Cost reduction--the name of the game. (Consult Jerry Metz).

Editor's note: Jerry Metz is retiring as a Wood & Wood Products contributing editor, effective Dec. 21, 2002. In celebration of Jerry's illustrious career as a furniture manufacturer and columnist, W&WP is highlighting some of his many accomplishments over the remainder of the year. This month's entry, Jerry's first regular column for W&WP, is reprinted from January 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, IN. 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 manufactures 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, 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 or 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 cost only via the upgrading route.

Step number one requires a change in the chain of command. One significant change in the typical organizational chart is that the inspection department reports directly to the superintendent. The reason for this change is simple: 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 mean an efficient operation. Bonuses and profit sharing mean money in the workers' pockets and it's a rare bird who 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 the plant, product and procedures ... and ability 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, production 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 consistently achieve a great finish.

If plywood manufacturing is involved, he will handle all checks on his 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, reporting them 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 little girls? They're perfect to complete the inspection team, with one for each major department (except such obvious ones as machining), including assembly, fitting, finish, upholstery and final acceptance. The girls 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 inspector 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 workday. She should sign the proper 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, 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 our and speak out for itself. (But watch it -- your salesmen may begin to get lazy!)

RELATED ARTICLE: Do the Little Things

Q I recently came across an old issue of Wood & Wood Products in which you suggested using brass-coated screws on back panels to give a product a little extra touch of class. 1 thought you would find it interesting that I'm planning to do just that on my next project. Thanks for all of the great ideas over the years. I plan to keep my back issues, which have tons of post it notes on your columns, for a long time to come.

A One thing I've found in my many years serving this industry is that it is often the little things that can do the most to help your company stand out from the crowd. Whether its using brass-coated screws on backs of case goods or calling a customer out of the blue -- not to sell him something, but to see how things are going -- can work wonders for your business.

Q For some time now! have been a finish technician for a major materials supplier. Many of my customers have sought my advice because of the many times you have written about the importance of wood products companies developing a close partnership with their suppliers. I have helped many companies immensely improve the quality of their finishes and helped others develop all new finishes for their products. Thank you for your many contributions to the industry. We'll miss you. Mr. C 

A Without experts like you, my job would be so much more difficult I'm glad to hear some readers have heeded my advice and sought answers to their problems and questions from you.

Q We want our air-dried stock to come in at 30% moisture content. The mill is willing but we don't know how to keep track of this. Can you offer us some advice? Thanks. Mr. T 

A Buy hand-held moisture meters for your yardmen and make sure they use them. Meter every board upon delivery and spot check the moisture content of lumber in the yard.

Q We stack panels at one end of our cabinet assembly area. Some of them show signs of a little pull They are well made and the backs always match the faces. What's the deal? Please let us know. Thank you. Ms. L.

A I spoke with your cabinet foreman. After a little prodding on my part; he admitted that windows are often left open at night. After I explained the problems that were being caused by this bad practice, he promised to make sure they are closed at the end of each day in the future.

Q We just built a new lumber storage building. Is there any special way we should handle the dried stock? Look forward to your response. Mr. 5.

A With each species, always use the oldest stock first.

Q I've noticed that some of the people in our finishing and rubbing area are coughing a lot. We hope it isn't anything serious, but we don't think they have colds. Any advice? Ms. D.

A Don't waste any time. Send these people to their doctors for thorough checkups. Put your finishing technician on alert He may need to come and visit pronto.