Manufacturing and ISO Standards

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Manufacturing and ISO Standards

Paris, Texas is not only known as a shipping point for commodities: cotton, grain, and livestock; Paris does a fair amount of manufacturing.  Neighboring counties in the PJC area, also have cities with Type A sales tax intended for manufacturing and industrial development.   If you are a small business with an industry class in manufacturing, you need to understand ISO Standards and what they mean to you as a business owner.

What are ISO standards?

ISO is the International Standard of Organization; or (formally) it stands for the International Organization for Standardization.  In the 1920’s, several country representatives got together and said: “Hey, we want to make sure our products are safe around the world.” The International Federation of the National Standardizing Association (ISA) was formed by representatives from various national standards organizations who helped set standards worldwide for technical, industrial, and commercial manufacturing. The name was later changed to ISO after WWII and when the United Nations agreed to join forces to create an international standard. Their goal(s) are simple: creating a check-and-balance system for safe products. For instance, if you were transferred to the UK for your job, and needed a car seat for your child, you want to know the car seat you buy is just as safe as one purchased in the United States. If something is ISO certified, you can be sure the manufacturing standard is the same as in the US.

Are ISO standards just for manufacturing?

ISO standards can be used for much more than manufacturing. Think of ISO standards as a recipe, or formula, for the best way to do something. Rather you are manufacturing a product, providing a service, managing a process, or supplying materials, ISO standards can help you work more efficiently. ISO standards hold the wisdom of individuals who have experience and expertise in your business. Here are a few types of ISO standards:

  • Quality Management Standards: Help you work more efficiently,
  • Food Safety Standards: Keeps food from becoming contaminated, or unsafe.
  • Energy Management: Shows you how to conserve energy.
  • Environmental Management Standards: Keeps your environment safe, reduces waste and helps to be more sustainable.
  • Health and Safety Standards: Helps reduce injuries and keeps the workplace safe.
  • IT Standards: Helps keep private or sensitive information secure.

 

What are some ISO standards I should know about?

The best-known ISO standard is called ISO 9000. It’s actually a series of quality management and quality assurance standards that can help small business maintain an efficient quality system of business. The ISO 9000 series is adaptable to any size business and can be applied across all types of businesses. Here is a quick run-down of some of the most popular ISO standards that might help you when running a small business:

  • ISO/IEC 27000: Information Security Management
  • ISO 45000: Occupational Health and Safety Management (in the US it is managed by OSHA)
  • ISO 14001: Environmental Standards and Management
  • ISO/TS 16949: Auto Industry Standards
  • ISO 22000: Food Safety Management
  • ISO 50001: Energy Standards and Management
  • ISO 13485: Medical Equipment
  • ISO 31000: Risk Management

 

Why would I want to use ISO Standards?

Using ISO standards in your business can benefit you in several ways. First, you can learn the best practices, before bad habits develop. Second, being ISO certified helps your customers know that your products and services are equivalent to the high standards, set by the ISO governing body. In short, it makes you and your business more reputable and more appealing; customers know they can trust in you and in your product, service or supply.

 

How do I learn more about ISO Standards?

ISO standards are designed for easy implementation. There are many resources online to help you navigate the ISO standards world. Of course, we at the Paris SBDC can help steer you in the right direction. Contact us today!

 

 

For additional resources on ISO standards and how they apply to manufacturing or to your specific business, please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

 

Shipping Costs | Order Fulfillment for SMB (Small to Mid-size Business)

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What is e-commerce?

E-commerce is buying or selling a product online over the internet. When you search online and buy a new pet toy to replace the squeaky stuffed bunny the dog dismantled, you are ordering from an e-commerce business. Let’s say as a hobby, your Aunt Lucy knits fancy unicorns. Together you start selling them to friends at the local flea market. To grow your business, you decide to start posting pictures online. Soon you are selling fancy unicorns by the dozen on platforms like Etsy or Shopify. Simple as it may be, you now have a small e-commerce business.

  • In 2020 e-commerce topped just over twenty-six trillion in sales globally.
  • Growth in the US alone is expected to increase by eighteen percent to over four trillion in sales for 2021.

 

When does e-commerce make sense?

By the end of 2020 the COVID 19 pandemic had dramatically changed e-commerce. Regarding transitioning to e-commerce, Forbes writes the following from an article contributed by square Inc, on November 18, 2020; According to the PwC Global Consumer Insights Survey, safety is the top priority for 49% of urban consumers. The same survey showed that 86% of consumers are likely to continue shopping online even after pandemic restrictions end.

Consumers are prioritizing both health and convenience. To remain competitive, more businesses are offering services like click and collect and curbside pickup.

A 2020 survey from Incisiv seems foretelling as it showed that:

  • 85% of shoppers have increased curbside pickup.
  • 79% of shoppers say contactless pickup is important.
  • 80% of shoppers expect to use contactless and curbside pickup more in the next six months.

 

When should you automate?

Does the thought of being buried neck-deep in mythical yarn animals sound unpleasant? Let’s say the house is full of shipping boxes with Aunt Lucy’s knitted unicorns and you are renting a truck to haul packages to the nearest click and ship drop off center. It is likely time to automate. If counting trips to the yarn store or postal center hasn’t convinced you, a good standard to follow is when the business reaches a daily fulfillment of thirty (30) orders per day.

As most business owners learned, the term “adapt or dissolve” became an all too real state of business with the continuance of the pandemic. That alone may be the factor for deciding to automate.

 

 Making plans to automate your business:

There are many resources online that specialize in automating a business. Finding the right fit can be a daunting, but a necessary task. Do your homework as all good business decisions require research. Consider the following key areas when automating your business:

  • Marketing: Coordinate changes to your business through all channels via e-mail marketing, short message services (texting), social networks, website upgrades and paid advertising.
  • Finance: Integrating the financial aspect of a business into the automation process can reduce costs and errors. Integrating the invoicing process can also improve the supply chain.
  • Sales: Automate the sales process to track and contact existing customers as well as generate leads for both inside and outside sales to new clients. The goal here is to create more sales while maintaining the current customer base.
  • Product development: Efficient automation should free up more time to develop new products.
  • Product: Working on the business not in the business is the goal here. Automation that creates other means for product manufacturing other than the proprietor doing the work allows for this to happen.
  • Supply chain: Integrating vendor orders, shipping, warehousing, and invoicing will improve the supply chain. For example, Aunt Lucy now has a team knitting her unicorns and they need more yarn. An automated purchase order is sent to the yarn supplier each time an invoice is generated, or a shipment of unicorns leaves the warehouse.
  • Customer service: Integrating things like chatbots on your e-commerce site to answer frequently asked questions can free up more complex customer service issues requiring human contact. Also, scripting these outsourced contacts can further improve customer service beyond the FAQ’s.
  • IT: Automation through things like cloud management platforms can help control computing cost, security, and performance as well as forecasting futures. This helps free up IT personnel to work on pioneering new technology for the company like a computer chip recording that sings a lullaby when you squeeze one of Aunt Lucy’s unicorns.
  • General business function: Automate as many of the companies processes such as HR, payroll, travel scheduling, inventory management and order fulfilment can decrease errors and inefficiencies while improving compliance issues and provide insight to the business.

 

Shipping cost and order fulfilment; a micro-focus on the benefits of automation:

If you are now considering automation for your company, let’s focus on what it can do for shipping cost and order fulfilment.

  • There are many automation tools and companies that specialize in shipping and logistics available in the marketplace. The best advice here is, when possible, find tools that do not require coding or IT skills to implement—that can increase the bottom-line to the companies shipping and order fulfilment costs.
  • An efficient automation of the shipping and order fulfilment can reduce your overhead through eliminating overstock or dead stock and control inventory as well as track costs.
  • Automation can create an effortless process with not only the company’s supply chain, but fulfilment to your customer.
  • Automated shipping with efficient order fulfilment can reduce the need for human intervention in the process. With less labor costs, personnel can be assigned to other processes that do not require automation.
  • Automation can track specific products and market demands globally. So, if Aunt Lucy is still selling unicorns in California but the rest of the world now has a demand for her new calico kitties, the right amount of yarn gets ordered, proper amount of stock is produced, and customers get their orders on time.

Need more information? We can help you with strategies, tips and tricks to get the most out of your order fulfillment and e-commerce strategies.  Contact Paris SBDC today!

 

 

 

For additional resources on order fulfilment strategies, or in deciding if e-commerce is right for you and your small to mid-size business, please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

Human Resource Guidelines for Small Business

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How is Human Resource Management (HRM) different in a small business -vs- a bigger business?

The fundamental goal of the Human Resources (HR) position in a company of any size is similar if not the same; strive to meet daily goals with company employees to build a successful future. While the goals may be the same, implementing them in small companies that average 1-5 employees differs from a larger business.

Managing HR in a small business is generally impacted by budgetary constraints. Simply put, a smaller company usually does not have the financial means for the HR position to cover only one task.  More often, one HR person is required to wear many hats and perform other duties such as payroll management, bookkeeping, benefits administration, staff recruitment as well as organization development and planning for growth. As a small business owner searching for an ideal candidate to fill an HR position, the ability for the new hire to multi-task, becomes paramount.

 

Advantages of Human Resources (HR) for Small Business:

In some respects, HR for a small business can be an advantage when it comes to compliance. Mandatory laws and restrictions required for larger businesses are often not imposed on smaller companies. On the other hand, a smaller company may not be able to offer competitive benefits and salaries found at a larger business. However, allowing for casual dress days and other activities with little or no cost, can mean that self-expression can be attractive for prospective employees. It may even mean happier, longer-term employees with less turn-over…especially after discovering “Cindy” likes to wear her bright- green, flannel pajama top every third Friday.

 

HR Responsibilities in a Larger Company:

In a larger company, the head of the HR generally directs all aspect of the department including:

  • Recruiting employment candidates including market analysis, consulting stakeholders, and managing budgets.
  • Hiring the right employees, conducting interviews and overseeing completion of the proper paperwork.
  • Process payroll, deducting the proper taxes, overseeing bonuses, raises, expenses and reimbursables.
  • Conducting disciplinary actions; investigating complaints, tardiness, truancy, suspensions, and firings. In some cases, recommending counseling and deciding if an employee is right for the company.
  • Updating company policies, implementing them, and informing employees of all changes.
  • Maintaining employee records. Often HR is responsible for safeguarding personal information including emergency contacts and other details that require professionalism and discretion.
  • Conducting benefit analysis; Attracting the top talent can require research into what the competition offers, and then compare it to what your company can offer. Like a fluffy pet romping pen in the workplace–because let’s face it, a happy, fluffy pet can make for a happier employee.

 

What HR guidelines are impacted by employee size?

According to the Texas workforce commission The following are compliance guidelines for businesses according to size:

  • 1 or more employees:
    • Protect against racial discrimination
    • Protect benefit rights of retirement income and security
    • Minimum wage/overtime pay
    • Occupational hazard and safety standards (OSHA)
    • New hire reporting within 20 days

 

  • Any private sector employer:
    • Texas payday law
    • Reporting minimum wage
    • Overtime
    • Timely wages
    • Illegal deductions

 

  • Any for profit government employer
    • Unemployment compensation

 

  • 4 or more employees:
    • National origin/U.S. Citizenship compliance

 

  • Non-profit:
    • Unemployment compensation

 

  • 2-50 employees:
    • Health benefits continuation (cobra)

 

  • 15 Employees:
    • Genetic non-discrimination act: For race, color, gender, religion, national origin, age, disability, genetic information

 

  • 20 Employees or more:
    • Age discrimination
    • Cobra

 

  • 50 Employees or more:
    • Family medical leave

 

  • 100 Employees:
    • Advance notice of plant closing or mass layoff
    • Private sector: Statistical survey of employees

For a more complete description of compliance requirements Click HERE

 

Do I have to offer sick leave if I’m a small business?

According to the U.S department of labor; Currently, there are no federal legal requirements for paid sick leave. For companies of 50 or more subject to the Family and Medical Leave Act (FMLA), the Act does require unpaid sick leave. FMLA provides for up to 12 weeks of unpaid leave for certain medical situations for either the employee or a member of the employee’s immediate family. In many instances paid leave may be substituted for unpaid FMLA leave.

If a company decides to offer paid sick leave, they are creating a legal obligation to grant it. A duty of HR is to update and inform employees of any changes to the company’s sick leave policy.

 

What benefits should a small business offer?

To be competitive, a small business should consider offering benefits for their employees. Often with small or new businesses, budget constraints dictate what benefits can be offered. Most companies consider the following:

  • PTO – Personal time off. A modern concept to paid sick leave or vacation time, a company can determine days and amounts of PTO allotted. This can be taken as sick days, vacation, mental health days taking as much paid time off as allowed, as long as it does not jeopardize the company’s workflow. Be reasonable here, Janice cannot have a month of PTO because she broke a nail.

 

  • Health and medical benefits. While health insurance may be one of the highest expectations for a new candidate, there can be costly obstacles for a business to offer insurance such as high premiums or limited programs if only a few employees should opt into the insurance program.
    • There are often guidelines with limits as to when an employee must decide to join the insurance program, usually within 90 days. If a company has a 30-trial employment period, the insurance will generally start after successfully completing the trial period.
    • When possible, look for a collective of small business owners willing to join together for a group insurance rate. This can help achieve competitive pricing with optimal benefits.

 

  • 401 K or Roth IRA. Offering a retirement saving program with an employer match can be enticing for a potential employee. While considering the company’s budget, HR can predetermine a matching contribution percentile that is feasible.

 

  • Other perks a small business might offer:
    • Commuter benefits
    • Adoption assistance
    • Fitness reimbursements
    • Student loan repayment
    • Extended maternity leave
    • Paternity leave

 

Need more information on the benefits you should or must offer as a small business? Paris SBDC can help you understand the best practices for human resources, and how to manage your employees effectively. Contact Paris SBDC today – serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

 

 

 

 

CDC Guidelines for Small Business and COVID

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Who is the CDC and what do they do?

The acronym CDC stands for the Center for Disease Control, they are our nation’s health protection agency. The CDC is one of the major operating components of the Department of Health and Human Services; their job is to protect America and its citizens from health, safety and security threats. This important part of the federal government conducts critical science and provides health information that will protect individuals against health threats.

In recent events and with the Pandemic of COVID 19, you’ve heard the CDC in an endless stream of news coverage, giving recommendations for health and safety. Unfortunately, the CDC has been less-than consistent with their messages regarding business requirements when it comes to COVID 19. In this blog, we will try to break down the most current regulations for small businesses and how it applies to rural east Texas in regard to COVID 19.

 

Guidelines or Requirements from the CDC?

It’s important to make the distinction between guidelines and requirements. The CDC will issue guidelines that are the “best practices” for businesses and individuals to follow. These guidelines are not always requirements that carry a penalty if not followed, they are simply the best action(s) to take for certain risks. The National Institute for Occupational Safety and Health (NIOSH) is the federal agency responsible for conducting research and making recommendations for the prevention of work-related injury and illness. NIOSH is part of the Centers for Disease Control and Prevention (CDC) in the Department of Health and Human Services. You’ve heard a lot of guidelines from NIOSH, since they are deal mainly with health issues in businesses.

 

Difference between NIOSH and OSHA:

OSHA and NIOSH sound like the same entity, however OSHA is a government entity within the Department of Labor and NIOSH is governed by the CDC. The two are closely related but have different missions served by their organizations. Both were created by The Occupational Safety and Health Act of 1970.

 

CDC guidelines businesses MUST implement:

All businesses, regardless of their size or location have certain requirements issued by OSHA. As mentioned, the guidelines set forth by OSHA are requirements, not suggestions and in some cases, can carry a fine or penalty if not followed. Some of those requirements include:

  • OSHA’s Personal Protective Equipment (PPE) standards: Employers are required to provide PPE for employees who work in an at-risk environment or who are exposed to workplace hazards. That could mean masks, gloves and even respiratory protection, if necessary.
  • General Duty Clause: Requires employers to make sure employees are not exposed recognized hazards that are causing, or likely to cause death or serious physical harm.
  • Bloodborne Pathogens Standard: Applies to occupational exposure to human blood and other potentially infectious materials that typically do not include respiratory secretions that may contain SARS-CoV-2.

 

What are the current regulations for businesses in Texas regarding COVID?

Keep in mind the CDC continues to update and redefine their guidelines regarding COVID. Yes, it’s frustrating with the constant changes in how we do business, however we are still learning about COVID, the transmission of the virus, how to fight it and the best way to keep our workers safe. The current regulations include:

  • Employees should get vaccinated: Allow time off for vaccinations and possible side-effects. There’s a great side-benefit for allowing this: Businesses with fewer than 500 employees may be eligible for tax credits under the American Rescue Plan Act if they provide paid time off from April 1, 2021, through September 30, 2021, for employees who decide to receive the vaccine or to accompany a family or household member to receive the vaccine and to recover from any potential side effects from the vaccine.
  • Instruct any workers who are infected, unvaccinated workers who have had close contact with someone who tested positive for SARS-CoV-2, and all workers with COVID-19 symptoms to stay home from work.
  • Implement physical distancing in all communal work areas for unvaccinated and otherwise at-risk workers.
  • Provide workers with face coverings or surgical masks, as appropriate, unless their work task requires a respirator or other PPE.
  • Educate and train workers on your COVID-19 policies and procedures using accessible formats and in languages they understand.
  • Suggest or require that unvaccinated customers, visitors, or guests wear face coverings in public-facing workplaces such as retail establishments, and that all customers, visitors, or guests wear face coverings in public, indoor settings in areas of substantial or high transmission.
  • Maintain Ventilation Systems
  • Perform routine cleaning and disinfection.
  • Record and report COVID-19 infections and deaths: (This is a mandatory requirement)
  • Implement protections from retaliation and set up an anonymous process for workers to voice concerns about COVID-19-related hazards.
  • Follow other applicable mandatory OSHA standards – As previously mentioned.

 

Strategies for employers to keep workers safe:

There are several things small businesses can do to keep both their employees and the general public that you serve, safe from COVID. Some of these include:

  • Allow employees to work from home, if possible.
  • Stagger break times to allow less people in one area
  • Move desks further apart – allow employees to spread out.
  • Provide signage or visual cues to help remind people to wear a mask, wash their hands, or cover a cough.
  • Add barriers, if possible, to create space and safety. These may include plexiglass or windows and doors, if necessary.

 

Here are some excellent websites to help you navigate CDC guidelines and to help make your small business safer:

Tips to protect employee health: Found HERE

State of Texas Info for businesses in relation to COVID: Found HERE

Small business resource for CDC guidelines: Found HERE 

 

For additional resources on CDC guidelines for small businesses, OSHA requirements and how to keep your employees and customer safe, please contact us at the Small Business Development Center – SBDC – serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties in Texas.