Extended Enterprise In The Nesting And Cutting Business

In Italy there are a lot of small and medium enterprises (SME) that often act as subcontractors to bigger firms.
For example, most of the Italian shoes come from industrial districts, where the organization heavily relies on subcontracting.
Many problems usually arise in this kind of organization:
Although the whole process leads to a finished product and is coordinated by a single subject, different phases are carried on by different companies, most of which are extremely small, with a very informal information system and the usage of internet rarely goes beyond simple e-mail communications.
Each district is organised in a specific way and has its own habits and rules: therefore communication between companies belonging to different districts is very difficult.
Most companies are very reluctant to technological innovation as they come from a craftsmanship culture. They can hardly perceive how a new machine or, even worse, a computer, can help them.
The lack of standard data descriptions implies that most information is tied to physical objects, e.g. the quality of a hide is "incorporated" in the hide itself. Therefore to transmit the information, it is necessary to move the physical object.
Our products can help in this situation in three ways.

• Automatic nesting system: even the most traditional company can see a possibility to save material and time, if it is properly presented and our products are simple enough so that potential users are not scared by complex interfaces, unfamiliar language, and other common problems. Moreover our products are affordable even by very small companies and can work with different brands of cutting machines.
• Data exchange: our software can easily export data that can be sent to other subjects and imported with no loss of information. This means that new possibilities of organization become possible: e.g. reports about the cutting, the nesting, the orders and other information can be easily transferred from the place where the information is created to the place where it is elaborated.
• Supply chain management: Cutweb (cutweb.string.it), our online solution, is a outstanding instrument to organize, manage and control the whole supply chain and subcontractors' network. It is possible to instantly share data and set permissions for each data category and user, so that only the authorized subjects can see, edit or use those data. Cutweb eliminates even the need to install special software on the computers at the subcontractors'.

Using CutWeb it is possible to activate a communication network between the manufacturer and its subcontractors and reorganize the supply chain with advantages for all the subjects, shortening lead times, saving costs and allowing a better use of information.
You can find a full presentation of cutweb . A free demo (covering several industries and delaing with different material kinds) is also available online here.
On our site you can read full case studies that show how Cutweb can enable new ways to organise your business and how you can gain competitive advantages against your competitors using this innovative tool.

5 Steps to Build Stronger Communication and Understanding

Did you know that you should always create a process map for every procedure or system of procedures that you develop? And did you know that, like a table of contents, this will create stronger communication and better understanding in your organization?
How do you do this?
Identify Core Processes
Last time, we followed the money trail and identified your business' core processes. We discussed where to best start a change in one of those core processes. And we introduced the technique of producing a process map. So this week, let's take a further look at how to create a process map - and see how it creates knowledge to benefit you and your organization.
Use Process Map as Communication Tool
A process map is a flow diagram of the primary processes within an organization. It very specifically shows you both who and what is involved in a process, as well as the requirements for that process to be effective. The primary goal is to use the map as a communication tool. It is to show the sequence of interactions of the elements involved in the process. And so process maps are drawn and used by organizations to achieve several benefits:
o Increase process understanding
o Clarify process boundaries, ownership and effectiveness measures
o Identify process sequences
o Isolate core processes, bottlenecks and opportunities for improvement
o Clarify the interaction of Customer, Supplier, Management and Operations processes
o Provide a tool for training and discussion
In other words, a process map details what happens first, second and third in a process. It shows what happens in each step along the way. And this is drawn in graphical form for easier communication and understanding.
This type of map shows the "big picture" of 10-20 core processes within an organization. The map also shows the critical elements within each section and its importance within the whole system. And these sections, or bands, are what relate the processes to each other AND to the outside suppliers and customers.
Link Suppliers and Customers
Although there are several ways to draw a process map, the basic diagram is typically constructed in four bands. And these four bands link together Customers, Primary Processes, Secondary Processes and Suppliers.
You improve effectiveness by showing the specifics of a process. And sometimes we've learned the hard way that the development phase of a project or a process is far more expensive than the planning phase. And so by thinking through and perfecting your processes beforehand, you decrease waste in development time. With a detailed process map, you identify and decrease such waste wherever it occurs in the process.
Here are a few key points to keep in mind while process mapping:
o Identify core processes to support mission and goals
o Determine how to create value for the customer throughout the process
o Map ownership and performance metrics along with the process
o Engage your people in process mapping to define problems and solutions
Now, let's break down the process map even further.
Define Steps of the Process
We've just defined the big picture process map as a sequence of interactions of multiple processes. These multiple processes consist of multiple steps. As we've discussed, the benefits are better communication and understanding and a decrease in waste. And this offers a great "big picture" view of your organization's processes. But...
When you go to write your organization's procedures, you need more detail. You'll need a method to define the sequence of interactions of each step. And you do this with a procedure map. Here's an example of a typical procedure map:
With this refined procedure map, you can see the steps that go into an organization's competency process, including the suppliers and customers for each of those steps. This is also called the SIPOC method. This method identifies the Suppliers of the specific data used as an Input for the Process to create Outputs for the Customer. The map also gives you both effectiveness and performance criteria for this process' owner(s). With such measurement criteria, you set the mark for continuous improvement of the process.
And so by creating a procedure map, you will further increase communication and understanding within your organization. Procedure maps become a strong tool in training, either to familiarize new employees to their jobs or to increase efficiency and performance with current employees.
Communicate, Understand and Apply Knowledge
Both process and procedure maps are crucial in an organization. And so as a rule of thumb, never develop a procedure or system of procedures without first creating a process and procedure map. Acting like a table of contents, a process map helps organize the chapters of a complex book in a way that this knowledge can easily be communicated, understood and applied.
Next time, we will discuss Six Sigma problem-solving tools and answer the question: how do you move from seat-of-the-pants decision making to measurable and continuous process improvement?

Chris Anderson is the managing director of Bizmanualz, Inc. and co-author of policies and procedures manuals, producing the layout, process design and implementation to increase performance.

Loan Officers & Minimum Wage

I. INTRODUCTION
The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hour worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 in a workweek.
However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees.
Section 13(a)(1) and Section 13(a)(17) also exempts certain computer employees.
To qualify for exemption, employees must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week.
II. FINANCIAL SERVICES EMPLOYEES
To qualify for the administrative employee exemption, all of the following tests must be met:
1. The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $455 per week;
2. The employee's primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers; and
3. The employee's primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
Employees in the financial services industry generally meet the duties requirements for the administrative exemption and are not entitled to overtime pay IF their duties include work such as collecting and analyzing information regarding the customer's income, assets, investments or debts; determining which financial products best meet the customer's needs and financial circumstances; advising the customer regarding the advantages and disadvantages of different financial products; AND marketing, servicing or promoting the employer's financial products.
However, an employee whose primary duty is selling financial products does not qualify for the administrative exemption. In applying the exemption, it does not matter whether the employee's activities are aimed at an end user or an intermediary. The status of financial services employees is based on the duties they perform, not on the identity of the customer they serve.
III. OUTSIDE SALES
To qualify for the outside sales employee exemption, all of the following tests must be met:
1. The employee's primary duty must be making sales (as defined in the FLSA), or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer; and
2. The employee must be customarily and regularly engaged away from the employer's place or places of business.
3. The salary requirements of the regulation do not apply to the outside sales exemption. An employee who does not satisfy the requirements of the outside sales exemption may still qualify as an exempt employee under one of the other exemptions allowed by Section 13(a)(1) of the FLSA and the Part 541 regulations if all the criteria for the exemption is met.
A. Primary Duty
"Primary duty" means the principal, main, major or most important duty that the employee performs. Determination of an employee's primary duty must be based on all the facts in a particular case, with the major emphasis on the character of the employee's job as a whole.
B. Making Sales
"Sales" includes any sale, exchange, contract to sell, consignment for sales, shipment for sale, or other disposition. It includes the transfer of title to tangible property, and in certain cases, of tangible and valuable evidences of intangible property.
C. Obtaining Orders or Contracts for Services or for the Use of Facilities
Obtaining orders for "the use of facilities" includes the selling of time on radio or television, the solicitation of advertising for newspapers and other periodicals, and the solicitation of freight for railroads and other transportation agencies. The word "services" extends the exemption to employees who sell or take orders for a service, which may be performed for the customer by someone other than the person taking the order.