Production Control Update
It’s time for a Production Control Update from the department that manages logistics, material handling, and trucking.
This year, the Production Control Department’s greatest achievement has been taking a more active role in managing our raw material supply chain. We’ve worked hard to negotiate pricing with our long-time steel suppliers and keep material costs stable. Raw material is Fastco’s largest expense. Keeping steel costs controlled enables us to better support our customers and avoid price increases. It also helps us remain competitive in the market.
Goal for 2024 (and beyond!)
Another Production Control Update is that our number one goal for 2024 is to lower machine downtime both internally and due to waiting on supplier. The more the machines run, the higher our absorption can be. This leads to higher productivity and better on-time delivery to our customers.
Open Book Management
Open book management has had a significant impact in helping us achieve our goals. The biggest impact has been the success at engaging everyone in the profitability of the company. Everyone likes the little extra money a profit share can provide. Understanding that cutting costs on raw material and keeping machines running is a big bonus (pun intended) to the potential for continued and higher profit sharing among team members.