It’s been 25 years since the U.S. Supreme Court decided Daubert. The case officially made federal district court judges the “gatekeepers” of expert evidence. This article summarizes Daubert and other relevant case law on the admissibility of expert witness testimony and explains the steps attorneys can take to help ensure that their experts will withstand Daubert challenges. A sidebar discusses a Daubert challenge that focused on an expert’s qualifications.Read More
The Trump administration has released its long-awaited proposed rule to update the overtime exemptions for so-called white-collar workers under the Fair Labor Standards Act. The rule increases the minimum weekly standard salary level for both regular workers and highly compensated employees (HCEs). It also increases the total annual compensation requirement for HCEs that’s required to qualify them as exempt. In addition, it retains the often confusing “duties test.”
The Trump administration rule generally is more favorable to employers than the Obama administration’s 2016 rule, which a federal district court judge in Texas halted before it could take effect. While the latter was expected to make 4.1 million salaried workers newly eligible for overtime (absent some intervening action by their employers), the U.S. Department of Labor (DOL) predicts that the newly proposed rule will make 1.3 million currently exempt employees nonexempt. The DOL estimates the direct costs for employers under the proposed rule will ring in at $224 million less per year than under the 2016 rule. (It’s unclear whether these figures take into account payroll tax obligations.)Read More
Congratulations on the purchase of your new ERP system! Now just press the EASY button, sit back, and watch as your new system automatically absorbs the data from your old system and sets up your new system in the most efficient way for you to run your business!
Wait, are you telling me it’s not the way it works? No matter how much you hope for it to be, the ERP data conversion and migration process will not get done overnight. Despite the advancements made in technology and software for ERP systems, you can’t bypass the work required to successfully migrate your company’s data to your new system.
However, most of the pain involved in the ERP data conversion and migration process can be alleviated by planning ahead and allowing adequate time to methodically migrate your data. Using the tools provided by today’s systems you should still be able to sleep well during the process. The following are what I believe to be the key points to a successful ERP data conversion and data migration.Read More
The manufacturing world is full of jargon and acronyms, and the term “job shop” gets thrown around a lot and is often misunderstood.
This article defines some of the characteristics of job shops and identifies some of their unique challenges for ERP software.
1. Make to order supply chain strategy
2. Limited finished goods inventory; inventory mainly held in raw material form
3. Products made to each customer’s unique design and demand pattern
4. Small batch production runs (as compared to repetitive manufacturers)
5. Complex routings with long production lead times due to high product variability
6. Relatively simple Bills of Material, often just a single raw material
7. Functionally-organized plants (e.g. Milling separate from Grinding separate from Machining) with moves and queues between each step in manufacturing process
8. Flexible, multipurpose equipment with low capacity utilization
9. Complex scheduling requirementsRead More
We wrote previously about coinsurance penalties in the property policy arena. Coinsurance is conceptually identical in the property damage and business income arenas. Did the insured buy a limit and accompanying coinsurance percentage that understates the risk at hand? In the business income arena, describing the process to assess whether a penalty applies is more involved because the description of the Business Income value is more detailed.Read More
We organize and clean at home. Doing the same at our manufacturing facilities and offices will increase both efficiency and our bottom line. This is Part 1 of a two-part series that discusses how manufacturing organizations can utilize the 5S methodology to establish a strong foundation of discipline needed to increase efficiency and profitability.Read More
It’s probably no surprise that cash is the most popular fraud target. This article explains how forensic accounting experts identify potential cash traps, such as overbilling and phantom employee scams, and how they trace common fraud schemes through a company’s accounting systems to catch a thief.Read More
Machine setup time refers to the period of time that is required to prepare a machine for its next run after it has completed producing the last part of the previous run. So why should you focus on reducing machine setup of your manufacturing process instead of focusing on reducing the overall run time? Although decreasing run times reduces overall lead times, shortened machine setup times will reduce your organization’s manufacturing costs as well as increase your flexibility to meet customer demands.Read More
One of the most effective weapons in a forensic accountant’s arsenal is lifestyle analysis. This article talks about how experts seeking hidden assets and income sources conduct such analysis. It discusses several techniques, including the bank deposits, expenditures and asset methods.Read More
Material Requirements Planning (MRP) systems are powerful tools that balance your supply and demand in your manufacturing operations. Today, many people refer to enterprise resource planning (ERP) systems as well. How do MRP and ERP relate to one another? ERP is an extension of the MRP concept and incorporates the fully integrated operation from order to cash to meet customer fulfillment and satisfaction.Read More