Thursday, October 18, 2007

Tool Inspection

Have you ever wondered how tool inspection on a presetter can reduce setup times in a manufacturing process. What is tool inspection? Tool inspection is a way a company can check their tools or inserts prior to placing them in their CNC machines. Using various size of magnification 12x, 20x 50x and 100x companies can view tools through a camera checking for quality of the insert or tool for; wear, abrasion of carbide tips, cracks, broken tools etc.

"I have a laser or probe that will tell me if my tools are broken." I have heard this numerous times when a customer explains why a presetter isn't necessary. Can your laser or probe check for cracks in the middle portion of the tool or the insert? Will your laser or probe check for cracks, wear, or quality from your outside suppliers or the tools you receive?

Tool edge inspection can be used to inspect tools received from outside suppliers, as you have a quality plan, you should check your suppliers as well. Have you had an operator place a tool in the machine only to run 1 or 2 parts and then the tool cracks or a quality problem arises. Checking this prior to the production run can benefit your bottom line greatly allowing that machine to continue producing chips and maximizing its efficiency.

Remember a tool presetter offers more functionality than just setting heights and diameters. Inspection before and after will help you to reduce machine downtime and decrease tooling costs and increase your revenue.

Band Saws

Band saws are saws that are made of flexible metal in the shape of a strip, looped into a circle, and arranged around a turning apparatus, so that when you turn the machine on, the band saw rotates at a very high rate. The sawing machine is a tool designed to cut material to desired lengths or shapes. The band saw is a common type of sawing machine used to cut metals in workshops. It is faster and easier to use than handsaws. It enables you to accurately create the shapes you want that you would not be able to do with handsaws.

Although this tool can make the job much easier, the fact remains that it is more dangerous. Specific safety precautions come with the tool and are easy to follow. Many accidents still occur when using the machine due to careless mistakes or simple negligence.

Safety measures include always keeping your hands away from the blade when operating the saw. This is obviously the foremost rule, yet users sometimes lose concentration and the unexpected happens. The result is often tragic.

The band saw is not commonly found in a workshop, because it is bulky and expensive. People who own one are professionals who own a machine shop. In most instances, the use of the machine is left to those who are properly trained to operate it. If you are not familiar with this tool, make sure someone who knows its proper use supervises you. After all, following a safety adage on accidents, prevention is always better than a cure.

Monday, October 15, 2007

Value Add Negotiating for Sales Professionals

Imagine this scenario. You are a sales representative for Baker distributing. One of your long-time customers, Albertson Metals, operates a mill that produces high nickel alloy ingots. Each year, this mill purchases approximately $500,000 worth of MRO products such as bar conditioning wheels, flap wheels, grinding belts, cutoff wheels, steel shot and grit, and other products for the mill’s laboratories. Unfortunately, you are usually able to obtain only about 30% of this business.

During the last six months, you have been working intensively with the mill’s management to convince them of the value of developing an integrated supply arrangement with you. They have reacted positively to your ideas and you have developed a proposal that you believe fits their needs perfectly. Among other things, you will:

* manage Albertson’s inventory.

* stock all items with sufficient buffer stock to assure JIT availability.

* supply Albertson with OSHA-certified safety seminars on appropriate topics to be mutually agreed upon.

* provide 24 hour emergency delivery.

* invoice biweekly for items drawn from consignment.

You have submitted your proposal at a price that you believe fairly compensates you for your high level of service and for the special features included.

A week later you call the plant and are told, "We got your proposal and it’s excellent. However, we have to refer anything of this magnitude to Corporate Purchasing." You call the Purchasing Department and speak to the buyer responsible for this contract. He says, "You’ve submitted an excellent proposal, and obviously you have done your homework. Unfortunately, we have something of an embarrassment of riches here. Two of your competitors also submitted excellent proposals. You should be aware that your pricing is extremely high compared to your competitors. As a result, at this time your proposal really is not competitive."

You explain to the buyer how you’ve worked with the plant for the last six months to develop this proposal. You discuss at length your excellent service record and how you have gone the extra mile to meet the plant’s needs. The buyer acknowledges this but says, "Your competitors also have excellent service records but are willing to meet our needs at a much lower cost."

Did you see this coming? You worked hard to meet your customer’s needs. You solved problems with your customer. You anticipated a win/win for everybody. Your goal was to avoid a price negotiation by differentiating yourself and focusing on your services and your added value to the customer. Now, at the last minute, price rears its ugly head. In fact, the purchasing agent says that price is the determining factor.

What do you do now? What should you have done throughout the sales process to prepare for the possibility of a serious price negotiation?

In our sales negotiation training programs we stress four key steps that will greatly improve your chances of making that sale while successfully negotiating to maintain your margins.

1. Be prepared for a price negotiation but don’t lead with your wallet.

2. Think like the buyer.

3. Be brutally honest with yourself as to what your added value is really worth.

4. Be aware that the negotiation starts when you say hello.

Let’s look at each step.

1. Be prepared for a price negotiation but don’t lead with your wallet. As buying organizations have become more sophisticated, many realize that the key factor is not price but total cost. Therefore, it is sometimes possible to avoid price negotiations if the customer sees enough value. We know of one manufacturer who was approached by an automobile company to take over production of certain parts because their current supplier was not meeting expectations. The manufacturer called in its machine tool distributor with whom they had had a very good relationship. They said to the machine tool distributor, "We promised the automobile manufacturer that we could do it. Now it’s up to you to make it happen. We’re not here to negotiate the price — just make it work." The distributor sold $10 million worth of machine tools at list price, including a full turnkey operation and the placement of a full time technician at the manufacturer’s location.

There’s a lesson to be learned: If you think there is a possibility that you can make the sale based on your added value and services, try to leave price out of the discussion. Don’t start with price concessions or discounts but focus on the added value.

On the other hand, with today’s ferocious pressures to reduce costs, buyers never forget that price is an important component of cost. Usually, buyers will want to have the best of both worlds. They want you to solve their problems, add value, reduce their costs, and in addition, give them a better price, which further reduces their costs. Don’t be surprised, don’t be shocked, and don’t be hurt. That’s just the way the game is often played. As you start the process, you need to move forward in such a way that while you don’t invite a price negotiation, if there is one, you’re prepared.

2.Think like the buyer. To negotiate effectively, take up residence in the buyer’s mind. Say to yourself, what might actually be going on vs. what they’re telling me? What they say may be the least important information. What they say to each other and what they’re thinking is the key.

Let’s go back to Albertson. We could imagine three different scenarios.

Scenario 1 -- Plant: "This proposal from Baker is great. We’re going to save all kinds of costs and solve all kinds of problems. I know they appear a little pricey, but the cost savings are worth it." Purchasing: "Have you looked at any competitors?" Plant: "We’ve looked at two who say they can do it and have offered a much lower price, but their services really aren’t there and we don’t believe they can produce the cost savings." Purchasing: "Would you mind if I use the fact that you got two competitive lower cost quotes to try to bring Baker’s price down?" Plant: "No problem, as long as you promise that we will get a contract with Baker without losing any of the services and added value they have promised us." Purchasing: "You have my guarantee."

Scenario 2 -- Plant: "This proposal from Baker is great. We’re going to save all kinds of costs and solve all kinds of problems. I know they appear a little pricey, but the cost savings are worth it." Purchasing: "Have you looked at any competitors?" Plant: "We’ve looked at two other competitors. They’re almost as good as Baker and they are cheaper." Purchasing: "How much more do you think Baker is worth than the best of the two competitors?" Plant: "We think they’re worth about 10% more." Purchasing: "O.K. We’ll try to get Baker down so that they’re no more than 10% above your best competitor, and of course we’ll try to get them even lower than that. If we can’t get them down, then we’ll go with your No. 2 choice." Plant: "Sounds good to me."

Scenario 3 -- Plant: This proposal from Baker is great. We’re going to save all kinds of costs and solve all kinds of problems. I know they appear a little pricey, but the cost savings are worth it." Purchasing: "Have you looked at any competitors?" Plant: "We’ve looked at two other competitors that can do the same thing Baker can. They all appear to have the same quality and would produce the same cost savings." Purchasing: "Then you don’t care which one we go with as long as we get the best price." Plant: "Yes, they’re basically the same, so go with the best price."

The buyer will almost always want you to believe that Scenario 3 is happening. But is it really? The profitability of your sale may depend on your ability to determine which scenario really is in operation.

3. Be brutally honest about the worth of your added value. If it comes down to a price negotiation, your added value is worth only what the buyer is actually willing to pay for it. Say, for example, that the only difference between you and your prime competitor is that you have a better reputation in the marketplace. Is that of value? Of course. Is it important? Absolutely. Is it worth anything? That depends on the buyer. If a one buyer says, I’m willing to pay 2% more to go with Company A because of their better reputation, then it’s worth 2% to that buyer. On the other hand, if another buyer says, I’m not willing to part with any hard, cold cash because of Company A’s reputation, then for that buyer it is not worth anything."

For each sale where you have one or more potential competitors, you need to do a value-added analysis in order to figure out the most the buyer would pay you vs. your competitor. Let’s make up a simple example where you have just one competitor, Company A, and let’s assume there are just four different components of value: service, reputation, delivery, and problem solving ability.

Based on your knowledge of the customer and the competition, you believe the customer thinks that you have a better reputation, provide better service and have better problem solving capabilities, but that your competitor is a little better on delivery. Furthermore, although your customer likes your reputation, they won’t pay more for it. They like your service and feel that’s worth up to 2% more. They believe that your problem solving capability has helped them overcome significant difficulties and that that’s worth 4% more. On the other hand, you have had some delivery problems. While not fatal problems, the customer would be willing to pay your competitor up to 2% more for their better delivery.

Your value-added analysis would look like this:

Value Added Item Vs. Company "A" and The Most Your Customer Would Pay Extra for That Added Value

Reputation 0%;
Service 2%;
Problem Solving 4%;
Delivery (-2%)

Under this scenario, your customer would be willing to pay you up to 4% more than your competitor. Of course your customer will often say, as our Albertson purchasing agent did, "You guys are all the same. You all provide good quality except your delivery isn’t very good. You’ve got to get much more competitive with your pricing." If you’ve done the value-added analysis and it’s accurate or reasonably accurate, you can see behind the purchasing agent’s mask to what is really going on.

4.The negotiation starts when you say hello. At this point you may be saying, "Everything you say is true but if I’m the Baker sales representative talking to the Albertson purchasing agent and he says to me, ‘Your competitors are lower and you have got to cut your price,’ what do I do now? That purchasing agent isn’t going to tell me their real scenario, what they said to each other, or what they really think our added value is worth vs. our competitors."

Correct. If the first time you thought that there might be a price negotiation was when you were talking to the Albertson purchasing agent, it’s too late. You don’t have the information you need, and it’s going to be difficult to get it.

And that takes us back to our first point. Be prepared for a price negotiation while you try to avoid one. The negotiation starts when you say hello. The time to start finding out who potential competitors might be, how your customer views them vs. you, the problems they’ve had with competitors, whether anybody can do as good a job as you can, etc., etc., is from the very beginning of your discussions with your customer.

Have as many contacts with your customer and with as many people in your customer’s shop as possible. Ask direct questions, indirect questions, feel people out gently, and try to get a picture of their whole situation.

Choosing the Right Baseball or Softball Pitching Machine

A pitching machine is a tool that, when used properly, can benefit a player enormously as well as improve the quality and efficiency of baseball or softball hitting drills.

Whether refining a player's baseball or softball hitting technique or working on fielding practice, a pitching machine can literally function as an extra coach. That having been said, most consumers are quickly overwhelmed by all of the variations of baseball and softball pitching machines available.

Questions of age appropriateness, features, the many different balls, etc are all important and need to be addressed. First off, a baseball or softball pitching machine, when used for hitting practice helps refine the swing, no matter the age of the player. However, the particular skills and interest level of the player is an important factor. Too much of a machine can prove frustrating as can unreasonable expectations. This is true for players coming out of coach pitch or T-Ball. Some are comfortable with the challenge of a faster, more realistic pitch while for others are intimidated.

Two things to bear in mind:

1. Hitting a baseball or softball is one of the most difficult skills in all of sports. A young player accustomed to rainbow pitches in coach pitch will, naturally, find the speed of even the entry level machines challenging. However, a lobbed pitch actually instills bad habits, such as upper-cutting, trying to lift the ball and thus the sooner the batter learns to practice with a realistic pitch, the better.

2. The pitching machine you choose should be capable of speeds of at least 45mph+ from the standard Little League distance of 45 ft. from the batter. Assuming that a realistic pitch can be thrown at less speed from this distance is simply not true. Any slower speed would require lofting the ball, thus producing an arch that would have you essentially back at a pitch similar to coach pitch...and as such will be of no practical use.

Apart from batting practice, a pitching machine is can be an excellent practice tool for fielding flies and grounders. It's like having an expert coach that never fouls a ball off or wiffs a toss and thus practice is that much more valuable. If a player is very young, their hitting skills will improve with time. But if they're having difficulty adjusting to the faster pitch, take it easy and stress the fielding aspect of the machine.

Using a pitching machine at the highest speed, straight down the pipe every time is actually a bad practice. It encourages an unrealistic atmosphere for what the batter will face in actual game situations. It also encourages mindlessly swinging at every pitch. Better to practice and to use the targeting aspect of the machine to work on the inside and outside corners, to train the batter to think at the plate in terms of game situations, e.g. a runner on second doesn't need to have the ball hit in front of him or her, therefore the batter should be looking for an outside pitch to take to the opposite field, hitting behind the runner and so forth.

Choose a pitching machine that can be targeted up and down and on the corners and most importantly, use these features. With the more advanced pitching machines (those that allow curves and sliders) you can hone the batter's skills for every imaginable baseball or softball hitting situation. A machine that features an adjustable head to simulate either left or right-handed pitching makes for a truly versatile, real game experience.

A pitching machine is a great addition to any team or ballplayer's practice. Correctly used, they offer efficient, demonstrable results that make the game more rewarding and fun.