CoatingsPro Magazine

MAR 2016

CoatingsPro offers an in-depth look at coatings based on case studies, successful business operation, new products, industry news, and the safe and profitable use of coatings and equipment.

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Page 22 of 84

22 MARCH 2016 COATINGSPROMAG.COM Money Matters Costs of doing nothing may be delays and downtimes. The effect of poor information and poor planning can result in job delays, reduced employee morale, and safety issues. A s ow ners and managers, it is our job to drive the highest productivity and profits for our companies. If the company is strug gling, it seems unw ise to spend any "unnecessar y" money, and if the company is doing well, the question is usually "why change"? Because of this focus, we often hesitate to invest in intangibles, such as software, training, planning processes, and the like. It takes time to plan, and it takes time to implement new processes, which implies a drop in productivity. Plus, it's easier to visual- ize the return on investment (ROI) from a new piece of equipment that produces a tangible result — one that we can see and touch — than ROI from a new process or procedure. It's human nature to resist change, and we believe our employees won't comply with a new process. However, there are serious, even dangerous, consequences that result from the lack of investment. W hat is the cost of doing nothing? Job Delays and Lost Productivity Costs of doing nothing may be delays and dow ntimes. T he effect of poor information and poor planning can result in job delays, reduced employee morale, and safety issues. If the employees on the job aren't trained for the specific work or aren't familiar w ith the specialty tools they must use, the work may be slow, and there may be mistakes requiring rework. If there are unplanned site issues, such as w ith the weather, substrate, or lack of suffi- cient utilities, the forced start/stop on the job may result in a drop in produc- tivity. T he need to alter schedules w ill have a ripple effect, causing a shift in the sequence of tasks and resulting in more delays. If resources used to get the job done (e.g., tools, equipment, materials) aren't on site when needed, the results may be costly delays and cause changes in the work fow. Increased costs are usually incurred when a substitute tool or material must be purchased on the fy. Not only may there be idle time as the workers wait, but the cost of the replacement tool may often be higher, plus the cost of gas and labor consumed by driving to pick it up. In short, by "doing nothing," you have cost the company money. In addition, unplanned errors, lack of training, and wrong or missing equipment can all afect worker safety and morale. An over-crowded jobsite, an increase in idle time, and loss of productivity are all potential results. By Alison Falco, CEO of Dynamic Systems Inc. Lost Tools? The Cost of Doing Nothing

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