Case Study: Unveiling the Secrets to Achieving Over 95% On-Time Delivery
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Video Transcript

hello everyone I’m Nate Fields associate editor for modern machine shop and I’ll be your moderator for today’s webinar

unveiling the secrets to achieving over 95% ontime delivery brought to you by Pro Shop in this session industry expert

Cody gidry from Coastal machine will shares proven approach and strategies for establishing unparalleled

reliability you’ll receive actionable tips that will Empower your shop to deliver orders on time consistently our

presenters today are Cody gidry and Paul Van Meter Paul is the president of Pro Shop a web-based and paperless Erp Mees

q and qms system specifically designed for the metal working industry they partner with shops who seek to push the

edge of Technology by going completely paperless strengthening their ISO and as9100 systems combining all their shop

software into one system and building robust business processes to achieve High rates of growth profitability and

performance Cody is the general manager and partner at Coastal Machine and Supply he has been working in the

machine in machine shops for the past 18 years in various roles including shipping QC inspecting quality

management Machining estimating scheduling planning and operations management Cody has been with Coastal

machine for 13 years he has led the charge in diversifying Coastal machine from 100% oil and gas into other

Industries including Aeros Aerospace space and defense for the past two years before we get started just a couple of

house keeping notes first I want to direct your attention to the panel that’s probably on the right side of the

screen you’ll see a tab that says Q&A so if you have any questions at any time during the presentation submit them

there and we’ll answer as many as we can at the end um also note that this webinar is being recorded So if you’re

not able to stay for the whole thing or if you want to refer back to it or share it with a colleague you’ll get a link to that recording via email usually within

a few hours and with that I’ll hand it over to you Paul and Cody all right thanks Nate appreciate it very much all

right all right well welcome everyone um yeah this is uh I’m excited for this one

scheduling and delivery is one of the most stressful difficult parts of running a Job Shop especially those High

mix low volume which uh typifies so many shops these days and Cody and his team

have done an absolutely incredible job of using uh all sorts of different tools

to achieve you know really incredible delivery performance um so I’m excited

to introduce Cody Cody welcome thank you sir for being here with me thank you so

uh yeah I think any other things you want to say about uh the intro Nate gave you a nice intro but no yeah he did he

did spot on with that one so not muchat on the on the partner part of it that

wasn’t always the case yeah so um so I want to talk about what inspired this webinar so this was uh three months ago

or so that uh you shared this looks like a screenshot from your phone actually um

where you shared uh real numbers pulled out of your system showing your ontime

delivery performance uh so this this this column in red is what we’re focused on here first and uh one of our folks

will yeah it’s already been uh Auber already sh dropped the link into the into the chat so if you want to go check

out the actual post itself so you know you were in the like low 70% range uh

even into the 60s different in the 60s yeah yeah um and you decided that’s enough of this we’re going to do

something about this and you got up into the 99s you know 98s 97s yeah really

quickly so anyway thank you for sharing that inspiring this webinar because I know it’s uh that’s no easy task and

it’s it’s a lot it’s and I think that what we hopefully we’ll reveal today is the solution for getting that is

different than than probably what most people think um it’s not about having you know just super whizbang scheduling

software that puts all your jobs in the right order is there’s a lot more to it than just that correct but thankfully in

some ways it’s actually I think simpler um but let’s get into let’s get into it

um and so the the slides you just shared that was of course the last year plus of

pro shop and but before you even had Pro Shop can you kind of set the stage for what what it was like um back them yeah

so I mean before we had Pro Shop I mean this is this is a good guess because it

was hard to get really get those numbers but you know we were probably anywhere in 50 60% range really probably maxing

out maybe 70% um on a on a good month um

you know we we were just all over the place you know chasing work down just trying to get a grip on

something yeah and uh I imagine it took quite a concerted effort from a lot of

folks uh working it all day every day yeah absolutely that was just a Non-Stop thing to to kind of manage delivery and

and scheduling and everything that comes with it sounds stressful yeah it

was so um so let’s uh we’ll share some stats here um so today we’re kind of

we’ll give you a sneak peek of kind of where they’re at today and then we’ll talk about how we got there um so you

have about 8 to 10 new jobs per day coming in uh you’re up to 22 you just told me

you’re about to buy one more so you’ll be at 23 machines about 52 people and

about 300 active jobs at any one time is that is that still about right that’s about right y yeah um and how long are

you spending currently yes 30 minutes an hour okay on scheduling and yeah right

right so and that includes um getting the getting the jobs in or maybe it uh I

think we actually have a little bit more on this getting the jobs in and then just tweaking the the schedule of

existing jobs to kind of keep everything kind of balanced and on track yeah um

about 30 minutes of an hour a day yeah awesome so that is um I mean I know many

shops where they have and I think you were you were in the same boat basically a full-time scheduler expediter type

person that spends their entire eight plus hour day just doing this yeah I me

that’s and that’s where you were at right yeah and getting 50 to 70% uh on

time delivery yeah so um this is you mean this is

these are impressive results I will say it’s not completely unprecedented we had a webinar that we did a few years ago

with a client that had about a hundred people on three shifts about 4 35 to 40 machines and they spend about

an hour a day on scheduling so it can definitely be done uh and your a

brilliant example of of the shift in um you know what that and and we’ll get

into the details of what that takes so this was printed out just uh last month

or a little bit I guess yeah more than a month ago um and it includes all the way

from last August so can you just describe for us what uh like what went through your head when you decided all

right this is enough we’re we’re tired of being late what what are we going to do about this yeah I mean it you know

one of our main customers we you know we have a yearly supplier review with them

and always just every year it was just you know bring up on time delivery on time delivery and it’s like you know

we’re doing all we can and then but you know really we wasn’t really doing all we can um you know so just one day we

were just I mean we were just tired of chasing stuff around and and you we were

doing so much work to try to manage delivery dates and it’s just crazy and

we’re spending more time doing that compared to if we just put the effort in to get all the work done up front and

and get all this right you know we spend so much less time on the back end now um

kind of managing the delivery dayses because everything’s right from the front and I know we’re gonna kind of get into that too and those processes but um

that’s what it did and you know we it kind of set goals out you know I didn’t expect this to do it that fast to be

honest um kind of set some goals out for the team say look if we can get to 90%

in the next two three months that’s great and the next two or three months we I mean you can see we got 95 above

95% right away almost very close to hitting 100% for two

months yeah probably one or two ERS out of those 169 that just didn’t make it

quite on time yeah and I’ll note for people um there’s a couple things about this well first of all um looking at

this total number here this is the number of jobs that actually shipped in that period so you were down in you know

140 150 um and now you know hitting uh mid 180s so definitely a higher volume

of work at the same time that you’re improving that delivery and then here’s of course just the graph of of the same

numbers we see in the column and then I’ll also point out for folks that aren’t familiar with this um we and we

did this years years we built this page quite honestly probably 15 plus years ago at proc CNC our shop where we built

the system um and we wanted to know how you know how much of the time we were

actually a day early and then if we were late were we like one or two days late

or up to three or were we really late and you can see here in these numbers that like on the the on where you’re

almost at 100 you were at 100 within you know one or two days after that so if

you did have a job that was late it was not very late um you know and then here’s some other ones where you’re you

know by by 3 days you’re in the 98 99 percentile pretty much across the board

um which means you’re even you know if something happened that you know a vendor dropped the ball or something you

know whatever happened it’s not a catastrophic event we can tell from these numbers that it’s just a little

slip yeah which is impressive so good job on that um and so obviously the

number of jobs went up but in this past period of time you have seen about a 40%

increase of Revenue is that that’s that’s still accurate correct yeah yeah and last year long we we increased 40

40% so and then we did this project you know the last half of the year so trying

to maintain that you know while influx of work coming in is a it’s pretty daunting task yeah I mean I know some

shops are are also similarly just crazy busy right now um but that often comes

at the expense of delivery like people are just taking in new orders and you know just shoving work in every nook and

cranny they can yeahum but often that comes at the expense of uh of delivery

performance which I think is a short-term strategy because if you start you know pissing off your clients that

uh absolutely they’re sending you work it’s not going to be and we will talk actually about that a little bit later

yeah um and it’s not only and just add and it’s not only new work from current

customers you know we’re adding adding on new customers you know diving into new Industries and stuff like that so

it’s yeah yeah so let’s talk a little bit about that um and the and the type of work so um so you were almost

exclusively oil and gas a few years ago and then um you got as9100 certified and

we worked you actually on some of those things and you made some introductions and you’re now um really branching out

into new Industries which I know from my own experience when you get new customers when you’re in new

Industries there’s brand new specs there’s brand new things you didn’t know about materials you’re not familiar with

there’s different types of cutting tools you need to use because of those materials and all that variability can

have a dramatic impact in sort of the execution of new jobs or even just

understanding you know new vendors that you need to onboard because your current vendors don’t do this mspec of special

anodizing because you’ve never had to do that before for your clients yep definitely

um and and then tell us about your your um mix of work like new versus repeat

and prototype versus you know what kind of volumes and stuff are you dealing with so in 22 we were about 5050 so we

had 50% reproduction uh repeat production and then 50% new work new work SL prototype combination of both

okay um so yeah that that mean that in and of itself says a lot uh you know

this is not just you know repeat jobs running the same thing over and over again this is a dynamic environment new

work new clients new things to discover all the time yeah so makes what you did even more impressive all right let’s

talk let’s get into the details of how you actually did this so we’re going to

um share here uh a couple of little screenshots um of things that uh

actually are in Pro Shop um but these are critically important things for you to sort of get things to make sure that

you’re setting yourself up for success and why don’t you just kind of share a little bit about what we’re seeing here yeah so I mean the the biggest thing is

is taking care of all the work on the front end you know you gota you got to get all your lead times right you have

to have everything right so I mean operation lead times you know if if you have an assembly Center um and it you

know this certain Assembly Center it all takes a day or two to for work to pass

through you need to have make sure you have Leon on that uh set it to where it always it’s two days and same thing for

outside processing um outside processing if they’re quoting you five to seven

days lead time well that’s only if it’s a local shop then you have Transit back and forth so you have to make sure

you’re adding in all of those times too um so you need to make sure you’re accounting for transportation and

putting your lead times in right um and then not only that it’s it’s the time it

takes to get to the customer once it leaves your facility um so that I mean the the customers po that has a d they

has a d they they expected at their dock so you need to back figure that and if it takes four days to get there you need

to finish your work four days earlier yeah yeah yep absolutely so what we’re

and I’ll go into just a little more detail about what we’re looking at here so um so these these two upper little

screenshots are from the estimating module um where you can specifically set

a lead time for an operation so let’s say you have you know a part with um you

know three different Machining processes and some anodise and then you come back for some some Hardware assembly and then

you know ship and inspect and ship um so let’s say though that you know you’re doing a job where you have

to put in 20 inserts you know putting in 20 inserts is probably going to take you you know less than an hour right but but

like as you said if you know that basically all jobs coming through that that work center that department are

always going to take at least a day or two then it’s prudent to just put in sort of the worst case scenario right um

where it’s not going to schedule the uh the next thing that’s happening you know 30 minutes after the assembly operation

because everyone knows that’s just not going to happen yeah on the on the vendor lead time here you know we have

an anodized process with a price and lot charge but we’re also putting in like you said that roundtrip lead time so if

it leaves our dock we expect it to come back to our dock 10 days later and and uh that’ll you know calculate into um

all the other things about when the Machining processes have to be done um and then as you said uh the what we we

call them normal shipping days because you can always expedite things but if you want to save the cost uh because

generally if you’re Expediting a job that you’re late on that’s that’s your that’s your bill that you’re paying and

that can get pretty spendy um but this is in the contact module so we set this up for every client with uh just a few

different attributes and one of these is how long if we’re not if we’re not paying an expedite fee and we just stick

it on a truck or whatever method you know could be is your delivery van if they’re right down the street you know

that could be a zero day uh lead time but anyway and then the then actual work cells can can be uh have their own

standard lead times as well so you know a great example of that is the inspection department um so even if you

only have you know 10 10 15 minutes of some final inspection work um but it

always there’s always a queue there’s always you know a batch of Parts waiting to go into that into that work center um

maybe it’s going on the CMM but you know there’s a little bit of a backlog go ahead and make sure you put in those those lead times uh so you’re setting

yourself up for the most realistic outcome basically the way I think about it if you put in like the minimum of all

these things you’re just shooting yourself in the foot and not setting yourself up for success to actually

deliver that product on time without spending vast amounts of time Expediting

and like running it to the assembly Department okay throw these inserts in right now I need these done in an hour

yeah and I imagine that’s what you did that’s that’s what partly what you and your team did before yeah absolutely and

and you just gota mean be real with yourself you know don’t don’t say yeah we’re you know it only takes really a

half a day to get this through when you know in your mind it’s there that’s just not how it happens so be real with

yourself and I just happen to look back you know just just just an Expediting charges Alone um compared to last year

you know this year year to date we’re probably saved 60% and experti in charge 50% yeah and it’s it’s all due to on

time delivery and you know getting a handle on the schedule yeah actually it was that was not even a sort of a metric

that we even thought much about um quite honestly at our own shop but we had a

client actually you know him Chris uh from East Branch um was on the same

system you were on uh and they mentioned to us years ago in a video I guess it

was that they had saved more money on Expediting fees to processors and

overnight shipping charges than their Pro Shop subscription cost them on an annual basis yep they used to spend you

know tens of thousands per year on all those fees and uh cut them like 97% so

yeah awesome um that’s a that’s a home run in our book um all right this is

another key part of it what you started doing can you tell us a little bit about this quoting realistic leave times yeah

so I mean prior we would just quote jobs and not really look at the schedule too

much um you know just take on work and then just you know throw it throw it over the fence and let manufacturing

deal with it um you know but then now now that we have this you know approach

and we got to handle own things and we know what our actual lead times are of every single machine no matter what um

you know we can be more proactive we can well if we know if we have we’re quoting on a large order we can you know put a

placeholder in the schedule and just say yeah we know this is coming um or if we kind of want to see you know what jobs

is going to push back um or when we’ll actually end the order you know um well

we can go ahead and throw it in a schedule um that way we can have an accurate time and give you can give our customer an accurate lead time say know

this is or if we do this you know you will push these jobs back um so yeah

yeah and sometimes that is a uh you know a strategic decision you want to make you know if you’re if you’re you know

quoting for a new client you really want to provide them with the lead time they need um saying you know we can slide it

into this slot right here it will mean we’ll have to pay an expedite fee for this other job but we’re happy to you

know pay that in order to to land the you know this this new job for this client that we really want to get

um but being intentional about that is the key right you don’t want to just quote some work throw it over the

wall to to you know programming and machining and say good luck guys you know hopefully you get this all out in eight weeks um yeah and I know so many

shops do that um and sounds like you used to do a little bit more of that um

so yeah being proactive that that is the name of the game for that one yeah definitely all right and we will get

more into the Nuance of uh of this collaborate collaborative approach in just a few more slides

here um and so the other thing we call them placeholders uh for this slide but

what we in Pro Shop they’re actually called Phantom jobs so you can uh insert

you know on any work center um a job of X length of hours and uh and just see

what that looks like how that affects because how that affects the other jobs down the line because it’ll basically

turn those jobs red if they’re not going to uh meet that uh what we call the mustle by date um and that is I think

one of the we don’t have a slide for this but that is one of the differences between Pro Shop and your old system

where we’re calculating when a job needs to be finished on a work center and then ultimately when it needs to leave your

shop to go to outside processing even if that’s multiple times y um as opposed to

just having a due date and you having to do all the mental math to figure out what does that mean for all the

different operations yeah correct all right

um yeah so there’s the tip don’t just uh blob new orders over the wall and hope

they can deal with it you definitely uh want to work collaboratively so let’s talk about your new order process um and

this is really when we start getting into sort of the the the meat and potatoes of that really proactive

process of um not only when you’re sort of setting yourself up right for when

you’re estim in your jobs um but then once you win those jobs making sure all the boxes are ticked to um uh to make

sure you’re setting your stuff for Success so let’s kind of go through that yeah so um I mean when a work orders

when a we get a PO from a customer uh po type by sales um and then it kind of gets sent over electronically to um

contract review um so he they perform their contract review um and then once

that’s done uh it gets sent over into planning um and in planning basically kind of just starts the process of

finalizing the work order um it’ll go through a checklist you know he’ll look

at confirm material lead times Um send a p to the material vendor right away um

make sure the deliver is good on that um schedule it on a machine uh sometimes

we’ll cut POs to some vendors um ahead of time to kind of secure our date or

our order in their schedule um because the I guess a tip for that um and this

might be where you were heading was you don’t want to just pile a bunch of work on your vendor because then it’s chaos for them also um so it um we on certain

processes we’ll send we’ll cut appeel to them out right away um and let them know about this is about what date you should

be expecting this alter based on our schedule and this is the due date we expected based on your lead

time yeah so we do that and then once all of that is confirmed then we confirm

the order to the customer we don’t we take about 24 48 hours to confirm ERS to

customers um but we don’t do any of that until we know for sure we can hit that delivery

date sounds like a solid process and when you shared about this cutting poos immediately for vendors that’s kind of a

brilliant move uh you know we never did that at our shop um and I and I you know just having you describe that just makes

intuitive sense right you know plating vendors in particular any you know any kind of vendors but um you know they’re

quoting vast quantities of jobs all the time and they don’t really know what’s coming in and if you you know have some

parts that you know you know it’s going to be a batch of 50 pieces and they did

quote it to you so they at least saw the drawing in advance and gave you a price but if you’re like yeah you know in

about four weeks we should have these parts coming they might be able to you know start working on their racking or

just making sure that they in their schedule or whatever system they’re using they’re like okay we know this is

coming um and uh probably more likely to give you the lead time they quoted you

than if it just shows up on their dock one day and they’re like oh shoot now we have this you know all this work that we

just all came in at once and now time to use longer than they quoted puts you in a bind yeah definitely yeah and then

over on the right hand side of our screen here we see this uh this must be back on date can you just describe how

you use that yeah so it there must be back on just basically we’ll put that

date in our system um and we know this date this is the date this order has to

be back from this outside process for us to continue on our schedule and hit our delivery date so it’s just kind of an

extra flag in this in a scheduling module um it’s kind of a different color um so it’ll show up if you have more

manufacturing processes after or anything you schedule really really um you know after that outside process and

it’ll kind of give us like when we cut a PO to a vendor um you know we’ll have

their lead time to them but we know like this is the absolute date that it cannot go past this um because we you know you

always want to kind of pad things um for you stuff that happens so but we know

you know this is the date that this is our internal due date um this cannot be any any later anything past this we have

a problem y fantastic so I just want to kind of reiterate a couple points here um and

again we’ve made the point of don’t just throw jobs over the wall but it is so common in shops where you get a new job

and you just try you know the intuitive thinking is just let’s immediately get this onto the floor right print off the

traveler put it in a router packet with the drawing and like send it right out to you know to your machinists or to

your programmers or whomever um and thinking that you know the sooner you can get it to them that’s better um but

in fact that’s generally not the case uh if you do a little bit more of that sort

of thoughtful um contract review when and Pro Shop there’s a contract review

um kind of formalized process that’s kind of built right into the workflow or this war room planning which we you

mentioned here um where you’re getting together with a team um and just kind of

going through more details if it’s a more complicated thing if it’s an assembly I know we do have some

questions that are already coming in one about assemblies um so uh uh yeah so

that’s important um and then uh yeah this this this dashboard with all of

these um different things you’re doing some of that is what we see here on the right this PP check complete what’s

that’s called a in Pro Shop it’s called a pre-processing checklist and uh when

you even even though you know we’re professionals doing our jobs every day you know we know kind of what we do and

what we are supposed to do but checklist can be a really important factor um in

making sure you just don’t forget something you know don’t forget to double check do you need to order a

special thread gauge because it’s a new thread you don’t have your gauge or maybe it’s out of calibration and it

won’t be back on time um there’s just that level of detail that will bite you um without a checklist and our

inspiration for even in checklist into Pro up in the first place was a book called The checklist Manifesto uh which

we read years ago and it was from this study where uh surgeons decided or this

they were doing a study where they they basically did a pre-surgery checklist just the same way that a that a pilot

will do a pre-flight checklist they actually got the inspiration from pilots and when they put in a pre surgery

checklist for these these surgeons which are highly highly skilled and trained people

apparently and it blows my mind to think about this but the the risk or the chance of death based on a mistake

happening dropped by 40% just by putting in a checklist so if if a surgeon needs that

level of help to you know get their job right um I think we owe it to our to our

office staff our programmers our machinists to to have a checklist as well to make sure that all the million

little details that need to go right in a Job Shop uh a checklist can only help them out uh better as well y if you want

to read a little more about war room planning um go to LinkedIn and look up

my true position um a guy named Jim Carr has a podcast and he did one about war

room planning just a few weeks ago um so if you’re not connected with him connect with him but that was a good blog and a

podcast episode that he did y all right and let’s talk about your production meetings this is another

thing that uh that um yeah that you that you do yes so uh we have a production

meeting once a week um and it’s usually about an hour long meeting um and

anybody that is involved in the manufacturing process all department heads um shipping leads you know

customer support Specialists all these guys will be in this one room um and we’ll basically look at various topics

um we’ll have uh the we’ll go through the machine schedule for the week um

kind of look see if anything just crazy that we plan on doing maybe breaking off of a job to you know waiting on this

material to come in you know um we’ll go through open on ncrs list just kind of get a status of everything um then we’ll

look at um late vendor POS um and see what the status is on those and how it’s going to affect any

other deliveries um then we also look at um orders that clients are paying

expedite for um because those orders should never ever be late and you should

never ever move delivery um on those honors uh they’re paying for they they

they deserve a top spot and make sure that’s there on time um and then just

you know deciding if if delivery needs to be pushed out on something uh our customer support and planner um we kind

of they open up they use a dashboard that shows ERS that you know are trending to be late um they might not be

late yet but they they could be late based on where they’re at in the schedule um and they’ll kind of CER

through that kind of fix it up a little whatever they need to do U expedite something if they want to do it on our

dime um and anything crazy they’ll kind of bring that in that meeting and just kind of review it with anybody um to get

a better sense or to answer any questions or decide what we need to do solid process that’s for sure awesome

um and uh so that yeah I mean that um and before that’s your kind of current

state beforehand where you still doing just once a week meetings or were you meeting more often uh we went off and on

with even having production meetings um at some point it felt like it wasn’t we

wern’t doing anything and I think it’s just because we didn’t have the right processes in place um or the right even the right tools to to make things right

uh so I we went back and forth we would have them a couple times a week we would do them every day every other day um we

did it once a week it it was it was always varying yeah yeah all right we’re

going to shift gears and talk about targets because targets are a really important uh factor in in this equation

so uh the way that we think about targets and we thought about it this way at our shop proc CNC and I think a lot

of clients have adopted this as a as sort of a best practice so when and it’s

a three-step process so um at the beginning when you’re just quoting a job

you’re estimating what that job’s going to take you to come up with the price um the estimator whoever is you know in

that role maybe it’s maybe it’s the programmer that’s giving you some runtimes or set of times or whatever whoever is developing that number they

have the best idea at that moment of what it’s going to take when you win the work um we believe

it’s the best practice to have assuming this is a job that’s going to go to CNC

programming before it goes to the shop floor um that your programmers after they do their job they

have the next best um more refined guess of what that’s going to take right if

you have CNC simulation software obviously you can get much tighter numbers than than what your estimator

might think uh and then lastly once the job has you know hit the floor and

you’ve proven out your program and you’ve run your whole thing at 100% Rapids and feed rates and it’s just you

know ready to what we call Certified to run to prompt the machinists that did

that setup to refine it even further so here’s an example um you know David originally set

this uh this cycle time um at 27 minutes and then Paul the CNC programmer you

know when we got the job about a month later right he changed it to 20 from 27 to

25.5 and then Mary when she proved out that job and like done were ready to run

production she was prompted and and put in that it’s actually you know 24.8 and this is important because um

not only does it is it continually gets your get you more and more accurate um

but it sets the it sets all the sets the software up for success as well so if you have a 100 parts to make um this you

know the difference between this and this is you know that’s that’s more than two minutes that’s 200 minutes of time

that that’s going to that’s less time or more time sometimes the targets are higher um than what it than it should be

originally scheduled if you have bigger differences this is a pretty small difference but if you’re off by many minutes and you have bigger runs that

could be you know thousands of of minutes or or many hours of difference in time so that is an important aspect

of it let’s want to add um it it also sets you up for the next time you get the job

so when the job comes through again um it’s it’s accurate on the schedule right away that’s a great Point yep yeah and

um yeah and the other part not to do with scheduling but just more uh a tip

that’s really important and maybe you can share your experience on this as well is when when people see

unrealistically low targets uh it’s demoralizing for them right if they’re

like how in the world am I going to set this job up in an hour when it’s clearly a four or five hour setup like so so

when you’re estimating don’t sharpen your pencil by by dropping the hours right do it with margin so put in the

most realistic T targets always for for setup inspection and running or any

other things you need to do yep definitely awesome I think we’re slightly behind schedule so we’ll try to

pick up the pace a little bit I’m a little too for Bose today um so yes

let’s talk about um cued work and how you changed that yeah so what we used to

do um we kind of had some cued work sales so like let’s say for laid

Department we had a laid staging work sale um then for meal Department we had a mill staging work whatever Department

we just had a staging area that all the jobs would kind of get thrown into um and just kind of wait for the department

heads to kind of place it on the on the machine um and it you know it could be a

week or two three weeks later before that happens um and that’s when you’re finding out well no we can’t run this in

time um so what we did was we made sure at the planning phase um we start

putting it to the actual machine that is going to run out yeah there things could happen and it could change machines

later but it at least it’s on a machine somewhere and it has a place on the schedule so yeah we don’t use staging

areas anymore I think that’s a great strategy we definitely get asked about that all the time um you obviously can set up

cues uh where things are just kind of waiting to get assigned to the actual machines but you know people get busy

and and they’re just working on the Urgent and not being proactive and realizing oh my gosh I have you know in

my La Department I have you know 100 hours of available capacity and I have

150 hours of work that’s sitting in a queue that were now over capacity by 50%

we didn’t even realize it so yep great one on that um yeah let’s talk about

some of these uh you you you used to start tracking jobs that you were late

on but now you’re tracking why you’re late can you describe the difference there yeah so during the initial phase

where we were trying to just get on time delivery under under control um we would take the previous month’s

jobs that were late and we’d figure out okay why was this late was it capacity was it the vendor was it NCR was it the

customer whatever it may be um we were tracking that and then you know we kind of pared it and we realized you know

it’s just capacity you know we were just taking on too much work and not scheduling so we put the processes in place to do that um but in now I mean

once you had 95% ontime delivery you don’t have many of those jobs talking about two or three a month um so then

we’re like okay what can we do next so now let’s track why are we moving it why

are we requesting a new delivery date from a customer um so we now that’s what

we’re doing we’re tracking that to figure out okay why are we moving delivery dates is it because we’re still

just kind of taking on a little bit too much work is it vendors that are just kind of pushing up pushing us back and

that’s what you know that’s what it seems like is more of the case now so now we’re working on getting our vendors

on time delivery correct right y yeah awesome yeah um I mean I know you know

I’ve Heard lots of shop owners say this that they just want to you know in order to increase revenue and profits they

just want to shove as much work into the shop as they can and you know hope that all works out but um that you know that

can work okay in the very short term but I can assure you it’s not a great long-term strategy and obviously because

you’ve been increasing you know you’ve increased Revenue by 40% over the last year you’re

clearly pushing plenty of work through it’s not like you’re you know you’re starving the shop for work just so your

on time delivery is better you’re putting a ton of work through and still getting it there on time so y um

so uh when we were prepping for this you mentioned you were visiting a client and

had this sort of epiphany can you share what that was yeah um I mean we have just a local customer that we we kind of

visit every week and it’s we go on the same day every week no matter what um

and we’re over there visiting and then you know they’re just kind of all scrambling not really wanting to talk to us which is not normal um and then he he

just started talking the last day of month you know we’re just trying to get things right trying to get jobs in for venders and this and he’s like but not

y’all we have no problems with y’all and it it occurred to me is like I didn’t even realize it was the last day of the month you know used to before you always

trying to get things in the way at least delivering Parts the you know the same month that you said they were doing

um and just trying to make things happen for the month or you know you trying to hit certain Revenue goals whatever it may be um but now that you know our

schedule’s so so tight and we’re so on time we know exactly what we’re going to

hit every month and we’re not scrambling the last day of the month so it’s just like it was it was awesome to see how

far we’ve come you know compared to a year ago before that that was us um we probably wouldn’t be able to be over

there talking we’d be at our own shop scrambling good work yeah that’s that’s

a fun a little Epiphany all right so we’re going to just kind of go quickly through here some common dashboards that

you guys use um the ones with these little icons are ones that are set up on

auto refresh inside a pro shop so you know whether it’s every one minute or 30 minutes or whatever it just kind of

refreshes and then we’ll share a couple of pictures here of those actually out in in the shop um so again just real

quickly just kind of let’s let’s kind of go through these here yes so we have um and our planner

and so our planner and our customer support Specialists uh share an office um and they have a TV set up um and they

they’ll put on all kind of dashboards depending what they really want to look at but their main one is uh active work

ERS sorted by mustle by date so they always see the kind of the latest thing or the next thing that needs to go at

the top of that list um and then we also look at later schedule to be late work ERS that is the um the query dashboard

they both use to for the production meetings um the planner uses project assignment which kind of shows in any

new work that he needs to kind of push out into the shop and start planning um sales dashboard that shows backlog you

know what we’ve ented this month what we’ve shipped out um purchasing dashboard that shows anything that needs

to be purchased or vendor POS that need to be typed up um and then in shipping they have a dashboard that shows any

jobs that’s final inspected and ready to go to the client and then one right next to it that shows any jobs that it’s

ready to go to an outside process um then we use a customer service dashboard that shows all jobs

doe within the next week um we have the custom query about that shows jobs that

customers are paying expedite fees for uh open incs um and in my office I have

the sales dashboard the a finance dashboard that shows Whip and stuff like that and in shop progress that just

shows a progress of every job that’s going on in the shop um and then finally is your delivery numbers dashboard that

shows on time delivery very good awesome so let’s uh

share here so this is and these is blurred out to keep your data safe but um so that’s the TV that’s up in the

sort of planner scheduler office is that right or customer service yeah actually this one is the

one in sales uh this is our sales manager that yeah yeah I think we might have missed the one in the planning

office but it looks similar yeah they have actually a 50 in in there and I love this double vertical monitors and

one horizontal this is definitely the sweet sweet setup yeah um and then uh

yeah here’s the one out in shipping um and uh so you can see there’s Pro Shop up on the this monitors but then there’s

the big TV with again the venders and the clients um showing uh yeah what what

needs to what’s ready to go um and I noticed these uh these little file folder boxes and you do when you because

this is the one place where you do need some paper work right you need to print packing slips print the the drawings to

go to your vendors or the document packages for your customers yeah so these will get inserted into these um

when they’re ready to go yep absolutely yeah awesome um yeah so here’s another

tip uh because when you first implemented Pro Shop you did all sorts

of rig roll to try to tweak it from its original functions to make it work like

you thought it should work or your old system worked yeah collaborated on that yeah we were just I mean we we were

still trying to do things our old way which was I don’t know why we ever want to do that um our old way wasn’t good um

so we were just trying to customize Pro Shops or the way we’re so used to doing things or the way we want to see things

and then slowly but surely you know once we realize well this isn’t working well

let’s try the Pro Shop way you know we we tried that way and it just works so much smoother and things flow on the

dashboards the way they’re supposed to and everybody gives their notifications like they should and it’s just it works

so don’t bug the system do it the way the system in there’s a method to our Madness so um thank you for that so this

when we were again planning for this you mentioned you just recently cancelled an order maybe it’s earlier this year but

yeah um yeah tell us tell us where where that came from what yeah so I mean we had an order come in that probably

quoted a month prior than the the customer PE came in um and it went

through a normal process of contract review planning and everything and then once we you know it got into planning

and we started ordering material and all this stuff we realized there’s no way we can hit this date um so we had to go

back to the customer and say look we we either have to have this delivery date or we just can’t take the work we’re GNA have to you know decline it um so and

that’s exactly what happened they said well no I needed this date and I’m sorry we just we can’t do that it’s not

possible so have to cancel it so if they had placed the order within days of your quote you probably would have been fine

but by You’ gotten a bunch more orders and by that time you just didn’t have capacity anymore yeah yeah and so the

takeaways there is take the long-term approach don’t put your client in a bind imagine if they’d taken the order and

then called a week before it was due and said hey we need another week and that client was really pissed off at you

right so don’t do that to your clients yeah um here’s just a little bit before and after um because again you have

grown as well um so you have about four more machines about a dozen more people

we obviously know about the ontime delivery and you were spending a good portion of your full 8 hour day just

trying to to make things on on time yeah right yeah and obviously tons of human input and you’re getting stuff out of

spreadsheets and your Erp and all sorts of stuff and now you you spend very little so this this about an hour a day

that’s done by someone else not you Planner yeah the planner he does planning and scheduling

yeah very good uh so the next this next

slide is is is hilarious um I was with my partner Kelsey and we were down at at

your shop for your annual crawfish boil and this hallway that goes from the

offices into the shop you were telling us how it used to be completely packed

with with you know with files yeah um with folders job job folders you said

they were even because this is a steel frame door like magnet both on the edges and on the inside of the door because

there was no room left on the white board or on your uh your uh your sticky board on the other side yeah yeah that

was a nightmare I wish we had a real picture of real jobs that but so we

faked it with this this one and this picture actually is from another client

where this is the the system they used to have they used to have these manila folders with literally you know red

Sharpie handwriting and a picture and like scratched out things or don’t do this now do this be careful of

fingerprints um just the the difference the night and day difference in the

process is is so remarkable and so fantastic all right um let’s move things

along so now you’re spending about eight hours a day golfing is that correct I wish it was that easy um yeah

no no now I’m you know I’m able to be in the shop more just you know concentrate

improving processes efficiency um you know helping whoever needs help or whatever the department it may be um I’m

not so tied to the desk and and planning and scheduling jobs or anything like that yeah well that sounds like a lot

more enjoyable way to spend your day yeah definitely awesome um well there’s a few

questions here let us get into those um let’s see here um

Q&A prioritized let’s see here oh uh may have missed it but did they use another

Erp system before Pro Shop you want to share that Cody yeah so we used um E2

shoptech yeah awesome um so let’s see here oh wow there’s a

lot of questions um so that one is done how many how many of our jobs are

accounted for in hours oh how do you account for breaks lunch and other stopping points so uh in proot there’s

time tracking um and time punch or clock punches um so machinists or anybody will

clock in and out for the day um and then we clock in for jobs and then but on the schedule we account for that hour break

um that everybody takes uh for lunch um so that is a non-scheduled time on that

machine every day yeah so to put a little bit more Nuance to that you can obviously schedule fewer hours you know

schedule in an hour and a half less for a lunch and 2 15 minute breaks um but

there’s also a a function that we call the schedule efficiency multiplier um because even when you

schedule out your lunch break and your your other breaks um you know everything

doesn’t always start and stop the instant something happens you know finishes and starts like so when you

finish running another one job even if you have some break down time which we do have in Pro Shop you know let’s say

you have 30 minutes to break down the job and then you go right into your next setup that supposed to take two hours

there’s not a zero minute you know transition point where the breakdown is happening and now the setup is starting

like that next second so this schedule efficiency multiplier allows you to like

just like stretch uh time on the schedule so if you had you know a a job

that was 10 hours um but you had a one .1 efficiency multiplier on the schedule

then it would actually stretch that out to represent about 11 hours of clock time across the the work center and as

you start dialing that in over time you can just get more and more realistic of how long things actually take you um

including lunch breaks and people just you know going to the bathroom in between jobs or whatever it might be so

so that is a strategy that we can use um I have lost

my questions where are the questions Paul I can hop back in and uh

answer or ask some of the questions if you if you like’ be great for sure um so

yeah like you said we’ve got quite a few so um one up here is just how long did it take to uh Implement Pro Shop overall

Cody uh so from the time we started training to the time we went live I

believe it was like three months um yeah three months

all right and then uh next one we’ve got is um what have your customers said

about your new performance any uh positive uh reactions I’m guessing there are probably quite a few yeah definitely

positive um I we just got an outstanding email the other day that was shared with the whole company um but we and we just

had another um supplier review with one of our customers and it it they actually

gave us a better score than we scored ourselves uh we were trying to be modest but yeah it’s it’s been nothing but

positive that’s awesome nice yeah and then um what made you decide to improve

uh your ontime delivery when you were um already around uh 80% you still even at 80% you know when

you’re putting out so many jobs a month um when you’re hitting 180 or 200 jobs I

mean even 20% of that that’s 20% of those jobs you’re chasing down or you’re you know you’re trying to fix or

whatever may be and you’re just putting stress on everybody and now that we’ve done all that and we’re at 95%

everything in the shop just flows so much smoother and it’s people have less stress of a

job for sure yeah and then I think you might have touched on this one earlier in the presentation but this one asks um

how many of the eight to 10 new jobs per day are repeat orders you said about 50% right yeah yeah so we’re we’re last year

in 22 we were about 50% repeat 50% new workor gotcha and then the next one

we’ve got is for your scheduling um is a project a oneoff per machine or do you

have larger projects that have multiple components and stages to them um I would

assume you referring to like operations um so yeah it’s not just one op per

machine most of them can be four five six operations and they can span two

three different machines gotcha and next up um how do

you handle yield volatility that can sometimes make lead times or process times or yield yield quantities

unpredictable um I would say um we always pad things a little bit

um that’s oh and if you’re talking about I don’t know if he’s referring to um I

would say uh like if you’re scrapping apart or something um I don’t know

what’s your thoughts ball if you yeah I mean I think yeah if you scrap more parts than you thought you you know you

planned have one setup piece but now you need two and you need to buy another piece of material and then it puts you

back on tell the customer right away um as soon as we have a problem with an NCR

um a part whether it’s an NCR we’re sending something in or um we scrapped the part we let the customer know right

away that hey we just scrapped one do you want us to move on with it with the rest of the order and just catch this

next one up or do you want to just hold off on anything and this is the new delivery of the

Remake gotcha um next up can you elaborate on the difference between just

setup and part per cycle time and operation lead time what is the justification for entering an OP lead

time as opposed to just per part and setup I’ll I’ll take that one um very

often work center or op lead time is used for work centers that are not scheduled work centers um so if like an

assembly station or the or inspection or something that it you know you have like

you know Inspection Department you know you got jobs coming in from 40 different machine you know 20 30 machines whatever

it is very hard to actually put that in a Gant chart schedule um so those are

often the times where you just put in that work center leap time um which can get also combined with you know Target

lead time so if you know that you’re going to spend an hour to set up your CMM but then you actually have you know

a 10-minute run time to actually probe all 100 parts that’s that’s a, more

minutes of of time so sometimes that’s the right answer and sometimes it’s just a quick thing but you know it’s going to

take you half a day so you just throw that into the into the the lead time there hopefully that answered that yeah

like for instance our Inspection Department we do a two-day op lead time so we just say it always takes an extra

two days to kind of jobs to get through there for sure and um next one is what

is your schedule multiplier set to Brian um 1.1 uh we’re at 1.1 I would say if

you’re if and that’s because we’re so fine-tuned now um things it just runs

great um but if you’re starting out I would maybe start out a higher number and then reduce it down as as you you

know get more data into your system all right and next up um please

explain more about prints do you have prints created by engineering for each sequence or using the customer’s print

along with instructions for each Machining setup yes so everything we do is to customer print um but during the

planning process uh programmers or anything you know they they can put in written descriptions setup notes

whatever may be for The Machinist gotcha and then we’ve got when

you underestimate on a job significantly how do you handle the entire schedule um well hopefully you know the

plan for that is to find out before the job hits the machine um so he can get updated like Paul touched on earlier

with uh the programmers in in the programming Department um and and it gets updated if it’s something

significant where it starts to push thing out then we have to start looking at you know what can we do to bring this back in um whether it’s just expedite

stuff on our own time work extra hours whatever it may be for sure and next we’ve got uh does

production have input into how jobs are scheduled um do you try to run similar jobs together or just allow due dates to

dictate scheduling um I would say as a Comon comination of both um we do try to

run similar jobs together um Pro Shop there’s a feature called a run together um we can do that whether you know even

on the exact part number um that you’re doing the same setup on um it’ll throw it in the schedule as I run together and

it kind of puts everything together um yeah so it’s it’s a combination of

both um and how do you decide on what overtime is required on a given work

center um how much and when to meet delivery commitments um

that it’s a a case by case basis um if

the it depends you can go to the customer and if they willing to pay for the overtime you know and say no I have

to have it for if if customer is telling you you have to have it for this date there’s nothing you can do about then you got to do what you got to do um if

it’s an otter that was already paid for expedite fees um then you you get you know you’re doing what you have to do to

to get it out um I guess it depends on how important the customer is to you uh how important the job is to you right um

and then this one asks how was the transfer from your old Erp to Pro Shop did you guys previously use an Erp yeah

we did so we used um E2 previously um it was that the biggest transition for us I

would say was just go on paperless um and you know getting that out into the shop and it’s like you know how how

we’re going to live without paper um you know it was that was the biggest thing but once kind of everybody got over that

hump and and realized the potential that pushop had and every how it was going to just make everything so much better um

it it it flowed pretty smooth you know we took it step by step um and we just

kind of implemented things slowly and you know started very basic and then adding on to it like the the the pp

check um list we you know we started very small with it and then as we grew and understood it um we added on to now

we probably have 15 20 items on that checklist now awesome and I think we’ve got time

for one more question we’re running right up on three o’clock here so um this one says did you notice a change in

morale with your machinist after uh this process oh definitely um yeah I mean

it’s if if I’m running through the shop and you know chasing otter down and why is this late you know everybody’s

fussing and and hollering and no it’s not my fault it’s your fault all of this um especially out on the shop floor is

you know guys see that and um you know they don’t they don’t want no part of

that um so it kind of brings their morale down um and then now you know

everything’s positive it’s smooth the guys don’t have to work so much on a weekends shift um you know there they

don’t have to come out to be on call and work extra hours or anything like that so everybody’s living a much better

life sounds like it that’s awesome and um so yeah I think we’ll wrap up the Q&A

here we’re um at the hour Mark um so thank you Paul and Cody and I also want to thank Pro Shop uh for making this

webinar possible and also uh Coastal machine as well um and then thanks to everyone for listening in um again you

should receive an email with a link to the recording within the next few hours uh so thank you all for joining us and

hopefully everyone enjoys the rest of your day thanks mate thanks everybody apprciate thank you

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