Another Great Manufacturing Story

PROCTER & GAMBLE: HOW THEY ACHIEVED ZERO WASTE AT 45 MANUFACTURING PLANTS

Zero waste to landfill. Think about that for a moment. Cincinnati-based P&G, one of the world’s largest manufacturers, is now using, recycling or repurposing 100 percent of the materials that enter 45 of its manufacturing facilities.

The examples of creative uses are many: In Mexico, sludge from a toilet paper factory is used to make roof tiles. In Budapest, rejected feminine care products go into the production of cement, instead of being deposited in landfills. Scraps from feminine care products now go into the soles of low-cost shoes. Waste left over from the manufacturing of shampoo is now used to make fertilizer. Wood scraps go into particle board.

Back in 2007, the company formed a Global Assets Recovery Purchasing (GARP) team with the mission of looking at waste as something that can be used for a different purpose. The team members are, for the most part, procurement specialists who see waste minimization as a business opportunity. Company-wide, only 1 percent of materials entering plants end up in landfills. In March 2013, P&G was able to make the zero-waste announcement about 45 of its plants.    

Globally, 4.6 billion people – more than half of the world’s population -- use P&G products. P&G is making amazing strides in waste reduction in their plants, and now has its eyes set on helping its customers reduce waste as well. By any definition, that is a Great Manufacturing Story. 

A friend and former co-worker from our days at the National Association of Manufacturers (NAM) continues to produce a series of articles relating to manufacturing success stories.  My thanks goes out to Doug for sharing these remarkable achievements with us.

Great Manufacturing Stories - http://www.greatmanufacturingstories.com/

Shame on Buick GMC of Mahwah

When I elected to start this blog I intended to share best practices for my chosen profession, comment on an article or share a story or event past or present that I found interesting.  Today, I regret I feel compelled to share a very negative experience I had with a local car dealership’s service department.  I suspect many of us have had similar experiences and we must all be vigilant when receiving information from professionals in all industries.

We own a 2009 Buick Enclave that we purchased new.  While we have enjoyed it’s ride, functionality and comfort I cannot say it has been trouble free. Several months after making this purchase we returned to the dealer for a few minor issues including an unusual noise coming from the steering column. The first time we reported this noise we were told they knew of this issue but did not have the part to make the repair. The next time we brought the car in for service we were told the noise could not be duplicated.

The second recurring issue has been with the engine or drivetrain. Several years ago we noticed the car not shifting properly when we accelerated.  When we brought it in for service we were told it was the timing belt but not to worry it was covered under our warranty.  Last year we experienced a similar hesitation when we accelerated and again returned to the dealer for service. This time we were told the transmission no longer functioned properly and would need to be replaced.  Of course, there was no cost to us as it too was covered under warranty.

A few months ago we again experienced louder than usual groans and grinding coming our steering column and hesitation when accelerating.  So we made an appointment and returned to the dealer as these were both ongoing issues they’ve diagnosed throughout the life of our vehicle. While the car was in their possession we also had them look at the sound system as we were experiencing interference when we plugged in an external device such as an ipod.

At the end of the day I received a call with their diagnosis and recommended repairs. The steering column noise was a result of a leak of the power steering fluid.  As a result there was no power steering fluid in the system and the entire gear and steering column needed to be replaced at a cost of $1500.  While I may not have the exact technical name of the needed repair I’m certain he used the word gear and I’m certain he said $1500. In regard to the hesitation, we needed a new coil and plug as one of our six cylinders was not functioning.  Cost would be $1,000.  In regard to the sound system interference, the unit was bad and would need to be replaced for $800. None of the above is covered under warranty. WOW!  However, since we are such good customers he would talk with his manager who was not there and he would see what he could  do for us.  I agreed.  The next day, he called and said they would cover the steering column repair so they could make all the repairs (minus the radio) for $1,000.

I declined what they felt was a generous offer and said I would need a second opinion from another service facility. When I picked up my car they charged me $130 for the diagnostic service and I took my car elsewhere. The following is the result.

The steering column did indeed have a leak but there was still fluid in the system and it worked properly and safely without being replaced.  They recommended we keep an eye on it (fluid level) and when it gets low, add fluid. (Hmm, I can do that.)

The hesitation during acceleration was indeed caused by a bad coil and plug. Satisfactory repairs were made for a total cost of parts and labor of just over $300.

Lastly, the interference in the sound system when an external device is connected was a known problem to GM.  This professional service facility researched GM bulletins and learned there is a special wire sold at Radio Shack that addresses this issue.  The GM bulletin includes the part number.  Curious, why didn’t a GM dealership know this?

The end result is the Enclave runs great without hesitation, the ongoing noise in the steering column has returned to normal and while the Radio Shack wires did not cancel out all the interference, it is much improved.  All this for a total cost of less than $350 (As opposed to over $3300).

In the event you think I’m being unfair to the dealer you should know I made it clear to the customer service representative I had serious doubts about the accuracy of their diagnosis and recommended repairs. Also, I shared my experience in total with the service manager who sent me a standard impersonal e-mail and "hoped my service was completed satisfactorily".  I responded to his e-mail to inform him I was not satisfied and actually resent having to pay $130 for a diagnosis that was mostly incorrect. Several weeks have passed and I’ve yet received a response.

As we are often reminded, “let the buyer beware”.

Don Sciolaro

DESolutions

(201) 394-8801

web site: D E Solutions

Social Media and a Multi-level Communications Strategy

Periodically, our organizations are faced with the question of when and how to incorporate new trends into our business plans and strategies.  It’s the struggle between the minimum our respective customers expect versus what the leading organizations are doing. For instance, when the internet was young there were a few of the visionaries who saw the value in incorporating a web site into their marketing and communication plan.  At that time, there were a select few that had effective compelling web sites.  A short time later it was standard operating practice to have a professional and informative web site. It was no longer a luxury for the few.  If you were to be taken seriously, you were expected to have a user friendly, professional and informative web site.

We are faced with s similar dilemma today in regard to social media.  In the early days of social media some of the more insightful organizations incorporated social media into their communications strategy.  The rest elected to wait and see.  Social media today like the internet of yesterday can be overwhelming and frightening yet compelling. 

While many are still trying to figure out which is a better platform, Facebook or LinkedIn, you’ve already missed the boat to be on Twitter, YouTube, Instagram, Tumblr, Flickr, Vine, etc.  By the time you finish reading this article someone will have introduced another in a long line of the next great social media outlets.  Some will be successful others will fail.  How do you sort them out and how do you know which are the right ones for you?

The answer depends on your organization and its members or customers.  This blog can serve as an example.  Remember all the parts are interchangeable.  Depending on your business, some elements may be more effective than others as people receive their information and communicate in different ways.  This is why there is no one correct strategy for everyone. Any communication strategy must incorporate multiple elements to be effective.  It all starts with a communication hub.  For me that means a compelling web site or in this case a blog site.  Make certain your web site is easy to navigate and allows the user to get the information they’re looking for with little effort. You can also control the content of your web site so while it is a constant the information will vary.  Then determine how to reach your target audience.  Many communicate by e-mail and that is one option.  By using abbreviated messages you can drive your customers to your web site by e-mail. This is only effective if you have the e-mail address of everyone you want to do business with and they are likely to follow a link to your message. To reach the rest of the world you turn to social media.  You can post messages on your own LinkedIn group or groups where your customers go for information.  You can send tweets with links and hash tags.  Perhaps the one advantage this digital age provides over print is you can track your progress and assess where your message is well received and where it is not.  I posted the link to this article on my LinkedIn profile.  I then shared it in a variety of LinkedIn groups where I felt professionals like you might benefit from its content.  I then sent out a summary and link to this blog on Twitter.  In the days and weeks that follow I can track the views of this blog and assess where the viewers read the post and followed the link.  In some cases the origin is from a message board I do not use.  This means someone shared this link with their network, another benefit of utilizing social media.

I have one suggestion and a word of caution. I suggest trying a variety of social media outlets.  They’re not complicated but it does take some research to understand the culture of accepted practices by the users of the various outlets. For instance, messages posted on Facebook pages vary greatly from those users expect to see on a LinkedIn page. Caution: Due to the number and variety of social media platforms it would difficult for most of us to devote the time and resources to master them all.  Even if you did, they will evolve and new ones will emerge.  But like the growth of web sites, social media as a component of your communication strategy is a must.

I will close with an article a friend posted in a LinkedIn group of like minded professionals. It is about social media trends for 2014.  http://www.socialmediaexaminer.com/social-media-trends-2014/

Don Sciolaro

DESolutions

(201) 394-8801

web site: D E Solutions

Can Knowing Hotel Secrets Lower Your Costs?

I recently read an article posted on a social media site that suggests there are secret ways to work with hotels to lower your event costs. I wondered how significant these secrets were and asked an industry expert for his analysis. Tom Berkman, President and CEO of Omnia Housing Services is our industry expert. Tom is a 36-year hospitality and housing company veteran that created and has overseen the operation of the THS Company, the nation’s premier sports housing service and Omnia's parent company.

Fill Need Dates was number one - This seemed obvious to the author and our industry expert but not me. They explained this applies to event space not guest rooms.  If a hotel is full due to a large city wide event, its event space (meeting rooms) are likely not being used. The hotel may be willing to negotiate better rates for this unused space which can come in handy as long as you don’t need guest rooms.

Check Cancellation Clauses – the author of the article says to be careful about this important item as it may result in steep penalties should you need to cancel less than six months from your arrival date.  Our industry expert says his firm never agrees to cancellation clauses more than 30 days from arrival.

Both the article’s author and our expert agreed the next several items were standard so we won’t devote much time to them but felt they should be noted here.  They are: Be Aware of Food and Beverage (F&B) minimum.  Seems reasonable but be aware F&B calculations do not include gratuity or tax; Understand audiovisual (AV) requirements. Some hotels have a preferred vendor and may charge you a fee if you use your own;  Contract internet upfront. Until recently, this has been a major cost to your event.  Hotels are better equipped today but be aware of these hidden charges.

Attrition-Lower it – The article’s author suggests a variety of tips and tricks for calculating attrition penalties should they occur. Our industry expert tells me they never agree to attrition penalties in their contracts and feels they could be avoided all together.

Ask for a Resell Clause – This refers to your attrition penalty but our industry expert reminds us they have no attrition so this clause is unnecessary.

Leverage Sales Manager – this was more of a tip on how to work with a sales manager to get the best deal. It sounded more like shopping for a car as it was suggested it’s better to call at certain times of the month or quarter when they have to report sales to quota.

While the article offers some things to consider when negotiating a hotel contract, it seems more complicated than that to me. A housing services vendor can be a great partner in working through the hotel selection process and execution of an agreement. If you want to remove the risk from your organization and increase your reward, that is my best suggestion.

Don Sciolaro

DESolutions

(201) 394-8801

web site: D E Solutions

Great Manufacturing Stories

A friend and former co-worker from our days at the National Association of Manufacturers (NAM) continues to produce a series of articles relating to manufacturing success stories.  While I enjoy them all, I chose this one to share with you as everyone knows the company and likely uses their products. Also, I am proud to say I frequently visited this outstanding company having an opportunity to learn about its culture and history firsthand. My thanks goes out to Doug for sharing these remarkable achievements with us.

McCormick Spices: Great Taste Starts With A Committment to R&D

It would be hard to find a company that does more to bring life to the taste of food than McCormick Spices, whose products can be found in residential and commercial kitchens around the world. McCormick is celebrating its 125^thanniversary in 2014 with its annual Flavor Forecast, new recipes, videos, and opportunities for its customers to share their ideas.  

The company was founded in Baltimore. Today, it operates plants in Hunt Valley, Maryland; Gretna, Louisiana; South Bend, Indiana; Atlanta, Georgia; Irving, Texas; and London, Ontario; and one in Mexico, as well as a number of plants overseas. About 40% of sales come from non-U.S. operations.

Consumers are often surprised when they learn how much R&D goes into the company’s products. McCormick typically will invest between $52 million and $58 million in R&D each year at its research labs and product-development facilities. These efforts focus on developing new products, improving existing ones, and finding ways to lower sodium and calories, to help consumers more easily comply with recommend dietary guidelines that often include reducing salt, fat, and added sugars. McCormick is also involved in studies of diets in a variety of global regions.

Through the years, McCormick has grown its business not only by developing its own products but also through acquisitions. Its purchase of A. Schilling of San Francisco in 1947, enabled distribution across the entire continent. Canada’s largest spice company, Gorman Eckert Ltd, was acquired in 1962. Then came a frozen-foods acquisition, Gilroy Foods, in 1973. McCormick added an interest in Old Bay seasonings in 1990 and purchased Lawry’s seasonings in 2008. Today, the company employs about 8,000 people worldwide.

Raw materials, such as peppers and onions, are sourced both locally and internationally. McCormick’s manufacturing processes are highly efficient, yet the company continually works to minimize waster. Instead of relying on landfills or incinerators, McCormick recycles its scrap metals, cardboard, office paper, plastics, and food waste whenever it can. The London, Ontario plant recycles nearly 45% of its solid waste, and the Monteux, France plant now recycles 75% of waste. Packaging is minimized whenever possible.

Spices, rubs, and seasonings make food more delicious, and in that process, bring people and even different cultures a little bit closer together. And that may be, as McCormick celebrates its 125^th anniversary, the company’s greatest achievement of all!

Click here for more Great Manufacturing Stories: Great Manufacturing Stories

Salute to volunteers by former NY Giant great George Martin

I recently attended my second Super Community Spirit Showcase hosted by the Mahwah Regional Chamber of Commerce (http://www.mahwah.com/).  The Chamber invites non-profit organizations to set up table top displays to share their mission with the Chamber of Commerce members in attendance. The theme of the event was related to the Super Bowl as it took place the week before the big event and probably less than 15 miles from the Stadium.  There were numerous organizations represented including a homeless shelter for battered women, a community food bank and our job seekers networking and support group (http://www.neighbors-helping-neighbors.com/). Attendance was great in the large hotel ballroom and there were several former pro football players in attendance to give out autographs. 

Following introductions of the Chamber Board of Directors and other VIPs in attendance, the keynote speaker was introduced.  It was George Martin, former all pro defensive lineman for the NY Giants (https://www.facebook.com/GMartinNFLAA). He started his remarks by sending a Giant thank you to all the volunteers in the room and to all the attendees for supporting these organizations. He did not single out any one group but acknowledged the important work of all non-profit organizations and the selfless contributions of the many volunteers in these organizations.  He went on to say that he would not have become who he is without the work and support of a non-profit early in his life. He did not elaborate but you got the sense it either changed his life dramatically or perhaps even saved his life.

Then he shared a brief story about recently being asked to speak to a group about civility in sports. He said while he agrees this is an important topic, he would rather speak about civility in society.  I wish I could have been there when he gave that speech.

He went on to close his remarks by recognizing his former teammate and two time cancer survivor, Karl Nelson. Karl was there representing one of the many charities he supports. George said Karl was the bravest person he ever met. (http://fifthdown.blogs.nytimes.com/2012/10/27/q-a-with-karl-nelson/?_php=true&_type=blogs&_r=0).

I did some research on George Martin following the event and found an amazing story about a charity he founded following the tragic events of 9-11. It’s worth a read: Ex-Giants DE Martin finishes 3,000-mile walk for 9/11 charity  (http://sports.espn.go.com/nfl/news/story?id=3455370).

Before that evening I really didn’t know much about George Martin other than his pro football success.  I now know he can inspire an entire room full of people in less than ten minutes. Thank you George.

Can Knowing Hotel Secrets Really Lower Your Costs?

I recently read an article posted on a social media site that suggests there are secret ways to work with hotels to lower your event costs. I wondered how significant these secrets were and asked an industry expert for his analysis. Tom Berkman, President and CEO of Omnia Housing Services is our industry expert. Tom is a 36-year hospitality and housing company veteran that created and has overseen the operation of the THS Company, the nation’s premier sports housing service and Omnia's parent company.

Fill Need Dates was number one - This seemed obvious to the author and our industry expert but not me. They explained this applies to event space not guest rooms.  If a hotel is full due to a large city wide event, its event space (meeting rooms) are likely not being used. The hotel may be willing to negotiate better rates for this unused space which can come in handy as long as you don’t need guest rooms.

Check Cancellation Clauses – the author of the article says to be careful about this important item as it may result in steep penalties should you need to cancel less than six months from your arrival date.  Our industry expert says his firm never agrees to cancellation clauses more than 30 days from arrival.

Both the article’s author and our expert agreed the next several items were standard so we won’t devote much time to them but felt they should be noted here.  They are: Be Aware of Food and Beverage (F&B) minimum.  Seems reasonable but be aware F&B calculations do not include gratuity or tax; Understand audiovisual (AV) requirements. Some hotels have a preferred vendor and may charge you a fee if you use your own;  Contract internet upfront. Until recently, this has been a major cost to your event.  Hotels are better equipped today but be aware of these hidden charges.

Attrition-Lower it – The article’s author suggests a variety of tips and tricks for calculating attrition penalties should they occur. Our industry expert tells me they never agree to attrition penalties in their contracts and feels they could be avoided all together.

Ask for a Resell Clause – This refers to your attrition penalty but our industry expert reminds us they have no attrition so this clause is unnecessary.

Leverage Sales Manager – this was more of a tip on how to work with a sales manager to get the best deal. It sounded more like shopping for a car as it was suggested it’s better to call at certain times of the month or quarter when they have to report sales to quota.

While the article offers some things to consider when negotiating a hotel contract, it seems more complicated than that to me. A housing services vendor can be a great partner in working through the hotel selection process and execution of an agreement. If you want to remove the risk from your organization and increase your reward, that is my best suggestion.

Don Sciolaro

D ESolutions

Innovative solutions, strategic planning & management partner