9 Common Questions that Keep Job Shop Owners Up at Night and Answers to Help You Sleep Better

9 Common Questions that Keep Job Shop Owners Up at Night and Answers to Help You Sleep Better www.jobboss.com 2 “How can I create accurate quotes when I don’t know our true labor and material costs?” 10 “How can I eliminate machine bottlenecks and keep employees and jobs on schedule?” 4 “Where can I get a full picture of my inventory, so I stop wasting time and money?” 12 “How can I get the price right each and every time?” 6 “How can I avoid preventable mistakes?” 14 “How can I avoid cost over-runs?” 8 “Why does order entry take so long, and my staff make so many mistakes?” 18 “Which of my jobs are most profitable, and where am I losing money?” 16 “How can we increase customer confidence and ship on time?” 120 Conclusion 1 Conclusion Introduction Table of Contents Questions throughout are grouped by color, according to one of the three overarching themes illustrated above. Fig. 1 Gain Complete Job Shop Visibility Improve Job Shop Operations and Efficiencies Increase Job Shop Profits and Business Opportunities Exact JobBOSS 01Table of Contents « INTRODUCTION Over 6,000 small manufacturers have chosen Exact JobBOSS to run their shops, so we’ve heard practically every question possible. Some common questions include: How much inventory do we have left? Why do mistakes always happen when we enter orders into the system? Are we making money on all our jobs? If these are the types of questions that keep you up at night, you’re not alone. Better yet, we have answers to help you sleep better. Following are the 9 most common questions and concerns expressed by custom and job shop manufacturers looking to improve their business. We are excited to share the answers and best practices that helped solve their problems. Even one example may be the key to making your job easier and your business more profitable. How can I create accurate quotes when I don’t know our true labor and material costs?” Chapter 1 Answer: The short answer is, you can’t. In order to create accurate quotes that are both fair and provide your business the opportunity to make a profit, tracking actual labor and material costs is required. We often find that shops waste a lot of time trying to track down information that is kept in different software applications, and even on different computers, none of which are integrated together. So when they pull their quotes together, they aren’t always using their latest labor and material cost figures. They need to be more methodical and scientific when tracking labor and material quotes, or else continue to lose bids and ultimately customers. We understand you need to document costs so estimators have the most current figures at their fingertips. Your ability to respond quickly to a bid is the difference between winning and losing a job. Exact JobBOSS, with its advanced quote processing software, can help you succeed. Do you have the ability, today, to do all of the following? • Pull from part history, copy quotes into new orders, and create repeat quotes with ease • Check inventory of parts, materials and purchase history during quoting process • Forecast profit margins by factoring in every aspect of part cost including routings, labor, materials, quantity breaks, and more • Handle multiple quantities – alternate routing, material price breaks and subcontract costs • Provide a quick quote or a detailed quote, for single-level and multi-level assemblies • Copy data automatically to a job without re-entry of part information • Share the quote with the customer via email or fax, without ever leaving your work environment • See your win rate, and share it with sales to understand which quotes turn into sales If you answered “no” to even one of these capabilities, you could be risking jobs and customer confidence. Your ability to respond quickly to a bid is the difference between winning and losing a job. HOW CAN I CREATE ACCURATE QUOTES WHEN I DON’T KNOW OUR TRUE LABOR AND MATERIAL COSTS? Exact JobBOSS 03Table of Contents « Where can I get a full picture of my inventory, so I stop wasting time and money?” Chapter 2 Answer: Imagine a place where you have complete control over your inventory at all times. Materials Requirements Planning (MRP), an integrated module in JobBOSS, ensures that you always have the right standard and raw materials on hand so you are prepared for whatever job comes next. You can conduct time-phased material planning based on purchase and work orders to avoid material shortages and save up to 70% in added carrying costs. According to a long-time JobBOSS customer, “I used to struggle with existing WIP questions more than anything. I’d forget what was on order and when it was due to the shop. I had sticky notes everywhere. When we implemented JobBOSS software, it made it easy to address WIP questions and also to make smart bulk-buying decisions and repeat purchases from my favorite vendors.” JobBOSS material and inventory control gives you confidence in making bulk orders on common materials because the guess work has been eliminated. With advanced calculators, you can easily convert and ensure common materials stay on hand. With multiple warehouses and lot masters, you can also manage lot tracking. With Materials Control, you’ll always know what inventory is on hand and where it is in your shop. You can also order materials according to inventory requirements to maximize purchase price discounts then schedule delivery according to job requirements. MRP doesn’t have to be difficult or complicated. JobBOSS can help you: • Create automatic Request for Quotes (RFQs) and Purchase Orders using time-phased material planning reports, and mail them directly to your vendors • Increase throughput by ensuring material availability and know when to make bulk orders of your most commonly used materials • View the material supply and demand information on one screen, and then drill down into the details • Purchase materials according to your job needs rather than guessing when to order the material, preventing delays • See how your material costs have fluctuated over time by using the comprehensive history of material you have purchased for stock or directly for jobs “I used to struggle with existing WIP questions more than anything. I’d forget what was on order and when it was due to the shop.” WHERE CAN I GET A FULL PICTURE OF MY INVENTORY, SO I STOP WASTING TIME AND MONEY? Exact JobBOSS 05Table of Contents « How can I avoid preventable mistakes?” Chapter 3 Answer: As a shop owner, we know it’s your reputation on the line if deliveries are late or products ship with mistakes; preventable situations that are typically caused by lack of shop floor visibility. JobBOSS provides instant visibility to job status and the issues that require your immediate attention. With a click of the mouse you get a complete snapshot of your business including customer, production, vendor, and financial data. No more last-minute calls that cause you added pressure. “Just when I thought things were running smoothly, something would change unexpectedly, and I’d get an angry call from a customer about a mistake that truly never should have happened,” said Greg Fisher from Roncelli Plastics. “It’s my reputation on the line when a product ships with an error, or late, and we have been able to essentially eradicate those customer complaints by using the full functionality of JobBOSS, including the dashboard feature and alerts.” JobBOSS, integrated with KnowledgeSync Business Activity Monitoring, gives you real-time visibility into key activities, information and milestones; areas of the business that are running well and those that need your attention. With a click of the mouse you can see a complete “status” of critical customer, production, vendors and financial data and statistics. As events and changes occur, your JobBOSS system will send pop-up alerts and instant messages via email, mobile phone or pager, so you stay in the know. Use the JobBOSS Dashboard tools to: • Set up automated alerts and get updates based on your settings • Notify you when labor or material costs exceed an estimate • Collect information faster than with manual data entry and automatically validate to improve accuracy • Ensure the right people are doing the right things at the right time • Dramatically expand the capacity of your existing workforce. Today, more than 1 in 4 customers don’t come back when a delivery is late, adding up to $83 billion in missed revenues. If preventable mistakes continue to plague you, check out our video on business activity monitoring. “It’s my reputation on the line when a product ships with an error, or late.” HOW CAN I AVOID PREVENTABLE MISTAKES? Exact JobBOSS 07Table of Contents « Why does order entry take so long, and my staff make so many mistakes?” Chapter 4 Answer: It’s simple: if you’re not able to view on-hand inventory, the order-entry process gets drawn out and the margin of error increases. JobBOSS order processing aligns with common procedures used in a job shop and provides immediate access to critical information at every step along the way. It lets you easily generate different types of work orders and quickly respond to changing customer requests, cutting down on errors as you move directly from quotes to orders. “Order entry was one of the key features that led us to choose JobBOSS, because it allows our employees to easily track each job as it moved from work center to work center,” said JobBOSS customer, Gamma Vacuum, “We were able to access real-time customer order information at any point in our order process, which has saved us time and money, and increased both our customer and supplier satisfaction.” You can customize your JobBOSS inventory library, based on your shop’s business focus. This full inventory system gives you flexibility to manage stock status. Just-in-time purchasing means you can order materials or services directly to a specific job, and then set the due date of the order to match the shop schedule. You can also order materials according to inventory requirements to maximize purchase price discounts then schedule delivery according to job requirements. You’ll always know what inventory is on hand and where it is within your shop. Can you complete all of the following order processing capabilities with your software? • Move from quotes to orders with no additional steps or data entry required • Process quick-run jobs, complex assemblies, blanket orders with releases, and time and material jobs – the flexibility is yours • Make changes to any job, including quantities and due dates, even when it’s already in process • Handle jobs that require routing options, such as varying run time methods, overlapping operations, and efficiency projections • Notify purchasing of any part shortages • Choose from various format options for printing the shop traveler • Support unlimited text at the job level, individual routing level, and bill of material level If you need to shorten the lengthy order-entry process and eliminate costly errors, then now’s the time contact an JobBOSS expert, or simply give us a call at 800-777-4334. “We were able to access real-time customer order information at any point in our order process.” WHY DOES ORDER ENTRY TAKE SO LONG, AND MY STAFF MAKE SO MANY MISTAKES? Exact JobBOSS 09Table of Contents « How can I eliminate machine bottlenecks and keep employees and jobs on schedule?” Chapter 5 Answer: It’s Friday afternoon and your shop floor team is winding down on the week’s activities while planning for next week’s jobs. As you are lulled into a feeling of control, it happens. A large surprise rush order comes in from your top customer. You aren’t sure if you can deliver. If this scenario sounds familiar, and sends a few chills up your spine, you’re not alone. Many small to medium-sized job shops struggle with how to handle spikes like this that dramatically affect personnel and your machines. With JobBOSS you get flexible scheduling that accounts for material availability, current work load and actual job performance. A simple dashboard gives you insight into bottlenecks and capacity issues, and the ability to use all your work centers to full capacity. Your schedulers gain full visibility into all shop operations so they can control job flow and ensure the required machines and operators are available to complete the work. When customers request a potential ship date for an estimate, schedulers have the flexibility to use either finite or infinite scheduling by work center to compare the estimate to your current shop load on a “what-if” basis. ShopBOSS, an automated whiteboard, lets you schedule or reschedule jobs by dragging and dropping operations to different days or explores the impact of change before you actually change operations on the shop floor. Can your schedulers do all of the following? • Choose from finite or infinite scheduling, by work center, to manage capacity vs. load • Spot the load on individual work centers, and make job decisions by machine, employee, or date and time • Minimize employee overtime and downtime, ensuring work/life balance • Tie your material requirements into the schedule and see the impact on the schedule immediately • Review the schedule-impact of late outside service operations and see how jobs will be impacted • Create what-if scenarios to ensure capacity before committing to due dates • Provide the necessary work center dispatch list and production reporting tools, such as dispatch and foreman reports, to keep operations moving smoothly To learn more about how you can control day-to-day scheduling details and long-range planning to deliver every job on time, visit our website page on scheduling and shop floor control.Many small to medium-sized job shops struggle with how to handle spikes that dramatically affect personnel and your machines. HOW CAN I ELIMINATE MACHINE BOTTLENECKS AND KEEP EMPLOYEES AND JOBS ON SCHEDULE? Exact JobBOSS 11Table of Contents « How can I get the price right each and every time?“ Chapter 6 Answer: Small manufacturers often struggle to get the price right. If you work with smaller margins, you know they can be heavily impacted when cost estimates of materials and processing are not accurate. Today, 54% of SMB manufacturers receive more orders, in smaller series, delivered faster. As high as 9% of all contracts end up with a negative margin due to wrong cost estimates. “We have been finding that virtually all of our bids have now become competitive and that getting the price right on the first try is key to closing the deal,” said Richard Childress Racing. “JobBOSS has made it easier for us to ensure that even small jobs will be profitable because we go in with a price that we can live with and still make money.” Another recent challenge is customers’ shift to smaller series, but on a more frequent basis. This means that the response to customers has be faster, with less time to wonder if your price is accurate. JobBOSS offers powerful and robust cost analysis tools and reports for both completed jobs and work-in-progress, so you know what every job costs and whether or not you have made money. Be confident in your ability to capture labor time correctly, log material costs back to each job, and most importantly, know if you are making or losing money on a job. If it’s important to keep part history for repeat jobs, JobBOSS Cost Analysis will help you in re-quoting a part (or similar parts), and allows for quick analysis of part cost and profitability trends. With these powerful tools, you can project profitability on similar or repeating orders in the future. The streamlined process and enhanced visibility helps you keep costs in line for customers while ensuring the business stays healthy. Now You Can Know How Profitable Each Job Is—At Any Time. Learn more. “We have been finding that virtually all of our bids have now become competitive and that getting the price right on the first try is key to closing the deal.” HOW CAN I GET THE PRICE RIGHT EACH AND EVERY TIME? Exact JobBOSS 13Table of Contents « How can I avoid cost over-runs?” Chapter 7 Answer: Don’t get caught in cost over-runs. JobBOSS Labor/Data Collection provides insight into shop floor activity so you know what each employee is working on, allowing you to precisely monitor labor hours and manage performance and profitability. Comparing labor and material estimates to actual costs in real-time allows you to make resource adjustments and minimize over-runs. And, by knowing which employees are most efficient on various types of work, you can evaluate employee performance and manage efficiency. JobBOSS Labor/Data Collection works the way your employees do. They can enter data directly by using keyboards, bar-code wands, computer monitors, and touch screens, thus reducing and eliminating data entry errors. Because the mobile software can be installed on devices such as a PDA or SmartPhone, employees can move from work center to work center, collecting data on the shop floor without missing a beat. Ask yourself if you can you do all of the following with ease? • Manage work assignments based on material and operator availability, and schedule employee work hours online • Choose options for breaks, overtime, or holiday pay • View drawings and other attachments online, when and where you need the information • Reduce scrap and rework • Notify purchasing of any part shortages • Transfer time and attendance data to Exact JobBOSS or QuickBooks Payroll automatically • Move completed parts to finished goods inventory, or between inventory locations • Eliminate hard-to-read handwritten shop cards and time tickets If you can’t, take a look at JobBOSS Data Collection to eliminate manual data entry and ensure accurate job costs. By knowing which employees are most efficient on various types of work, you can evaluate employee performance $ HOW CAN I AVOID COST OVER-RUNS? Exact JobBOSS 15Table of Contents « How can we increase customer confidence and ship on time?” Chapter 8 Answer: Missed dates mean unhappy customers. Customers need the confidence to know that you can meet their delivery dates for every job, every time. JobBOSS shipping lets you easily track delivery schedules and shipment history. You can generate shipping documents at the time of job shipment and take advantage of built-in reports that help you track and improve on time delivery rates. Customer satisfaction will soar. Customer shipping requirements are as unique as the customer. When they are not met, customers don’t’ come back. JobBOSS Shipping allows you to easily keep track of delivery schedules and review shipment history in a timely manner. Quickly generate shipping documents including pack lists and shipping labels at the time of job shipment. Robust reporting helps you keep track of your on time delivery rate. JobBOSS shipping lets you track all delivery schedules and review shipment history with ease. Generate shipping documents including pack lists and shipping labels at the time of job shipment, and take advantage of built-in reporting that helps keep track of on time delivery rate. Ensure you are: • Meeting customer ship dates, and tracking early or late shipments • Analyzing delivery performance to improve on time deliverables • Tracking shipments online • Managing multiple ship addresses for customers operations, and efficiency projections • Recording ship data to make good decisions on future orders • Preparing packing lists and Bills of Lading • Tracking customer returns • Monitoring upcoming deliveries so you ship on time • Tracking all movement of sub contracted services to and from the vendor If you’re missing ship dates, put JobBOSS Scheduling to work for you. Keep track of delivery schedules and review shipment history in a timely manner. HOW CAN WE INCREASE CUSTOMER CONFIDENCE AND SHIP ON TIME? Exact JobBOSS 17Table of Contents « Which of my jobs are most profitable, and where am I losing money?” Chapter 9 Answer: Small businesses can’t hope for job profitability—they have to count on it to survive and grow. Powerful cost analysis tools and reports for both completed and work-in-progress jobs, gives you a clear picture of profitability at any point in the month. With JobBOSS, you will know exactly what jobs cost so you can use your increased profits to grow your business. JobBOSS customer, Bryco Machine had similar uncertainties in their job costs. After implementing JobBOSS, they were able to turn their business around. “In just three years profits have increased, sales have doubled, and productivity has skyrocketed,” said JobBOSS customer, Bryon Bettinardi from Bryco Machine. Because each job may yield different results, depending on the staff, the cost of the materials, or outside services, it’s critical to compare actuals to estimates on each job and isolate issues in progress so they are not repeated. Knowing where problems are before a job ends gives you powerful information to make good decisions. JobBOSS Cost Reporting provides information used to analyze shop performance. Profit margins and efficiencies are improved because you have the information readily available to estimate both time and costs more accurately. Can you complete all of the following order processing capabilities with your software? • Compare estimates vs. actuals hours and costs, for any job, and at any point in the month • Adjust sell price for repeat orders to increase profitability • Maintain part history information for each time you have run a specific part • Analyze profitability by customer • Know when to pass on a job that will cost you money • Bid competitively and profitably • Understand your overall costs and grow your business It’s critical to compare actuals to estimates on each job and isolate issues in progress so they are not repeated. WHICH OF MY JOBS ARE MOST PROFITABLE, AND WHERE AM I LOSING MONEY? Exact JobBOSS 19Table of Contents « JobBoss 3600 American Blvd Suite 250 Bloomington, MN 55431 United States Phone: +1 800 777 4334 Site: www. jobboss.com © Exact Group B.V., 2016. All rights reserved. Herein all trademarks mentioned belong to their respective owners Exact JobBOSS 20Table of Contents « CONCLUSION As a trusted partner to thousands of custom and job shop manufacturers, we understand your day-to-day challenges in running a successful business. If you’ve found even one answer to a nagging question, then we have been successful in compiling this eBook. Have a question we didn’t address? Send it to us at [email protected], and will be happy to research your question and provide you with an answer. As we have learned through years of first- hand experience, SMB Manufacturing is truly a team effort—and we look forward to partnering with you to help solve your latest challenges.