Cost reduction: the name of the game.

1996 Editor's note: Twenty-five years ago, Jerry Metz was introduced to WOOD & WOOD PRODUCTS readers as the author of a new feature called "Consultant's Corner." The column ultimately evolved into "Consult Jerry Metz, "reflecting the inclusion of the question-and-answer format that continues to this day. It is with great pleasure that we republish Jerry's first column from January 1971.

1971 Editor's note: WOOD & WOOD PRODUCTS is pleased to introduce a new, regular monthly feature. We hope you like it as well as we do.

To introduce the author, Jerome L. Metz was the president, from 1948 through 1965, of the Metz Furniture Co., Hammond, Ind. He has worked in every phase of operations throughout the entire plant. He holds an MBA degree from the College of Business Administration of the University of Chicago, and since 1948, has been a director and officer of the National Association of Furniture Manufacturers. Since 1966 he has been a consultant to Metz Furniture Co. and is now a consultant to a limited number of medium size manufacturers, including Wood & Wood Products, which manufacturers a medium-sized package of industry information every month. His particular interest: producing top line furniture at minimum prices in smoothly operating, safe plants.

As an industry, we have high costs, low profits or no profits and price levels that are apparently too high. No wonder our customers, like the college kids, are protesting. They want a better product for the same dollar, or less. But how?

Cost reduction is the name of the game and there's room for everyone to play!

Certainly, you have already carefully analyzed your cost of spoilage, of rejects, rework and returns, and you are aware of your loss percentage in each category. Upgrading even one of these categories means added volume, minimum rejects, avoidance of rework and its usual overtime plus additional material; it means reduced office detail to answer complaints and an appreciable drop in returns. We're certain to welcome the change, knowing the greatest result will be enhanced customer relations. Once your customers learn it is easy to do business with you and begin to extol the virtues of your product, you're in like Flynn.

For the purpose of this discussion, let's assume you have, a perfect product design, excellent engineering and facilities, and you can reduce costs only via the upgrading route.

Step one requires a change in the chain of command - one significant change in the typical organization chart.

Please note that the inspection department reports directly to the plant manager, and not to the superintendent. The reason for this change is a simple one: We want production people to produce. Reporting of completed and accepted production should be done by inspectors in accordance with specifications and agreed quality standards. Reporting and all its necessary paperwork should be removed from the production office. Foremen should spend every minute on the job, not completing forms.

Now quality becomes the central issue. Experience has taught us that instead of fewer units produced, we actually receive more.

Daily schedules are set up in each department where every employee can see the requirements. They soon learn that they not only must meet the schedule, but that quality is the big word and that both production and quality means an efficient operation. Bonuses and profit sharing mean money in the workers' pockets and it's a rare bird that thinks there's something wrong with that.

The second step places the role of chief inspector in equal staff position with the plant superintendent. The salient requirements for the position of chief inspector include complete knowledge of plant, product and procedures ... and capability to handle people. A cool student of the task with full authority for quality control, he should have been a foreman or supervisor before his promotion. He should be capable, also, of suggesting changes in product design, construction, methods and anything else that will make a better, more easily produced item.

Should finish be involved, he will be required to keep a sharp eye on color control, as well as the TLC (tender loving care) that must be added to the finish after you think your finish is the best.

If plywood manufacture is involved, he will handle all checks on this department. Though adherence to part drawings and reporting of accepted production is the main duty here, he should also detect waste abuses, and count all overages and shortages and report these to the biller, so no time is lost if a significant shortage is apparent. Likewise, overage must be counted in the next job cut. Any unusual shortage should be immediately reported to the chief, with a detailed explanation of all reasons. Copies, initialed by the chief, should go to the foreman, the superintendent and the plant manager.

Do you like smart, sharp women? They're perfect to complete the inspection team, with one for each major department (except such obvious ones as machining) such as assembly, fitting, finish, upholstery and final acceptance. The women chosen should be quick, sharp-eyed and have the ability to work independently. You will soon discover that women make, by far, the best inspectors.

They should also be responsible for recording the accepted production in their respective departments. But final checking is not all of their job by any means. These young members of the upgrading gang move through the entire department, checking at each point of the operation for accuracy, complete adherence to standards, and report any shortages or problems of any kind.

Should there be too much detail in a large department such as cabinet assembly, it may be necessary to employ one roving and one final inspector.

All inspectors will be paid for their ability to keep the upgrading kick on the move, constantly stopping the making of a reject at the source. In other words, stop that mistake before it starts!

Incidentally, appropriate signs all over the plant do help.

A word about the final inspector. She should go over every unit with extra care, boosted by the chief inspector who will check with her many times during the work day. She should sign the appropriate warranty or inspection tags or certificates.

It is also a good idea to have weekly meetings of the entire inspection team with the final inspector, who should prepare a written report for the meeting. Here all problems, since the last meeting, should be reviewed in detail.

The chief inspector should regularly meet with the plant superintendent and manager and the production control manager to review the entire production and quality picture. They should personally inspect any returns or unusual failures of any kind. The sales manager may well get into the act here on many occasions and should represent the customer attitude all the way.

To sum up with a single word - UPGRADE. Your costs will drop, your customers will find it easy to do business with you, and best of all, your product will stand out and speak out for itself.

Q I am concerned about the formaldehyde content in the glues and finishes that we use. How do we know if any injurious effects are occurring to employees? Is there any reason a source would not tell us, or even worse, would purposely withhold such information? Thanks for the help. Mr. H.

A The concentrations of formaldehyde in the products you mention should not be a problem, but just to be safe, ask your sources about what precautions they might prescribe. Make sure your employees have access to the material safety data sheets required by OSHA and if necessary address the potential risks and safe handling during an employee safety meeting. I would welcome the comments of other readers on this subject.

Q We sent a drawing of a table base made somewhere in Europe. How do they get away with a tenon-type joint between the legs and the pedestal turning? It seems that any pressure or change in temperature would loosen the logs, and yet they seem to get away with it! What do you think? I look forward to your reply. Thank you, Mr. J.

A I looked for the tell-tale signs of a screw through the tenon, but did not find it. At least it was not on the drawing. In my opinion, it is just plain wrong! Just keep on doweling ... OK?

Q I see where Masco has been sold. Maybe the new owner will decide to split it up into several well-related groups. Right? Mr. F.

A Who knows? It should be interesting.

Q My people tell me that you recommend using a moisture meter to verify the moisture content of incoming lumber. We specify it to 6 percent to 7 percent. What about the time it takes to do this extra checking? Thank you. Mr. McD.

A There is little time involved compared to the time that is lost if you receive a shipment of lumber that is not on spec. Even if you only find a few "wild" boards that are off by 3 percent or so, it pays. It really does.

Q We have a lot of oak grain to fill and we have heard of some sort of equipment that is now available to handle it. Does it work? What would you do to streamline this process? Help! We are marketing a new line. Also, who can tell us how to develop a good set of "customer care instructions" for the wood furniture we manufacture? Mr. S.

A Both questions should wind up in the lap of your finishing material specialist. He can give you the answers that will meet your specific needs. As long as you asked though, I would use some good old gluesize where necessary to fill the grain. Beyond that, let the source technician specify materials, procedure, care, the works. For this help, and regular visits, he gets all of your finishing material business. This is the way to achieve the best possible finish. We have been over this point many times in this column.

Q I did not send a sample, but I hope you can still tell me what caused our finish to fail and just flake off. Do we wash it down and refinish it or do we remove the actual coating to redo it? We need help! Thanks. Mr. N.

A The seal coat may have been too damp or too "short," meaning it had little penetration into the wood. You must wash down the workpiece completely and be very careful in the refinishing. I have lectured long and loud about the merits of having a technician from a top source give you the advice you need. Put the responsibility in the hands of an expert.

Q What is Moradillo? Can it be used to make small novelty pieces? Mr. K.

This is a Brazilian rosewood that would do fine for what you make.

Q We are located near some very large and well-known woodworking plants that keep trying to hire machine operators away from us. Any suggestions? Mr. P.

A Make the job as comfortable as possible for your skilled operators and develop an incentive program to reward them. Make them feel like they are wanted and there is a good chance that they will stay.

Q Do you have access to an expert on exotic woods? We need to talk to someone who really knows his stuff. Thanks for the help. Mr. N.

A There are a number of knowledgeable people working for companies that import exotic woods and veneers. A good bet is to call the International Wood Products Assn. based in Alexandria, W. Va., at (703) 820-6696.

Q I sent you some small wood blocks. We are cutting these and then having a difficult time shaping them. What is the right way to handle this? I want to thank you for the last letter. We are OK now. Mr. S.

A I would run these through a moulder. If you do a lot of this and you do not have a moulder, there are a number of good small ones available, including some good used ones. Just run the 1-inch-thick strips through the moulder set-up to the desired shape and cut to any length. No problem.

Q Our problem is mold on 5/4 red oak. We keep it stored on the second floor of our plant and the moisture content never runs above 9 percent. What do you feel is causing this? What do we do about it? Many thanks. Mr. M.

A I would say that dampness plus inadequate ventillation is creating the mold problem. Check and see if all this stock is over 7 percent moisture content; I'm willing to bet that the wood is piled not stickered. Lumber that is stored for a while must be on sticks, and of course, well ventilated except in wet weather. Common sense dictates that this is what you must do.

One more thing. The next time you order lumber, be sure to get a certificate of what moisture content the wood was dried to. Meter every incoming board. It may surprise you that the moisture contents vary considerably from board to board. We have other readers who store lumber in queer places. Lumber sheds are inexpensive, and are recommended over your method. Give me a holler if you have more questions.

Q We need to cut down on the number of species we use. I have noticed that you advocate this as weft because using fewer woods lowers costs. If we were to get down to one wood, what would you suggest? Mr. C.

A For where you are located, I would say soft maple would be the best.

Q You are so right! We checked our lumber storage and determined that the old garage is for the birds! The dead piled stock is musty, warm and shows signs of inadequate ventilation. We are going to stick everything, put windows on both sides and install a humidistat. I will send you a picture when we our done. How we could have been so dumb for so long I do not know! Mr. A.

A I will bet that you have already "paid" dearly time and time again over the years. It's like so many of our readers to be penny wise and pound foolish when it comes to storing many of the materials that they use. I have said enough. I promise, no more lecturing - are you listening Mr. M.? - at least for the moment, anyway.

Q We received notice about the recent exporting seminar put on by Wood & Wood Products and the Woodworking Machinery Importers Association. I must say that we are pretty content to sell our case goods here in the States; I personally hope that we never have to look overseas for business because it just seems like too much trouble! What are your thoughts?

A I agree that exporting does pose some extra challenges and problems, but there are a lot of companies that are generating some good business by selling their products to foreign markets. I say, don't knock it until you try it.

Q We have started to use a moisture meter to check the kiln dried lumber delivered to our plant. Great suggestion! Thanks. Mr. P.

A Glad you like it. It saves a lot of headaches and keeps your suppliers on their toes.

Q We have a rather odd request. We are well setup for equipment and we have excellent machine operators. We are changing over from making an exclusive line of furniture to become strictly a component parts maker. How would one get started? How would we get the proper leads? I hope you can be of help to us. Our thanks. Mr. W.

A I happen to be a great believer in using sourced parts. If you are serious about making this conversion, I would strongly recommend contacting the National Dimension Manufacturers Association in Marietta, Georgia., as well as the Wood Products Manufacturers Association in Gardner, Massachusetts. Both of these groups are made up of parts specialists. Keep me posted and good luck.