1. Time Standards 
2. Lean Manufacturing Principles 
   
3. Theory of Constraints Principles 
4. Proven and Practical Methods for Better Productivity

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Testimonial of services…

Terra Nova Truss - Glenburnie, ON Canada

Now was the time to take our company to the next level of best practices.  We wanted to stay competitive in these uncertain times and remain profitable.  We knew we should evaluate every area and aspect of our business.  That is why we brought Todd into our operations.

Todd helped us address three key areas where we had some major issues.  The first area to address was implementing lean best practices in our production shop. A time standards system and lean practices have changed our whole production outlook for the better.  Although we have been building trusses for years, Todd showed us how we could improve our efficiencies and reduce our cost.  Second was our bidding process.  Now, every order can be processed using time standards, which he provided, with consistent results.  Our older bidding method was flawed, and these common methods were ones we and our competition have been using for too many years.  Due to Todd’s assistance, we clearly see the older methods’ shortcomings.  Last and certainly not least was [third key area].  We have implemented his Truss Shop Labor Tracking software.  As a result, with a few mouse clicks, we know our shop manufacturing efficiencies and our real labor cost.  Now, we are able to implement job costing into our accounting system and we know our real margins and profitability daily instead of quarterly.

No doubt about it, Todd will provide truly positive insight into your operations that will make a solid difference.

Mark Fox
Owner/GM - Terra Nova Truss - Glenburnie, ON Canada

See reference page for statements by general managers and owners about services.

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Listing of Subject Matter During  Consultation

All Departments Addressed During Consult

¨ Manufacturing, Design, Sales & Administration

¨ 50% of consult is the manufacturing and 50% is all other departments

  Click here for details listed on pages 6 and 7 of Consulting Brochure

Truss Manufacturing Time and Motion Standards

• Written report with expected man-minutes for use in roof truss design programs.  These are the labor estimation numbers used for properly estimating the time required to manufacture all designed roof trusses.
• Labor estimation numbers, based on time and motion studies, include Cutting, Setup, and Build.
• Numbers are based on equipment types
• Note: Design programs have labor estimation defining limitations.  These limitations are addressed and explained.
• Proper method for implementing efficiency standards for truss fabrication such as the Houlihan method and other programs

Proven & Practical Lean Manufacturing Principles for Component Manufacturing

• Common Lean manufacturing terms explained and demonstrated for the component industry.
• Push versus pull for material and product flow 
• This is a very big issue that affects every manufacturing shop
• Proper material flow principles
• Time and motion principles that should be addressed for every task

 Every area within a component facility (design, sales & manufacturing) is reviewed and suggestions are provided for improving productivity.  All suggestions are based on lean manufacturing principles.  This service is essential for achieving greater results to the bottom line.

Theory of Constraints main principles are explained and are part of the consultation.“Theory of Constraints” is a natural development of lean manufacturing.  The five principles will be explained and demonstrated as to how to apply the TOC principles.

Opportunity cost explained for each department and equipment types which provides a clear picture for potential gains and also equipment investments.

 In order to properly understand and implement lean manufacturing principles opportunity cost will be demonstrated as how to calculate these costs and how they affect the decision process in any given area.

    Other common opportunity cost that would be addressed

• All shop employees
• All equipment (tables and saws)
• #1 area for gaining additional opportunity dollars in every shop!
• Once all the principles are pieced together this becomes abundantly clear to everyone.  This will become the focus point of every area in a roof truss shop.  It actually provides the foundation for which decisions are made and helps to achieve team effort.

Opportunity Pricing explained and demonstrated for proper pricing of components. 

 Drummond’s Margin Formula

1. Automatically adjust every order pricing so every order’s baseline is equally adding to the bottom line (You can still add or discount any order)
2. Adds thousands of dollars over any given period of time (Millions for larger companies)
3. Easily choose which orders are more profitable without the subjective guesswork

(Everyone will be able to understand and use –designers, salesmen and so on)

You will be creating an environment where your competitor’s production gets bogged down based on a margin calculation that is flawed from the get-go

You Will Make More Gross Margin Dollars Using This Pricing Formula

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Testimonial of services…

Cal-Asia has been in the truss business for thirty years.  We felt we had a pretty good grasp on our costs, and were pretty efficient in how we did things.  While this was true, I cannot overstate the improvements we have already seen after implementing the suggestions Todd offered following his visit to our plant.

Using the principles Todd has embraced will enable us to estimate and measure the actual costs per job at a level of accuracy never before realized.  His suggestions for analyzing our procedures have already increased efficiency in more than one department.

I do not hesitate to recommend Todd Drummond to anyone trying to better understand costs and improve efficiency.

Allen Erickson, Cal-Asia Truss, Concord, CA

See reference page for statements by general managers and owners about services.

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Truss Manufacturing Time and Motion Standards

Example and Explanation

What are time standards?

• They are measurable time elements (Man-Minutes, R.E., or S.U.)
• They can be measured consistently
• They are broken down to the lowest denominator so when they are all added up over various groups the total time remains true.

(Note: Many Industrial Engineers use R.E.’s “Reasonable Expectancy” or S.U.’s “Scheduled Units” which both represent 1/100^th of an hour.  This is simply another unit measurement of man-minutes.)

 Most truss shops use…

1) Board Footage    2) Linear Footage

    3) Material Cost    4) Sales Dollars

5) Number of Lumber Pieces

It is easy to understand why most truss shops use these numbers.  They are easily derived from the truss design program.  However, none of them can be directly linked to actual labor man-minutes required for any given order.

Board Footage – Think your employees would rather build pole barn trusses or a hip roof system based on board footage?

Linear Footage – Are common trusses as difficult to build as customized profiles with multiple pitch breaks?

Material Cost – When the material costs fluctuate because of market conditions, does the ease of building the trusses coincide?

Sales Dollars – When an order has been discounted, does it mean they can build the order faster?

Number of Lumber Pieces – Number of lumber pieces do not proper handle the setup and most do not adjust for lumber length and size.  The "average" setup time divided over numerous pieces really skews the labor estimations for very few or numerous jig setups.

We all try to make allowances for the given complexity of each order.  We try to factor in whether there are numerous setups or the board footage changes based on cord size.  However, can we say with any honesty that we are consistent? 

We all make the same mistake over and over by telling ourselves that what we are looking at is the average rate.  To make matters worse we try to measure individual groups on a daily basis that does not relate well to the “average.”  Intuitively we know that none of the measurement tools really works on the individual level, but that is all we have had to work with.

An Industrial Engineer by the name of John Houlihan created quite a name for himself in the component industry.  What he did was use time and motion standards and apply them to truss manufacturing.  He used the R.E.’s to calculate the expected time required to complete a certain task, such as truss building.

 Industrial Engineers are educated with the following…

 For Most Manufacturing Shops - Gains Expected from Clear Time Standards

No Time Standards = 60% of performance*

With Proper Time Standards = 85% of performance*

With Proper Time Standards and Effective Incentive Program = 120% of performance*

*All performance figures have a normal deviation range of +/- 10%.  Source from case studies with Industrial Engineering Consultants Mitch Fein and Fred Myers.  These studies have remained consistent across various other bodies of work and are considered statistically valid.

This is the secret of the Houlihan Truss Standards system.  John Houlihan understood the gains any truss manufacture would obtain in the manufacturing facility if they employed proper time standards for their components.  On average, most manufacturers gain a 42% increase in productivity by simply employing proper time standards.  ((85% - 60%) divided by 60 = 41.7% gain) In order for this type of expected gains of productivity in a manufacturing shop, there are five basic performance principles that I will provide you.

All Departments are addressed during typical consultation– Administration, Sales, Design & Production

  *** 3 Months Normal Payback of Consultation ***

Results Within 3 Months….

• Procedures & Issues are Worked Out
• Lean & TOC Principles are Practiced
• Proper Time Standards (R.E) are Implemented
• GAINS & BENEFITS ARE REAL AND ARE IMMEDIATE

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Testimonial of services…

Locke Truss Co. Ltd. was established in 1968, and has long been known as the "Roof Truss Specialist”. Looking forward to the next 5 years in the very completive South-Eastern Ontario Market, we know we were going to be facing very difficult times. 

Todd was the “key element” in kick starting our journey on lean manufacturing. A large part of my staff has many years of experience and Todd’s methods in the 4 days of training worked very well and were just what I needed to get going. I was amazed at the response, and willingness to embrace to changes needed. We look at production methods, standardizing procedures and written processes.

Gary Lalonde, President Locke Truss Co. Ltd., Brockville, ON Canada

See reference page for statements by general managers and owners about services.

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Incentive program outline for use in truss manufacturing

Provides the basic principles for effective incentive programs.

      (See http://www.todd-drummond.com/incentive.html)

 Proper scheduling method for truss fabrication

Simply the most accurate method of scheduling production of roof trusses.

(See http://www.todd-drummond.com/productionscheduling.html)

Equipment

• Recommendations of current equipment which includes productivity
• Suggestions for future equipment types and investments
• Note: I do not receive any commissions or compensation from any vendors or suppliers of software or equipment manufactures.  However, I do sell my own labor tracking software which I clearly state for client understanding.

Design Department

• Scheduling and Tracking  
• Most design rooms have non-existing system of measuring and scheduling the workload
• Hardware and computer setup
• Software 
•  I have many years experience with many different software packages
• Order & Bid Process (Procedures)
• Communications
• Responsibilities
• See website for design room productivity issues at Design Productivity

Management and Employee Issues

• Communication
• Delegation
• Training

Once this consultation has been completed and the principles implemented you could expect…

1. Increased profitability 
2. Common method to judge efficiencies of every facility
3. Proper lean principles that could be the foundation to apply in every location and department

For a review of my background see

http://todd-drummond.com/toddprofile.html

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Please note that my schedule, for consulting services, may be filled for many months in advance.  My time is planned for 50% per month traveling which allows for two consultations per month only.  I strongly suggest that if you wish to utilize my services that you schedule the time period as soon as possible.  A 10% deposit will be required.

Please contact me for pricing information…

Thanks for Considering My Services