Firm Must Use Its New Equipment to Earn Badge of Efficiency
In his search for high-tech innovations for his low-tech manufacturing company, Everett Visk found that it was his front office, not the shop floor, where the fastest, cheapest and biggest productivity gains could be made.
Productivity and efficiency have become increasingly important at V&V; Manufacturing Inc., which makes commemorative pins, awards and police badges, as price pressure from computerized U.S. competitors and low-cost overseas companies has mounted.
Visk is counting on technology to help his 12-employee work force do more, faster. He spent $14,000 on a computerized engraving system and bought new computers for accounting and administrative work.
“We have to get out of the dark ages,” Visk said.
The company has made progress but could do far more with what it already has, consultant David Cieslak said after reviewing V&V; Manufacturing’s operations in Industry.
On his first visit to the company, for example, he found a worker writing up a list of checks. She was sitting in front of a new computer equipped with Peachtree Accounting software with a spreadsheet function that could have produced the list she needed.
The situation at V&V; Manufacturing is familiar to many small-business owners and managers. New technology often sits unused because of a lack of time and expertise needed to train employees.
Cieslak’s first recommendation for V&V; Manufacturing was a formal technology training program that includes deadlines.
“In the absence of goals and deadlines, we all let our day jobs consume our day,” said Cieslak, a certified public accountant and principal of Information Technology Group Inc., a computer consulting firm based in Encino.
The company might need outside experts in addition to the advice the equipment vendors can provide, he said. That could come from computer-based tutoring, Internet resources or classroom training, the consultant said. He suggested the company consider classroom training to start.
The first step in the training program should be to set a goal for when each piece of equipment and software will operate as an integral part of the business, Cieslak said.
Next, deadlines should be set to achieve those goals. For example, Visk might decide that by the end of the month, he wants to use the laser engraving machine for at least 10% of the workload. To achieve that, he’ll need to ensure that the proper number of workers receive training and have time to try it out informally. Part of any successful training is being allowed to jump in and “cut teeth” on the new machines, Cieslak said, even if that means throwing out much of what is initially produced.
Cieslak made several specific recommendations to bring the company up to speed that could serve as guidelines for other business owners.
On the hardware front, he suggested the company get rid of its dot-matrix printers in favor of a laser printer that can be shared by the four or five employees on the office computer network. The dot-matrix printers don’t produce professional-looking documents, aren’t supported by much current software and are dirtier to operate, he said. The company, which had been using the dot-matrix printers for multi-part forms, could purchase NPR paper that is presorted for the laser printer instead, he said.
The scanner also could be put to greater use. The company was considering taking inventory, so the consultant suggested Visk scan product images into the computer system, linking them to the existing Microsoft Access database. The company also could scan in old invoices. Both moves could free up storage space on the shop floor.
Existing software also could be put to better use, Cieslak said. V&V; could save time and money by using its Corel Draw program to design badge layouts, then e-mail the layouts to customers for review and approval. Changes could be e-mailed back, saving time and paper costs. Customers have inquired whether the company can send and receive artwork over the Internet.
The scanner also could play a role in speeding up the exchange of artwork, Cieslak said.
By becoming fluent on the other software it already owns--spreadsheet program Microsoft Excel and the Access database program--V&V; would open up many more ways to save significant time and resources, Cieslak said. Some examples include using Excel to track checks that have cleared the bank and using Access to create an inventory of all dies in the warehouse and to track product specification sheets for each product. These manufacturing instructions include a photo and information such as the type of metals used and the color scheme. The spec sheets could be linked to individual records in a customer database at some point too, Cieslak said.
“A lot of it ultimately comes back to just learning the products you already have rather than having to buy a bunch of new stuff,” Cieslak said.
He did suggest Visk consider buying customer management software such as Goldmine or ACT to track sales and marketing efforts for customers and prospects.
Communication with existing and potential customers and vendors also could be improved by upgrading to a digital subscriber line and setting up a POP3 e-mail server, the consultant said. DSL and a router are all that are needed to connect all computer users on the company network to the Internet. The e-mail program would enable users to pick up their e-mail even if they are away from the office.
He recommended the company establish an e-mail address for each key employee. The program should be set to send and receive e-mail over DSL, he said.
DSL would cost $400 to $500 to install, including a modem and a router to enable the office’s small computer network to share a single line. Monthly service should run about $50, Cieslak said.
“It’s not expensive, but it’s highly useful,” Cieslak said.
The company also could improve communications and its competitive stance by setting up a Web site, he said. To start, V&V; should aim for a basic site that includes pictures of its products, some company history, possibly a list of upcoming trade shows at which the company will have booths, and information on how to contact the company.
Setting up a basic, professionally done Web site costs between $2,000 and $4,000, Cieslak said. The company could do the job itself using a program such as Microsoft FrontPage, which costs about $140.
“All these steps go into how you successfully get a piece of technology out of the crate and to where it’s making a difference to the product getting out the door,” Cieslak said.
For many small businesses, taking those steps is a daunting task. But if they don’t make the additional investment in time and resources, the money they spend on technology too often is wasted, Cieslak said.
“It’s like saying, ‘I bought the car but it just sits in the driveway,’ ” Cieslak said. “You need to get in and turn it on.”
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This Week’s Business Make-Over
* Company name: V&V; Manufacturing Inc.
* Headquarters: Industry
* Type of business: Law enforcement badges, awards, pins
* Owner: Everett Visk
* Founded: January 1980
* 2000 sales: $1 million
* Employees: 11 full-time, 1 part-time
* Customers/clients: City and county of Los Angeles and other state, city and county law enforcement agencies nationwide; trophy and award shops
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Main Business Problem
How to integrate high-tech innovations in a traditionally low-tech manufacturing company
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Goal
To become the largest medal, award and law enforcement emblem manufacturer
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Recommendations
* Set up a companywide technology training plan with deadlines
* Set up a digital subscriber line (DSL) and a POP3 e-mail program
* Upgrade printer system and make better use of existing software
* Launch a basic Web site
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Meet the Consultant
David Cieslak is a certified public accountant and principal of Information Technology Group Inc., a computer consulting firm based in Encino. He teaches, writes and speaks on technology issues and is past chairman of the California Society of Certified Public Accountants’ State Technology Committee.
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Cyndia Zwahlen can be reached via e-mail at cyndia.zwahlen@latimes.com.
Applications for a Business Make-Over or a Technology Make-Over are available online at https://latimes.com/bizmakeform or by writing to Business Make-Overs, Business Section, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012.
