Tag: Material Handling

Lifting Tips that Prevent Back Injury

In our last post we talked about the exorbitant cost of back injuries to industry. In both human and financial cost, back injuries take an expensive toll. Application of ergonomic principles to the work space and use of ergonomically designed equipment can reduce potential back injury significantly. But sometimes materials must be manually lifted and moved.

It’s important to train workers in proper lifting techniques. Musculoskeletal injuries, particularly to the lower back, can result when items are improperly lifted. The key to developing good lifting habits is to think about what you plan to do before picking up an object. Practice these safe lifting tips:

  • Size up the load and check surrounding conditions. Get help with the lift if the object looks heavy or awkward. Make sure you have good footing and enough space to maneuver easily. If the object must be carried, may sure your path is free and clear of obstacles.
  • Balance your body. Your feet should be shoulder width apart and beside each other. To provide maximum balance and leverage, your feet should be positioned somewhat behind the object to be lifted.
  • When lifting, don’t stoop. Bend both knees and keep your back straight but not vertical. Tucking in your chin will help you keep your back straight.
  • Use your hands and fingers to grip the load. Called a palm grip, this grip provides maximum security. Remember to tuck in your chin before you lift.
  • Use your body weight to get the load moving. Lift by pushing up with your legs, your body’s strongest muscle group.
  • Keep arms and elbows close to the body while lifting to provide better balance and maximize lift force.
  • If you must carry an object, carry it close to your body and don’t twist. Shift your foot position and turn your whole body to change direction.
  • Remember to watch where you’re going.
  • Bend your knees when lowering an object. Avoid stooping which places unnecessary strain on your lower back. Place the object on the edge of a shelf, bench or other surface and slide it back into position. Keep your hands and feet clear as you let go of the object.

Even when lifting or moving light-weight objects, it pays to develop good lifing and carrying habits. Your back will thank you!

Logistics Tops 10% of U.S. GPD

U.S. logistics costs just topped 10% of the country’s gross domestic product (GDP) in 2007. The recently released 19th Annual State of Logistics Report revealed that logistics costs for 2007 were just under $1.4 trillion. The report is sponsored by the Council of Supply Chain Management Professionals.

GDP figures for 2007 were up from 9.9% in 2006 and matched 1998 figures. In the intervening years, only 2000 resulted in a GDP figure above 10%. With the exception of 10.3% in 2000, total spending as a percentage of GDP declined steadily from 1998 to a low of 8.6% in 2003 before beginning a slow rise. Financial experts predict a drop in GDP spending figures for 2008 citing the slow economy, high fuel costs, the mortgage crisis and the resulting credit crisis.

The report indicated significant increases in total business inventories. In 2007 inventories rose 8.7% and an additional 3.7% in the first quarter of 2008. At 5%, commercial interest rates were at 5-year highs. Commercial paper rates were just 1% in 2003 and 2004.

Not surprisingly, motor carriage led logistics spending at $671 billion or 79% of transport costs and 48% of total costs. Motor carriage costs rose 6.1% in 2007. With diesel prices edging past $5 per gallon, 2008 carriage costs are expected to be significantly higher. Logistics companies and shipping firms are feeling the pinch of rising fuel prices. With no relief in sight, shipping companies are hurting and many smaller firms are going under.

Increased fuel prices are expected to have a deleterious effect on 2008 GDP figures. Logistics industry gains realized in 2007 may well be lost. How desperately the overall economic picture will be affected remains to be seen, but experts don’t think it’s looking good. Losses are expected across the board.

Congress Debates Increasing Fines for Worker Injury, Death

Congress is being urged to increase financial penalties for workplace injuries and deaths, according to congressional testimony reported by McClatchy Newspapers. In last week’s hearing before the U.S. House Education and Labor Committee, workers’ advocate groups squared off against industry safety experts to debate increasing penalties when employers don’t protect their workers against hazardous conditions.

Workers’ advocates pressured the federal government to drastically increase fines and implement possible criminal prosecution for senior executives when workers are killed or seriously injured on the job. “The thought process has to be, ‘If I keep doing this, and I keep letting this happen. … I could go to jail,'” David Uhlmann of the University of Michigan School of Law and a former U.S. Department of Justice official, told the House Committee.

Speaking for the opposing view, a workplace safety attorney who helps businesses figure out how to respond appropriately to U.S. labor laws, recommended more clearly defined labor safety laws and more stringent enforcement of existing penalties for employers who exhibit a “callous disregard” for workers’ safety. “There needs to be a balance,” Lawrence Halprin, a lawyer with Keller and Heckman, told the House Committee, noting that confusing labor regulations often contribute to the creation of workplace hazards.

Last week’s hearing was one more volley in the Congressional debate that is accompanying preparation of anticipated legislation to overhaul the 39-year-old Occupational Safety and Health Act (OSHA). With the Obama administration’s apparent blessing, House Democrats are preparing to give OSHA a new and sharper set of teeth. New regulations being considered would dramatically increase employers’ penalties, increase business owners’ accountability and protect workers who speak out about workplace violations. OSHA penalties have not been updated since 1990, and financial penalties were never indexed to inflation. Current penalties for the injury or death of a worker often total just a few thousand dollars.

“Penalties must be meaningful,” said Rep. George Miller, a California Democrat and chairman of the House Education and Labor Committee. “They must function to deter violations. They must get people’s attention.”

However, some committee members are concerned that their Congressional peers may be unduly swayed by the many stories of personal tragedy that have peppered the hearings. Rep. Tom Price, a Georgia Republican, noting that workplace fatalities have declined since 1994, said, “Sometimes Congress gets emotional and draws the wrong conclusions and makes the wrong laws.” Time will tell what happens here, but you might want to weigh in with your Congressman and tell him how you feel.

The Art of Solving Material Handling Problems

How do you solve material handling problems in your business? Often the people charged with solving a problem on the floor or in the plant have no experience actually performing the tasks that are involved. The biggest hindrance to problem solving in business or industry can be management’s tendency to rely strictly on reports and charts. Sometimes you just have to get your hands dirty. 

As they say, there’s no substitute for experience. For instance, say you want to improve order picking productivity. In most operations, pickers spend 60% of their time walking. Obviously, measures that will reduce walking time will increase productivity. On paper transport routes can be planned, inventory placement can be allocated, cart loads can be configured and assembly points can be designated to presumably increase worker efficiency. On paper everything can look great, but on the floor reality can sabotage the best laid plans.

We’re not saying planning isn’t important. Of course it is. But it should be considered a starting point, not an end product. Before final implementation, you should take your plans for a test drive. Give ideology and reality a chance to meet. You’ll usually find that when put into practice paper plans need some serious tweaking to ensure that they achieve the desired results.

In our order picking example, picking items may not actually be located where expected due to warehouse concerns or overstock issues. In the picking area, items may not be optimally located. Picking bins may require workers to reach or stretch unnaturally, risking potential injury and decreasing productivity. Individual productivity can vary greatly between workers, particularly between seasoned and new employees. Picking items may not be transported to pick areas at an optimal rate. Transport surfaces can present their own challenges. Rough or sloped surfaces can decrease efficient transport. Batch sizes may not be optimally configured. Large batches or items may require transport on multiple carts. Reconfiguration to optimize cart loads can increase efficiency and productivity. While these issues may not be obvious on paper, they are obvious in practice and present considerable obstacles to efficiency and productivity.

Next time you work to solve a material handling problem in your business, spend some time walking in the shoes of your workers before you implement a final solution. It’s a sure way to guarantee success.

Recession Over but We’re Not Out of Woods Yet

Today’s headline blared: “Recession officially ends, with trepidation.” Ain’t that the truth! In officially declaring the recession over, the U.S. Commerce Department cited a 3.5% growth in the economy. Encouraging, certainly. Something to cheer about? Apparently Wall Street thought so as the Dow Jones Industrial average shot up nearly 200 points. But the guy or gal on the street? Maybe not so much. The effect seems more psychological than actual. Economists caution that much of the 3.5% increase in gross domestic product was fueled by the government’s Cash for Clunkers program and first-time homebuyers tax credit. Whether those programs have created an unnatural spike in economic growth that can’t be maintained or the economy really is finally throwing off the chill of recession, only time will tell. But until unemployment decreases, most analysts agree we’re not out of the woods yet.

Getting people back to work is the real challenge now. People aren’t going to start buying again — the necessary trigger for real economic improvement — until they have jobs and can stop worrying about keeping food on the table and a roof over their heads. And the jobs won’t be there until American businesses feel comfortable financially. A bit of a vicious circle: consumer purchasing fuels businesses which fuel jobs. Traditionally, small businesses provide the greatest potential for U.S. job growth; so it was interesting to read the results of the American Express OPEN Small Business Monitor bi-annual survey in Manufacturing & Technology eJournal.

Here are some of the survey highlights:

  • 51% of manufacturers have a positive outlook, about the same as last year (52%)
  • 61% are experiencing serious cash flow difficulties, compared to 47% a year ago
  • only 22% plan to hire additional employees, down from 30% six months ago 
  • only 36% are planning capital investments, down from 59% in 2008
  • 68% think U.S. economic woes are far from over

DJ Products would like to know what you think and how your business is coping with the recession.

Part 1: Why Businesses Fail

Almost daily I read about the failure of one business or another in the business section of my local newspaper. The economy is down, credit is tight and fuel prices are through the roof. Naturally these conditions place an additional strain on businesses. But generally when a business fails there were already underlying fissures in its structural foundation that caused it to crack and break under the pressure.

Businesses fail for many reasons, the most likely being one or a combination of the following:

  • Lack of a business plan or failure to update the business plan to account for changes in the industry, economy and society. Business is not static. You should review your business plan annually and adjust it to take advantage of changing markets, new products and technologies, financial incentives, and customer preferences.
  • Lack of current financial data or failure to fully understand financial reports. Finance is the language of business. You don’t have to be able to write it (that’s why you have an accountant or CFO, but you do have to be able to correctly read and understand financial statements.
  • Lack of capital. If you’re starting a business, minimum start-up capital should be enough to cover your first six months of operation. However, once you’re up and running, don’t confuse capital with operating funds or cash flow. Growth capital should be used to grow, improve and expand your business. You should generate enough monthly income to provide a healthy cash flow and cover operating expenses. If your business is in trouble, borrowing more money isn’t the answer. If you can’t service your current debt load, you won’t be able to service an increased debt load.

To be continued

Manufacturing Rebound Glimmers on the Horizon

With the dawn of a new political era in Washington, U.S. industry experts are cautiously predicting that manufacturing’s darkest days are over and that a rebound can be expected within the next six months. Analysts seem to agree that the Institute for Supply Management Index (ISM) finally bottomed out and will now begin to grow.

“Much depends on some proposed government actions and the reaction of the financial community,” Chris Kuehl, an economic analyst for the Fabricators and Manufacturers Association, told writer Joe Cogliano in the January 6, 2009 edition of Manufacturing & Technology eJournal, “but assuming that the credit crisis continues to diminish there will be some recovery in certain sectors.”

In anticipation of President Obama’s promised economic initiatives to create jobs, rebuild infrastructure and move to alternative fuels, Kuehl expects businesses that supply construction material and machinery and those in energy development to lead the recovery. He said that media saturation about the dire straights of the automotive and construction industries has obscured any good news about the state of U.S. manufacturing. He noted that medical manufacturing has actually grown during the recession and that the aerospace industry has held firm. 

A double digit production decline in the 4th quarter of 2008 is expected to be manufacturing’s low point. The National Association of Manufacturers (NAM) predicts a continued but gradually decreasing decline across most industry sectors for the first three quarters of 2009 before the advent of slowly rising numbers. NAM expects the final months of 2009 to bring a 1.4% increase in manufacturing rates.

Experts agree that while economic downturns take a toll on industry, they also serve to cull out weak, mismanaged and antiquated companies. Those that survive are stronger, more efficient, more resource conscious and more productive. On a larger scale, benefits of the economic crisis include a new era of better risk and credit management by both lenders and borrowers, new avenues of industrial growth, and deeper understanding and a necessary re-evaluation of global trading relationships and their impact on U.S. economy.

“The challenge for all of us is to determine if this is a ‘disaster’ or an ‘opportunity,'” Norbert Ore, Chair of the Institute for Supply Management’s Manufacturing Business Survey Committee told Manufacturing & Technology eJournal. “If we choose disaster, we will be paralyzed during a period of great change, and we will assume that there is little hope of prosperity for ourselves and our organizations. If we choose opportunity, we can view this as the time to face challenges head on and find more productive ways to create value for ourselves and society.”

Six Sigma + Ergonomics = Productivity Gains

Implementation of a comprehensive ergonomics program is often initiated by a business for the obvious safety and financial benefits realized in reduced workplace injuries and their attendant costs. What many business owners fail to realize are the significant productivity gains possible when ergonomic practices and ergonomically-designed equipment are adopted. Businesses that practice Six Sigma have been quick to see the potential for sustained productivity gains when ergonomics are integrated into workplace practices.

Utilization of the 5-step Six Sigma process can help a business build a successful and sustainable ergonomics program that will not only produce impressive immediate production gains, but sustain and continue to improve those results over the long-term. Six Sigma practitioners have found that adoption of ergonomic practices and use of ergonomic equipment optimizes worker performance, reduces production cycle time, increases cost competitiveness, and empowers workers. The end result is increased production, improved product quality, a happier workforce committed to improvement, and a satisfyingly positive impact on your bottom line.

Six Sigma’s disciplined, process-oriented approach to problem solving involves five steps that are easily applied to development of a comprehensive ergonomics program:

Define. It’s important to know what you’re working toward, so the Six Sigma process begins by establishing the goals to be achieved. Clearly define the problems to be addressed by reviewing injury, illness and workers’ compensation claim data for commonalities. Production bottlenecks, quality issues, rework costs, and warranty costs are other problem indicators. Don’t neglect the important area of staff morale. High absenteeism is indicative of low morale. After defining problem areas, establish specific goals for improvement in each area. You’ll also need to determine tracking metrics and establish support and educational resources.

Measure. In order to correctly measure improvement, you need to pinpoint your starting point. Collect information about your workers and their abilities. Define the parameters and potential risk of each task, paying particular attention to potential stressors, including site lines, posture, reach required, force expended, repetition, vibration, noise levels, work environment temperature, etc. Collect data about the individual steps required to perform each task.

Analyze. Analyze the data collected to discover the root cause of each problem. Evaluate and identify risks associated with each task. Don’t neglect to talk to the workers who actually perform each task. They can provide astute insight into what works, what doesn’t and how to improve the situation. Before implementation, carefully evaluate potential process improvements, equipment and tools for their ability to solve the problem as well as risk potential. Determine and prioritize improvements to be introduced into the workplace.

To be continued Friday

Part 2: Why Businesses Fail

The economic slowdown, tight credit and high fuel costs are placing a sometimes fatal strain on businesses. This week we’re taking a look at why businesses fail. Those who learn from the unfortunate mistakes of others are more likely to succeed.  

Continuing our list from Monday of the most likely reasons businesses fail:

  • Inadequate sales. Inaccurate market analysis can lead to inadequate or inappropriate marketing/sales efforts. A business’ potential market share equals the total market potential for your product or service divided by the total number of competitors in your market area. When sales volume exceeds normal market share, you achieve market dominance and move beyond the break-even point into profit. Naturally, this is every businessman’s goal. While sales are the key barometer of business success, base business decisions on weekly and monthly averages, not daily volume. It’s business trends that drive future sales so concentrate on longer-term market analysis. 
  • High expenses. Failure to properly anticipate and budget potential expenses, failure to adequately control expenses and/or failure to constantly review and update purchasing/service contracts are all common money pits. Expenses should ever exceed income. Never consider any expense as fixed; every expense is negotiable. Be prudent in your purchasing policies. Stockpiling supplies, buying additional product already in stock and failing to decrease order quantities as demand decreases are common mistakes. Limit buying to what you need, what you’re using and what will increase sales.
  • Poor credit policies. Credit keeps business clicking along, but over-extended credit can lead to bankruptcy, particularly in today’s economy. Maintain good credit policies in your own borrowing and be clear about credit policies to customers. Clearly communicate credit policies to customers before finalizing a sale and don’t continue to offer credit to slow-paying customers. You could be left holding the bag.

To be continued

Proactive Problem Solving Reduces Workplace Injuries

Reducing workplace injuries is every responsible business owner’s goal. Not only do you value your employees’ health and safety, but the cost of ignoring workplace safety — high medical, insurance, workers’ compensation and lost man-hour costs — can be staggering. It pays to be proactive in looking for potential injury-causing problems and coming up with ergonomic solutions that improve the fit between the work and the worker.

Developing a proactive plan to reduce workplace injuries is a four-step process:

  1. Observe and question
  2. Set priorities
  3. Implement improvements
  4. Follow up

1. Observe and question.

Look for clues to possible problem areas in available statistical data. Check injury reports for patterns that indicate higher injury rates for certain tasks or in certain areas. OSHA logs, worker reports and complaints, absence rates, and workers’ compensation reports are good starting points. Ask if your workers’ compensation insurance carrier provides workplace assessment surveys as part of their risk-management services.  

Look at production reports for bottleneck areas. Check quality control reports for poor quality product or service. Problems can indicate areas where workers are having difficulty completing tasks effectively under current conditions. The root cause of such problems is often poorly designed equipment or task procedures.

Spend some time following the entire process of your business from start to finish. Pay particular attention to areas highlighted by the data review. Observe the way workers do their jobs. Watch for risk factors such as awkward postures, repetitive motions, forceful exertions, pressure points or extended periods spent in the same position. Watch for signs of worker discomfort or pain such as self-restricting movements, efforts not to move certain body parts or massaging hands, arms, legs, necks or backs. Pay attention to unnecessary handling and duplication of material or product movement.

Look for ways in which workers have modified standard procedures to make it easier to do their work, including modifications to tools, equipment, workstations or task performance. Talk to managers but also talk to the workers who actually perform the tasks. Ask workers how they would change the work process, operations, tools or equipment to make their jobs less physically demanding and more efficient. You’ll get a clear idea of what isn’t working and may get some excellent suggestions for improvement.

Continued next time