ITAC’s February 2007 e-newsletter

February 2007

All of us at ITAC wish you continued success in 2007!
In this issue, 3 ideas to help your firm have a more profitable 2007!

Spring Cleaning - finding profits in your own facility! The "5S" Philosophy
Affordable Advanced Manufacturing Solutions
R & D Tax Credit Extention -- What it Can Mean for Your Business
Relocation Services for NYC Manufacturers: MoveSmart/StayLeanProgram
Upcoming ITAC Events
About ITAC

Spring Cleaning -- Finding Profits in Your Own Facility! The "5S" Philosophy

Anyone who has agonized over: How can I improve efficiency, work organization, quality, safety and housekeeping and protect my investment at the same time? Should consider the benefits associated with adopting the 5S principles in their workplace (and their personal lives)!

Once fully implemented, the 5S process can increase moral, create positive impressions on customers, and increase efficiency and organization. Not only will employees feel better about where they work, the effect on continuous improvement can lead to less waste, better quality and faster lead times. Any of which will make your organization more profitable and competitive in the market place.

The 5S Philosophy focuses on effective work place organization and standardized work procedures. 5S simplifies your work environment reduces waste and non-value activity while improving quality efficiency and safety. (in other words, increased productivity in less time!)

Sort: The first S focuses on eliminating unnecessary items from the workplace. An effective visual method to identify these unneeded items is called red tagging. A red tag is placed on all items not required to complete your job. These items are then moved to a central holding area. This process is for evaluation of the red tag items. Occasionally used items are moved to a more organized storage location outside of the work area while unneeded items are discarded. Sorting is an excellent way to free up valuable floor space and eliminate such things as broken tools, obsolete jigs and fixtures, scrap and excess raw material. The Sort process also helps prevent the JIC job mentality (Just In Case.)

Set In Order: The second S focuses on efficient and effective storage methods.

You must ask yourself these questions:

What do I need to do my job?
Where should I locate this item?
How many of this item do I need?

Strategies for effective Set In Order are painting floors, outlining work areas and locations, shadow boards, and modular shelving and cabinets for needed items such as trash cans, brooms, mop and buckets. Imagine how much time is wasted every day looking for a broom? The broom should have a specific location where all employees can find it. "A place for everything and everything in its place."

Shine: Once you have eliminated the clutter and junk that has been clogging your work areas and identified and located the necessary items, the next step is to thoroughly clean the work area. Daily follow-up cleaning is necessary in order to sustain this improvement. Workers take pride in a clean and clutter-free work area and the Shine step will help create ownership in the equipment and facility. Workers will also begin to notice changes in equipment and facility location such as air, oil and coolant leaks, repeat contamination and vibration, broken, fatigue, breakage, and misalignment. These changes, if left unattended, could lead to equipment failure and loss of production. Both add up to impact your company's bottom line.

Standardize: Once the first three 5S's have been implemented, you should concentrate on standardizing best practice in your work area. Allow your employees to participate in the development of such standards. They are a valuable but often overlooked source of information regarding their work. Think of what McDonalds, Pizza Hut, UPS, Blockbuster and the United States Military would be without effective work standards.

Sustain: This is by far the most difficult S to implement and achieve. Human nature is to resist change and more than a few organizations have found themselves with a dirty cluttered shop a few months following their attempt to implement 5S. The tendency is to return to the status quo and the comfort zone of the "old way" of doing things. Sustain focuses on defining a new status quo and standard of work place organization.

To find out more about how your firm can benefit from a 5S program, please contact your ITAC client manager or Jane Tabachnick, Business Development Manager, jtabachnick@itac.org or 212 442-2990

Article By: Ron Spinelli, Director of Client Services RSpinelli@itac.org
ITAC- Industrial & Technology Assistance Corporation

Affordable Advanced Manufacturing Solutions --
Solutions to assist your firm become globally competitive.

ITAC and Cornell Center for Materials Research (CCMR) have formed a partnership to provide small and mid-sized manufacturers that have materials based research, analysis and testing needs with access to the capabilities residing in Cornell University.

Gaining competitive advantage in this global economy is often accomplished through improving products, reducing cost and streamlining the business. Many costly problems in today's manufacturing environment can be sourced back to materials.

CCMR Small Business Outreach Program is a New York State-focused, NYSTAR-funded effort offering grants and matching funds assistance to selected companies. CCMR's membership includes over 100 faculty members and makes available $18 million worth of materials research facilities. Capabilities range from: electrical processing lab, imaging and sensor lab, to materials and mechanical facilities including testing, measuring and surface analysis of product in question.

Benefits of the CCMR Program:

Cost effectively identify and resolve materials and process problem
Access to cutting-edge research, faculty knowledge
Use of the state-of-the-art materials testing facilities

Examples of how companies took advantage of this program:

Conduct fatigue modeling and lifetime prediction of helicopter motors
Improved materials for a manufacturable, low cost regenerator for sub-50 Kelvin applications
Study of the surface and composition of diesel product
Evaluate materials for printing capabilities on atypical surfaces
Mechanical testing of seal material

Interested in unlocking this value? For more information on the program and how you can take advantage of it, please contact Sonia Moin at smoin@itac.org or Jane Tabachnick at jtabachnick@itac.org or call us at
212-442-2990

R & D Tax Credit Extension: What it Can Mean for Your Business

On December 20th, 2006, President Bush signed the tax extender legislation including provisions that extend the R & D tax credit for two years from January 1st 2006 through December 31st 2008.

This means that New York companies, including manufacturing companies, technology and service companies, can now qualify for up to 22% in combined credits for developing new and improved products, solutions and processes.

Many New York companies have engaged in some activities that qualifies for a tax credit. For many companies, the tax eligible cost of R & D related to process improvements equals or exceeds new and improved product development costs.

New York companies should consider seeking tax advice to assist them in understanding the qualifying activities and qualifying expenses eligible for both credits. The Federal and New York tax credits contain some definitions in common but each jurisdiction credits have their own special opportunities that are uniquely different.

This announcement was prepared by Charles R Goulding Attorney/C.P.A./M.B.A. and Jacob Goldman Engineer/M.B.A. They can be reached at charles.goulding@gmail.com or 516-364-2630.

Relocation Services for NYC Manufacturers: MoveSmart/StayLeanProgram

Are operations in your facility getting a little tight? Lease coming up for renewal, and don't know what your options are? Is your firm's neighborhood gentrifying, increasing your rents or even threatening your operation?

Perhaps your firm is growing, and you are weighing relocation against reconfiguration of your current space. Whether you need to relocate to a new location or reconfigure your space to improve efficiency there are important actions your firm should take to assure that your space will continue to meet future business needs.

ITAC's MoveSmart/StayLean program can help your firm plan ahead and get the most out of your facility. ITAC has over 18 years experience in workflow, plant layout and relocation planning. ITAC's team of experienced staff can help you get the most out of your current space.

The MoveSmart/StayLean program includes project planning and decision support, such as:

Space and Operations Assessment
Relocation Planning Workshops, Timelines, and Budgets
Workflow and Operational Improvements
Space Requirements, Site Selection, and Schematic Layouts

For a limited period of time your firm may be eligible for a grant to cover costs associated with relocation planning or plant configuration. This program is offered with support from the New York City Council. Applications are due March 1, 2007.

To learn more or apply, contact Jane Tabachnick at 212-442-2990 or jtabachnick@itac.org.

Upcoming Events

Lean for Office Workshop
Date: February 22, 2007, 9 am- 4:30 pm
Location: ITAC Office, 253 Broadway, Suite 302, New York, NY
Cost: $95

In most firms, opportunities to apply lean concepts are abundant and can impact administrative processes at all levels. At the enterprise level, lean can help accelerate those processes that impact both external customers and suppliers (e.g., order entry, customer service, product development, distribution, etc.). At the organizational level, lean streamlines key support processes (such as IT, human resources, and finance) and improves communication and cross functional cooperation. At the department level, lean reduces activities that add time but little value, improves workflow, and measures progress. At the individual level, lean can reduce paperwork and errors and clarify roles, responsibilities, and reduce work-in-process. Workshop simulation exercises help participants experience first hand how Lean techniques increase space utilization, improve quality, reduce cycle time, improve delivery performance, and reduce work-in-process. Application of Lean techniques enables firms to increase profits, improve customer satisfaction and become more competitive.

For more information contact Rose-Anne Angus at 212-442-2990 or rangus@itac.org.

FastTrac – Entrepreneurial Bootcamp
Date: February 28 – May 6, 2007, 6 pm -9 pm [12 sessions]
Location: 1 Chase Plaza, New York, NY
Cost: $1000 [payment plans available]

Need to Raise Capital? Expand Your Business and Develop Partnerships?
FastTrac is a comprehensive business program addressing the needs of companies seeking to develop or improve their business and better position their company to attract capital. The program combines small group presentations lead by a seasoned Venture Capitalist with prominent guest speakers, one-on-one coaching and peer learning, with the goal of helping entrepreneurs produce well-critiqued business plans, develop solid strategies and understand the investor mindset.

To date, the 300 companies who’ve attended the program have raised over $65,000,000.00

Featured Speakers are from: JPMorgan CHASE, Valley National Bank, RoseTech Ventures, NY Angels, StoneHedge Ventures, BDI (Business Development Institute), For Your Imagination, Inc. and Kaplan. The program, now in its 8th year is sponsored by: JPMorgan Chase, in partnership with the Kauffman Foundation for Entrepreneurial Studies, Valley National Bank and FinanceNYC.com.

Contact ITAC at 212-442-2990 or email Sonia Moin at smoin@itac.org for more information.

About ITAC

ITAC is a non-profit economic development organization dedicated to creating and retaining jobs for New Yorkers. We provide indepth one-on-one technical assistance for New York City manufacturers and technology firms to help them stay competitive in the marketplace. ITAC's unique combination of business expertise and expert resource network makes us a valuable partner to help NYC companies grow, change and thrive.

ITAC receives significant financial support from the New York State Office of Science, Technology and Academic Research (NYSTAR), New York's high-technology economic development agency, and the National Institute of Standards and Technology (NIST), and Manufacturing Extension Partnership (MEP). ITAC serves as NYSTAR®'s designated Regional Technology Development Center for New York City and one of nearly 350 MEP locations across the country and works directly with regional companies to increase their competitiveness and profitability.


	February 2007 All of us at ITAC wish you continued success in 2007! In this issue, 3 ideas to help your firm have a more profitable 2007! Spring Cleaning - finding profits in your own facility! The "5S" Philosophy Affordable Advanced Manufacturing Solutions R & D Tax Credit Extention -- What it Can Mean for Your Business Relocation Services for NYC Manufacturers: MoveSmart/StayLeanProgram Upcoming ITAC Events About ITAC Spring Cleaning -- Finding Profits in Your Own Facility! The "5S" Philosophy Anyone who has agonized over: How can I improve efficiency, work organization, quality, safety and housekeeping and protect my investment at the same time? Should consider the benefits associated with adopting the 5S principles in their workplace (and their personal lives)! Once fully implemented, the 5S process can increase moral, create positive impressions on customers, and increase efficiency and organization. Not only will employees feel better about where they work, the effect on continuous improvement can lead to less waste, better quality and faster lead times. Any of which will make your organization more profitable and competitive in the market place. The 5S Philosophy focuses on effective work place organization and standardized work procedures. 5S simplifies your work environment reduces waste and non-value activity while improving quality efficiency and safety. (in other words, increased productivity in less time!) Sort: The first S focuses on eliminating unnecessary items from the workplace. An effective visual method to identify these unneeded items is called red tagging. A red tag is placed on all items not required to complete your job. These items are then moved to a central holding area. This process is for evaluation of the red tag items. Occasionally used items are moved to a more organized storage location outside of the work area while unneeded items are discarded. Sorting is an excellent way to free up valuable floor space and eliminate such things as broken tools, obsolete jigs and fixtures, scrap and excess raw material. The Sort process also helps prevent the JIC job mentality (Just In Case.) Set In Order: The second S focuses on efficient and effective storage methods. You must ask yourself these questions: What do I need to do my job? Where should I locate this item? How many of this item do I need? Strategies for effective Set In Order are painting floors, outlining work areas and locations, shadow boards, and modular shelving and cabinets for needed items such as trash cans, brooms, mop and buckets. Imagine how much time is wasted every day looking for a broom? The broom should have a specific location where all employees can find it. "A place for everything and everything in its place." Shine: Once you have eliminated the clutter and junk that has been clogging your work areas and identified and located the necessary items, the next step is to thoroughly clean the work area. Daily follow-up cleaning is necessary in order to sustain this improvement. Workers take pride in a clean and clutter-free work area and the Shine step will help create ownership in the equipment and facility. Workers will also begin to notice changes in equipment and facility location such as air, oil and coolant leaks, repeat contamination and vibration, broken, fatigue, breakage, and misalignment. These changes, if left unattended, could lead to equipment failure and loss of production. Both add up to impact your company's bottom line. Standardize: Once the first three 5S's have been implemented, you should concentrate on standardizing best practice in your work area. Allow your employees to participate in the development of such standards. They are a valuable but often overlooked source of information regarding their work. Think of what McDonalds, Pizza Hut, UPS, Blockbuster and the United States Military would be without effective work standards. Sustain: This is by far the most difficult S to implement and achieve. Human nature is to resist change and more than a few organizations have found themselves with a dirty cluttered shop a few months following their attempt to implement 5S. The tendency is to return to the status quo and the comfort zone of the "old way" of doing things. Sustain focuses on defining a new status quo and standard of work place organization. To find out more about how your firm can benefit from a 5S program, please contact your ITAC client manager or Jane Tabachnick, Business Development Manager, jtabachnick@itac.org or 212 442-2990 Article By: Ron Spinelli, Director of Client Services RSpinelli@itac.org ITAC- Industrial & Technology Assistance Corporation Affordable Advanced Manufacturing Solutions -- Solutions to assist your firm become globally competitive. ITAC and Cornell Center for Materials Research (CCMR) have formed a partnership to provide small and mid-sized manufacturers that have materials based research, analysis and testing needs with access to the capabilities residing in Cornell University. Gaining competitive advantage in this global economy is often accomplished through improving products, reducing cost and streamlining the business. Many costly problems in today's manufacturing environment can be sourced back to materials. CCMR Small Business Outreach Program is a New York State-focused, NYSTAR-funded effort offering grants and matching funds assistance to selected companies. CCMR's membership includes over 100 faculty members and makes available $18 million worth of materials research facilities. Capabilities range from: electrical processing lab, imaging and sensor lab, to materials and mechanical facilities including testing, measuring and surface analysis of product in question. Benefits of the CCMR Program: Cost effectively identify and resolve materials and process problem Access to cutting-edge research, faculty knowledge Use of the state-of-the-art materials testing facilities Examples of how companies took advantage of this program: Conduct fatigue modeling and lifetime prediction of helicopter motors Improved materials for a manufacturable, low cost regenerator for sub-50 Kelvin applications Study of the surface and composition of diesel product Evaluate materials for printing capabilities on atypical surfaces Mechanical testing of seal material Interested in unlocking this value? For more information on the program and how you can take advantage of it, please contact Sonia Moin at smoin@itac.org or Jane Tabachnick at jtabachnick@itac.org or call us at 212-442-2990 R & D Tax Credit Extension: What it Can Mean for Your Business On December 20th, 2006, President Bush signed the tax extender legislation including provisions that extend the R & D tax credit for two years from January 1st 2006 through December 31st 2008. This means that New York companies, including manufacturing companies, technology and service companies, can now qualify for up to 22% in combined credits for developing new and improved products, solutions and processes. Many New York companies have engaged in some activities that qualifies for a tax credit. For many companies, the tax eligible cost of R & D related to process improvements equals or exceeds new and improved product development costs. New York companies should consider seeking tax advice to assist them in understanding the qualifying activities and qualifying expenses eligible for both credits. The Federal and New York tax credits contain some definitions in common but each jurisdiction credits have their own special opportunities that are uniquely different. This announcement was prepared by Charles R Goulding Attorney/C.P.A./M.B.A. and Jacob Goldman Engineer/M.B.A. They can be reached at charles.goulding@gmail.com or 516-364-2630. Relocation Services for NYC Manufacturers: MoveSmart/StayLeanProgram Are operations in your facility getting a little tight? Lease coming up for renewal, and don't know what your options are? Is your firm's neighborhood gentrifying, increasing your rents or even threatening your operation? Perhaps your firm is growing, and you are weighing relocation against reconfiguration of your current space. Whether you need to relocate to a new location or reconfigure your space to improve efficiency there are important actions your firm should take to assure that your space will continue to meet future business needs. ITAC's MoveSmart/StayLean program can help your firm plan ahead and get the most out of your facility. ITAC has over 18 years experience in workflow, plant layout and relocation planning. ITAC's team of experienced staff can help you get the most out of your current space. The MoveSmart/StayLean program includes project planning and decision support, such as: Space and Operations Assessment Relocation Planning Workshops, Timelines, and Budgets Workflow and Operational Improvements Space Requirements, Site Selection, and Schematic Layouts For a limited period of time your firm may be eligible for a grant to cover costs associated with relocation planning or plant configuration. This program is offered with support from the New York City Council. Applications are due March 1, 2007. To learn more or apply, contact Jane Tabachnick at 212-442-2990 or jtabachnick@itac.org. Upcoming Events Lean for Office Workshop Date: February 22, 2007, 9 am- 4:30 pm Location: ITAC Office, 253 Broadway, Suite 302, New York, NY Cost: $95 In most firms, opportunities to apply lean concepts are abundant and can impact administrative processes at all levels. At the enterprise level, lean can help accelerate those processes that impact both external customers and suppliers (e.g., order entry, customer service, product development, distribution, etc.). At the organizational level, lean streamlines key support processes (such as IT, human resources, and finance) and improves communication and cross functional cooperation. At the department level, lean reduces activities that add time but little value, improves workflow, and measures progress. At the individual level, lean can reduce paperwork and errors and clarify roles, responsibilities, and reduce work-in-process. Workshop simulation exercises help participants experience first hand how Lean techniques increase space utilization, improve quality, reduce cycle time, improve delivery performance, and reduce work-in-process. Application of Lean techniques enables firms to increase profits, improve customer satisfaction and become more competitive. For more information contact Rose-Anne Angus at 212-442-2990 or rangus@itac.org. FastTrac – Entrepreneurial Bootcamp Date: February 28 – May 6, 2007, 6 pm -9 pm [12 sessions] Location: 1 Chase Plaza, New York, NY Cost: $1000 [payment plans available] Need to Raise Capital? Expand Your Business and Develop Partnerships? FastTrac is a comprehensive business program addressing the needs of companies seeking to develop or improve their business and better position their company to attract capital. The program combines small group presentations lead by a seasoned Venture Capitalist with prominent guest speakers, one-on-one coaching and peer learning, with the goal of helping entrepreneurs produce well-critiqued business plans, develop solid strategies and understand the investor mindset. To date, the 300 companies who’ve attended the program have raised over $65,000,000.00 Featured Speakers are from: JPMorgan CHASE, Valley National Bank, RoseTech Ventures, NY Angels, StoneHedge Ventures, BDI (Business Development Institute), For Your Imagination, Inc. and Kaplan. The program, now in its 8th year is sponsored by: JPMorgan Chase, in partnership with the Kauffman Foundation for Entrepreneurial Studies, Valley National Bank and FinanceNYC.com. Contact ITAC at 212-442-2990 or email Sonia Moin at smoin@itac.org for more information. About ITAC ITAC is a non-profit economic development organization dedicated to creating and retaining jobs for New Yorkers. We provide indepth one-on-one technical assistance for New York City manufacturers and technology firms to help them stay competitive in the marketplace. ITAC's unique combination of business expertise and expert resource network makes us a valuable partner to help NYC companies grow, change and thrive. ITAC receives significant financial support from the New York State Office of Science, Technology and Academic Research (NYSTAR), New York's high-technology economic development agency, and the National Institute of Standards and Technology (NIST), and Manufacturing Extension Partnership (MEP). ITAC serves as NYSTAR®'s designated Regional Technology Development Center for New York City and one of nearly 350 MEP locations across the country and works directly with regional companies to increase their competitiveness and profitability.