand with customer satisfaction. When businesses fail to value their employees, employee satisfaction plummets, taking with it production quality and efficiency and customer satisfaction. It’s a downward spiral from which businesses don’t recover without an attitude adjustment. The bottom line is that it’s the human element that guarantees business success.

DJ Products understands the value and importance of customer and employee satisfaction — both ours and yours. That’s why we manufacture and use ergonomically designed electric carts and motorized cart pushers and equipment movers. Our equipment is smaller, more maneuverable and less costly to purchase and operate than traditional powered equipment like fork trucks, walkies and riding tugs. And our equipment is designed to eliminate the pain and strain of manually moving heavy carts and wheeled equipment. We value the health and safety of our workers — and yours.

DJ Products’ expert sales staff can assist you in assessing your material handling needs. On our website you’ll find a handy Ergonomic Load Calculator designed by experts to estimate the amount of horizontal force needed to move wheeled loads. Our sales staff can help you calculate load factors and recommend material handling products designed to protect the health and safety of your workers. Visit the DJ Products’ website for detailed specs on our complete line of products. If you have a material handling problem, DJ Products can provide the solution.

Failing Auto Industry a Warning to U.S. Manufacturers

The auto industry bailout is in peril and may be beyond saving. The demand by Senate Republicans that the UAW agree to slash auto workers’ salaries to compete with their Japanese counterparts may have put “paid” to the deal approved by the House. If any of the Big Three automakers fail, the fallout is expected to send our already troubled economy plummeting even further downward. The strain on unemployment and social resources, the trickle-down effect on the industry’s supply chain, irreparable erosion of America’s already diminished manufacturing base, a drastic decrease in consumer choices — we’re going to be paying for Detroit’s poor management and poor choices for years to come. There is no silver lining here, but there are important lessons to be learned.

While the issues are complex, experts have boiled the U.S. auto industry’s woes down to four basic problems: failure to embrace the future, lack of flexibility, failure to effectively manage labor, and failure to rein in expenses. These are the basic cornerstones for success in any business.

  • Embrace the future. Globalization of the economy, resource depletion, and the speed at which technology changes will continue to bring vast changes to industry and manufacturing. Companies with the vision to position themselves to meet future needs by taking advantage of these changes will prosper. Those like the U.S. auto industry who don’t will eventually fail.
  • Maintain flexibility. Rapid response will separate the men from the boys. Companies with the mental, financial and physical flexibility to react quickly to changing market needs and strictures will prosper most.
  • Manage labor. U.S. labor costs are the arena in which America is least competitive globally. An inability to manage labor demands is one of the core causes of Detroit’s failure. To remain competitive into the future, American businesses and the workers that depend on them for their livelihood will need to address this issue and both sides may need to moderate their expectations.
  • Rein in expenses. Maintaining tight control over expenses and instituting proactive accounting practices are essential for survival in a poor economy. But maintaining these practices as the economy improves will give you the financial flexibility to reach future goals.

DJ Products ergonomically-designed, powered carts and tugs can position you to meet the future successfully. On Monday, we’ll tell you how.

Frugality Is New Business Reality

The nation’s economic gurus may have declared the recession over, but they’re warning businesses and consumers alike that recovery could continue for years. And we shouldn’t expect things to get back to the way they were — ever! The country is going through a major reset. After decades of inflated prices, inflated egos and inflated dreams, we’ve had to face the cold, harsh realities of life and — we hope — the experience has left us wiser and a little more wary of falling into the same pit again. The smaller employee pools, tighter resource management and lean production practices developed out of necessity during the recession are here to stay. Frugality is the new reality.

The frugal measures taken to keep American businesses from sinking will help us swim leaner, faster and farther in the post-recession marketplace. Having found that we can function and compete in a frugal environment, businesses are expected to use that new-found frugality to give themselves a competitive edge, using less to produce more. Sure it means that everyone will continue to work harder and do more; but that’s what it’s going to take to compete successfully in the new, tougher post-recession marketplace.

Smart business owners will seek out equipment that allows them to make more productive use of their more limited post-recession workforce. Material handling products like DJ Products ergonomically-designed CartCaddys allow a single worker to perform lifting and transporting tasks that it takes two or more workers to do manually. Because ergonomic design enables multiple workers of any size, shape or physical ability to perform the same task without risk of injury, DJ Products carts, tugs and movers allow employers to maximize use of their workforce. Eco-friendly, battery-operated motorized carts decrease fuel costs while cutting downtime and maintenance costs. And adoption of ergonomic equipment significantly reduces medical and workers compensation costs while letting your workers know you value their health and safety.

Applying Six Sigma to Ergonomics Drives Production Gains

Businesses that practice Six Sigma recognize the roll ergonomics can play in creating and sustaining productivity gains. Adoption of a comprehensive ergonomics program that combines implementation of ergonomic practices with use of ergonomically-designed equipment can lead to significant production gains, both immediate and sustainable in the long term. This is in addition to the obvious benefits ergonomics offers in improved workplace safety and reduced injury levels and their attendant costs.

In our last post, we began discussing how Six Sigma’s disciplined, process-oriented, five-step approach to problem solving can be applied to development of a comprehensive ergonomics program. We covered defining problem areas and goals, measuring existing stressors, and analyzing collected data to identify root problems and potential risks. Today, we continue our discussion of Six Sigma’s five-step process and its application to creation of a comprehensive ergonomics program.

Improve. Develop solutions to address the identified root causes of production area problems, set performance standards, and define responsibilities of both workers and managers. Remember to talk to the workers who actually perform the tasks and use the equipment. They can provide valuable input and often offer useful, practical solutions to production problems. Implement your improvement action plan, including necessary staff and management training.

Control. To ensure that productivity gains are sustained over the long term and that they continue to improve, it is important to monitor the established ergonomics program to ensure that performance standards and personnel responsibilities are being maintained. Measurement data should be regularly collected and analyzed to ensure that productivity improvement goals are sustained.

Too often ergonomics programs fail because they are not fully supported by top level management. Particularly now, when manufacturers and other businesses, beset by myriad economic concerns, are forced to run lean, many have shunted plans to implement an ergonomics program to the future. There is general lack of understanding of the significant productivity gains that accrue with implementation of an ergonomics program. By increasing productivity, ergonomic processes and ergonomically-designed equipment can improve your bottom line noticeably. And that is in addition to the proven savings realized from the immediate decrease in workplace injuries and accompanying decrease in medical, insurance, workers’ compensation and lost man-hour costs when ergonomics are employed. Making a comprehensive ergonomics program part of your company’s Six Sigma strategy guarantees it the credibility and top level management support necessary for success and sustainability.  

For information on ergonomic equipment designed to solve your material handling problems, contact the ergonomic engineers at DJ Products.

Taking the Pain out of Cart Retrieval

Nearly all large retail establishments have a multitude of shopping carts to serve their customers and invariably at several points throughout the day; many of those shopping carts are strewn about the parking lot.  This leaves the burden of cart collection on the employees of the establishment, and while its good to have job security, especially in this day and age, this particular duty is probably among the least favorite of many retail employees.

Carts get left in the parking lot regardless of the weather or temperature outside, leaving employees having to go out in the rain, snow, sleet and freezing temperatures to perform this high labor duty.  Collecting just a few carts at a time could make the process take far too long, and trying to collect a dozen all at once could lead to an unnecessary injury – manual cart collection, especially in less than favorable weather, is a lose-lose situation.

A cart retriever from DJ Products can take all of the hassle out of collecting shopping carts by removing the stress and strain on the employee and allowing the task to be performed at a much faster pace.  DJ Products cart retriever can easily handle a line of up to fifty shopping carts, allowing an entire parking lot to be cleaned of carts in a fraction of the time it would take to perform the collection manually.

The Cart Retriever makes this once dreaded job much safer and much easier and it frees up many more man hours for employees to attack other jobs inside the store to potentially create more revenue.  When employees aren’t pre-occupied with cart collection, more product can make its way on to the shelves, more customers can be served and the establishment can be kept organized and clean.  Increasing productivity in the workplace without risking employee safety is the best way to increase profitability and the Cart Retriever does just that.

What It Will Take to Succeed in Business in 2009

A small business owner I admired embodied three qualities that got him through many tough times in the material handling business: innovation, positive thinking and hard work. These same qualities can help us weather the current storm successfully.

Innovation. A great believer in innovation, my friend was the first in his region to buck the industry and offer new electric-powered forklift trucks and hand-operated movers when they first came on the market. Decades ago he foresaw the advantages of cleaner, more efficiently powered material handling equipment. Had he still been in business, he’d have been among the first to embrace safer, ergonomically-designed, even more energy efficient, battery-operated material handling equipment. Embracing new technology as it becomes available positions you to reap the rewards of improved energy efficiency, increased maneuverability, innovative safety features and greater flexibility of use.

Positive thinking. Even during tough times, my friend was a great believer in the power of positive thinking. He ran his business and lived his life in accordance with a quote from Henry Ford that he kept prominently displayed on his desk: “Whether you think that you can, or that you can’t, you are usually right.” My friend would have been the first to see the opportunities in a depressed market. Bargains abound for the savvy businessman. This can be a good time to expand your territorial or product base by partnering with or buying out a faltering competitor. Depression of the construction industry has led to aggressive pricing in commercial markets making this a good time to build or expand facilities. This can also be a prime time to upgrade your technology. Many firms are offering unbeatable deals or deferred payments to stimulate business. Plant and business closures are also creating great deals on used equipment.

Hard work. My friend knew that positive thinking alone never accomplished anything. No slouch when it came time to roll up his sleeves and get dirty, another favorite saying was, “God helps those who help themselves.” To survive the current recession, you’re going to have to be innovative, flexible and forward thinking; but you’re also going to have to reign in unnecessary expenses, tighten up financial practices, maximize worker and production efficiency, and work hard to stay ahead of the competition.

A Shopping Cart Retriever Can Keep Costs Down

Using a cart retriever to corral and keep track of shopping carts does not just address safety concerns; it addresses fiscal concerns as well. If you provide shopping carts for customers to use, then the upkeep of the carts is a part of your overhead. If they are damaged, you need new carts to replace the ones that can no longer be used. However, if a number of carts never make it back into the store because people take them and put them to use in other places, you will spend money you could use for other things to buy new shopping carts.

A 2006 article from The New York Times said that in 2005, one company that hired people for the specific task of getting back shopping carts found that their “retrievers returned 86,000 carts from the streets of the metropolitan [New York City] area.” At this time, the carts were $90 each, so finding them saved quite a bit of money.

A DJ Products shopping cart retriever helps employees to quickly gather carts and keep them close to the store so there are fewer stray carts available for those who would be tempted to take a cart for their own use.

The retriever attaches to the back of the line of up to fifty shopping carts. The cart retriever pushes the line of carts from behind, following the direction that the operator steers as he guides them from in front. Once he gets to the front of the store, he is free to head back out to the parking lot with the shopping cart mover to collect more carts.