OPERANNG

WALLY LYNCH

Builders Express, Inc. 11550 Plano Rd. ment come into play: (l) off-loading. (2) Dalf as, Tx' 75243 sto.ring. (3) picking. (4) on-loading.

INCE the expansion of this col- Some limited usage time is identified as umn to include any and all rearranging, but it has no urgency factor. "-perating Opportunities," the most fre- Second, when measured, picking and qu.nt inquiry rieived has been on forklifts on-loading range between 12 and 16 minandhowiogetmoreuseoutof them. Many utes, and average around 15 minutes per dealers feellhat this costly piece of equip- stop or delivery to the customer. Unloading ment is under utilized and that, for the most and stocking time runs about half the time' part, they have too many units in opera- or 7.5 minutes per stop handled. tion. Over the years these numbers have held

Itisagoodbetthatallarecorrectonboth steady despite the average "stop" value counts. -The readings we have taken over achieved' There appears to be very little itt. i.*r on the clJcks show weekly run- time requiredvariation in functions regardning times ranging from four to six hours less of value, based on averages over an exforhost units, wittr some few getting as tended period of time. The highest meahigh as eight and ten hours. If you are a surement we have recorded has been 16 diibeliever, have someone check the clocks minutes per $800 stop' oiyour equipment for four or five weeks. When the decision making information Wiitr utitiiation of eight to ten hours in a is known, it is simple to employ a small 168 hour week, or about 690, it isn't dif- discipline designed to serve both the ficult to feel over equipped. customer and the company. Take a typical

In addressing ttre proUtem, operational "nine hour open" work day and set aside evaluation and ixperience have shown two six of these hours in two hour increments' itrings. ftst, fourmajorusesof theequip- The hours of ll a.m. to I p.m. are for receiving and storing. The hours of 7 a.m. to 9 a.m. are for picking and loading' as well as the hours of 2 p.m. to 4 p.m. The time gaps between 9 a.m. and I I a'm. and I p.m. and 2 p.m. are for elasticity in usage.

Days when deliveries are heavy, the forklifts might load until I I a.m' and be back at I p.m. until 4 p.m. Or, if there is no "inbound," the equipment could be used to pick and load all day. The reverse is true when in-bound is heavy. The important thing is the definition and the discipline.

In such a structure you might expect a daily production of six hours in one shift on average. Also, each forklift operated on this discipline should pick and load four stops per work hour and off-load and store twice as many stops, or eight per how. If your average delivery stop is valued at $600' then $2400 is staged and put on a truck each operating hour. Conversely, M800 (at sell) should be off-loaded and put away per hour.

Based upon these values, one forklift should be ableto handle from $3,328,000to $6,656,000 annually. Take the total sales volume handled and divide it bY the number of forklifts used to see where you stand.

Charts to illustrate the points discussed in this column are available. Readers who are interested in more information maY contact W-allY Lvnch at Builders ExPress Inc., tis50 Plano Rd., Dallas, Tk. 75243 or call (214) 341-2886ed.

Posts, poles, pilings, timber, crossarms, grapestakes, dimension

lumber.

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Ryan, General Manager

I n California (800) 582-3950

Outside California (805) 833-0429

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Hardware Show Opening

Dates for the 1986 Hardware Industry Week service event and National Hardware Show will be Aug. l0-13 according to a joint announcement by the American Hardware Manufacturers Association and Cahners Exposition Group. Sunday has been designated for the opening of McCormick Place East and the new building, McCormick Place North. Both facilities will remain open through Wednesday afternoon.

The Words That Hurt

Dealers may find it hard to believe, but, according to a White House Office of Consumer Affairs study, 9690 of the customers who are dissatisfied never complain about discourteous service.

But, 9l9o of these people say they will never buy from the company offending them in the future. In addition, most of them will tell at least nine other people about the unpleasant experience. A whopping l39o will tell more than 20 other people about the bad service.

n LL PROS and cons considered, 1985 rvvn5 a good year in the hardwood flooring business, wholesale and retail. We personally believe that 1986 has an excellent chance to exceed the high records set by the previous two years. Interest rates are low and most financial forecasts indicate a continuing trend in this direction. In keeping with these low interest rates, the banking institutions are aggressively pursuing individual persons to apply for loans, thus giving added impetus to make purchases that previously were beyond reach.

General interest in residential remodeling and redecorating hit high peaks last year and hardwood flooring dealers with aggressive marketing programs in this field registered high sales volumes.

It also has become apparent that present day customers rue more quality conscious than in ye€us previous and are seeking better value for their dollars. This has proven true not only when shopping for hardwood flooring but for other products as well. Good salespeople soon realize that upgrading is not difficult when potential buyers already realize the advantages of a better quality item versus an inferior, cheaper one.

The increasing use ofhardwood flooring in commercial projects will continue in 1986, not only because of its attractive appearance but because of hardwood's reputation for ease of maintenance, durability, and inherent decorative characteristics that make it easy for decorators to work with. Some interior designers even carry the