IOWA LASER'S PURCHASING POWER  top

By Jim Mattson, Purchasing Manager

Iowa Laser’s purchasing department is probably very similar to your company’s purchasing department in that direct contact with external customers is rare. There may be an occasional e-mail or phone call, but for the most part our customers are internal in nature.  We understand that companies may be experiencing shortages in manpower due to current economic variables; many of you may be wearing multiple hats within your organization. You may be doing some quoting of jobs that you have never done before. You may be responsible for ordering parts that require very specific processes or must meet a certain specification that you are not familiar with.  Maybe you have been tasked to forecast the cost of a certain type of material in order to determine whether the time is right for building inventory. 

With this in mind, I want to extend an offer to you - feel free to utilize Iowa Laser as a resource to help answer your questions. If you are quoting work that requires a very odd or hard to find material, Iowa Laser can assist in finding this material. We have numerous material sources available, all experts in their respective fields.  You might need parts that are painted, plated, or heat treated to a special specification. We have an outstanding secondary operations supplier base that is very skilled in these types of processes.  We rely on them heavily to help ensure that your requirements or specifications are met.

Another area we can be of service is to let you know what may be happening within the steel market. With the cost of raw materials being such a huge price driver, purchasing parts in advance of really needing them can end one of two ways – success or failure. In today’s steel environment, prices seem to rise very quickly. Should you wait or write the PO now?  We monitor steel trade and scrap magazines, and converse with our steel suppliers constantly on the state of material pricing. If you are curious as to what the price of raw materials may be doing, Iowa Laser can give you a pretty good idea of our expectations and remove some of the guesswork for you.

Iowa Laser is a customer service driven company. Even though our purchasing department may not have direct contact with our customer base, we are here, behind the scenes and ready to help. Please feel free to contact me with any questions you may have.

AN ACTIVE SELLING POINT    top

By Joe Barber, Sales & Marketing Manager  

Well, 2010 is in full swing and I have to say that by all indicators, it’s going to be a much better year than any of us anticipated.  Since the first of the year, demand has been increasing significantly.  All industries we service seem to be recovering, and order sizes are back at record levels.  So first, let me thank everyone for your continued business and let you know how excited we are to serve you throughout the remainder of the year.

I wanted to highlight some of the plans that we have for this year to improve our existing services and to expand into some new areas as well.  Iowa Laser is continually committing itself to stay up-to-date with the best laser technology available.  We are looking to replace four of our older lasers later this year.  The new bank of lasers will have higher wattage than those being replaced and will utilize material towers to feed the machines.  These two features will help to improve throughput and help generate additional capacity.

We've made a change in plans regarding our tube laser.  Initial plans included swapping our existing tube laser for the larger, next generation machine.  Based on market conditions, however, we've decided to keep our existing machine and purchase the next generation as well.  The new system will allow for larger, longer tubing, without sacrificing any of the benefits of the smaller machine.  It will be installed in June.  In the meantime, our tube laser schedule has opened up.  We look forward to quoting your projects.

Additionally, Iowa Laser is currently reviewing several plasma cutting systems.  It is our goal to have a system identified and purchased sometime around the end of the 2^nd quarter.  The systems that we are looking at will allow us to process plate up to 2” in thickness and greatly improve processing speeds for materials as thin as ½”.  A plasma cutting system allows Iowa Laser to be a more well-rounded metal fabrication supplier. If you are currently purchasing any plasma cut parts, please keep us in mind later this summer.

There are several smaller purchases that we are planning to make throughout this year as well.  We are looking to expand our weld inspection and certification processes.  Upgrades to our custom lasers will continue and ensure that we can address those requirements that fall outside the standard flat cutting applications of most laser houses.

Overall, we are very excited about the coming year and feel very good about Iowa Laser’s position in the manufacturing industry.  We appreciate all of our relationships, both with customers and suppliers, and as always, I welcome any questions, comments or concerns that any of you may have.

CAPABILITY UPDATE   top

Managing delivery dates is job #1, especially when the market experiences volatility.  Our lead times have steadily increased since Christmas, kicking in Plan B for management – adding capacity.  We’re in the process of hiring additional staff to manage the increased hours, all the while moving ahead with our plans for equipment updates and installs.  When requesting quotes, let us know any delivery requirements and we’ll do our best to work with you.   

• Sheet laser cutting (material on hand):  3-4 weeks
• Tube laser cutting:  3 weeks or less    
• Custom laser cutting:  3-4 weeks
• 5-axis laser cutting:  3 weeks or less
• Laser welding:  3 weeks
• Secondary operations (forming, machining, welding):  4-6 weeks depending on project

THE ANALYTICS OF QUALITY     top

By John Lamos, Quality Manager

The manufacturing industry has adopted many business processes through the years aimed at improving production outputs and minimizing defects.  You’ve probably heard of the Toyota Production System; other concepts include Lean Manufacturing and most recently Six Sigma.  I’m often asked whether Iowa Laser has a black (or green) belt or if we use Six Sigma concepts.   

At a basic level, Six Sigma attempts to improve quality by removing the causes of defects and controlling variability in manufacturing processes.  Devised in 1986 by Motorola, a major innovation for Six Sigma strives to move quality from the production floor to key roles implemented through a staff hierarchy dedicated to continuous improvement.   

Many companies have adopted the Six Sigma strategy to strive for near perfect quality, not limited to just the product that is manufactured or assembled, but throughout the entire company.  Among others, you’ve probably heard the term Six Sigma Black Belt.  This title refers to a person who has been certified by a governing body with knowledge and expertise in all aspects of Six Sigma.  Green Belts have been certified with general knowledge.   

Six Sigma establishes measurable results using process capability (Cpk), the ability to produce parts within a specified limit.  While some are easily measured, others are much more subjective.  One of the more common measurements is Defects Per Million Opportunities (DPMO) or Parts Per Million (PPM).  A process capable of 2 Cpk would be a world class standard, producing less than 3.4 defects per million parts produced.  A 1.33 Cpk is roughly 32 defects per 1 million parts produced.  Most industry operates at a 1.33 minimum Cpk, with improvements going to 1.67 Cpk.  

The Six Sigma improvement process typically starts during a recognition or brainstorming event and uses many tools throughout the process.  Here are some of the most common:   

Cause and Effect Analysis (Fish Bone Diagram)

Control and Flow Charts

Design of Experiment

Risk Assessment

Histogram

Pareto Charts

Mistake Proofing

Process Map

Scatter Diagram

Failure Modes and Effects Analysis (FMEA)

Surveys 

Iowa Laser has successfully utilized several of the Six Sigma techniques and tools with marked improvement where implemented.  Our contract manufacturing status limits us, however, because we have to look at families of parts with similar processes rather than the more familiar specific part events.  For example, our Cpk measures right at 1.67 minimum on laser cut holes, but it varies dramatically based on tolerance.   

While Six Sigma’s advantages have yet to fully peak in the market, others like Lean Manufacturing have created substantial savings for many companies.  As you look to adopt any strategy that might affect your requirements to Iowa Laser, feel free to contact me. 

PRESIDENT'S STATE OF LASER   top

By Mark Baldwin, CEO

Changes in Leadership

Since 1999, Sean Abbas has served as company president of Iowa Laser.  Under his leadership, Iowa Laser has continued to develop into a strong and recognizable supplier of fabricated metal components.  We are saddened to announce that Sean has stepped down as president of Iowa Laser Technology effective April 23, 2010.   Sean is leaving to focus his attention fully on Baird Industries, a Waterloo-based company he purchased in 2008. Baird manufactures mounting equipment for the wireless communications, satellite, solar and wind industries and has experienced growing success.   

While serving as president, Sean oversaw continued growth at Iowa Laser, from our increasing labor force, to a new building expansion, and new laser and secondary equipment.   He also helped map the succession plan we will be following through this process.  He has been an outstanding leader for Iowa Laser and has created an excellent team of managers who will be invaluable in making the transition as seamless as possible.  After working for over 20 years with a hard-working, intelligent person like Sean, I can tell you his presence will be missed but his guiding principles are truths we will continue to strive for.  We are very sorry to see Sean go and wish him all the best.

As CEO and past president of Iowa Laser, I will be re-assuming the presidential role for the near future.  You can expect little change in daily operations – quality, delivery, pricing and communication will continue to be our focus.  Our management team will keep you informed regarding the decision making process.  Feel free to contact me with any concerns.   

ON THE ROAD AGAIN  top

By Matt Miller, Outside Sales   

Feedback for Iowa Laser has light bulb potential; it refracts a different perspective when outside the source.  We capture feedback most notably from surveys sent at periodic intervals.  E-mail and verbal responses are critical as well.   Here are a few comments recently received: 

1. No problems.
2. Thanks!
3. The parts look great.
4. Your lead times are too long.
5. Your price could be more aggressive.
6. The experience was great.

By and large, feedback for Iowa Laser is positive, an indicator of planning and production congruency.   But is it enough in today’s world to simply take feedback and assume the best?  With your competition flickering ‘vacancy’ on every corner of the internet - waiting for your customer to hit the brakes and turn down the radio - you simply have to do more.  Every company in today’s world needs to be known for something, especially in manufacturing.  Striving for delight in some aspect of your business offers great potential to be remembered in our busy world. 

Through the years, the most frequent survey response Iowa Laser receives is “No problems.”  While this doesn’t indicate “I’ll-stand-in-front-of-a-car-for-you” delight; it does hint that, “I may tell my friends and acquaintances about you.”  Knowing our typical customers are company owners/purchasing managers pulling many strings every day, not creating problems can be a huge advantage.  Even though we may only get a well-intentioned “thanks,” it creates an advantage towards allegiance.  Over time, repeat satisfaction builds trust, which builds loyalty, and so on. 

There are many opportunities to create delight in today’s virtual world, even before you land a new customer.  Simply walk the path to your front door.  How do your potential clients find you?  Your website probably offers the first potential interaction.  Outside of obvious design and navigation features (which often creates the opposite of delight), can your customers easily contact you?  How long does it take to respond?  Smooth communication is a focus for Iowa Laser.  For example, we try to respond to RFQ's as fast as possible (which can be a challenge!).  Hearing “Incoming mail, Captain” just moments after you send a request always gains attention. 

Granted, none of us can only rely on passive motivators to ensure continued business.  In a world that completely inundates us with gimmicks designed to make us feel like we’re valued customers, Iowa Laser prefers clear communication and consistent service as our modus operandi for delight.  When manufacturing processes hold a high potential for error and customer service across the world is at an all-time low, delighting your customers can be easy…just help them turn on the light. 

Iowa Laser’s first quarter of 2010 has been strong on several levels.  We’ve quoted for 62 new prospects from California to Massachusetts - automotive start-ups to forklift fuel cell shells to this spring’s innovations in planters – and landed nearly 40% as new customers.  Between our new and existing customers, we’ve booked the largest pre-sold sales months on record.  It’s difficult to pinpoint specific reasons, but one thing is clear.  While Iowa Laser’s preferred position is a schedule full of orders across many industries, we’re not too naïve to think this position challenges us to continue to delight. 

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