Tag: Material Handling

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

Part 3: Why Businesses Fail

The business section of the newspaper seems to carry daily notices of failing businesses. Despite tighter requirements, bankruptcies are up. Businesses are succumbing to a combination of the economic slowdown, tighter credit and high fuel costs. Today we continue our series on why businesses fail (see our July 14 and 16 posts).

Most business fail for a combination of reasons, including:

  • Poor collection practices. It’s not enough to make the sale; you have to collect the money. While this should be obvious, many businesses fail to initiate or maintain good collection practices. Just like sales, collections should be a daily task. The biggest mistake many businessmen make is to allow late accounts to go too long before starting the collection process. Many customers will take advantage of the traditional 30-, 60-,  90-day payment schedule. Try aging your accounts receivable by the 15th and month end or even weekly. The sooner you start collections, the better the chance of collecting and the faster your money turns over.
  • Lack of experience in basic business know-how. On-the-job experience is an effective teacher, but the lessons can be costly. Develop an ability to learn from the experiences of others. Education, keeping up with industry journals and publications and attending professional conferences and seminars can offset a lack of personal experience. Meeting with other businessmen through professional organizations or social/community service groups provides a valuable opportunity to discuss common business problems and issues.
  • Poor location. For retail businesses that depend upon walk-in or drive-by trade, poor location can be disastrous. Manufacturing and industrial concerns require easy access to freeways and other transportation routes for both delivery of raw materials and shipment of finished product. Convenience and visibility are key. 

    To be continued

Does Obama Have Muscle to Win Ergonomics Fight?

Like actor Mickey Rourke’s amazing return to the Hollywood ring in The Wrestler, labor is back; and President Obama is in its corner cheering its revival. After eight years struggling on the ropes during the Bush administration, labor has bounced back into the Washington ring and is gaining strength — and it’s bringing the ergonomics fight with it.

“I do not view the labor movement as part of the problem; to me it’s part of the solution,” President Obama was widely quoted as saying recently. During his campaign, Obama repeatedly promised American workers a safer, healthier work environment. Industry watchers have taken that to mean a return to and an expansion of the ergonomic standards initiated during the Clinton administration but quickly rescinded under Bush. With a Democratic-controlled Congress backing him up, Obama appears to have the muscle to force ergonomics back into the legislative ring.

By naming California Democratic Representative Hilda Solis as his new Labor Secretary, Obama appears to be saying to U.S. industry and the U.S. Chamber of Commerce, a long-time vocal foe of ergonomics legislation, “Bring it on!” Although she’s still running the confirmation gauntlet, Solis has received the recommendation of the Senate Health, Education, Labor and Pensions Committee and is expected to be confirmed, possibly as soon as tomorrow.

The daughter of immigrants and union workers, Solis has long ties to labor groups and has been a champion of ergonomics in the workplace since joining the House of Representatives in 2001. Her home state of California is the only state in the U.S. that mandates ergonomic standards that force employers to provide a safe and healthy work environment for their workers. Concerned about the cost of implementing ergonomic standards, those opposed to ergonomic legislation fear that California’s tough ergonomics rules will be used to create a national model.

That Obama would eventually grapple with ergonomics to improve labor conditions has been a given since his campaign days. But there’s been a lot of speculation in the industry and in Washington about how and when Obama would try to take down ergonomic opponents. By calling Solis into his corner, Obama seems to be getting ready to enter the ring. It will be interesting to listen to the President’s State of the Union speech tomorrow night. A direct statement about ergonomics or workplace safety could indicate that the fight is on!

Logistics Industry Down But Not Out

Considering the state of the economy, it’s not unexpected that the logistics industry is suffering along with everyone else. According to the recently released Global Contract Logistics 2009 report published by Transport Intelligence, the global contract logistics market grew at a rate of 5% in 2008, half the 10% growth experienced in each of the past few years. Of greatest concern was the noticeable drop in volume during the fourth quarter, generally considered the industry’s peak season.

“This downturn has been felt well into 2009, although there are signs that the fall in volumes may well have bottomed out by the end of the first quarter, the report suggests,” logistics industry analyst Ken Hurst noted in today’s posting on Works Management online.

Increasing, global reach provides the greatest opportunity for future success in the logistics industry, particularly when U.S. markets go stale. Developing markets in Latin America, Central and Eastern Europe and the Asian Pacific region offer the most opportunity for future growth, according to the Ti report. While the China market has cooled recently, Hurst expects it to rebound, saying, “… with GDP growth still in the high single digits, and a $585 billion stimulus package taking effect, underlying economic activity will continue to drive its [China’s] logistics sector.”

The report predicts five more years of volatile swings in the logistics industry worldwide with significant recovery not predicted until 2011. Rebuilding is expected to be agonizingly slow. According to Hurst’s post, “Ti believes that the market will grow at a compound annual rate of 2.4% between 2009 and 2012.” Stabilization of the industry will depend on the speed with which global sales increase. Until consumer confidence returns and drives up demand for goods, manufacturers and retailers will continue to keep supply costs lean. Because of its position at the tail end of the supply chain, the logistics industry may be one of the final economic sectors to achieve recovery. While contractual relationships will protect some logistics companies from the worst market volatility, “logistics providers will have to work hard at increasing their value proposition to clients if they are to avoid the worst excesses of the recession,” John Manners-Bell, Ti CEO told Hurst.

2010 Material Handling Shows Help Position You for Future

The poor economy led to lower attendance at 2009 material handling shows but 2010 promises to be a better year. Companies trying to hold onto their bottom line may have skipped last year’s show or sent only a token delegate or two. With the manufacturing and peripheral industries finally starting to post small increases, material handling and related industries are anticipating better attendance at 2010 conferences.

Annual conferences and trade shows offer unique opportunities to see what’s new in the industry and what the future holds. Staying up-to-date with your industry enables you to better position yourself to meet future demands. National trade shows are an excellent place to network. They’re a good place to search for new talent to strengthen or rejuvenate your operation. They’re also an excellent place to form alliances with other company representatives that can lead to greater national exposure and increased product sales.

Continuing education classes and workshops provide information on innovative solutions to management and marketing problems. Round table discussions provide an opportunity to trade techniques and strategies with other industry professionals. Dealer and product give you an opportunity to learn about new products, increase your product knowledge, and discover products or services that can augment or revitalize your current product line.

The big national material handling conference/trade shows scheduled for 2010 include:

  • NA 2010: Solutions that Make the Supply Chain Work sponsored by the Material Handling Industry of America (MHIA) will be held April 26-29 at the I-X Center in Cleveland, Ohio. The event will focus on positioning your business to take advantage of future trends. Click here for more information.
  • 2010: The Rules Have Changed sponsored by the Material Handling Equipment Distributors Association (MHEDA) will be held May 1-5 at the Marriott Marco Island Resort & Spa on Marco Island, Florida. The conference will focus on providing insight into recession-driven maketing and economic trends. Click here for more information.

Part 5: Why Businesses Fail

At DJ Products we believe in the value of learning from experience — ours, our customers and the business community at large. It’s not necessary to reinvent the wheel. The savvy businessman will learn from the experiences of others and turn that knowledge to his advantage.

With that in mind, we’ve been talking about why businesses fail (see our posts starting July 14). The economy is down, credit is tight and fuel is up. Times are tough and many businesses are struggling to survive. Taking a look at the most common reasons businesses fail may help us all to avoid the same pitfalls.

Continuing our list of why businesses fail:

  • Unwarranted personal expenses. The news is fully of greedy or sloppy businessmen (and politicians) who now find themselves fired or even jailed for using their business as a personal expense account. Hard-working businessmen deserve to profit from their labors, but they also have a responsibility to set an example of fiscal responsibility for their employees and create a profit for their shareholders. You need to be profitable to earn the perks. Set clear policies for charging expenses to the company that follow IRS guidelines and regulations. Set an example for employees and monitor expenses regularly to curb abuse.
  • Unplanned expansion. Entrepreneurs eager to capitalize on every opportunity may be tempted to expand quickly. However, unplanned expansion is the quickest way to run out of cash fast. Expanding a business should involve careful, long-term planning. Take sufficient time for market analysis to ensure that expansion is warranted and can continue to be supported by future sales. Develop an implementation schedule and don’t cut corners on the implementation process. Proper implementation is pivotal to the success of an expansion plan. A good plan, poorly implemented, will turn out to be a poor plan.

 To be continued

Overseas Jobs Could Be Headed Back to America

The tide could be turning. Following up on a campaign promise to stop the flow of manufacturing jobs overseas, President Obama has proposed closing loop holes in the U.S. tax code and raising corporate taxes on offshore earnings to encourage U.S. manufacturers to keep jobs in America. The President is pressuring Congress to eliminate certain tax breaks that he says encourage U.S. companies to move jobs overseas. At the same time, the President’s recently-released budget initiative proposes to increase corporate taxes on overseas earnings.

Proponents say the President’s plan would not only keep more jobs in America, it would raise more than $100 billion in much needed revenue over the next decade. Current tax laws allow U.S. firms to defer taxes on overseas profits if they invest those profits in their foreign subsidiaries. Critics say that practice encourages businesses to fund their foreign operations at the expense of those located on U.S. soil. And, of course, there’s considerable debate on both sides about what the amount of the tax rate should be if the rules are changed. Many consider the current 35% rate (which few actually pay) unsustainable, particularly in the current economy. Some industry experts have suggested a more realistic 15% to 20% tax rate. The debate is expected to be energetic. If your company has a global reach, you might want to weigh in with your Congressional representatives.

Any move to keep U.S. jobs on U.S. soil will be a positive one for America’s manufacturing industry, American workers, and the U.S. economy. Hard-hit by the economic recession and the problems of Detroit’s Big Three auto manufacturers, the future of U.S. manufacturing has been painted as bleak by many. But the real story is much more complex and, fortunately, rosier. While U.S. manufacturing jobs have moved overseas, particularly to China, to take advantage of lower labor costs; over the past 15 years, the number of Chinese manufacturing jobs has not increased, leading industry experts to believe we’re on the downslope of the outsourcing peak, at least with regards to China. In fact, according to the Material Handling Industry of America, the percentage of workers employed in manufacturing is higher in the U.S. than it is in China. Good news for U.S. workers.

More on Friday

How Force Affects Pushing and Pulling Activities

Pushing and pulling tasks are among the most common industrial activities. Pallets of goods need to be moved from one point to another and equipment needs to be moved to a usage point. Workers at factories, hospitals, distribution centers, grocery stores and many other businesses engage in pushing and pulling activities numerous times a day. The Ergonomics of Manual Material Handling – Pushing and Pulling Tasks provides a useful overview of the costs and consequences of neglecting ergonomics in common industrial tasks that involve pushing and pulling. Click here to read the white paper published by Darcor, an industry leader in the design and manufacture of ergonomic casters and wheels, and Ergoweb, an ergonomic web resource.

While often taken for granted, wheeled carts and equipment are integral to the operation of nearly all manufacturing and distribution facilities as well as many businesses. Musculoskeletal disorders from pushing and pulling injuries cost American businesses billions of dollars each day in medical, insurance, disability and downtime costs. Ergonomically-designed carts, wheels and casters can significantly decrease the incidence of musculoskeletal disorders.

To be effective, ergonomic design for push/pull tasks must consider:

  • Human factors such as height, weight, age, gender, strength, posture and physiological capacity.
  • Task factors including distance moved, forces required to initiate and sustain movement, direction and nature of movement and task duration.
  • Cart/equipment factors such as size, weight, stability, caster/wheel specification and handhold type, height and orientation.
  • Floor/ground factors including surface characteristics, slope and contaminants.

Contrary to popular belief, horizontal push force is more significant than load weight in pushing and pulling tasks. Proper wheel or caster selection and equipment design can enable workers to move thousands of pounds safely and efficiently. Caster/wheel choice alone can reduce push force significantly. Rolling resistance refers to forces that resist movement and defines the amount of force a person must generate and apply to move wheeled equipment.

This force — called the starting or initial force by ergonomists — is always greatest at the start, just before movement begins. Fortunately, starting force must only be exerted briefly. Once acceleration is achieved, less force — called the sustained or rolling force — is required to maintain movement. The final major force that affects cart movement is turning force which can occur while the cart is in motion or during positioning.

Next time: How ergonomics mitigates force.