8 Ways to Improve Cash Flow for a Job Shop or Contract Manufacturer

Topics: shop management software, cost of doing business, job shop business guides

Posted on Sep 5, 2018 12:03:03 PM by JobBOSS Team

For the small to mid-sized job shop or custom manufacturer, managing cash flow is critical to survival. Do it correctly, and you can experience slow steady growth as you build the company's net worth. Many shops close not because they run out of work, but because they didn't start out managing their cash well.

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Reduce Inventories—Increase Your Job Shop’s Bottom Line by 30% or More

Topics: cost of doing business, Lean Manufacturing

Posted on Sep 4, 2018 12:01:00 PM by JobBOSS Team

For many years, if you were a job shop or contract manufacturing owner you didn’t have to worry about inventory. You bought raw material directly to the job about when you needed it and whatever inventory you did have was usually comprised of raw material drop or remnants or a few finished parts from a previous job overrun.

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Why The Cloud Is So Important To SMB Manufacturers

Topics: cost of doing business, Increase Job Shop Efficiency, ERP Software Integration, JobBOSS, Cloud ERP

Posted on Mar 14, 2018 2:49:40 PM by JobBOSS Team

Cloud ERP makes it easier to run a shop at a lower cost.
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Optimizing Your Manufacturing Job Shop - You Can’t Manage What You Don’t Measure

Topics: manufacturing skills gap, shop management software, cost of doing business

Posted on Aug 21, 2013 10:30:00 AM by Dave Lechleitner

If you are an owner or a manager of a job shop or contract manufacturing facility, the old management adage of “you can’t manage what you don’t measure” is more true today than ever before. With the economic uncertainty that still abounds, the demands placed on you by customers for high quality parts at lower and lower prices, and the skills gap between those employees that you might be losing and those available in the workforce, it is critically important to understand the current state of your business through the use of real time key performance indicators or KPIs. The challenge for many job shop owners is understanding first WHAT to measure, then setting a goal or standard METRIC by which your current state is measured against also known as benchmarking, and then putting corrective actions into place to help you achieve or surpass these goals in a regular, sustainable fashion.


Key performance indicators should be uniquely personal for your shop.  However, for most small and mid-sized manufacturers there are the obvious indicators which EVERY shop should consistently measure at least on a monthly (or even weekly) basis.  These indicators should represent a cross-section of your business focusing on the key elements of customers, productivity, vendors/suppliers, and financial. 

For example, when a business establishes their customer indicators, these indicators should focus on quote backlog, quote win rate, order backlog in weeks or dollars, new orders placed this week/month, on-time performance, etc.  When the shop establishes productivity metrics, these indicators should focus on utilization by work center or department, efficiency by work center or department, throughput in days both from a production standpoint (lead days from first time entry to first shipment) and administrative throughput (lead days from order date to first shipment), overbook or underbooked work centers, rework hours, scrap cost,  and direct vs. indirect hours. 

For vendor metrics, the shop should establish metrics for a vendor on time performance, average lead time by vendor, acceptance rate by vendor, and valuation of stock and WIP inventory.  Finally, key financial indicators should focus on customer and vendor aging, past due invoices, average days to pay (customers and vendors), and current cash position.

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Going Remote in Your Own Job Shop

Topics: cost of doing business

Posted on Aug 15, 2013 4:30:00 PM by Mike Bonfig

How many times has this happened to you...you're out on the shop floor and there's a piece of information that you need to reference and it's back on your computer on the other side of the shop. This could be a quick glance at a CAD Drawing, a quick re-read on a customer's email or the phone number of a vendor. You can't login to a nearby machine, because it doesn't have the right software or information. You don't want to run back to your computer, because that takes time and increases the possibility of getting sidetracked. 

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Accurate Job Costing for Job Shops — Easy as A-B-C (Part 2)

Topics: shop management software, cost of doing business, accurate costing, job costing

Posted on Apr 18, 2013 2:35:00 PM by JobBOSS Team

In Part 1 of our article on accurate job costing, we discussed the importance of regularly reviewing the actual costs of your jobs when you are a job shop or contract manufacturer and what to look for in job shop software solutions to help you do so.  In this week’s article, we will discuss one element specifically, and that is how to determine the appropriate labor and overhead rates to charge to your jobs. 

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Growing Your Job Shop with an Integrated Solution Quote to Cash

Topics: shop management software, cost of doing business, quote to cash

Posted on Feb 27, 2013 12:57:00 PM by Dave Lechleitner

For small and mid-sized job shops, the task of consistently managing sustainable growth can be quite challenging. Granted, when times are good, it is often easy to gain repeat business and sustain growth. For many customers, as long as you ship on time with reasonable consistency and offer a good price, they will continue to place orders. In harder economic times, however, this may not always be enough to keep customers around.

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5 Common and Costly Manufacturing Mistakes Made by Job Shops

Topics: shop management software, cost of doing business

Posted on Feb 5, 2013 3:44:00 PM by Dave Lechleitner

As a job shop owner, you face a unique set of challenges in today’s business world. Owning and managing a job shop may never have been particularly easy, but the modern manufacturing situation in the U.S. has only worsened. This has many job shop owners questioning whether they can even remain in business, much less thrive.

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Manufacturing Dream Shop. 5 Steps to yours.

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