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Working at the Same Place as Your Husband

September 2nd, 2010 by Setpoint

When they first talked about having my husband come and work for Setpoint Systems I wasn’t sure how that would work.  Seeing him all day at work and then going home and being with him all night, just seemed weird.  The reason being is when he and I go home a lot of times we will talk about work and things that happened during the day.  Sometimes it would be just to vent or sometimes just to have conversation.

In some ways having him here at work has been nice because we have the same days off. It’s nice having the three day weekend that we can spend together.  I have loved working for Setpoint for that reason and he loves it too.  This summer when we wanted to go camping we could leave early and get a good camping spot, and have an extra long weekend.

I do all the travel for work and he has been going to a customer’s site out of state so I know when he will leave, when he comes home, and where he is staying.  I know that the guys hate to travel so I want to make it as comfortable as I can.  He is MY guy after all.

Working with my husband and working right next to him we actually talk more at work than we do at home.  When he gets home he loves to be out in his shop and so I forget to tell him things.  At work when I see him I remember to tell him things and he does the same.  I was worried about not having our own space, but we have been able to go about our own jobs just fine.

I’m very grateful that both my husband and I have a job.  He has a lot to offer a company and has lot of knowledge in a lot of different areas, so I know that Setpoint will benefit from having him here.  Working with him has been so far a good thing.  (As long as he does what I tell him to do).

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The Balancing Act of Life

August 26th, 2010 by Machel

School has started for your kids, and you.  Now what?  Juggling home, school, family, and work can be a daunting task.  But if you keep focused and stay on point, it is possible.

For the last 7 (yes seven) years I have been attending school while managing 2 kids (3 if you count my husband) and work.  I could not have done it without the support of my family and friends.

The hardest part for me has been worrying about what I wasn’t doing.  When I was with my family I was thinking about school, when I was at school I was thinking about work or what I needed to do at home.  Being a multi-tasker by nature, it was difficult to remember that I was only human.  Some days it was like working 3 full-time jobs, and only getting paid for 1.

Being organized and setting a schedule is the key.  It helped us quite a bit to sit down at the beginning of each week and go over the schedule for the family, figure out menus and shopping, and making sure the clothes the kids needed were ready at the beginning of the week and not trying to do laundry at 2 a.m. (although that has happened).  I’m not saying you should be a schedule Nazi, be flexible.  Also, start teaching the kids to do their own laundry.  Their spouses will appreciate that at a later date.

I’m hoping all this hard work will teach my kids to finish what you start.  My poor daughter doesn’t even remember me not going to school.  I feel it is important to show them that education, especially now, is vitally important to their success.  A lot of companies won’t even look at you unless you have graduated college with some kind of degree.

If you are lucky enough to work for a company that values education, take advantage of it.  Setpoint has been great to work with my ever changing schedule.  I know my family and Setpoint will be glad when I am done.  Of course, I will be ecstatic to remove a full-time unpaid job.

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There’s No Room for Guessing in Sales

August 19th, 2010 by Clark

My goal as a sales professional is to ensure the following three things happen with each of my clients on every project or job we do for them:

  1. Help my clients be successful
  2. Provide them with a solution that exactly meets their needs
  3. Make sure there are “no surprises” at the end of the project

Open and honest communication between me and my clients is the most important thing required to ensure each of these three things happen.

Over the past 3-4 years I have been following a sales process developed by Mahan Khalsa, who is a very successful sales consultant and has developed proven techniques that allow sales professionals to meet these three goals outlined above.  The whole premise behind the success of Mahan’s techniques is “No Guessing.”

Clients naturally want to be successful.  So in order for me to help them accomplish whatever it is they think they need to accomplish to be successful, I need to know a lot about their issues and results they are hoping to solve or realize by hiring my company.  That way my company can come up with whatever it is that may help them succeed.

In most initial sales calls, sales people want to brag about how great their company or products are because they generally have limited amount of time to be in front of the customer to try and convince them that what they have or do is better than everyone else in the world.

I go into sales calls with potential and or existing clients, with a totally different mindset.  Number one, I assume that they already know enough about my company to even get a face to face meeting in the first place.  So spending time over selling myself and my company is a waste of time.  After all, they just want to know how much, how long it will take and how much they will make if they spend money with my company, right?

So what I focus on is right out of the Mahan “No Guessing” training.  I never assume I know what the client’s needs are, and I never assume I have a solution that will exactly meet their needs until I’ve asked the customer a pile of questions.  Each question I ask is centered around finding out what issues they hope to solve or what results they hope to be able to realize.  Through this question and answer process with the customer, we eliminate incorrect assumptions or guessing and actually find out from the customer themselves what exactly they are dealing with.  You can also ask the customer what they have too little of or not enough of.

The more we know about a client’s needs the better chance we have of providing a solution that exactly meets their needs.  If the client seems hesitant to provide you with information specific to their needs or issues, you can easily stop and let them know that all you are trying to do is find a way to help them be successful, provide a solution that exactly meets their needs and ensure that there are no surprises down the road if they choose to move forward with your company.

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What it means to be a Setpoint Strategic Partner

August 12th, 2010 by Setpoint

By John Lennox-Gentle – L-GA

For many years we at Lennox-Gentle Automation in Golden, Colorado, have held a special relationship with Setpoint Systems of Ogden, Utah, we are a proud Setpoint Systems Strategic Partner.

In our Strategic Partner role we assist Setpoint during their “capacity shortage” periods by providing the Lennox-Gentle Automation teams engineering and manufacturing expertise at special “trade” rates.  This synergistic relationship has certainly profited Lennox-Gentle Automation, and we hope it has also profited Setpoint.

From our first meeting with Setpoint, many years ago we have been impressed with the Setpoint Systems philosophy.  This philosophy sprang from a vision laid out by the Setpoint founding partners.  It is a simple yet profoundly effective outlook.  They just maintain an “open and honest” relationship with their employees, associates, vendors and most important, their customers.   I hail from the “old school” of management which taught us “tell your people (staff and customers) nothing but good news or you will loose them” so the first “open” step I took was more of a “leap of faith” for me.   I threw all cares aside and engaged the Lennox-Gentle Automation team in the Setpoint “open” policy.

My first cautious step was made easier by my main contact with Setpoint, my “Project Manager”, my “Mentor”, and now my dear friend, Roger Thomas.  Roger, with his avuncular attitude, genial manner and inherent wit, places his personal stamp on the relationships he develops with his people, his vendors and his customers.  Rogers’ honesty is contagious, and each member of his team has the same “tell me the full scoop, no filters, no holding back” attitude.  Roger is the epitome of “open”.  Not just by his “open” policy, but also by his “full frontal”, “show it how it is”, “open toga” policy of true, honest project reporting, “pimples, warts and all”.

Working with Roger, Clark, Bob, Ken, John, Scott, Steve, Joe and the rest of the Setpoint team is a joy for us.  Each of their attitudes naturally promotes the entire team to get involved, and this combined energy is focused on the fight with the delinquent project issues, rather than in, the other company, who lull each other into a false sense of accomplishment or security.

I know that Roger and the Setpoint team has our six, they have proved it time and again, and I am sure they know that we have theirs.  We hold no project “secrets”, we share all the project problems, as well as the project progress with the entire Project Team.  (The “Project Team” being the L-GA and Setpoint project staff, company staff, vendors and most important, project customers).

I have now modeled my company on the Setpoint, “open” policy.  I recently remodeled my engineering offices by knocking down all the office physical and psychological walls and was pleasantly surprised how this has positively affected the Lennox-Gentle Automation team morale.

The team members can hear each of the other members’ project interaction with vendors, other team players and customers.  Now there is no need for any “pat each other on the back” meetings, and the progress and “status” meetings have shortened from hours to minutes because of this “open office” and “open policy”.  Team communication is almost subliminal.  We inherently know each others problems so we can be immediately ready to assist with their resolution.

Being a Setpoint Strategic partner means much more to us than sharing a mountain range, albeit when visiting us the Setpoint team retains an odd sense of “direction” as their mountains are in the East.  It is sharing the project responsibilities, sharing the project pains and project glories with a trusted companion who is as eager as you are in bringing it to a successful conclusion.

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Financial Management is the Same Big or Small

August 5th, 2010 by JoeK

Setpoint Systems is a small automation manufacturing company with revenues raging from 5 million to 25 million annually. Setpoint has always been able to grow to the projects it has. We have learned to flex with the opportunity. In the new work world much of what companies’ do is through outsourcing. Setpoint had always been able to find a way to do that. The other challenge for a small manufacturing business like Setpoint is to keep the cash flowing. In today’s world it is nearly impossible to get financing if you are a small business.

I am the CFO of Setpoint and when I am not at Setpoint I am on the road training people on how to read finance. I have a book published called Financial Intelligence that outlines how to read financial statements and is representative of my training approach. I have done or am currently training companies like General Dynamics, General Motors, Metlife, Visa, Electronic Arts (EA), NBC, and Boeing.

In my experience with these large Fortune 500 companies, I have realized that the issues that these large companies deal with are very similar to the problems we face at Setpoint. One of my clients is that small company called General Electric (GE). As I was struggling at Setpoint to stay cash positive and not exceed our limited credit line on a major project, I was training at GE (I do the finance segment of their MDC, Management Development Course, at their Crotonville training campus.) As I was presenting information on the cash flow statement this last year, an attendee from GE capital talked about how she recently was unable to get funding for a $50 million credit line requested by a borrower. When she called the GE treasury department for the funds they said we are out of funds. With the commercial paper market collapsing, we do not have the liquidity to provide the funds for the credit line. As I heard this I remember thinking this sounds like the problems I am having at Setpoint trying to make payroll. Of course, we always do find a way to make payroll and GE found a way to work around the collapsing commercial paper market as successful companies do. But what was interesting to me was that our problems with cash were similar. GE has over $150 billion in revenue and Setpoint has around $10 million.

Later in that same session, another attendee said that his business was a project based business. He said that during this last year GE management required that all projects must remain cash positive. This means that customers must provide funding up front for GE projects during this same cash crunch period. As I heard this student talk about this issue, I remembered a week earlier telling my team at Setpoint that given the lack of credit out there from now on all contracts had to be completely funded by the customer. I smiled as I thought about how similar my problems were to GE. Now as GE is losing revenue, they are learning more and more how to access the contractor approach for growth just like Setpoint is.

What I have learned by working at Setpoint and watching the struggles of large Fortune 500 companies is that business is the same no matter the size. It doesn’t matter if you are the biggest company in the world or a small sole proprietor. You need to figure out how the make a profit and generate cash if you are to stay in business. GE has been doing that for nearly 100 years. At Setpoint we are approaching nearly 20 years with a lot of good years to come.

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An Industry Stuck in the Past

July 29th, 2010 by Clark

Over the past two years I’ve had the opportunity to visit an industry that has some of the largest manufacturing facilities in the United States. There were five distinct things about each one of the facilities that I noticed the second I walked out onto the manufacturing floor:

  1. The equipment was very old, typically 1940’s vintage
  2. The equipment was very dirty and well worn
  3. The air smelled of machine lubrication
  4. The sound level in each facility was very loud and the floor shook as the machines processed their components
  5. There were massive amounts of inventory everywhere representing the many different stages of the process

With my background in manufacturing and lean automated equipment, I was overwhelmed at the opportunity for improvement and waste elimination associated with this industry.

In many of the facilities, I noticed lots of manual labor sorting components.  After asking why, the pat answer was, “This is how we ensure a quality part makes it to our customers.”  My immediate thought was, “ARE YOU SERIOUS?”  After probing a bit I found that there were very few, if any, in-process inspections to ensure quality product was coming off the end of the manufacturing line.

The level of NCM (Non Compliant Material) throughout the plants was out of control.  I found bins of parts with NCM tags as old as 2 years in one facility.  Again, “ARE YOU SERIOUS?” popped into my mind.

I’ve spent much of my past 20 years in the Aerospace, Automotive and Medical device industries.  In each of these industries, modern equipment and processes as well as lean manufacturing techniques were employed to ensure the products being produced were of the most high quality and reliability.

So what has kept this industry from stepping up and joining the ranks of world class manufacturers and what can be done to break this cycle of inefficient manufacturing?  I don’t know but am confident that someday, some company will break the mold and embrace lean thinking.  When that happens all the other companies in this industry will have no choice but to follow or be left behind.

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Knowing When to Cross Train

July 22nd, 2010 by Brad

Setpoint is a small business that is agile and can adjust as quickly as the management team can move. There are not committees, boards, and endless studies that have to be approved before decisions can be made. Layers of management don’t exist in our company and overlapping job functions don’t happen very often. Everyone wears multiple hats, but in most job functions, we are only one layer deep. If that person is out of the office that job doesn’t get done.

In most cases this is ok, because it is only for a day or two. But what happens when it is a longer period that the person is unable to be at work. If it is a critical function, it can be disastrous; business can grind to a halt very quickly.

At Setpoint we decided to implement a very simple form of cross training to account for those events. We asked ourselves this question – If the person that is responsible that job were gone for two weeks, what impact would this have on the company? We then grouped those job functions or key processes into one of three buckets:

  • We would be OK
  • We would be OK as long as nothing broke
  • We have to have that job done virtually every day

We would be OK

In this category go jobs or functions that are important to the company, don’t necessarily have critical things that need to be done on a daily basis. One job that we put in this category is the management of our website. If we had to leave it alone for a couple of weeks, we would be ok.

We would be OK - as long as nothing breaks

Identify ones that if nothing breaks, life in the company can go on, but if something goes wrong – it has to be fixed. All IT functions are group in this category. If nothing breaks, the company is fine. If something does go wrong it needs to be fixed quickly.

We have to have the job done virtually every day

Jobs that we grouped under this category are:

  • Payroll
  • Invoicing
  • Procurement
  • Accounts Payable

For the first category we have done nothing to prepare, for the second one, we are working on it and haven’t quite figured out what to do, the last category we have implemented a cross training program. We started by identifying an alternate that would learn the job and be able to do it if the primary person was not here. How much training needs to happen? Setpoints view is, who ever the alternate is, has to practice enough that they can take over the job function if needed. That doesn’t mean that they know all the esoteric details of what can happen, but generally they can handle what needs to be done.

One example, we are an open books company which means that every Monday at 1:00 PM we gather together in what we call the “huddle” and review the key numbers on a big white board. Kara is our alternate for this and once a quarter she figures out the numbers and then puts them up on the white board. If there are intricate details that need to be adjusted for that week, she doesn’t do that, but she is confident enough through practice that she can deal with 95% of what it takes do the white board for our huddle. This has come in handy more than once when the primary person is out for the day.

Planning for these events in this way makes it easier for management to sleep at night.

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Setpoint’s Project Management Method Part 2

July 15th, 2010 by ksmith

In part 2 of our project management series, Joe Knight our CFO talks about why traditional project management doesn’t work.  Traditional project management uses accounting that measures revenue earned by the percent complete based on costs.  We believe this idea is flawed and Joe explains why.  Setpoint measures progress on a project by labor only, or by earned value rather than on a percent complete of materials spent.  Stay tuned for part 3…

Catch up on Project Management Part 1

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Has Computer Aided Design (CAD) improved our lives?

July 8th, 2010 by Setpoint

We all remember how CAD would save the world and make our engineering lives more productive, error proof, and repeatable. Well the jury is in and it’s far from the end all be all.

CAD software is just one of many tools that we engineers use.  It has its value but I have found that it’s not for everything and in many cases it can hinder getting the work done.  It does not take the place of a thinking brain and sometimes it will lengthen the time line on certain projects.  When using CAD people will sometimes go into a black hole and design something that may be a bad idea to begin with, and instead of being trashed right then and work on the next iteration, there is now a beautifully articulated drawing complete in every way that is discarded and worthless. Sometimes something is designed in CAD that just needed a rough sketch.  In the past we could take paper and hand sketches over to a machine shop and work with them and get the parts more quickly than the time it takes to get a 3D model.

At one point one of our customers forced us to switch from one CAD software program to another product.  It cost us $60,000 in hardware just to make the change and we experienced a drop in performance since the engineers had to learn a new program.  The first year we looked at the mechanical engineering cogs for weldments, tools, machined parts, and sheet metal material, looked at the design and engineering hours and normalized the cost of living, cpi, and for everything we’ve bought since the conversion.  The ratio was dead steady and then there was a decline in productivity with a hard cost of $300,000 and a soft cost for training and learning of another $300,000.  Upgrading and going to new systems all the time is a complete waste of money.  If you think you’re going to be more efficient, you’re not.  The feature set increases faster than you can learn to use them and implement them.

Another time when using CAD software is inefficient is concepting.  This is the initial phase of design and it doesn’t replace a good artist or hand sketcher and a competent engineer. In concepting scale reviews aren’t important.  For example designing a car in CAD isn’t as good as building a model on the floor where several people can walk around it and look at it.  Way too many people have only one tool in their toolbox, CAD.  It replaces thinking for action and they can struggle all day drawing some image rather than going and getting a piece of wood and testing it.

What has your experience been?  Has CAD software improved your workplace?

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Setpoint’s Project Management Method Part 1

June 30th, 2010 by ksmith

How do you manage projects?  The Setpoint way of project management is different from that of most companies.  We are a project based company and the standard accounting methods of tracking projects does not work for us.  We have seen many competitors go out of business, not because they don’t have good engineers and can make the machines work, but because they are not able to do it profitably.  In the first of five video clips, Joe Knight our CFO will talk about how Setpoint manages projects and what makes our way different from other methods.

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