Mike on Manufacturing

Manufacturing Lessons from In-N-Out Burger

By Mike Hart

While I was waiting for my order at In-N-Out Burger today, I observed their process workflow from a manufacturing perspective. 

In-N-Out is a highly successful hamburger chain located here in the western United States.  One of their sites is within walking distance from my house.  From what I can tell, a typical operation deploys 15-25 people performing various functions very much like those in a factory.  

How I Got Started in the Manufacturing Software Business - Part 4 of 4

By Mike Hart

In the fall of 1991, I ran across a classified ad in PC Magazine touting an accounting package that could be purchased for $100, including source code.  Out of curiosity, I dialed the phone number.  A jovial sounding fellow answered the phone and said his name was Rick Atkeson and he assured me that the accounting package with source code for $100 was no joke, and that he had a license to prove it. 

I told him that I was thinking of creating a manufacturing software package for small business, that there was a great opportunity in the local market, but I had no programming experience.  Rick said “why not use me?  I can furnish the accounting modules and my assistant and I could program the manufacturing stuff to your specs and we could share in the profits.” 

How I Got Started in the Manufacturing Software Business - Part 3 of 4

By Mike Hart

As Hal Holbrooke said to Charley Sheen at the end of Wall Street, “Man looks in the abyss, there's nothing staring back at him. At that moment man finds his character. And that is what keeps him out of the abyss."

My father and I were staring into the abyss.  The product we were representing turned out to be a technical failure and our inability to keep up with our computer payments and other obligations forced us into personal bankruptcy. 

How I Got Started in the Manufacturing Software Business – Part 2 of 4

By Mike Hart

In mid-1988, to great fanfare, IBM unveiled the AS/400 product line, which was to replace their System/36 and System/38 mini-computer series.   Several months prior to the announcement, we had invested in a fixed price license to Software PM, a System/36 based manufacturing system that we could private label and sell without paying any royalties. 

The arrival of the AS/400 put us in a real pickle because the System/36 platform was obsolete.  Not only did this threaten the viability of our software package, it also made our investment in a System/36 computer – around $60,000 – worthless. 

How I Got Started in the Manufacturing Software Business – Part 1 of 4

By Mike Hart

This year marks the 20th anniversary of my company, DBA Software, and so I find myself in a reflective mood.  20 years is a long time in the manufacturing software business and I’ve seen many competitors come and go.  But how did I get in this business in the first place?  

To answer that question, I need to take you back to 1986, which was the year our family business, Hart Manufacturing, was sold.  The company was started by my grandfather, Harold Hart, in 1927.  We made watering and feeding systems for the poultry industry and expanded greatly in the late 1970’s, only to crash and burn when new poultry house construction collapsed as Paul Volker broke the back of inflation with 20+% interest rates.  

Manufacturing vs. Accounting

By Mike Hart

The following is a typical scenario in the evolution of a small manufacturing business. 

Every company needs accounting software to invoice customers, pay the bills, collect money, and run financial statements.  When a company starts up and is small in size, it uses a low end software package such as QuickBooks or Peachtree because it performs these basic functions well and is low cost.  . 

The manufacturing side of the business gets by using the basic inventory, sales order, and purchasing modules offered by the accounting system and augments them with spreadsheets to handle manufacturing requirements.   

Manufacturing Software Packages for Small Business

By Mike Hart

Here is a link to the latest iteration of my manufacturing software directory, which provides links to websites for all the software packages I know of that are potential candidates for use by small businesses. 

Manufacturing Software Directory

All these software packages are advanced manufacturing systems, meaning that they include work centers and routings instead of just the bills of material offered by light manufacturing systems such as QuickBooks or Peachtree.  Light manufacturing systems emphasize inventory, but ignore job scheduling and shop floor control and therefore limit your efficiency potential. 

Does Your Software Address the Manufacturing Fundamentals?

By Mike Hart

Business software packages address all kinds of functions, including inventory, purchasing, sales, CRM, e-commerce, service, project management, financial applications, and human resources. 

These functions are important, but if you have a manufacturing company and your software does not address the fundamentals of manufacturing, you will never reach your efficiency potential, no matter how good your software might be in these other areas. 

How to Make Money with Lean Manufacturing

By Mike Hart

You hear about “lean manufacturing” all the time, but just what is it?

Simply put, lean manufacturing means completing jobs on time using the least amount of inventory and WIP possible.

Your overall efficiency is measure by how much inventory and work in process is required to support your sales.  The less you use, the more efficient you are.

Part Numbers Cannot Be Open to Interpretation

By Mike Hart

Many small manufacturing companies operate using general accounting software such as QuickBooks combined with spreadsheets to address manufacturing issues. I refer to this is an “informal” manufacturing system. 

In an informatl manufacturing system it is common for component specifications such as revisions and manufacturer part numbers to be entered on the fly during purchasing, as specified on drawings or spec sheets. This type of manual purchasing is a slow and cumbersome process where mistakes can easily be made.