Cutting Edge Newsletter™ May 2006Public PolicyRegulatory ReliefBy John Satagaj, email@jsatlaw.com
He reported that over the last year the Office of Advocacy was able to “save” businesses over six billion dollars in regulatory costs by convincing other agencies to modify their regulatory proposals. One of the chief tools in his toolbox is the Regulatory Flexibility Act, a law which forces certain agencies to conduct an analysis of the impact of proposed regulations on smaller businesses and to consult with the Office of Advocacy to reduce the burden. It is through such consultations that the Office is able to save you time and money by getting the agencies to craft more realistic regulations. You can check out the work of the office by going to www.sba.gov/advo. How many small businesses are there? Census data show there were 5.7 million firms with employees and 17.6 million without employees in 2002 (and 18.6 million without employees in 2003). Firms with fewer than 500 employees represent 99.9 percent of all businesses and the most recent data show there are 17,000 large businesses. The Office of Advocacy also issued the results of a study that found firms with fewer than 20 employees annually spend $7,647 per employee to comply with federal regulations, or 45 percent more than the $5,282 per employee spent by firms with 500 or more employees. The study found that the compliance cost per employee for small manufacturers is at least double that for medium-sized and large firms. The annual cost of U.S. federal regulations totaled $1.1 trillion in 2004. Not surprisingly, environmental and tax compliance regulations appear to be the main cost drivers in determining the severity of the disproportionate impact on small firms. Compliance with environmental regulations costs 364 percent more in small firms than in large firms. The cost of tax compliance is 67 percent higher in small firms than in large firms. To encourage greater accountability for results and how the taxpayers’ money is spent, the Office of Management and Budget (OMB) has launched ExpectMore.gov, a website that provides candid assessments of Federal programs in jargon-free language, so taxpayers can know which programs work, which ones do not, and what they are all doing to improve their agencies' performance. “ExpectMore.gov honestly shows how government programs perform and whether taxpayers are getting their money’s worth,” said OMB Deputy Director Clay Johnson. “It shows where Federal programs are succeeding, admits where they fall short, and lays out what all programs are doing to get greater results. It is our hope that Congress and the American people will use the information on this site to hold us accountable and begin to ‘expect more’ from the performance and improvement of the programs that serve them.” ExpectMore.gov allows the general public to review the performance of every Federal program. Today the site includes assessments of almost 800 programs accounting for 80 percent of the Federal budget; the rest will be completed within a year. For every program assessed, visitors can find a rating of the program’s performance, its strengths and weaknesses, and the program’s improvement plan. ExpectMore.gov also links to detailed program assessments and each program’s own site. Visitors can search for desired programs in many ways, including by type of program or rating. Of the almost 800 programs rated: 15 percent are Effective; 29 percent are Moderately Effective; 28 percent are Adequate; 4 percent are Ineffective; and 24 percent are rated Results Not Demonstrated. In all cases, performing and non-performing programs, the agencies have identified improvement plans to perform better. If you have a particular regulation that is the “bane of your existence,” we would certainly like to hear about it. While this President still resides in the White House, it is probably our best time to seek relief.  Small Business Legislative Council (SBLC) has brought back its’ public policy briefing telephone conference. It is an improved product and it is free! This is an opportunity for SBLC member association staff and member association members (e.g. board, public policy committee) to participate in a briefing by SBLC President John Satagaj on the hot small business topics of the day.
Upcoming teleconferences are scheduled for:
You have the option of deciding who participates. No need to RSVP. All we ask is that you bear in mind that we want to be as candid as we can so the information is useful. By participating in the teleconference, you agree not to record the presentation, nor to quote or attribute comments to speakers. International Business DevelopmentOpportunities to Explore and Enter the Vietnam Market
1. WMMA Pavilion in VietnamWood 2006 2. Plant Tours/In-Country Briefings Opportunity to Exhibit in WMMA Pavilion: VietnamWood 2006, Ho Chi Minh City, Vietnam October 19-22, 2006 A principal activity of WMMA’s International Business Development Committee is organizing WMMA pavilions in some of the world’s best known international trade fairs, as well in regional shows that offer excellent opportunities for members. We are organizing a member pavilion in the above fair. The sign-up deadline is June 30th. Do not delay – space is limited! This unique exhibit service allows members to conserve costs and time, enhance exposure and gain support from fellow members and the WMMA staff. Exhibiting members services include:
In addition, the WMMA will have its’ own booth at VietnamWood at which it will be advertising members’ products and services. Members who want to share the booth can do so for $200. This entitles members to display literature, run product videos and/or work out of the booth. All participants will receive a summary of the event, a copy of the exhibition catalog and leads generated. Cost: The cost for a walk-on package*: $220.00/sq. meter, 9 sq. meter minimum. This amounts to a 20% discount. Members can increase their booth by multiples of 3 sq. meters. * Walk-on Package for a 3 x 3 meter booth includes:
How to Apply for Space: Complete space contract form found here or contact Harold Zassenhaus, WMMA Export Director, at (301) 652-0693, fax (215) 963-9785 or hzassenhaus@fernley.com. VietnamWood 2006, Ho Chi Minh city, Vietnam, October 19-22, 2006 ** To see how the WMMA enhances exhibitors’ ability to attract visitors, click here to view designs of WMMA pavilions in past overseas fairs. Manufacturing StrategiesWMMA and TigerStop Team Up On 3P Workshop
3P is one of the many tools in the Lean toolbox and has had significant impact in assembly operations throughout the world. Based around the elimination of the seven wastes, 3P focuses on the assembly process, the cell or station and the presentation and delivery of materials to the operator. Training and guidance was provided by Michel Baudin of Manufacturing Management & Technology Institute. Since 1987, Michel Baudin has consulted for clients such as Honda of America, Dell Computer, Unilever, Boeing, Intel and Hewlett Packard. After a brief classroom training session on the fundamentals of 3P, the attendees were split into two groups to focus on two different products.
The second product was an existing product line, the Tiger Cross Cut and TigerFence. This product line is design specifically to automate sliding table saws and replaces the manual fence on those saws. As with most continuous improvement events, the first order of the day was to establish an understanding of each of the processes. The teams observed an operator going through the entire assembly process, taking notes of obvious waste activities and possible improvements. The process was also recorded on video tape to allow subsequent evaluation of each of the individual steps. Using the video also allowed the teams to look at the cycle times for each step, utilizing the time stamp on the tape in lieu of a stop watch. Breaking the assembly operations into balanced groups of tasked based on their cycle time and ensuring that every station or group of tasks is balanced to the takt time.
With the layout changes made during the event, TigerStop estimates a reduction in cycle time of 10 – 15% per build, as they move to introduce the water spider and subassemblies further savings will be seen. If you have new products ready to be released to production or you feel that your existing assembly process is not as efficient as it should be, 3P is one solution. For further information, visit www.tigerstop.com and www.mmt-inst.com. Spotlight on Member BenefitsAnother WMMA Member Benefit: ITR’s Spring 2006 Economic Outlook Report
Forecasting tools include: 1. The WMMA Quarterly Economic Outlook Report – These Reports are FREE to all Members and are issued through the Members Only section of the WMMA website. The Reports have been expanded to include more useful information and designed to make them easier to follow and understand. Click here to view the current Report. NOTE:
2. Company Specific Analysis – For a minimal fee ($400), you can have a professional economist provide you with forecasting information that matches up with your unique business. How can you pass up this opportunity for a customized company analysis? If you would like to speak with a member who is already using this service to see what impact it is having on their business, please contact Bill Norton at 215-564-3484, ext 2235. How the Company Specific Analysis service works: The Company Specific Analysis service is provided to WMMA® members for the discounted rate of $400.00. (That’s more than 50% off the normal rate because you are a member of the WMMA!). The fee includes charts and analysis pertaining to one measure of your company’s business, i.e. Sales. WMMA members who elect to take advantage of this opportunity, will be billed directly from ITR and gain access to the ITR website: www.ecotrends.org. Note: If you want ITR to analyze both your Bookings and Sales, the fee would be $400.00 for Booking and $400.00 for Sales, for a total fee of $800.00. ¨ An Excel workbook including the past two years of data for all 44 data series is presented each month in EcoTrends. ¨ A Technical Reference Guide to assist the members with the information presented in both the quarterly WMMA® report and any Company Specific Analysis. ¨ Key Leading Indicators: Corporate Bond Prices, PMI, ITR Leading Indicator and the USLI, which are updated within 24 hours of the data being released every month. Charts, Excel files, as well as, analysis are all available to be downloaded at your convenience. Contact ITR at (603) 226-9331 to sign up for the Company Specific Analysis service and receive your username and password. Be sure to identify yourself as a WMMA Member. Proceed to the secure subscriber area of the website. Enter your username and password. You will see the following page: Subscriber download page When you select Leading Indicators, the list of leading indicators provided below will appear. To access the most current data, simply click a link from the following list: Corporate Bond Prices Data Once you’ve selected an item you can download it on to your computer. The process is relatively easy once you have gone through it once or twice. Feel free to contact the ITR staff by calling (603) 226-9331 at anytime during this process and they will gladly walk you through the steps at your own pace. To learn more about these and other Business Forecasting tools available through WMMA, please contact Bill Norton at 215-564-3484, ext 2235. Association NewsWMMA Announces New Member: Mohawk Machine & Engineering, LLC
WMMA is happy to announce that Mohawk Machine & Engineering, LLC, has recently been joined WMMA! Mohawk manufactures and supply aftermarket parts and service for existing wide belt sanders, planer/sanders and boring machines. In addition, Mohawk assists Newman Whitney with the design, manufacture and marketing of Newman Whitney Wide Belt Sanders and Planer/Sander Combinations. Mohawk supplies the industry with premier quality, difficult to find parts and service for many obsolete machine lines at an affordable price and fast delivery. Mohawk supplies the industry with a heavy US built continuous duty wide belt sander & planer/sander combination in the Newman Whitney line. Mohawk strives to provide the highest quality goods and services to the woodworking industry at the best possible price and delivery. Special Edition of the Cutting Edge Coming Soon!  WIC 2006 in Maui, Hawaii has come and passed, but the memories will last forever! WMMA will distribute a special edition of the Cutting Edge, recapping all the highlights of this outstanding industry event - from the Contact Table Program to the 2006 Baldwin Award Presentation, this year’s WIC was truly one to remember. Be on the lookout for the special edition that will bring you back to your time in Maui with WMMA…
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| ©2006 by Wood Machinery Manufacturers of America, Philadelphia, PA. All rights reserved.
This publication or any parts of it may not be reproduced in any form without written permission from the publisher. For permission to reprint articles or to send correspondence, write to: WMMA, 100 North 20th Street, 4th Floor, Philadelphia, PA 19103-1443, Phone: (215) 564-3484. Fax: (215) 963-9785. E-mail: wmma@fernley.com. The opinion expressed in any articles by outside consultants are their own views and not necessarily those of the WMMA. |
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Although we have a business friendly President in the White House, there is only so much he can do to turn back the tide of regulatory burdens imposed on your business. Recently, a good friend of WMMA’s, the Chief Counsel for Advocacy for Small Business Tom Sullivan, released his latest report on regulatory burdens. The Office of Advocacy is a unique group within the government, created to be a governmental “watchdog” for small business. The Chief Counsel for Advocacy is a presidential appointee, but has the autonomy to take on other federal agencies. Tom addressed the Woodworking Industry Conference in Florida several years ago and we work with him and his office on a daily basis.
The WMMA is organizing two events to assist you in understanding and entering the world’s fastest growing and 8th largest exporter of wooden furniture --- Vietnam.
On March 20-21, 2006, WMMA, in conjunction with TigerStop held a workshop focused on training and implementation of 3P, Production Process Preparation.
The first product is the newly released TigerStop Heavy Duty 2 (HD2), which is designed to push much higher loads than the normal TigerStop and over much longer distances (up to 2500lb @ 24 inches per second or up to 64 ips with working lengths up to 126ft). The HD2 was not yet in production and the purpose of utilizing the 3P methodology was to enable TigerStop to design and create the assembly cell in which the product would be built.
Parts, tools and instruction presentation and the use of water spiders for the delivery of parts or sub-assemblies was a key that TigerStop had previously recognized but with the input of those on the team not involved in the production cell before, new ideas were generated. One of those ideas was a mobile work station upon which the product could be assembled and tested. The delivery of parts and subassemblies has some room for improvement with TigerStop moving towards using a water spider to build subassemblies that can be used on all of its product lines and then delivering those and all other components to the cell as required. This will require moving some of the assembly stations and racking away from walls to allow a path for the water spider that will not interfere with the operator. Always consider the assembler or operator as a race car driver and everyone else as the pit crew. To help the driver go as smoothly and quickly as possible, the pit crew need to support him with everything he needs which allows the driver to focus on one thing only; driving.
Accurately forecasting the future of your business is critical to maximize your bottom line performance. In an effort to give members a competitive advantage, WMMA has partnered with the Institute for Trend Research (ITR) to provide members with the tools to stay at least one-half business cycle ahead in your business planning process. This glimpse into the future will enable you to appropriately plan for the ups and downs in the marketplace.