Imberman and DeForest Inc.

A survey reviewed the operations of 24 steel pipe and tube manufacturers. Only a minority of these showed signs of having well-run, efficient operations, as measured by on-time shipments, minimal inventory and work-in-progress, employee turnover, internal rework rates, and most importantly, profitability. In fact, a good number of steel pipe and tube producers in this sample barely reach the average. Interviews with presidents of some companies found that inertia was a common characteristic among the low margin companies. Good enough was good enough.

Author's Note: This article is a supplement to "Why settle for good enough?" which appeared in the December 2002 issue of TPJ-The Tube & Pipe Journal, page 42. "Why settle for good enough" was based on a study of 24 Midwestern tube and pipe fabricators and reviewed why some where highly profitable...

An appeal to business owners to look past bonuses to a new way of structuring incentives for their employees

Arco Industries Inc. bought a 15-year-old, 500-ton Tranemo hydraulic punching press with an antiquated control system. For about one-quarter the cost of a new press, Arco was able to rejuvenate an obsolete press by providing it with contemporary levels of control and productivity.

A study of executives at several tube and pipe fab shops revealed that the executives and managers are ensnared by four potential traps: talking instead of doing, failing to see the big picture, avoiding listening, and failing to communicate.

This article provides examples of automotive suppliers and other metalworking suppliers who are facing strict cost containment requirements, and explains possible benefits of using gainsharing to motivate employees to generate ideas for efficiency.