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Summer 2011 Vol 1, Issue 2
www.connstep.org
New Opportunities 14 Your New Rolodex 18 Carpe Diem 22 Keeping Pace with Technology 24 The Heat is On
Improved efjciency. Faster ROI. Higher projts. Companies that move ahead and stay ahead choose CONNSTEP to guide their continuous improvement and growth strategies. Through close collaboration with our industry experts, CONNSTEP accelerates top line growth, operational efÆciencies and long-term sustainability. Ready to experience a new level of success with your company? Bring us your business goals and we’ll work together to make them happen. CONNSTEP. Your total business improvement resource.
www.connstep.org CONNSTEP, Inc. 1.800.266.6672
a d va nt a ge summer 2011
14 Your New Rolodex
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With over 100 million users, LinkedIn is the fastestgrowing professional networking site that allows you to make business contacts and find potential clients and customers.
18 Carpe Diem With a business strategy firmly rooted in continuous improvement, Lex Products is able to
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24
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The Future is Local I recently read an article with some great advice from a fourth generation business in Maine, looking to open another location on the West Coast. The grandfather’s advice
create opportunities and control their own destiny.
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Keeping Pace with Technology We need to create economic value through the
was “Pick your community well. You’re not
production of parts at a competitive price and in a
there solely to make money; you’re there to
shorter time than our competitors. The question
play a larger role.”
is how?
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The Buzz Newsworthy trends, topics, statistics, Q&A and an opportunity to ask the experts.
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The Heat is On Birk Manufacturing is blazing a new trail - with the strategic implementation of Lean, investment in
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their people and the development of a continuous
Investment Opportunity
improvement culture - they’re leaving the
My family has been involved in manufacturing for three generations and at no time have we faced such serious economic challenges; however a new federal bill called the MRA, Manufacturing Reinvestment Account brings hope.
competition in the dust.
>>> CONTENTS
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First, Our Future is Local Domestic manufacturers are constantly adjusting. The once monolithic industry has changed; now open-minded to environmental concerns, energy resources and efficiencies in process and space use. And as always, looking for new ways to grow. For the last few decades, U.S. companies have turned to global manufacturing production for new opportunities; but challenges exist there, too. Challenges very similar to those inherent in local production such as rising transportation costs, speed of delivery and product quality. Decisions to produce and source from outside of the country are often made non-strategically. Due to this, companies often fall into one of two camps: (mindlessly) global or (hopelessly) local. However, successful companies leverage local and then think global, understanding the need for balance.
advantage CONNSTEP Advantage Magazine is a publication of CONNSTEP, Inc. Since 1994, the business consultants at CONNSTEP have helped Connecticut’s small and midsize businesses compete and grow. Through highly personalized services tailored to the specific needs of our client companies, we help develop more effective business leaders, execute company-wide operational excellence and devise creative strategies for business growth and profitability. CONNSTEP is Connecticut’s NIST/MEP affiliate and is supported by the Connecticut Department of Economic
The smart companies look inward first, examining what is working and how they can improve on success. When needed, they look to resources close to home, in their community, for support and encouragement to enable growth. Sure, they see international expansion along the horizon, but they see diversification and customization as a pathway with their existing client base as the first step. One of our featured clients in this issue, Birk Manufacturing (page 24), tailors their products per customer demands. They also survey their clients to find out what is important. This is critical as manufacturing in the 21st century needs new business models as patterns for product consumption have changed. Birk says that hearing and responding to what their clients say is vital …. and this sets them apart. And along with this, Birk’s visits to other manufacturers across the state act as models for ongoing continuous improvement activities, sharing in ideas for developing a strong and positive culture within their organization.
and Community Development (DECD).
Publisher Bonnie Del Conte, President & CEO CONNSTEP
Editor Rebecca Mead, Manager, Marketing & Communications CONNSTEP
Contributing Writers Robert Kravontka, CONNSTEP Kathy Hokunson, Site-Seeker, Inc. Ken Cook, Peer to Peer Advisors Michael Perrelli, CONNSTEP Rebecca Mead, CONNSTEP
Also profiled is Lex Products (page 18). As with Birk, Lex looks to their community to add value and efficiency to their organization. The notion of jobs leaving the state does not sit well with them. Their new facility in Shelton is testament to their community values. I was fortunate to be invited to their recent open house and witnessed the unveiling of new banners on their building, each representing their dedication to organizational excellence. If you’re near Shelton, go see them - they are a statement. And while Lex is already active in the global market, their involvement with other Connecticut companies as partners and suppliers sets best practices as a solid base for their expansion.
Mike Gugger, CONNSTEP Jamison Scott, Air Handling Systems
Contacts To subscribe: info@connstep.org To change an address: info@connstep.org For reprints, PDF’s: rmead@connstep.org For back issues: rmead@connstep.org For permission to copy: rmead@connstep.org To pitch a story: rmead@connstep.org
So, as we must be competitive in a global economy, manufacturers, like any other business, have the ability to source and produce in other parts of the world. But perhaps their decision to do so should stem from a solid foundation developed through local collaboration. I recently read an article with some great advice from a fourth generation business in Maine, looking to open another location on the West Coast. The grandfather’s advice was “Pick your community well. You’re not there solely to make money; you’re there to play a larger role.” May your reading be satisfying,
To register for an event: info@connstep.org 800.266.6672 CONNSTEP, Inc., all rights reserved. Reproduction encouraged after obtaining permission from CONNSTEP. CONNSTEP Advantage Magazine is printed four times a year by CONNSTEP, Inc., 1090 Elm Street, Suite 202, Rocky Hill, CT 06067. 800.266.6672
POSTMASTER Send address changes to: CONNSTEP, Inc.
Bonnie Bonnie Del Conte is the president & CEO of CONNSTEP. She can be reached at info@connstep.org.
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1090 Elm Street, Suite 202 Rocky Hill, CT 06067
>>> Contributors
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Summer, 2011
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1 2 4 Robert Kravontka has over 35 years experience in Connecticut manufacturing operations and technical sales. His book, “Lean Selling,” illustrates to the sales professional the need to streamline the sales approach and general practices, which in turn leads to a more effective sales pitch and client relations strategy.
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Robert serves on the board of directors for the Connecticut Green Building Council, and is chair of the Society of Manufacturing Engineers (SME) central Connecticut chapter. He is also a past regional chair of SME New England. A graduate of the University of New Haven, Robert holds a bachelors degree in Manufacturing Engineering and a Masters in Business Administration.
Michael Perrelli is the Marketing Specialist with CONNSTEP where he is responsible for developing the content, markets and promotions of CONNSTEP training, networking and outreach programs. Additionally, Michael works with the Manger of Marketing & Communications on organizational market development, website maintenance and trade show efforts.
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Before joining CONNSTEP at the end of 2010, Michael worked for the Alcone Marketing Group, a promotional agency based in Darien and for SourceMedical in Wallingford, where he controlled multiple direct marketing and trade show efforts for the leader in ambulatory surgery center management software.
5 Kathy Hokunson is the Vice President of Sales & Marketing for Site-Seeker, Inc., an internet marketing firm specializing in search engine optimization, pay-per-click advertising, social media and ROI.
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Site-Seeker, Inc. works with clients to drive qualified visitors to their websites, convert visitors to buyers, measure results achieved and develop improvement plans based on performance. Kathy was one of the earliest adopters of the business uses of social media, spending her career making the bottom line case for internet marketing, including social media adoption.
Rebecca Mead is the Manager of Marketing and Communications for CONNSTEP where she directs the marketing, public relations, legislative communications and all CONNSTEP outreach events, including the annual CONNSTEP Manufacturing & Business Conference.
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Rebecca is the President-Elect of the American Marketing Association Connecticut Chapter and is an alumnus of Randolph-Macon Woman’s College and The University of Hartford. Rebecca was named as one of the 2011 Hartford Business Journal 40 Under 40 recipients and was honored with the 2010 NIST/MEP Unsung Hero Award.
6 Ken is the Founder and Managing Director of Peer to Peer Advisors. His background includes over twenty years consulting with high growth and middle market companies, focusing on marketing, sales and growth strategies. Ken’s consulting includes five years as a Senior Contract Consultant for Inc. Magazine.
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He’s written two books published by The American Marketing Association and McGraw-Hill, and is completing his third book, appropriately titled “Rainmakers.” He has written columns for The Hartford Business Journal, The Boston Business Journal and The AMA website.
Mike Gugger is CONNSTEP’s Machining Technology Consultant where he provides consulting and training solutions in machining and metal removing technologies.
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Prior to CONNSTEP, Mike was with TechSolve, Inc., Ohio’s Manufacturing Extension Partnership, where his roles included Manager of Machining Services, Manager of Special Projects for supply chain and Lean engagements, and Manager of the company’s Manufacturing Research Lab. He is a Certified Lean Sensei, GE trained Six Sigma Green Belt, and NIST certified Lean Training Leader with more than thirty published articles and research papers.
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>>> calendar
Training a Green Collar Champion
Team Leader & Facilitator Training
Combining Lean and Green practices is fast becoming one of the foremost methods to cut costs, increase productivity, implement sustainable practices, retain jobs and engage new customers, all while minimizing the impact on the environment.
The backbone of sustainable transformations is the team-based culture of continuous improvement. Training your workforce on the technical aspects of Lean is an important first step along the transformation journey. In order to sustain the gains, you must also develop key people as team leaders and team facilitators - people who can facilitate, align and focus the processes and dynamics of continuous improvement teams.
The gist: This training certification program will raise worker awareness of the importance of becoming more environmentally focused and provide the skills needed to lead workplace-based sustainable practices. Approach: this intensive three-day combination of classroom and on the shop floor training provides project-based return on investment results for participating manufacturers. This certification program is partially funded through the Connecticut Green Jobs Partnership Grant.
The gist: The Team Leader & Facilitator Training program integrates presentation, discussion, best practices, role play and exercises to develop the skills necessary for team leaders and facilitators to manage the tasks and lead the people through effective continuous improvement events. It is designed to build the knowledge and confidence that will enable team leaders and facilitators to create a robust environment for innovation. http://bit.ly/biXOxc for more information.
http://bit.ly/aj2BPF for more information.
CICC CONTINUOUS IMPROVEMENT CHAMPION CERTIFICATION September 20 to December 13 Windsor, Connecticut
The gist: This thirteen-week course provides
Manufacturing Roundtables
Online Learning
The Connecticut Manufacturing Coalition hosts an industry roundtable to provide opportunities for manufacturers to network and share best practices on topics important to the operations within their organizations.
Regularly scheduled informational webinars led by industry experts on topics such as continuous improvement, leadership, environment and energy, culture and change management, marketing and sales, performance measurement and strategic management.
The dynamic roundtables are a mix of plant tours, open group-directed conversations and guest speakers.
information.
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Who attends? Those tasked with implementing and sustaining a culture of continuous improvement within their organization.
Schedule updated weekly; no cost to attend.
http://bit.ly/hqi2Q6 for webinar descriptions http://bit.ly/5m4MLA for more
intensive exposure to the principles and practices needed to develop and sustain the Lean Enterprise. You will receive immediate reinforcement of the classroom learning by applying your training to a real-life project within your organization. Together with on-site mentoring and knowledge assessments, this approach dramatically reduces the time frame from training to bottom-line results.
and registration.
http://bit.ly/CICCprogram
>> > Ask the Experts
Invest in Human Resources to Drive Innovation A survey of 296 Human Resource professionals in the U.S. reported that HR spending averages $1,218 per employee, an increase of 1.4% over last year’s levels. You have questions, Roy Laun finds
What is it being spent on?
the answers. An expert in continuous improvement methodologies including Lean and Six Sigma, Roy answers your questions using his experience and the knowledge of industry’s top thought leaders.
Q: What other problem solving methodologies are available to me in addition to the traditional ones that everyone uses? In a world where life and technology moves very quickly, creative problem solving has become a must. Saddled with the problems of keeping product quality and product cost attractive to prospective customers, design and process engineers rely on creative problem solving skills to meet these formidable challenges. One of the lesser known but very effective problem solving tools is called TRIZ (pronounced trees), which is an acronym for the Russian phrase, “Theoria Resheneyva Isobretatelskehuh Zadach – Theory of Solving Problems Inventively.” Invented by a Russian born patent research analyst, Genrich Altshuller, TRIZ offers possible problem solutions using inventive and engineering principles compiled from thousands of patents. A specific example of TRIZ in practice can be seen on the jet engine inlet for the Boeing 737 twin engine commercial airline. Boeing engineers were confronted with the problem of upgrading the 737 engine thrust which required a larger diameter engine than the airframe was originally designed to carry. Initially, this problem was considered “simple” until the engineering team discovered that a larger diameter engine inlet could allow the engine to ingest debris from the runway and possibly cause engine damage or failure during takeoff. The engineering team selected TRIZ as the
problem solving tool. TRIZ is made up of 39 Engineering Characteristics (where unwanted results can be explored) and 40 Innovative or Engineering Principles that were used to solve the 39 unwanted results. The Boeing engineers noted that Altshuller’s table of 39 unwanted results listed “Area of a Moving Object” and “Length of a Moving Object”. These were selected because by increasing the area of the jet engine inlet the diameter or “length” increased and that was the core problem.
10% Strategic HR Services
employee engagement, workforce planning & wellness programs
30% Talent Management recruiting & development
60% Core HR Services compensation, payroll & employee relations
Imbedded in the 39 unwanted results table are the 40 Innovative or Engineering Principles allowing the Boeing Engineers to see how problems with area increase without length increase were approached. What they discovered was that “Asymmetry” was one of the solutions suggested and ultimately solved the problem. The Boeing 737 engineers solved the problem by making the engine inlet shape more along the lines of an oval (wider horizontally than vertically), thereby maintaining proper distance from the runway surface while still providing increased inlet area for the larger engine. TRIZ is a powerful problem solving tool allowing the user to explore problems and solutions confronting other engineers and scientists in varying applications. The process is simple and intuitive for the user to manage and provides clues and pathways to solving difficult problems in an effective and efficient manner.
Investing in Human Resources is vital to any growth strategy - in the coming year, recruiting and retention are likely to take center stage as companies plan their talent needs for the next stage of their growth. Total turnover averaged over 17% last year. Sharp and forward-thinking companies are creating career, compensation and development strategies to retain key employees. According to Karen O’Leonard and Stacey Harris of Human Resources Executive Online (www.hreonline.com), companies that have invested the resources to improve their HR capabilities will be better equipped to hire the right talent, expand
Roy Laun is a Lean Consultant with CONNSTEP, providing consulting services to a variety of manufacturing companies with a concentration in Lean Manufacturing and Six Sigma process improvement. Reach Roy at rlaun@connstep.org.
quickly and allow for quicker recovery – all leading to better business outcomes.
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>> > Business Barometer Earlier this year, Congressman Chris Murphy and Senator Richard Blumenthal conducted a survey of Connecticut Manufacturers. 151 responses were collected, representing a broad cross-section of the industry. Survey results reflected optimism - manufacturers are confident in the health of their businesses and are looking optimistically toward the future. Throughout the survey, respondents expressed the need for tax reform, a reduction in the cost of healthcare and demanded that the government do a better job training students for the current job vacancies and for future opportunities. Calling for increased support for vocational schools and grants to allow students to take advantage of internships, the survey illustrated the need for increased collaboration between government and the industry. Outsourcing and contracting with the federal government were also discussed with survey participants and when asked if the federal government adequately meets the needs of Connecticut business, the jury was unable to come to a unanimous decision - 43.6% feel they are not being served, while 41% feel the government is somewhat meeting their needs. For the complete report of the 2011 Survey of Connecticut Manufacturers, please visit http://chrismurphy.house.gov/.
>> > In the survey, you said:
the
BUZZ
"Help with infrastructure transportation, rail, etc. Hel with energy policy. Our hig cost has a dramatic impact our competitiveness.”
"The problem is short term long term. Long term we ne to promote manufacturing the people as a viable [caree for providing for a family. Th includes better equipment for our technical schools, apprenticeship programs an job security.”
"All boats rise with the tide. If you create
healthy business friendly economy, ever will benefit."
“Manufacturing is not dead; it’s different. If the state and federal government do not wake up and embrace m a second class country. I am not talking about the larger manufacturers. I am talking about the thousands o manufacturers who supply a lot of the innovation and a large portion of the new jobs.”
From a financial perspective, how do you feel about the future of your company?
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How difficult is it to attract skilled and qualified candidates for your company’s vacancies?
Compared profitabilit
53%
49%
Somewhat confident
Difficult
24%
32%
Very confident
Very difficult
14%
18%
Not very confident
Not too difficult
lp gh on
and eed to er} his
nd
ea yone
“The history & significance of manufacturing in Connecticut has led to the development of world-class manufacturers in this state who can out produce any company in any part of the country or the world; however being able to manufacture something in half the time of your competition doesn’t make a difference when your costs are twice as high, which is often the case.”
manufacturing, we will become f small and medium sized
d to 2010, do you expect your company’s ty to increase or decrease?
38% Increase
29% Stay the same
28% Decrease
There's an app for that
Web Watch Regardless of your mobile gadget predilection - iPhone or iPad, BlackBerry or Android - apps make our lives easier. And while Angry Birds is a fun stress reliever while waiting at the doctors office or for your next flight, there are a number of apps with business benefits.
Flight Track Pro ($9.99 www.mobiata.com) Stay on top of your travel plans including gate changes and flight delays with this handy travel companion. Simply import your trip information from your travel confirmation e-mail and Flight Track Pro will follow your itinerary and notify you of delays, boarding announcements and the inevitable cancellations.
Evernote (free, www.evernote.com) Don’t leave home without it. Evernote allows you to organize your tasks and make virtual memos whenever needed. Evernote can store text, audio recordings and photos and synchronizes across tablets, computers and smart phones so you’ll never lose the next big idea.
XE Currency Exchange (free, www.xe.com) Convert every world currency on the go with this handy dandy app. Features live currency rates when you’ve got an internet connection and will store the last updated rates, working even when you’re roaming. Next time you travel, you’ll know exactly how much you really spent on that lunch, what that duty free actually costs and if that “deal” is really a “deal.”
LinkedIn (free; www.linkedin.com) Access the leading social network for professionals while you’re on a train, a plane or in an automobile. This app has almost all of the functionality of the website so you can search for people, make requests to link with new strategic partners and share business news with your connections.
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Q&A with Anne Evans What is your passion? Making a difference for the community in which I live. It makes me happy. Have a quote that resonates with you? “It is what it is.” You have to take what you get and make the best of it. Having a recession isn’t fair, but we’ve all got to work together to get out of it. What is your greatest strength? Being a good leader. Not a lot of things scare me - lightning yes - but in business, not too much. I am not afraid to ask for anything - the most someone can say is no. If you were stuck in an elevator, who would you want with you? Someone tall and someone strong. I’m practical. No really, someone who is my friend so I can count on them to work with me to get us out.
Anne Evans with Congressman Chris Murphy and Marc Nemeth at Jonal Laboratories in Meriden.
Fierce. Tenacious. Committed. When we asked Connecticut manufacturers, who have worked with Anne, to describe her, a theme developed. Fiercely committed to helping the state’s industry reach new global markets, tenacious and steadfast in her efforts, Anne Evans, Director of the U.S. Export Assistance Center in Middletown, Connecticut realizes the agency’s work has a simple end goal: jobs, “Simply, our job is about jobs. And our job is to bring U.S. companies to global markets and for me it’s the state of Connecticut.”
markets, “Basically, companies need more customers. They can do a great job here in the U.S., but getting more customers overseas means more sales, more opportunities to grow and to create jobs.”
Working with approximately 3,500 companies, the U.S. Export Assistance Center conducts training - teaching companies how to work with companies overseas and how to correctly complete documentation, “But more importantly,” Anne adds, “We train on markets. What is the best market for your product and how can we get you to that market.”
With a small staff, the agency’s focus is on companies who are already exporting and are looking to enter new markets, or companies who are well-positioned and ready to export for the first time, “When I began this job a little under four years ago, we immediately went into a recession. I have had meetings where companies tell me that they were ready to lay off whole assembly lines if they did not get into overseas markets.”
With offices in over 80 countries, Anne’s office works to coordinate efforts to bring Connecticut companies into overseas
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As one of two full time staff members, Anne is assisted by interns who are members of a military internship program providing business skills to transitioning military or new veterans, “These men and women are mission-focused, mature individuals who are vital parts of our staff.”
Part of the U.S. Department of Commerce, Anne and her staff organizes, in partnership
with the state’s five congressional and two senatorial delegates, trade missions for companies to visit overseas markets and make valuable connections, “We were just notified that a Connecticut company has gotten a $23 million dollar contract following our China trade mission this past July.” Leveraging technology to become more cost and time efficient, the agency uses webinars for training and e-mail to communicate their successes, “We like to talk about what we do, show companies that we are here to help.” “The best part of my job is working with the companies. These men and women are working hard and we’re happy to work hard right next to them. When we succeed, we make our communities stronger.”
Learn more about the services offered by the U.S. Export Assistance Center by visiting http://export.gov/connecticut/
Your Customers’ Perception of Quality, by Kureemun and Robert Fantina, is an interesting look at how a customer’s perception of quality can affect your bottom line. A recent survey showed that up to 60% of customers are looking for a new supplier. Service, delivery and quality used to be enough to maintain customer loyalty. But on whose perception is the quality based? To understand your customer’s perception of quality, you must measure what the customer states is important to them, not what you think is important to them. One way, as illustrated in the book, to capture your customer’s satisfaction, is “short pay” invoices; invoices for your product or service that state if the customer is not happy with the quality, they can take off whatever dollar amount they think is appropriate from the total as long as they explain why. This will give you more valuable information than a client satisfaction survey with questions written from your perspective on what you think was important in the transaction. A customer who loves your product and orders 1000 pieces, then receives them all individually wrapped, and must then discard/recycle all that wrapping, may view your quality as less than perfect. Maybe one of your customers buys your product through a third party distributor, and experiences problems with the distributor, they too may view your product as having poorer quality. Use the principles of Lean and problem solving tools to get to the bottom of customer complaints. But not just for the vocal customers - make sure to pay attention to those “non-complainers” being the vast majority, who can silently add or detract from your bottom line. ISO – AS – TS – NADCAP are all great standards of quality to attain, but do not forget to measure your customer’s perception of your overall quality. - Robert Kravontka, CONNSTEP
Biz Lit Since I began my sales career in 1996 I have been a voracious consumer of performance material. Sales performance books, audio cassettes (yes cassettes - remember those??), cd’s, and videos. Authors and content that struck a chord with me were the ones that focused on sales strategies and skills that were centered around client success - not traditional, manipulative selling strategies. After awhile, most of the consultative sales stuff started to sound similar and redundant, nothing really new or inspirational. So I packed up my stuff and put it away, until now. Let’s Get Real or Let’s Not Play, by Mahan Kahlsa and Randy Illig, is an easy, straightforward read. The authors convey a less than lively subject matter in an engaging, interesting and dynamic way so reading was enjoyable. But where it really struck me as fresh and new was the depth of definition in the sales process of highlevel consultative sales. Khalsa and Illig address the true issues of the buyer/seller relationship – mistrust and stress. When the client’s success is placed above your own goals and objectives, you remove these friction points and create an open channel of communication. Let’s Get Real or Let’s Not Play defines a sales process that takes consultative sales to its highest level and true place utilizing this concept. Through their defined process they identify every opportunity to reduce stress and increase trust, how to keep the sales process on providing the solution that delivers success for the client. This book is a must read for everyone in sales or sales management or, is an entrepreneur. I have completely redefined our sales process and tools based on what I learned from this book and it has taken a solid successful team to top performance. - Kathy Hokunson, Site-Seeker, Inc.
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BUZZ >> > Newsy & Noteworthy
Congressman Jim Himes (CT4) toured CONNSTEP clients OEM Controls of Shelton and Macton Corporation of Oxford to learn more about the manufacturing processes and the companies’ integration of Lean methodologies. Following the tour, Congressman Himes held town hall meetings with the employees to take questions and provide updates on his efforts in Washington. OEM Controls is a leader in the design and development of electrohydraulic controllers and control systems for over complete system design 40 years. Offering O assembly capabilities, their and as core products include one, two and three axis joystick controllers, an eergonomically designed multi-grip handles, electronic valve driver boards, microprocessor-based logic controllers and integrated panel systems. www.oemcontrols. com c Macton Corporation has been Mac engineering, fabricating and installing high engineer quality moving structures for six decades, from 140-foot diameter turntables and 75 ton lifts, to 95-ton people movers and 55-ton transporters. Macton produces permanently-installed equipment and support structures for a wide range of commercial, institutional and residential building applications. www.macton.com
The Hologic client profile in the Spring 2011 issue of advantage prompted Governor Malloy to make the company a stop on his summer jobs tour. Hologic, Inc. is a leading developer, manufacturer and supplier of premium diagnostic products, medical imaging systems, and surgical products dedicated to serving the healthcare needs of women throughout the world. Hologic recently developed and received FDA approval for the ground-breaking 3-D digital mammography technology, Selenia Dimensions system. Read more about Hologic and their commitment to continuous improvement in our spring issue online at http://bit.ly/springadvantage.
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Governor Dannel Malloy has made over 40 visits to businesses, chambers of commerce erce and industry groups across Connecticut as part of his summer jobs tour. Accompanied by Commissioner Catherine Smith of the Connecticut Department of Economic and Community Development, the focus of the tour is to listen to the business community about ways in which the state can be more hospitable to business growth and development. Tour stops include TRUMPF in Farmington, Dymotek in Ellington, Hologic in Danbury, Bridgeport Fittings in Stratford as well as companies of the United Technologies Corporation including UTC Power. The Governor intends to incorporate ideas and suggestions gleaned from the tour into a package submitted to the legislature for consideration during a special fall legislative session focused solely on job creation.
On August 29th, CONNSTEP President Bonnie Del Conte participated on a panel, convened by Congressman John Larson that included representatives from state and federal agencies to address manufacturing jobs in the state. The event was the second in pair of events organized by Congressman a pa Larson and addressed what can be done to foster growth in the state’s manufacturing sector. Manufacturers had the opportunity to consult with the panelists on topics such as growth strategies, worker training, exporting opportunities and the new Affordable Care Act. Panelists included Jeannette DeJesus, Deputy Commissioner, Connecticut Department of Public Health; Anne Evans, Director of the U.S. Department of Commerce Export Center; Glenn Marshall, Commissioner, Connecticut Department of Labor; Elliot Ginsberg, CEO, Connecticut Center for Advanced Technology; and Richard Mullins of CCSU.
Cheers! Rebecca Mead, CONNSTEP’s Manager of Marketing & Communications, has been named to the 2011 Hartford Business Journal 40 Under 40 Class. The 40 Under 40 recipients are recognized for their dedication and commitment to their profession and their community involvement. This year’s class is profiled online http://bit.ly/HBJ4040.
sound off
Congratulations to Ray Snyder, CONNSTEP’s Quality
Q:
Systems Specialist, recipient of the 2011 MEP Champion of the Year Award for his dedication to the Manufacturing Extension Partnership and the Connecticut manufacturing community. With CONNSTEP for over 14 years, Ray has provided assistance to Connecticut manufacturers in their quest to obtain and maintain quality registrations. During his tenure, Ray has been personally responsible for managing the certification process of 285 Connecticut companies and for each of these companies, Ray has delivered his trademark “blue banner”– a banner he proudly awards so that they can showcase their new registration to all who drive by!
What helps you keep your continuous improvement strategy on course?
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Strategic Policy deployment helps Electri-Cable Assemblies ensure that our mission critical improvement initiatives stay priority one. As with any business there are always daily interruptions which could potentially sap scarce resources from these key projects. While some issues need to be addressed to ensure that customers are happy, we always need a mechanism to bring us back to what is going to help ECA be a success in the long term. For us it is effective policy deployment. - Paul Murphy, Director of Operations, Electri-Cable Assemblies
Please help us welcome Norman Schaefer to the CONNSTEP team. Norman joined CONNSTEP this summer as the Manager of Business Services where he will be responsible for directing the service areas of Lean, Su Sustainability, and Quality with an increased focus on th the quality of delivered services, strategic business growth, and the development of new products and services. Norman brings a wealth of experience from his time with Gerber Scientific where he served as the Executive Director of New Product Development and as the Executive Director of Gerber Business Systems. There he developed industrial equipment, led the efforts of an enterprise wide Lean transformation and the led the development of a quality management system.
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Management commitment, guidance, momentum and tenacity are not only helpful to stay on course, but necessary to survive in today’s economy. Continuous improvement is not a new concept, but it seems to be a new buzzword. I don’t think any business owner could have been successful in the past, and especially not today, if we weren’t always on top of technology, training our personnel and striving for greater profitability. Mediocrity and success can’t be used in the same sentence and we should all be striving for nothing short of perfection. - Lisa P. Fekete, President, Modern Woodcrafts
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Fostering and sustaining a culture of continuous improvement is fundamental to the viability of any organization. As Dymax continues to gain Lean knowledge, we have come to realize that defining, measuring and improving our value streams is paramount to our success. This improvement cycle propels our ability to differentiate ourselves from our competition while maximizing value through the eyes of the customer. Additionally, this process provides structure for the Lean Steering Committee to drive the organization and planning needs, clarify training requirements and facilitates proper channels of communication. Removing waste from a system is onerous when the value stream is not first clearly identified. - Lance Boynton, Director of Operations, Dymax Corporation
The one thing that keeps our continuous improvement strategy on course is Policy Deployment. Policy Deployment is our overriding tool to ensure all of our employees and projects are focused on achieving our short term, mid range, and long range vision. It is imperative to use continuous improvement tools within each project to ensure we meet our objectives. - Brian Montanari, President, HABCO, Inc.
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Having Continuous Improvement as a key strategy in support of our overall business plan as well as having all management support CI allows the Pegasus team to balance CI with day-to-day tactical activities and therefore keep us on course. - Chris DiPentima, President, Pegasus Manufacturing
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your New Rolodex
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TTENTION – Social media needs to be part of your marketing and sales mix. This means using LinkedIn, Facebook, Twitter, and/or blogs as
means to connect to, converse with, and educate clients
With over 100 million users, LinkedIn is the fastest-growing professional networking site that allows you to make business contacts and find potential clients and customers.
and prospects. Covering all of these channels in one column would do a disservice to all of the channels. So, we’ll focus on just one of the social media tools – LinkedIn. If you are in business-to-business sales, LinkedIn is a great resource for marketing, prospecting and building relationships. The reason is that in business-to-business sales, market segmentation strategies involve on a macro-level industry segmentation and on a microlevel specific identification of target clients. In this
by Ken Cook
environment LinkedIn is one of your best friends. In B:B sales the power of LinkedIn is the online placement of the Rolodex that used to sit on your desk. Everyone you connect to on LinkedIn becomes part of your online Rolodex, and for every connection you have
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you can see their online Rolodex. It’s like the decision maker from 20 years ago
•
telling you before you leave his office – “here, take my Rolodex. See if there is
•
anyone there you want to meet, and then let me know”.
•
When viewed this way, LinkedIn is great
•
for developing warm introductions and referrals. And as most business people will admit, the best source of business is
them.
offer to make the connection call for you.
Link to everyone you know that looks
Bottom line -- if you don’t get a no you get
like your referral sources.
a warm introduction.
Invite all of your clients, past and present, to Link.
A few other things to bear in mind –
Invite everyone up and down your
•
supply chain to Link.
relationships on the line. Respect that
Invite prominent individuals in your
and respect the relationships.
industry to Link. •
Your connection is putting their
•
Don’t ask your connection to work for
Invite association personnel and
you. They are not your sales force. All
industry influencers to Link.
you want is permission to use their
through warm introductions and referrals.
name.
Everyone on your sales team should (if
Think of your connections in LinkedIn in a
they have not done so already) develop
“hub and spoke” configuration. Ideally,
connection. Don’t abuse your
their LinkedIn profile and invite at least
your 1st level connections are hubs that
relationship with them.
70+ people to connect.
are potentially connected to a wide array
Let’s step through some specifics on why
•
Limit the number of requests per
of warm introductions, referrals and new
To help with your efforts I recommend
opportunities.
(believe it or not) LinkedIn for Dummies.
this works and how to do it. First, why it
It really is a great primer for getting your
works.
LinkedIn strategy up and running.
•
LinkedIn is almost exclusively a business focused tool.
•
Well developed LinkedIn profiles provide good business background information, including one’s experience and areas of expertise.
•
LinkedIn features such as postings and groups afford opportunities to be generous with your connections,
Everyone on your sales team should develop their LinkedIn profile and invite at least 70 people to connect.
For B:B companies LinkedIn is one of your best marketing and prospecting resources. Develop a strategy for what you want to do, and use LinkedIn to find warm introductions, referrals and new opportunities. If done well and consistently LinkedIn can become a cornerstone of your proactive marketing efforts.
providing expertise, information and insights on topics where you are an •
expert.
Once you connect to enough 1st level
Enabling at least 70+ connections
people take the time to peruse the
opens up a world of 2nd level
connections each of them have on
connections where you will find your
LinkedIn. You are looking for people
warm introductions and referrals.
to whom you should connect for introductions and business opportunities.
How to proceed •
Think strategically first. You want
Once you identify the people you want to
1st level connections that will open
meet, go back to your connection with a
up the most opportunities for you.
simple request – “I saw on LinkedIn that
Look back over the last year or two
you are connected to Jane Rogers. I’ve
and see where your new business
wanted to meet Jane. Would you mind
opportunities came from, particularly
if I use your name in reaching out to her?”
the referral business. Identify your
Your connection will say yes, say no for
best sources of referrals and Link to
a variety of reasons, or in the best case
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CARPE DIEM by Michael Perrelli & Rebecca Mead
>> for more examples of Lean Manufacturing transformations, improving the performance, quality and profitability of Connecticut companies, visit www.connstep.org.
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With a business strategy firmly rooted in continuous improvement, Lex Products creates opportunity and controls their own destiny.
W
hether it’s a military base camp or field hospital, the summer’s biggest concert or on the set of the next
blockbuster film, in the aftermath of a natural disaster or on a construction site, Lex Products provides power distribution and control systems to the most demanding markets. So, when your company tagline is, “We Deliver the Power,” you’d better! Lex President, Michael Scala, explained the Lex philosophy of quality and reliability when speaking recently to a group of his peers at a Connecticut Manufacturing Coalition Roundtable, “Our focus is to design and build portable power systems to deliver electrical power when and where it is needed. It could be free, but if my customers don’t get it in time, it is of no value. And quality is simply the price of admission - if we kill our customers, they won’t buy from us again.” In 2005, the focus on quality and on-time delivery was intensified. Lex acquired a sheet metal fabricator and was selected as the sole supplier of portable power distribution units for the US Marines; the need to standardize processes, increase efficiency and open floor space in support of increased production was critical. Lex turned to Lean Manufacturing and through the Connecticut Department of Economic and Community Development’s Aerospace and Defense Initiative, took advantage of funding to support implementation of
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Lean training and consulting provided by
move contributed
CONNSTEP, “Lex was encouraged, as a
to the remarkably
company holding a government contract,
short downtime
to participate in and receive funding for
experienced
efficiency initiatives,” Scala added.
by customers and vendors
And over the past six years, Lex has fully
explained Jim
integrated Lean methodologies into their
Lefflbine, Lex’s
strategic approach to business growth,
Manager of
“Lean creates velocity and there’s a
Continuous
rhythm to continuous improvement.
Improvement,
You’ve got to keep the beat; you can’t
“We
start and stop and expect it to work,”
communicated
Mike stated adding that the company has
our plans to
remained steady on an upward trajectory;
our clients and
sales increased four times over from 2005
our California
to 2010 and profits aligned accordingly,
facility helped by
tripling over the same period of time.
taking on extra
implement new lighting fixtures, increase
responsibilities, but all in all, we only
the use of natural light and recommend
With growth came the need for new
experienced a slight dip in on-time delivery
energy efficient equipment. Lex purchased
space - Lex quickly outgrew their existing
and were shut down only for a few days
flooring systems from Dur-A-Flex, an East
facility in Stamford, Connecticut. A new
over a weekend.”
Hartford based manufacturer of anti-
Jim Lefflbine discusses the value-added elements that make Lex Products stand out.
location providing adequate space for
slip and impact resistant floor covering,
new equipment and a cellular layout,
As part of the relocation to Shelton,
installing a safe flooring system in the
along with room for future expansion,
Lex made significant investments in
production area.
was needed. With operations in both
new equipment and technologies to aid
Connecticut and California, Lex wanted
production processes, reduce costs and
The 185 Lex Connecticut employees
to remain close to its key customers in
improve safety. New equipment in the
embraced their new community -
the entertainment and military markets.
plant allows manufacturing to go directly
purchasing homes in town, volunteering
After a comprehensive search, they chose
from engineered 3D CAD models to
as firemen and community service
Shelton, “When we were preparing to
automated production, positively affecting
volunteers, and participating in fund-
move to a larger facility, we considered
their defect-free rate and saving valuable
raising for the local children’s hospital.
options in several different states, but an
production time in the process.
important factor in our decision to stay in
While other companies are downsizing
Connecticut was the incentives offered for
Lex’s relocation also had a positive effect
workforce, consolidating space or leaving
Lean programming, including accessibility
on the local and state economy, the
altogether, Lex Products made a long-
to CONNSTEP,” Scala says.
local communities and other Connecticut
term commitment to the state with this
organizations. United Illuminating was
new facility, “We believe in Connecticut
brought in during the design phase to
manufacturing. It kills me that jobs are
The new facility couples 30,000 square feet of manufacturing space with 24,000 square feet of office space; with an additional 30,000 square feet available to Lex for future expansion. The design and layout of the facility is flexible to accommodate new products and customers’ future needs. The new Shelton location, officially christened in October of 2010, provides the infrastructure allowing Lex to provide the best service to its customers. A well-organized and executed
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“
We use Lean and continuous improvement to fully engage our staff, be responsive to our customers’ needs and remain competitive in a commoditized world.
“
Embracing New Surroundings
Mike Scala
leaving the state or going overseas,” says
not only adds value to their team, but to
is involved, from our CEO to our
Scala.
the entire organization as a whole.”
assemblers. If it weren’t fully integrated and supported by the leadership, it
New Department, Same Goals
Lex CI Champions also participate in Lean
Coinciding with the move to Shelton
exchange programs, “We team up with
is the establishment of a Continuous
other companies in Connecticut, visit their
Living Wildly
Improvement Department, “With
facilities - they visit ours - to cross pollinate
As you tour the new Lex facility, you’re
the creation of our new department,
Lean and spark new ideas which help
bound to notice the abundance of flat
continuous improvement has officially
everyone, “ Jim added, “I see my facility
screen monitors displaying departmental
been implemented as an enterprise-
every day, they don’t. Their ‘outside eyes’
metrics and the status of their Wildly
wide initiative of Lex Products,” says
are great for new applications of Lean in
Important Goals (WIGs) which are the
Jim Lefflbine, “In addition to optimizing
our operations.”
target for all employees - the scoreboard.
wouldn’t work,” Jim said.
The premise of the WIGs is that people
our processes, having a collection of continuous improvement champions
Training extends to the production floor
can only concentrate on two to three
who can teach others and develop a
staff as well, “Lex believes in making
big goals over a long period of time.
process to optimize production becomes a
investments in every employee, not only
Goals, those if not met, lead to failure.
competitive advantage for us.”
in Lean training, but in industry related
Jim Lefflbine, states it as, “Simply put, it
standards as well. We are working
is wildly important because if we don’t
“It’s all in the name,” says Lefflbine when
toward having all 90 assemblers trained
meet the goal, we have failed. There are
speaking of the continuous improvement
to the national IPC WHMA-A-620 quality
no gray areas; everyone is counting on
process. “It is an on-going process to
their colleagues to be working towards
always be improving. Lean principles
the same objective. Our Wildly Important
have been providing the company with
Goals drive all of the strategic activities
positive results since 2005. My goal is to
that we execute.”
sustain it and develop plans for further Lex strives to attain their WIGs of 95%
implementation.”
on-time delivery and 95% defect free Developing continuous improvement
production. “We believe all of the
champions is at the core of the
continuous improvement training,
Continuous Improvement Department.
standardizing of procedures and training
As he is tasked with scheduling and
in national quality standards will bring our defect rate down. If those initiatives
executing five Lean events per quarter, the ability to have other staff members
standard.” The company has set up an
weren’t in line with our strategy, we
lead events, without compromising the
in-house training room to ensure that
would have not explored or implemented
scope of work or end results, allow for
every employee receives at least 40 hours
them.”
the department to focus on areas of
of training per year, “Be it as part of the
need, training and follow-up, “When I
Continuous Improvement Champion
“A company’s job is to please its
visit other Lean facilities, we always talk
Certification, a quality standard, computer
customers. Customers are always telling
about how hard it is to release production
skills or product/materials training, we
you what they want, you just need
workers from their duties so they may fully
have an aggressive goal to improve staff
to listen. These conversations should
participate,” Jim explains when pointing
skills,” Jim added.
drive your company philosophy, your operations and your innovation,” added
out event dates on his continuous improvement calendar, “We had 27
And while Lex is investing in Lean, Lean
Mike Scala, “We use Lean and continuous
employees participate in events in 2010.
has been paying dividends for Lex. Since
improvement to fully engage our staff, be
Ninety percent of our management team
2008, their efforts have returned cost
responsive to our customers’ needs and
has attended CONNSTEP’s Continuous
savings of 20%, an increase in sales of
remain competitive in a commoditized
Improvement Champion Certification
12% year over year, the ability to retain
world.”
or some other formal Lean training, so
50 employees and add 60 new jobs, and
they understand the value the employee
the ability to reinvest over $2,500,000
will gain when we take them from the
in plant equipment, “Continuous
For more information about Lex
production floor for training purposes. It
improvement is company-wide. Everyone
Products, visit www.lexproducts.com. connstep.org
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Keeping Pace with Technology We need to create economic value through the production of parts at a competitive price and in a shorter time than our competitors.
N
eedless to say, this down turn has been tough. But I believe something very good will come of
it - a much needed change in the culture of our manufacturing community. Simply put, the United States need to compete. We need to create economic value through the production of parts at a competitive price and in a shorter time than our international competitors. The question is how? One of the answers is the right technology, combined with trained staff to create efficient processes, that will provide us with the best
The question is how?
chance at success. We’re all guilty for being creatures of habit and I bet there are processes and methodologies you haven’t changed in your shop - you’re doing it the same way you did five years
by Mike Gugger
ago - three years ago. If so, you are behind. Something new, in machining and material removal is developed every day. We, as an industry, need to keep up. Keeping current with technology is vital for US manufacturers to compete. But before we even attempt to identify the technologies we
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Type one companies typically have two
the increase in machining power they
issues; first - they really don’t have the
just purchased.
time. They are caught in the vicious cycle whereby the more time they
Why does this happen? These
spend working to maintain (or increase)
companies did not take the value-
current production on old technology,
added time to train the staff to take
the further they fall behind. This type
advantage of the new technologies.
of company has an iffy future as long
Investing in skills training is just
as they are stuck on this roundabout,
as important as having the new
becoming less competitive and unable to
technology available. If you’re people
win bids. This is a downward spiral that,
don’t grow, your company can’t
if not changed, will most certainly drive
grow.
this company out of business. Last, but certainly not least, are the This type of company is often also
rarest of the breed, the type three
afflicted with a risk adverse culture,
companies who regularly upgrade
afraid to try something new, “We know
their technology and the skill sets
that if we do what we have always done
required to successfully use it. These
we can make this part correctly, right
companies understand that it is an
now, with success. If we take the time
investment - of not only dollars, but
to try new things, we risk not getting
of resources - to reap the full benefits
the part out on time and will lose the
from new technology.
business.” This shortsighted position will cause the company to become stagnant,
They are role models for the
unable to court new customers and
behavior that will bring the end of
deteriorate their competitiveness.
the economic downturn. These companies understand that
need - the “what” - we need to admit that we are often to blame for the lack of focus on staying current - the “how” which needs to be considered. In my experience, there are three levels of response to the question of new technology implementation: •
Type 1 – “I know that there are new, better, faster methods for what we do but I don’t have [time; money; skill set; knowledge] to implement them.”
•
Type 2 – “I have implemented some new technology and it sits idle, unused or worse it is used in the same old way we have always done it. Why should I invest in more?”
•
Type 3 – “I am investing in new technology. I am investing in my people to use it. We are seeing success and continue to compete.”
Companies who fall into the second
manufacturing is changing at warp
type rarely invest in proper and thorough
speed; if they don’t constantly work
training of their people. Often, they take
to find ways to upgrade equipment
the risk, make the investment in a new
and the corresponding skill sets of
machine tool that has all of the bells and
their people, they will fall behind.
whistles, but proceed to operate the
The US manufacturing industry can’t
machine in the same way they used the
afford that.
equipment that was just replaced. Evaluate your current state; envision These companies do not leverage
your future state; find a way to
the advancements to improve their
upgrade; and make the training
machining experience - failing to
mandatory. Start making the
benefit from technology advancements
incremental investments now, so that
like probing, higher horsepower, high
your company helps to lead industry
pressure coolant, etc. And the results
out of harm’s way.
are dismal. There is no productivity increase since they are still running at the same speeds and feeds; no reduction in throughput time because parts are still going to wait in the inspection queue; and with no complementary upgrade in cutting tool technology, they miss out on
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The Heat IS On
Birk Manufacturing is blazing a new trail - with the strategic implementation of Lean, investment in their people and the development of a continuous improvement culture - they’re leaving the competition in the dust.
by Michael Perrelli & Rebecca Mead
>> for more examples of Lean Manufacturing transformations, improving the performance, quality and profitability of Connecticut companies, visit www.connstep.org.
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W
After the impromptu presentations end,
organization has a stake in that claim.”
Mattox never fails to smile, shake hands and thank the unplanned presenter for
Having the ability to react quickly
hile touring the
a job well done. Genuine in his efforts,
to customer requests keeps Birk
33,000 sq. ft. facility
Mattox is proud to show off the work of
Manufacturing on that growth curve and
in East Lyme, Connecticut, Mike Mattox,
his staff, “We have a great culture here;
towards the top of a long list of competing
President of Birk Manufacturing, is quick
we’ve come a long way in the past year.
flexible heater manufacturers, “Once your
to point out areas in which his staff of 86,
The staff has accepted and embraced the
organization gets to a certain size, and you
has implemented Lean and continuous
change to a Lean organization because it
haven’t implemented Lean, or continuous
improvement measures. As he stops to
was gone about the right way.”
improvement systems, you lose the ability
explain their new scheduling board and
– the ease – to react to customer requests
visual control system, he quickly wrangles
Mattox’s commitment to keeping their
and needs. A year and a half ago, we were
employees to discuss their personal
processes Lean, employees engaged
close to that point. A lot of our competitors
experiences with the improvements. While
and customers satisfied provide the
have a standard 12 week lead time and
staff at other facilities may be shy of the
expectation for continual growth to occur,
tell you that’s just the way it is. Very few
tour spotlight, the production staff at
“For us, Lean is a growth strategy. We’ve
of our competitors have the ability to react
Birk Manufacturing is proud to stop and
grown 40% over the last year and have
as quickly as we can – a true competitive
talk about previous challenges, how they
become a much more profitable, flexible approach new initiatives and the numerous organization. Our Lean transformation has positive outcomes. guided that growth and everyone in the
advantage for us. Using Lean affords us the luxury of staying fast and keeping margins intact.”
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Thanks to continuous communications
we can turn around prototypes much
with their customers, Birk clients are
faster, cutting days off of the request.”
aware of the positive transformation taking place within Birk, “They know
With this new flexible prototyping system,
we are doing everything we can to
Birk is able to go after customers, who
hold or lower our prices, regardless of
before, were off limits, “We’re also looking
increases in material costs. It allows us to
at potential jobs differently now. In the
remain competitive with pricing while meeting shorter lead
Birk Manufacturing has over 20 years of experience in the design and manufacturing of Kapton® and Silicone based flexible heating elements, flexible heaters, and thermal heating systems for the medical device, semiconductor and defense industries.
times and keeping quality rates high.” Because it’s Birk Following the success of Lean initiatives throughout the facility, the company has been able to focus on a new approach for acquiring new business. With the exception of in-house stock heaters, all flexible
Carlton Birk, QA/QC Manager, holds material readily available at Birk’s newly implemented panel supermarket.
heaters designed and manufactured by Birk Manufacturing
past, we probably wouldn’t have gone
are custom, proprietary products and are
after jobs because of volumes, but now,
not resold without the consent of the
we realize that we can start right, setting
originating client.
up a cell to get it done efficiently and profitably.”
Recently, Birk’s production team was able to turn around a new prototype in
This type of efficiency tends to create
a single day, due in large part to their
customers that become repeat buyers,
newly implemented panel supermarket
“We conduct phone interviews with all of
– a stock point of inventory that supplies
our clients. It gives us valuable insight on
a downstream channel. Each of the
our processes and the effect on the final
company’s custom products requires
product. As in any relationship, personal or
a specific size and shape panel made
professional, communication is the key,”
of Kapton® or silicone rubber, “Until
he says.
recently, most of the production time was
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spent waiting for a panel to be produced.
Mattox and his senior management
We now have most of the panels
team pay attention to all of the feedback
complete and tagged by dimension in our
received and treat it as if it were gold,
supermarket where the team member
“Reviewing the feedback and taking
can go and grab exactly what they need.
necessary action is the key. For example,
With the most time consuming part of
we have a question regarding lead time
the production now significantly reduced,
where certain responses are flagged for
“
Our Lean transformation has had a profound effect on our staff, culture, business strategy and bottom line. The foundation developed through our work and training with CONNSTEP has provided the staff with the tools needed to sustain our continuous improvement initiatives as we continue to uncover opportunities to help us grow as a company.
“
Mike Mattox
notification. If a customer date is not met,
and the sustainability of continuous
Staff members need to understand and
we can follow-up on it and take corrective
improvement strategies. Low or no
be assured of Lean’s ability to grow the
action. It is important to find out why we
involvement from the staff can result
company and provide a better work
missed the date.”
in a project derailing as quickly as it
environment, not eliminate staff, “We
started. As Howie Birk, Vice President
wanted everyone in the company to see
Feedback has led to the adjustment of
of Operations explains, “Some of the
the results of our initial Lean efforts,
a significant key performance indicator,
changes can seem counter intuitive at
so we picked really visible events to
or KPI, of ‘on time fill rate’ – while it was
first. We experienced some resistance
clearly illustrate the positive effects of
originally the ‘on time delivery rate,’ based
at first because we were not clear on
the changes,” Mattox says. “Highly
on when Birk anticipated product delivery,
the long-term benefits of the changes.
visual results led to the team embrace
Birk’s KPI is now based on when the
Once we proved that Lean was not
of the concepts and encouraged staff to
customer requests product delivery, “The
going away, that it was important to the
contribute suggestions of their own. It
new metric gives us a much clearer picture
future of the organization, people came
really took off from there.”
of how we are doing. When a customer
around.”
calls and says I need it tomorrow; can we
Company growth has not only led to
meet that expectation? That’s what we need to know.”
Birk’s president, Mike Mattox, discusses with CONNSTEP’s Michael Perrelli, the utilization of visual signals to display the status of the current jobs in process.
Birk believes that all feedback, whether positive or negative, is invaluable. In a highly competitive market, responding to input can be the differentiator, “Time and again we have received survey feedback that quotes clients choosing Birk because it’s Birk. Clients love the personal connection; we strive to ensure that when a customer calls they speak to a live person - no voicemails, automated receptionists or phone trees – they speak with an engineer directly. In our industry, this is not a common practice and sets Birk apart.” Developing a Positive Culture As any Lean leader will attest, company culture greatly influences daily productivity connstep.org
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an increase in sales, but an increase in the ability to invest in the employees. “We have added some staff members over the course of the last year, but more importantly, we have been able to cultivate and grow our internal employees. If process improvements have led to the elimination of staff or head count in an area, our growth has created new positions at a higher level in other areas. We are able to fill those roles internally - it is a win-win for everyone,” Mike explained. Developing the skill set of the entire staff and sustaining the strategic initiative of continuous improvement has led to the planning and development of a universityesque training program. Highlighting more than Lean training, developing the skills of employees on a personal and professional level builds a community that is aligned for growth. At the heart of the program are the Lean principles that have been instrumental in Birk’s transformation. The goal is to build a steady stream of continuous improvement champions to constantly develop ideas
and processes for efficient gains. It
company. The Dur-A-Flex University goal
starts with Lean Awareness training for
is to inspire personal growth through
all incumbent and new staff members,
various learning opportunities. “I had my
progresses to leadership training for
Quality Manager and two Value Stream
managers and Value Stream Coordinators
Coordinators take a tour of Dur-A-Flex
and extends to front office personnel and
and they came back ecstatic about the
customer service representatives.
opportunities this may present for our staff,” Mike added.
Always looking
Once your organization gets to a certain size, and you haven’t implemented Lean, or continuous improvement systems, you lose the ability – the ease – to react to customer requests and needs.
“
“
Maintaining the company’s 5S program.
Using Lean affords us the luxury of staying fast and keeping margins intact. Mike Mattox
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advantage summer 2011
for ideas to enrich
Inspired by what they experienced at
the professional
Dur-A-Flex and knowing that they needed
and personal
to formalize and centralize staff training,
development
Birk is in the process of developing BALL,
of staff, Mike
the Birk Academy of Leadership and
learned of Dur-
Lean. Led by QA/QC Manager Carleton
A-Flex University,
Birk and Value Stream Coordinator Jay
a program of
Spellmeyer, BALL will start in September
Dur-A-Flex, Inc., a
and be responsible for training all staff in
manufacturer of
Birk products and customer requirements,
flooring systems
Lean Manufacturing and continuous
in East Hartford,
improvement methodologies, and
Connecticut.
leadership skills, “We will be using internal
Dur-A-Flex’s
staff for the foundation courses. Co-
philosophy for their
worker to co-worker training works well
continuous learning
here, but when we need assistance with
system is that a
advanced leadership topics, we’ll bring in
happy, healthy
outside experts,” explains Spellmeyer.
and learned staff builds and sustains
Carleton Birk added, “Communication is
a profitable
key to making BALL and our Lean culture a
success. We’ve maintained a newsletter, ‘The Beat to the Heat’, to communicate our efforts, progress and future plans so that everyone is informed.” BALL will also explore everything from wellness classes to financial management and plans are ongoing for programs that can improve the health and morale of the entire culture, “We have a badminton and basketball court at the facility now and it’s great to see some of the staff members utilizing the facility after work, even if it’s for a short period of time,” he says. “We have held tournaments where randomly selected teams compete against each other during a scheduled shut down and everyone seems to enjoy it. It’s something that enhances the camaraderie across all of the departments. It provides a healthier atmosphere where people have more
Production in a re-designed, highly organized work cell.
- it shows the company is doing well.
reinvest savings of $220,000 in new plant
We have been lucky enough to provide
equipment and workforce development.
bonuses for five quarters in a row and
energy throughout the day.”
our expectation is that it will continue.”
All extra-curricular activities aside, the
Setting the Tone for the Future
organization places on every Lean initiative,
Based on goals originally set at the
“While visiting other facilities in the state,
beginning, Birk Manufacturing has
I hear of Lean initiatives starting strong,
achieved overwhelming success with the
but more often than not, experiencing
implementation and institutionalization
road blocks or a failure to fully implement.
of Lean Manufacturing. While their
I believe this is due, in part, to a lack
efforts have reaped profitable impacts,
of leadership commitment. We have
Mike Mattox and his team know that
committed - across the organization - to
future success and growth lies with
follow through and complete every Lean
sustaining the gains, continuously
project we begin.”
ultimate goal of the initiatives is to develop and maintain a healthy business. And while many of Birk’s peers are not able to provide profit sharing as a benefit to employees, Birk leadership considers profit sharing bonuses a form of appreciation and recognition, “I enjoy handing [bonuses] out during functions - I love what it means Birk’s “Leg-Up Award” - awarded monthly to a team member who has gone above and beyond their duties, sets the bar for work ethic and/or someone who has developed a process improvement that has made a large impact on the company.
The success, according to Mattox, directly correlates to the commitment the
working the Lean strategy and extending the methodologies to all aspects of the
“As we continue to grow and expand,
company, to suppliers and to customers,
our staff and culture are at the core of the
“We view our Lean initiatives as an
strategy,” Mattox says, “We are fortunate
ongoing, continuous journey,” he says.
that we have a group that cares and has
“We have had so many benefits from
invested so much.”
the Lean transformation that we are now in the process of sustaining it and using it to discover opportunities that can improve us strategically and culturally.” Since the initiatives began, Birk Manufacturing’s product lead time has decreased from four weeks to three weeks, which is two weeks less than their closest competitor. Sales have increased by $2,000,000
For more information about Birk
and the company has been able to
Manufacturing, visit www.birkmfg.com.
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29
Investment Opportunity Jamison Scott Air Handling Systems Manufacturing is the backbone of our American economy. From the highly skilled factory worker, to the technical engineer, to the small machine shop owner, manufacturers are fighting to be productive in this challenging world. My family has been involved in manufacturing for three generations and at no time have we faced such serious economic challenges; however a new federal bill called the MRA, Manufacturing Reinvestment Account brings hope. I first brought this concept to my Congresswoman, Rosa DeLauro, last year after a manufacturing friend, Hugh McCann, president of Identification Products Corp., in Bridgeport, shared with me some of his ideas to help stimulate manufacturing growth, the concept of the MRA being one. Congresswoman DeLauro introduced the current version of the bill along with co-sponsor from Illinois, Rep. Manzullo as HR 110. Most recently Senator Blumenthal introduced a companion bill in the Senate as S 1237.
Jamison Scott is the Executive Vice President of Air Handling Systems, a third generation family-owned business in Woodbridge, Connecticut. Jamie is a member of the board of directors
Helping smaller manufacturers like me, a third generation manufacturer, invest in new technology, job training, workforce development, green energy enhancements, plant expansions and ultimately job creation are the real values of the MRA, Manufacturing Reinvestment Account.
of the New Haven Manufacturers Association (NHMA) and the Greater New Haven CHamber of Commerce, and is the treasurer of the Wood Manufacturers of America
With an MRA, manufacturers can make annual contributions up to $500,000 each year over a period of seven years. If a manufacturer contributes $500,000 annually and the account earns interest at 5 percent, with a 15% tax rate on amounts distributed from the MRA, after seven years the manufacturer would have approximately $3.6 million to reinvest in his or her business. Many thanks goes to Congresswoman DeLauro and Senator Blumenthal for supporting the MRA, Manufacturing Reinvestment Account and for having the foresight and understanding on the profound effect this will have on the local, state and national manufacturing community. To help support manufacturing and the Manufacturing Reinvestment Account, please contact your US Representative and US Senator. A simple e-mail letting them know you are a manufacturer and you need their support to sponsor the MRA is all it takes. Together we can not only make the MRA a reality, we can continue to let our elected members of congress know that manufacturing is one of the strongest assets of our country. Don’t forget to remind them for every person employed in manufacturing we support three other non-manufacturing jobs – the multiplier effect of manufacturing is truly the way to get America back to work! Find your US Representative here to support HR 110: http://www.house.gov/ Find your US Senator here to support S 1237: http://www.senate.gov/ Additionally, both the House and the Senate have bipartisan manufacturing caucuses. Rep. Manzullo from Illinois is the Chair of the House Caucus, click here for more info: http://manzullo. house.gov/HouseMfgCaucus/. Senator Stabenow is the Chairwoman of the Senate Manufacturing Caucus. If your member of Congress serves on the manufacturing caucus it is even better. Today we are seeing resurgence in the importance of manufacturing. More and more manufacturers and elected officials understand that indeed manufacturing is the backbone of our economy and by working together we can be a powerful force in ensuring the success of manufacturing nationwide!
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advantage summer 2011
(WMMA). A fierce advocate for Connecticut industry, Jamie is in constant communication with both Washington and Hartford delegates on behalf of Air Handling Systems and manufacturers aross the state.
Join a group designed exclusively for manufacturing professionals. The Connecticut Manufacturing Coalition Roundtables provide unique & rewarding opportunities for manufacturing professionals. The roundtables offer a conÆdential forum where manufacturers share and learn about common challenges as well as best practice solutions to achieve sustainable continuous improvement and proÆtable growth. You’ll gain an invaluable network of trusted peers, business development opportunities, best practice presentations, as well as industry related resources.
Benefits include: • • • • •
Peer-to-peer knowledge sharing Exclusive to manufacturing professionals Structured meetings with professional facilitator Best practice benchmarking Business development opportunities
Who should attend? Manufacturing professionals interested in benchmarking, networking and learning from their peers.
2011-2012 Schedule* 10.20.11 11.17.11 12.15.11 1.19.12 ` 2.16.12 3.15.12 4.19.12 5.17.12
Electri-Cable Assemblies, Shelton Platt Technical High School, Milford Legrand/Wiremold, West Hartford Dymax, Torrington Howmet, Winsted CooperSurgical, Trumbull Modern Woodcrafts, Plainville Marion Manufacturing, Cheshire
*plant tour locations subject to change
For more information and to register, please visit www.connstep.org or call 800.266.6672.
connstep.org
31
CONNSTEP, Inc. 1090 Elm Street, Suite 202 Rocky Hill, CT 06067
Tel 860.529.5120 Fax 860.529.5001 www.connstep.org
CONNSTEP assists Connecticut manufacturers and other businesses with strategic leadership and operational methodologies to become more competitive, thus supporting the growth of Connecticut’s economy.
NONPROFIT ORG U.S. POSTAGE PAID HARTFORD, CT PERMIT NO. 518