Download - CONNSTEP advantage Vol 2 Issue 1
Also 12 Manufacturing Quality:
The role of cyber security ®ulatory compliance.
14 What I’ve Learned:Bob Luther, Lex Products
18 No Limits:Pauway has opened the door to
new markets and unlimitedgrowth opportunities.
26 A Higher Calling:AeroCision is turning the
aerospace market upside down.ww
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advantageQuality as a Growth Strategy
Improved ef ciency.
Faster ROI.
Higher pro ts.
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
ef ciencies 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
>>> CONTENTS
connstep.org 3
advantageVol. 2, Issue 1
4We Expect it to be Great!
There are companies that have become
recognized as leaders in their market by
always commanding superiority through the
quality craftsmanship of their products. They
have earned this high degree of excellence
for their commitment to being the best.
12 14
18 26
12Manufacturing QualityQuality in today’s manufacturing environment requires management of more than specifi cations and tolerances. To remain competitive companies must use technology as a monitoring service and performance tool with the goal of improving both and eliminating waste.
4
6
30
6The Buzz
Newsworthy trends, topics, statistics and an
opportunity to ask the experts.
30Quality Community
The Bigelow family has set a high standard
for us to follow; the family’s history of
commitment to philanthropy is not only
inspirational, it creates an expectation for
each of the employees.
18No LimitsWith the AS9100C certifi cation secured, Pauway has opened the door to new markets and unlimited growth opportunities.
14What I’ve Learned...Bob Luther, CEO of Lex Products Corporation, talks about learning about leadership through OJT and why its vital to listen to the voice of the customer.
22Quality as a Growth
StrategyToday’s quality programs take a holistic approach, and help companies not only meet the requirements of their current clients but provide opportunities to enter new markets.
26A Higher CallingAeroCision is plotting a new course and with the latest quality registration and the development of a world class culture - they’re turning the aerospace market upside down.
We Expect it to be Great!
There are companies that have become recognized as leaders in their market by always commanding superiority through the quality craftsmanship of their products. They have earned this high degree of excellence for their commitment to being the best. This does not always translate as meaning lowest in price, and quite often, it is the exact opposite.
Take a segment of the automotive industry for example, where premium cars such as BMW and Mercedes do well in a market where consumers expect to pay a lot to drive the “ultimate driving machine” or one that claims to be the “best or nothing.” To play in this arena, quality must be an eminent part of the mix, as it is certainly expected by the consumer.
Unlike BMW or Mercedes, many companies, both young in industry tenure, as well as mature in their industries, are searching for their place in the market. In the vast and changing global economy, there are many forces driving immediate transformation - it is hard to keep up with international competition and diverse, emerging technologies. Despite this, there is great opportunity for growth and profi tability through new product development for both new and existing customers. Highly effi cient manufacturers are well-positioned to take advantage of the situation but realize that continuous improvement is not enough. With ever changing customer demands, and with such a crowded market, new products must be distinctive; total product quality is now not only expected, it is crucial, for competitive advantage.
Our two featured companies in this edition, AeroCision and Pauway, understand the importance and the power of quality performance. Obtaining and maintaining quality registrations opens doors to new markets - and they know that to drive top line revenues, it is smart business to build their companies on a foundation of quality.
Today, it is imperative to operate with quality as an integral part of your company’s growth and innovation strategy. As Bob Luther of Lex Products states on page 17, “to succeed, you must innovate, either in your product or
process to gain a competitive advantage. We are always asking ourselves, ‘can we do this better?’ and ‘what do
our customers think?’”
May your reading be satisfying,
Bonnie Del Conte is the president & CEO of CONNSTEP.
She can be reached at [email protected].
Bonnie
advantage
4 advantage Vol. 2, No. 1
Advantage Magazine is a publication of CONNSTEP, Inc.
For the small to medium size business that wants to remain competitive and grow in local and global markets, CONNSTEP provides technical and business solutions proven to have both immediate and sustainable long-term impact.
Unlike other professional consultants that focus only on a single component of your business, CONNSTEP’s multidisciplinary team uses a deliberate holistic approach, providing innovative results-driven top line growth solutions that impact the entire organization.
Since 1994, nine out of ten CONNSTEP clients have reported increased profi tability. In 2011 alone, data provided by an independent survey credited CONNSTEP with impacts of more than $160 million dollars, including new and retained sales, and the creation and retention of nearly 1,600 jobs. Our experience and network of local, state and federal resources, make us not only unique but unequaled in our fi eld and in our state.
PublisherBonnie Del Conte, President & CEOCONNSTEP
EditorRebecca Mead, Manager, Marketing & CommunicationsCONNSTEP
Contributing WritersRobert Kravontka, CONNSTEP
Bill Greider, P4 Executive Lean Strategy Consulting
John Boyd, P.E., Fandotech
Michael Perrelli, CONNSTEP
Susie Zimmermann, Channel Z Marketing
Jim Gildea, R. C. Bigelow
Contacts
To subscribe: [email protected]
To change an address: [email protected]
For reprints, PDF’s: [email protected]
For permission to copy: [email protected]
To pitch a story: [email protected]
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
POSTMASTERSend address changes to:
CONNSTEP, Inc.
1090 Elm Street, Suite 202
Rocky Hill, CT 06067
>>> Contributors
connstep.org 5
Bill Greider has spent over 20 years at Dur-A-Flex, Inc. (East Hartford, CT) as Technical Director, Operations Manager
and Co-Owner. Over a seven year period, he led the company on it’s Lean journey, cut process times by eliminating non-value added activity and began Dur-A-Flex down the road to become a learning organization. During their Lean transformation, Dur-A-Flex was voted one of the “Best Places to Work” in CT four times and won national recognition as winner of the 2010 MEP Excellence in Innovation Award at the Manufacturing Extension Partnership (MEP) National Conference in Orlando, FL.
In 2012, Bill decided that he would like to help other company’s management teams and Lean champions as an independent consultant, hoping to help secure their future success by teaching them the tools needed to turn a “continuous improvement or lean sigma department” into a culture of continuous learning.
Robert Kravontka has over 35 years of 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.
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.
John W. Boyd, Jr. P.E. is General Manager of Fandotech, providing IT infrastructure support solutions from
the Cloud to the desktop.
Mr. Boyd graduated from URI with a BSME degree in Control Systems. He has over 30 years in process control, SCADA and corporate IT strategic management.
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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.
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.
Susie Zimmermann has more than 20 years of experience developing and managing marketing and
communications for corporations, non-profi t organizations, and government agencies. In her current work with clients from both the commercial and non-profi t sectors, she provides strategic consulting on branding, product launches, messaging, positioning, employee communications and comprehensive marketing programs.
Prior to launching her own consulting business, Susie managed marketing and communications programs for the Department of Commerce’s Manufacturing Extension Partnership, AmeriCorps and the Peace Corps. as well as for organizations specializing in commercial real estate, urban revitalization and health insurance.
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Energy Management Workshop
The gist: With over 80% of your energy costs
generated in your manufacturing process,
learning to see energy waste and developing
energy effi ciency and conservation plans are
the fi rst profi table step in your sustainability
initiatives.
This one-day CONNSTEP Energy Management Workshop will provide you and your team
with energy management skills, will establish
a baseline for your company and will help you
identify the major users of energy in your facility.
Held on-site and employing a unique nine-step
approach, the workshop will teach you how
to accurately analyze your utility bills, provide
you with a thorough understanding of energy
terms and defi nitions, and help you develop an
energy management plan.
Who attends? Designed for six to ten
participants, this workshop is suited for a diverse
team including purchasing, fi nance, operations,
quality, sales and facilities management.
http://bit.ly/energymanagement
Mastering Lean LeadershipTo commit to Lean, leaders must believe in Lean. To believe, they must fi rst understand Lean.
Lean is not about what you do, it is about how you think. Lean is a way of life, a management
system, a long-term strategy. Lean is about growth, not the accustomed cost-cutting.
The gist: Mastering Lean Leadership helps leaders understand Lean, believe in Lean and
commit to Lean so they can create, lead and sustain a Lean business model. The battle is
no longer the employee’s resistance to change, as much as it is the executive leadership’s
resistance to understanding what it takes to create a Lean business model, to create a Lean
culture.
Approach: In a small group setting, Mastering Lean Leadership is a series of six half-day
professionally facilitated, interactive roundtables for the top leader and his/her reports
to engage in meaningful dialogue about their specifi c business transformation to a Lean
management culture.
The next Mastering Lean Leadership program begins May 21st and runs to August 6th. Visit
http://bit.ly/leanleader for complete program information.
>>> calendar
NEW CONNSTEP 10:5 Webinars
The gist: 10 minutes, 5 new ideas.
The approach: We know you’re busy so we’ve developed a quick way for you to gain new
information on topics such as Lean Manufacturing, TWI: Training Within Industry, Six Sigma,
leadership and innovation. The CONNSTEP 10:5 series are recorded webinars that you can
watch at your convenience and in any location (iPhone and iPad compatible). Each episode is
no more than 10 minutes in length and the accompanying downloadable checklist provides
you with fi ve new ideas on the topic.
http://bit.ly/105series for more information.
6 advantage Vol. 2, No. 1
Q: Should I outsource my internal quality auditing?
When I am asked that by companies, I try to put myself in the shoes of the person responsible for the quality management system and ask these four key questions:
Could my people be doing something more productive with their time? Often, as soon as plans are made to commence auditing duties, something comes up and all hands are required to tend to an urgent matter like getting a rush order out the door. My management doesn’t want to release a machine operator from a value adding machine operation to participate in an audit of another department.
As you know, you can’t audit your own department... and quality audits are important - they deserve time and attention - so if you fi nd yourself always trying to “squeeze in” the audits, getting assistance may be the effi cient and value-added way to go.
Are we spending more time than we have to on internal audits? I have great people here and they are trained properly to conduct the audits in a timely manner, but because we have to audit departments that are not our own, it takes time to get everyone up to speed and comfortable with the process. And it seems like just as soon as we have our auditor fully trained, wouldn’t you know they move positions and take on more responsibilities? Now I need to train another...
Does that scenario sound familiar? If so, external resources who can audit your processes without taking your staff’s time is an option that many companies choose.
Are we doing anything with the internal auditing results, other than satisfying a requirement? Our registrar is happy with our audits even though we’ve slipped on a date here and there. I would like to set up metrics so that we can measure and improve our processes because sometimes we have a non conformance and I’d like to fi gure out how to mistake proof the process. It would be great to Lean our quality management system, removing the waste, taking less effort to accomplish...
Internal auditing resources who have experience with Lean can assist you in applying Lean methodologies to your quality system, removing the waste and freeing your staff to attend to customer requests.
How busy are we? When business is slow, we have the internal resources necessary to manage our quality management system, including the internal auditing functions. But now that business is starting to pick up again, my people are fl at out with production and training new staff, we just don’t have time to focus on the auditing.
Bringing in outside resources to conduct the internal auditing and other essential quality duties allows your staff to focus on your customer requirements. These “outside eyes” also know what the registration auditor is looking for, so you’ll avoid the surprise non conformances on the registration audit.
You have questions, Robert Kravontka fi nds the answers. An expert in quality, Robert answers your questions using his experience and the knowledge of industry’s top thought leaders.
Robert Kravontka is the CONNSTEP Quality Business Consultant, helping clients attain registration in areas including ISO, Aerospace, Automotive, Medical, Environmental and NADCAP.
Reach Robert at [email protected].
>> > Ask the Experts
Be in Good
Company...
Congratulations to these companies who have recently
obtained a quality registration!
connstep.org 7
BUZZthe >> > Business Barometer
8 advantage Vol. 2, No. 1
According to research, conducted in August 2011, Thomas Industrial Network found that manufacturers who hesitate to engage in social media, believing that their competition is not embracing the platforms, are risking losing business opportunities.
More than 3,000 responses were received on the online survey, Using Social Media to Market and Sell Industrial Products and Services. Respondents included presidents/CEOs/owners (28.1%), VP sales and/or marketing (13%), director sales and/or marketing (11.4%) and manager of sales and/or marketing (26.4%).
Seven out of 10 small and midsize suppliers (under $50mm) are engaging with prospects through the social media channels and feel they have a competitive advantage over those who have yet to start.
Buyers rely on social media to research companies and gain others’ perspectives on suppliers. In fact, 56% of buyers now recommend that all suppliers participate in social media if they want to do business with them. And in response, suppliers are using social media to provide information on their products and services (41%), fi nd prospective customers (27%) and listen to what people have to say about their company and products (20%).
“The industrial sector is awakening to the fact that social media isn’t just a passing consumer fancy, but an essential part of any branding and marketing program.” said Susan Orr, Senior Director, Strategic Marketing for Thomas Industrial Network. “Savvy suppliers also understand that the most effective social media programs need constant care and feeding. To infl uence prospective buyers, suppliers need to continually update their social media content, and to be actively engaging in and initiating conversations.”
To learn more about social media in the industrial sector, visit http://bit.ly/thomasnet.
According to the data, your peers are using social media for business... Overall 68% of companies surveyed have a corporate presence on social media.
53%LinkedInMore than half
indicated they have a LinkedIn profi le
for their company
42%Facebook
An estimated 42% stated that they have a company Facebook page
34%YouTube
34.4% of companies surveyed have a
YouTube channel
26%Twitter
Just over one quarter of
respondentsuse Twitter
Your competitors are using social media tothird of industrial suppliers polled said thasocial media channels.
27.3%YouTube
is the third most popular social
media tool
Manufacturers are using social media to coSurvey respondents clearly see the value oservices. Realizing that buyers use social mmanufacturers leverage this and reap the r
When asked how social media has impacte
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help the c
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power :
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need it
We all love the ability to walk around toting our smartphone, a veritable encyclopedia at
our fi ngertips weighing less than your wallet. We feel empowered when we can quickly
provide the answer to a question such as “what movie was that line from,” or the ability
to tell someone how to get to a particular destination. Surely you’ve heard the expression
“knowledge is power.” The key word is power. If you don’t have any left in your battery,
you might be tempted to fl ing that encyclopedia from your fi ngertips!
Here are some tips to conserve battery power on your smartphone or tablet:
1. When not in use turn off GPS, Bluetooth and WiFi. Keep the on/off toggle switches on
your homescreen so you know they are off when not in use.
2. Turn off WiFi connections you no longer use. When you use WiFi, your device will
constantly search the stored connections. “Forget” any that you no longer use so it
doesn’t keep searching for them.
3. Take your brightness setting off auto and take it down a few notches. Auto is typically
much brighter than necessary. Settings> Display>Screen Brightness will let you change
that.
4. Set the screen to timeout faster than the default setting. The longer the screen is on the
more power it uses. Set it to turn off after 30 seconds or 1 minute.
5. Turn off vibrate.
6. Install Juice Defender. This app regulates data when not in use.
7. Disable live wallpaper.
If you are a long way from seeing your next wall outlet, here are a few ways to eke just a
little more power out of your Android device:
1. Check to see what is using up the most power. (Settings>Battery Use)
2. Turn off data. (Settings>Data Manager)
3. Turn off Widgets. Widgets are live feeds constantly pushing out data which uses
battery.
4. Set your background to black. Dark backgrounds don’t require as much battery to
render.
5. Shut off 4G / LTE. (Settings>Network Settings>Mobile Networks)
In the future, if you know you’ll be traveling or away from a plug for a long period:
1. Buy a battery bank. My Power Bank stores power until you need it and will double your
battery time for $50.
2. Buy an extra battery and keep it charged. Most smartphone batteries cost about $25.
3. Buy an extended battery for approximately $40.
Cellular Chloe is the “Gadgetista” of Wireless Zone. She is an advocate for the end user and spends her time pushing the envelope on all devices so she can honestly report her fi ndings. She likes to help you get to that “a ha moment” so you and your gadgets can live happily ever after! You can fi nd her at http://www.cellularchloe.com
28.7%LinkedIn
is slightly favored by industrial suppliers
connstep.org 9
28.5%Facebookcomes in a close
second for marketing products and/or
services
o market their products & services... Almost a at they market their products and services using
onnect with prospective and existing customers... of social media for marketing industrial products and media to research before selecting suppliers, enterprising rewards in their marketing and sales eff orts.
ed them, respondents said that social media...
help potential customers gain information about the company’s offerings
help the company interact with customers
enerate sales leads
easier for potential customers to get questions answered
company learn more about existing and/or new customers
ny learn what customers and/or potential customers think about the cts/services
tomers and potential customers to interact
y Says...
BUZZthe
10 advantage Vol. 2, No. 1
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Recently, the Offi ce of International and Domestic Affairs at the Connecticut Department of Economic and Community Development completed a review of Connecticut’s 2011 exports for The Connecticut Economic Digest. With exports representing approximately 7% of the gross state product (state GDP), exporting is an important indicator of Connecticut’s economic health as exports sustain and create jobs, having a multiplier effect on the economy.
At a high level, Connecticut’s export commodities (excluding services) increased 0.88%, from $16.05 billion in 2010 to $16.19 billion in 2011. Exporting to 206 market
Sending Overseas:Connecticut Exports in 2011
Connecticut Exports by Commodity(Annual 2010 / Annual 2011)
destinations in 2011, Connecticut ranks 28th with a 1.09% share of the U.S. commodity export total (Connecticut ranks 10th on a per capita basis).
With 95% of the world’s consumers living outside the United Sates, it makes sense for Connecticut companies to pursue foreign market opportunities and reach those consumers, generate new business, create jobs and spur economic growth and recovery.
Data comes from DECD’s subscription to WISER. For the complete article, please visit http://1.usa.gov/DECDexport.
Connecticut Export by Partner Country 2011(U.S. Dollars)
France$1.971 billion
China$982 million
Mexico$1.098 billionGermany
$1.377 billion
Canada$1.718 billion U.K.
$684 million
U.A.E.$541 million
Japan$578 million
Netherlands$551 million
Belgium$548 million
The challenge for a lot of Lean journeys or quality management system implementations isn’t in eliminating the waste, becoming registered or generating positive outcomes; it is sustaining the gains and continually improving after the fi rst few projects. On occasion, companies I have visited over the years are unable to keep the momentum from their original launch and are left wondering what’s next or ask where do we go from here? All too often, companies and people alike fail to see that quality management systems and Lean principles are benefi cial to each other and can help sustain both initiatives for the long haul.
In Lean ISO 9001, Mike Micklewright explains that Lean and ISO are two complimentary forces. One of the key examples provided is that Lean principles can offer the tools needed to eliminate wastes in your documentation system, which is one of the key components in the registration process. Similarly, items such as utilizing 5S in your fi les and folders, integrating TWI into your job competency requirements, and the use of A3s in your quality management system are all ways Lean and quality can dovetail with one another. It can be said that quality registration supports Lean efforts just as much as Lean efforts support quality registration. After all, standardized tasks are the foundation for continuous improvement and quality management systems.
ISO says you must continuously improve; Lean gives you the tools to accomplish it. Studies acknowledge that ISO registered companies are continually outperforming their non ISO registered counterparts by growing faster in sales, employment, and payroll. Registered companies are also more likely to remain in business and are more likely to report zero injuries for workers compensation. The aforementioned benefi ts are many of the same qualities that drive companies to become Lean organizations; all outcomes any business can embrace.
The principles covered by Micklewright, can help Lean out your ISO quality management system, and add sustainability to your Lean efforts. This is a quick and easy read that can help get your quality and continuous improvement groups on the same page. The examples provided should help usher you down the path of generating your own creative ideas for implementation.
- Robert Kravontka, CONNSTEP
If I could only pick one book to recommend to anyone interested in Lean or the Toyota Production System, this is the book. Throughout the 88 detailed, well-thought-out pages in Follow the Learner: The Role of a Leader in Creating a Lean Culture, Dr. Sami Bahri, DDS, captures the true essence of what being a great Lean leader requires.
First is his humility. It requires a total lack of ego to involve everyone in his practice to improve conventional processes for the sole benefi t of the customer - Dr. Bahri believes conventional processes were for the benefi t of the dentist, not the customer.
Second is the never-wavering, laser-like focus on the customer. This focus screams at you throughout the text.
Third is his persistence. Dr. Bahri was fascinated by the potential of TPS some 17 years ago. It took 13 years of experimentation (PDCA) to begin to truly impact his customer’s experience, but he and his staff worked together and are still at it. He proves that the only way to do it wrong is to do nothing. There was no manual on how to do Lean dentistry!
Fourth, Dr. Bahri validates that good Lean is market disruptive via operational excellence. I’ve spoken to one of his patients, and the experience is extraordinary. Imagine if you are a competitor in Jacksonville and you fi nd out Dr. Bahri’s patients don’t wait? At all? He does give details on some of the business results (numbers) in the book.
Fifth, he validates once and for all that Lean is not about cars. That notion can no longer be argued. It’s dead.
Pick this book up. You will fi nd yourself, like me, reading it more than once.
- Bill Greider, P4 Executive Lean Strategy Consulting
Biz Lit
connstep.org 11
By John Boyd, Jr., P.E.
Quality in today’s manufacturing environment
requires management of more than
specifi cations and tolerances. To remain
competitive, companies must use technology
as a monitoring service and performance
tool with the goal of improving both and
eliminating waste. However, the introduction
of technology as that tool to improve
visibility into control networks creates new
challenges; Cyber threats, lost data, loss of
confi dential information, cyber espionage
and simple down-time due to the complexity.
Additionally, the risk of having protected
information in electronic format has
created regulations in the form of HIPAA,
PCI, NERC CIP and ISO, creating new
management challenges. State legislation
such as 201 CMR 17.00 affect the ability
of companies, across the country, doing
business with Massachusetts clients, to
comply or face fi nes. The reality is industrial
automation now requires a unifi ed approach
across security, compliance, and change
management functions to achieve quality.
One key factor is the growing control
system complexity. Since most automation
The Gartner Group* sites in a recent report
that industrial down-time typically costs US
companies $300,000 per hour of down-
time. A lost laptop with 15,000 personal and
confi dential information (PCI) records cost a
company over $450,000 in notifi cation, legal
and restoration fees. And most insurance plans
explicitly exclude cyber liability. Operators of
automation environments must resolve these
risk elements as they seek ways to monitor,
manage and protect their critical systems. It
underscores the fact that, with all the changes
occurring in their environments, operators
need technology and tools that enable them
to achieve a more integrated and intelligent
approach to security, compliance and change
management.
Technology must be part of your QA/QC
strategy to compete in the complex area of
manufacturing.
Key areas of focus:
1. Cyber security for the shop fl oor:
Operating systems, applications and
hardware that have vulnerabilities that
did not exist in earlier systems. As a result,
automation systems now need the same
levels of management and security that
have been seen in enterprise networks for
the past two decades.
2. Governance and regulatory compliance:
Many companies now must document
their compliance with regulatory
requirements, such as the North American
Electric Reliability Corp. (NERC) Critical
Infrastructure Protection (CIP) standards,
Personal and Confi dential Information
Security Act (PCI), Health Information
Privacy and Portability Act (HIPAA),
Sarbanes/Oxley Act (SOX), 201 CMR
17.00. To effi ciently meet external and
environments were developed over decades
without a master plan, they now contain
heterogeneous systems that are diffi cult to
manage. Another factor is resource constraints;
with today’s business conditions, operators
are being asked to do more with less. A third
major market driver is the exponential growth
of intelligent devices deployed in automation
environments. These networked and IP-enabled
devices are creating management requirements
with which operators have limited experience.
All of these elements can lose data and
confi gurations. If we set aside the implications
of how the data was lost for the moment, we
realize that the ability to restore operations
dependent on that information is critical to
cost of goods sold and quality. So a plan for
backup of all the automation process, along
with confi guration control, is needed to ensure
the latest specifi cations are being restored.
IT must be a key component of your QA/QC
process.
If you have lost information, that event may
also trigger several regulatory and disclosure
mandates. Once triggered, these mandates
can be highly disruptive to your business,
your clients and your ability to get funding or
insurance in the future.
BUZZthe
Manufacturing Quality: The Role of Cyber Security & Regulatory Compliance
Technology must be part of your QA/QC
strategy to compete.
12 advantage Vol. 2, No. 1
sound off
Q: What drove you to become registered to a Quality Standard and what were some of the unexpected benefi ts from going this route?
A: ISO 9001:2008 certifi cation for the design and manufacture of cable assemblies and sheet metal is critical for Lex Products, as it helps to ensure excellent service and the manufacturing of superior products. Providing a strong platform for business growth, the certifi cation demonstrates a proven framework for managing many processes, which helps to guarantee the production of products that meet or exceed customer expectations in a timely manner.
- Mike Scala, President, Lex Products Corporation
A: We decided to register under ISO guidelines for strategic reasons; we were getting some push back from larger potential customers, and we were under scrutiny from some major existing accounts who were coming out to audit on a regular basis. Furthermore, our growth strategy depended on registration in additional areas of the standard for licensing/acceptance.
The single largest unexpected benefi t was (and still is) the high level of commitment from our workforce. In our situation (we were closely compliant to the standard beforehand) a large component of registration relates to documenting process. Small teams were meeting to defi ne how we work. Once those teams understood the complete process, they were not satisfi ed with documenting what was done; they wanted to fi x what we do to improve!
We have better processes today because those who are responsible for the work were required to document (and approve) how they work. We have better record keeping. The internal audit process has turned out to be a process improvement generating machine. Finally, we are now part of a business system community whose participants favor relationships with other like-minded companies.
- Steven Giamundo, President, Fiberoptics Technology Inc.
A: Most of our automotive customers were mandating it in order to obtain “new” business and to obtain “preferred supplier” status. We wanted to optimize our systems and reduce our scrap rates in which we had great success. We also wanted to reduce our impacts on the environment to as little as possible.
Some of the unexpected benefi ts included the CONNSTEP personnel that were on-site helped us seamlessly integrate our old standard system with the new systems resulting in a single documented quality and environmental management system that encompassed ISO 9001, ISO 14001, and TS 16949. We also saw to it that the time Metallon personnel spent integrating and incorporating systems was kept to a very minimum.
- Roger Porter, Quality Assurance Manager, Metallon, Inc.
internal requirements, while minimizing
administrative burdens, compliance
systems must become more automated.
3. Control system operations: Control
networks are typically large and
complex, as are the technologies used to
automate them. Point solutions in these
environments make them more complex.
To increase effi ciency, operators need
to integrate their disparate systems.
But these integration projects are often
costly and time consuming. They also
require the attention of key staff people
who could otherwise be focused on
other initiatives more strategic to the
organization.
Questions:
1. Do you have a written information
security procedure (WISP)?
2. Do you have a monitored version
control plan as part of confi guration
management?
3. Do have a business continuance (BC)
plan that is independent of your internal
resources?
4. Do you have a security policy for mobile/
personal devices?
5. Can you afford to be without your
information systems for more than a few
hours?
If you have answered “no” to any of the
above, quality may be at risk.
Solution: Integrate three key functions of IT
security, compliance and change management
within a single platform.
Referenceshttp://www.mass.gov/ocabr/idtheft/compliance-checklist.pdf
The Future of Business Continuity: How to Stay Ahead of the Curve, Gartner Group
Convergence in Automation Systems Protection, Pike Research, Senior Analyst Bob Lockhart
connstep.org 13
What I've Lear
>>> Bob Luther, Founder & CEO, Lex Products Corporation
Shelton, Connecticut, 52 years old
14 advantage Vol. 2, No. 1
While I worked at an electrical
company before starting Lex, I learned
about manufacturing by running a
manufacturing fi rm.
We were successful and grew, and quickly
got out of control. Written processes
alone weren’t enough to keep us effi cient
and smart. ERP was absolutely essential.
It forced us to look at our entire process,
and you can’t build anything
properly unless you identify and
examine every step.
The second essential program for
all manufacturers is Lean. We’ve
implemented dozens of projects over the
years, and fi rmly believe we cannot be
successful if we’re not Lean.
I enjoy seeing a product come together
from nothing. And I really appreciate
the journey of continuous
improvement. Nothing’s ever
done, nothing’s ever perfect.
There’s always more you can integrate in
or deeper you can delve. This ultimately
provides the maximum control over your
product, and your destiny.
To succeed, you must innovate, either
in your product or process to gain a
competitive advantage. We are always
asking ourselves, “can we do
this better?” and “what do our
customers think?”
If you’re building the same thing
as the next guy, you’re vulnerable.
You’re easily substituted. I much prefer
being in the opposite position: customers
understand the strong benefi t for our
product and want to work with us.
When you communicate regularly with
your customers, you rarely have to “sell”
them on your products or services. If
you’re creating what they need or
want, demand takes care of itself.
Our company grew as we were able to
prove that companies that used to build
our product themselves would be stronger
if they focused on their core business and
avoided being distracted by making some
of the products they need to operate.
Today, few companies in the industries we
serve make these products any more. They
outsource to us.
I’m impatient. I’m too
entrepreneurial to follow the
rules. That’s what led me to start my
own business and probably to succeed.
But I also know I’m not easy to work with.
I’m demanding and have high standards,
and realize I’m not the best boss. So I
only have one person reporting to me and
managing the operation. He’s great with
people and excels at getting teams to work
on complex problems.
I may have good ideas and drive, but I
needed him to put controls and
processes in place for us. I get to
focus on ideas and the customer.
The best advice I ever got: get out of your
offi ce (which at the time was in my house)
and visit your customers. That’s even
more on-target today than it was back
then. Talking with your customer
and getting their input is all that
matters. Everything else will take
care of itself.
In college, I sold dictionaries door-to-
door. I learned two things. First, if a dog
charges, hold up your sample case in
front of you, and for some reason, he will
stop. Second, keep knocking on doors.
Someone will let you in eventually and you
will sell something. So I learned to just
keep knocking. Also—to this day, I buy
anything from anyone who comes to my
door.
My future? I just want to keep meeting
my customer needs and talking with the
customer to continue to innovate. It’s fun.
Keep dreaming up ideas. Don’t let one
bad idea stop you. The next great idea
is just down the line.
My dad was an electrical engineer, so what
I’ve done in my career doesn’t surprise me.
What does surprise me is how much
I enjoy it.
I really appreciate the journey of continuous
improvement.
Nothing’s ever done, nothing’s ever perfect.
rned
connstep.org 15
YES? Good decision! Move ahead to the training off-ramp.
NO? Time for a U-turn! Make sure everyone’s on board
before you hit the roadto quality certification
YES? Great start ~ motor on...
NO? Pull over and rest awhileuntil everyone is up to speed
Time to form key process teams.
Perform gap analysis.
Don’t forget to trainyour process users.
Develop standard compliant processes & document them.
Training is key to success — Have you trained your key process leaders
and management team in quality?
Now entering Continuous Improvement & Corrective Action Valley
Ma
Ma
Ma
Ma
Our special thanks to John Grice of J
NO? Better hit the motorway services trefuel and implement corrective action
Is your management team committedto obtaining a quality registration?
ABCManufacturing
start
Hope you’ve got serious horsepower There’s a good amount of work to do! Now’s the time to develop your implementation plans, quality policy and manual, and determine your quality objectives. Perfect time to also appoint a management represen-tative to be your company’s guide for the journey.
The Journey To
16 advantage Vol. 2, No. 1
anagement Review
anagement Review
anagement Review
anagement Review
CHECK YOUR SPEED! Slow down and document a complete, compliant quality management system.
Now’s the time to train your employees & implement your quality management system
PIT STOP! Fine tune your QMS with an internal quality audit & set your schedule for on-going quarterly audits.
Is your system compliant?GO RIGHT
YES? Rock on! Motor on to select a quality registrar for your external audit.
Time for your registration audit!
John Grice & Associates for translating quality into English. © 2012 CONNSTEP
EZ Pass Registrar Ur Best Registrar My-T Fine Registrar
tons
STOPPay Toll
finishPASS! No non-conformances! Congratulations and welcome to the elite group of manufacturers who are
registered to a quality standard.
C O N N S T E P. O R G
desi
gn: g
ari
phic.com
MISSED THE MARK? Get out, stretch your legs and fix those non-conformances, gas up, perform an
internal audit to ensure your QMS is compliant - and then take on that registrar to pass that next external
audit opportunity!
Quality Registration
connstep.org 17
>> for more examples of companies leveraging Quality Management Systems for growth and business sustainability, visit www.connstep.org.
No
Limitsby Michael Perrelli
18 advantage Vol. 2, No. 1
n a daily basis, businesses are affected by internal
and external factors - industry, economy, natural
disasters, workforce, suppliers, and customers. While some of
these factors are part of the business cycle - more predictable
and able to be prepared for - some events are so unexpected
and so impactful that they alter the course of the company.
For Pauway Corporation of Wallingford, their defi ning
moment came in 2002 when three of their largest customers
left Connecticut for Mexico and Asia. Complicating matters,
this business shift occurred when the family-led business was
transitioning from President Wayne Rydzy to his son Mark,
“We were predominantly providing high-end fi nishing for the
commercial and medical sector for the better part of 20-plus
years,” says Wayne. “It was a wakeup call, but ended up an
opportunity for Mark to move the company along.”
While some companies may not survive the loss of three
major customers, the younger Rydzy saw it as a marketable
opportunity for the family business, “Entering a new market
and succeeding in it are two totally different things. You can’t
just say we serve this market and that market now and expect
the business to pour in,” explains Mark, now Vice President,
“I wanted to get us into the aerospace and defense markets
because they are tightly regulated industries as far as using
domestic suppliers. With Connecticut being the hub of the
aerospace industry, it made perfect sense for us to move in
that direction.”
O
With the AS9100C certifi cation secured, Pauway has opened the door to new markets and unlimited growth opportunities.
connstep.org 19
process was implemented.
It provided a level of
accountability to the
staff which has led to an
increased pride in their
workmanship.”
Original equipment
manufacturers within
the aerospace industry,
including Pauway’s
customers like Sikorsky,
consider quality certifi ed
suppliers a valuable link
in their supply chain,
“Years ago, before these registrations,
your customers would send a team down
to check on you. During the visit, they
would complete a facility audit to make
sure you aren’t some ‘fl y by night’ team.
Now when you approach a new customer,
they see you are registered to the AS 9100
standard so they know you are being
audited by a 3rd party on a regular basis.
It alleviates some of their concerns. They
know that you are a legit operation,”
explains Mark.
Registered to the latest standard and
fi rmly entrenched in the market with
long-term contracts secured, the strategic
decision to pursue and maintain their AS
9100 registration has the family business
coming off their best year on record in
2011, eclipsing $2 million dollars in sales
for the fi rst time. However, the record
numbers don’t allow the company to
rest on their laurels. They plan to stay
aggressive and increase sales 4 to 6% this
year. “The registration gives us an added
level of confi dence when going after new
customers. It’s a feather in our cap, a
level of credibility that puts everyone on a
level playing fi eld,” Mark says. “It opened
up a big world for us. In the aerospace
and defense markets, it’s all about your
accreditations; customers want to see your
registrations before reviewing a quote
“The registration gives us an added level of confi dence when going after new customers. It’s a feather in our cap, a level of credibility that puts everyone on a level playing fi eld.”
“It opened up a big world for us. In the aerospace and defense markets, it’s all about your accreditations; customers want to see your registrations before reviewing a quote package.”
Mark Rydzy
As a fi nisher who was experienced at
offering class 1A fi nishes , complex
coating systems and multi-color fi nishing
to a variety of substrates varying from the
tops of screws to 2-ton I-beams, Pauway
had the capability and available capacity
to enter these new markets. However,
the fi rst step on this growth path wasn’t
purchasing additional equipment or hiring
new talent, it was securing the requisite
credentials. The ammunition needed
to compete in the aerospace market
for Pauway was obtaining AS 9100
registration.
Opening the Door with Quality
Similar to the automotive standard of TS
16949, and the medical device standard
of ISO 13485, the aerospace standard of
AS 9100 is built off the well-known ISO
9001:2000 quality management system
standard and incorporates sector specifi c
supplier requirements.
“Our initial quality management system
only contained the ISO 9001 registration
and that wasn’t enough,” Mark says.
“The AS 9100 registration is similar to a
college degree in today’s terms. You won’t
even get to that proverbial fi rst interview
without it. There are some businesses that
won’t even look at you unless you have
AS 9100 as a minimum requirement.”
In 2010, Pauway was one of the fi rst
organizations to be registered to the
‘C’ revision of the AS 9100 standard.
Companies registered to the AS 9100
standard, must be registered to the
new ‘C’ revision by the end of June
2012 or risk losing their registration and
subsequently, the business attached to it.
As a requirement of the risk management
aspect of the AS 9100 ‘C’ revision,
companies were required to develop a
training matrix to illustrate gaps in their
skill deployment. “Not only did it help us
allocate internal resources properly, but
it showed us where some cross training
was needed,” says Mark. “As we began
to cross train our staff, a formal sign-off
20 advantage Vol. 2, No. 1
package. Next on the docket may be our
NADCAP registration which will open the
door for more defense contracts.”
The processes and culture are in place
for Pauway to attain their NADCAP
registration, or any other sector specifi c
required registration for that matter. This
latest initiative, moving from AS 9100B
to the AS 9100C registration not only
resulted in $100,000 in increased sales,
$250,000 in retained sales, the expected
addition of 6 new employees and an
additional $50,000 investment in new
plant equipment, but it paved the way for
the company to be proactive instead of
reactive when making their next strategic
plan.
Adjusting for the Future
Installing a quality management system
and maintaining registration isn’t a
do it and your done type of process.
It takes effort, precise documentation
and a commitment to the workfl ow
and processes to ensure the end result
of customer-specifi ed quality goods,
continuously delivered on time. “When
the CONNSTEP team came in to help
us prepare for the registration, they
understood the whole picture. They
understood what the end result of this
system was supposed to be. It was
going to help our effi ciency, minimize risk,
and help with employee safety, now and
in the future,” says Wayne.
“At the end of the day, we are a niche
company that tries to keep evolving. We
continue to expand for the future of the
company,” explains Mark when describing
the 40,000 sq. ft building his family owns
that houses Pauway Corporation. “We
recently expanded to accommodate larger
parts on the top fl oor of the facility. We
developed a new area that houses a new
overhead bridge crane that can handle up
to two tons. The area also has a large-part
paint booth that can accommodate parts
up to 16 feet long. If we can get an item
in the building safely, we’ll fi nish it.”
The physical building owned by the
Rydzys may have evolved with additional
equipment or new cell designs since 1979,
but the way potential customers search
for and analyze the fi nishing service at
this central-Connecticut location has
gone through a complete overhaul since
Pauway’s inception. Print media, sales
calls, and expensive direct marketing
initiatives have, in some ways, become
obsolete. “When my father was in
charge, we were heavy into ThomasNet
regional books. A big chunk of our small
marketing budget was dedicated to print
media and those types of publications,
that I’m now trying to eliminate,” Mark
says. “A lot of companies of our size and
makeup don’t have a valuable internet
presence so we have tried to explore that
to the best of our ability. We continue to
work on our web presence with outside
help on the redesign of our website and
improved search engine optimization.
We feel these adjustments will give us
the best bang for our buck and enhance
our internet marketing focus. The quality
registration, in particular, has opened
up business for us across the country by
drawing people to our website. The old
saying of ‘go where your customers are’
is still kind of true today. We need to be
active marketers where our customers are
searching for companies like ours.”
Stepping Up
With 23 employees and counting,
Pauway continues to leverage available
resources to continue the evolution and
growth of their business. In addition to
their quality management system, new
market penetration and an upgraded
web presence, Pauway has joined the
Small Manufacturer STEP Program which
helps promote job growth and worker
opportunity for Connecticut’s small
businesses and unemployed workers.
Through this program provided by the
Department of Labor, Pauway will be
subsidized over the course of six months
for hiring and training a previously
unemployed worker. The grant requires
the company to have less than 50 full-
time employees, be based in the state
of Connecticut, have the ability to train
the new employee on-site, and been
registered to conduct business in the
state for no less than 12 months.
“We run our business like a family
business. It’s named after us. Pauway is
a combination of my name (‘way’ from
Wayne) and my wife, and Pauway CFO,
Paulette’s name. Since the company’s
start, we have tried to treat everyone
here as family and Mark intends to keep
it that way,” Wayne explains. “We have
a very low turnover rate as most of our
employees have been here for fi ve plus
years with many being part of our team
for more than 10. The fi rst employee I
ever hired, Bill Uva, is still here. I hired
Bill, who is now our Foreman and Quality
Manager, over 30 years ago and he still
remains an integral part of business.”
Not just used to describe their registration
to the AS 9100 standard and the
fi nished goods they produce, the term
‘Quality’ also describes the owners and
the company-wide family the Rydzy’s
have cultivated at Pauway over the
past 30-plus years. With the steps this
small Wallingford-based manufacturer
has taken to maintain and grow their
business, a new hire should be prepared
to be a member of the Rydzy family for
the long haul.
connstep.org 21
by Susie Zimmermann
Quality as a
Growth
Strateg22 advantage Vol. 2, No. 1
“For us, it’s simple,” says Robert Evans, president of Vitek Research
Corporation. “We wouldn’t be in business without it.”
What is it? Evans credits quality certifi cation for maintaining clients and
adding some key new accounts for his company. “For his Naugatuck-based
coatings business, which primarily works in the medical industry, certifi cation
had become a requirement. Seven years ago they became accredited, and
continue today to maintain certifi cation. “It defi nitely requires a commitment
of resources, but we wouldn’t be in business without it.” Not only has it kept
Evans in business—in just the last few years, Vitek’s business has jumped by
65%.
More than meeting requirements though, Evan’s attributes the quality
process for increasing his management processes. “Quality has helped us
address problems effi ciently when they arise, and identify issues that we can
address before they become problematic.”
The Evolution of Quality
Quality certifi cation has come a long way. When it was fi rst introduced
decades ago, the focus was on quality control in product inspection and
paper documentation of manufacturing processes. “ISO got a bad rap,” says
Norm Schaefer, manager of business services for CONNSTEP. “It didn’t affect
value or any continuous improvement.”
gy
Today’s quality programs take a holistic approach, and help companies not only meet the requirements of their current clients but provide opportunities to enter new markets.
connstep.org 23
But it has evolved dramatically since
then. Elaine Rampone of RAMP
Enterprises agrees. “ISO moved from
basic QC to quality assurance, to
examine how to handle customer
requirements and instill quality
within both your manufacturing and
business management practices.
Today, quality assurance compliance is
assumed. Now we make sure that your
practices are solid and that you have
the measurement tools to truly track
performance and effectiveness.”
Tim Butler of Benchmark Registrar
Representatives explains that the
system now looks at such factors
as continuous improvement, on-
time delivery, effi cient systems and
mandates business practices to
increase productivity and output.
“Each time the standard is revised it
addresses the best business practices,
and has increasingly looked at business
management systems beyond the plant
fl oor.”
Examining the Value
Today’s quality program takes a holistic
approach, and is helping companies
not only meet the requirements of their
current clients but also move into new
industries. Schaefer recalls working
recently with a small family-owned
business that sold electrical connectors
to the telecommunications business.
As wireless systems became the norm,
the company needed to reconsider its
business model. CONNSTEP helped
the fi rm achieve ISO certifi cation, and
with that the business was able to
move into the auto industry, selling
electrical connectors for box trucks and
diesels. The company has grown from
130 to 230 employees in response
to increased demand. “Without the
quality system, they never would’ve
been able to even talk with those new
customers,” recalls Schaefer.
Paul Parent, continual improvement
coordinator and ISO management
representative at Sterling Sintered
Technologies in Winsted is also an
advocate of the benefi ts of quality
certifi cation. His company uses ISO
9001 as a platform to lead continuous
improvement. “As customer needs change
and their demands increase, ISO helps
us to keep up. It identifi es weaknesses,
insists on customer feedback, and enables
us to move in the same direction as our
customers. With ISO, we’ve managed to
avoid most customer surprises and keep
up with their needs.”
Out of Connecticut’s approximate 5,000
small and mid-sized manufacturing
enterprises, approximately half have
achieved accreditation in at least one
quality standard. CONNSTEP worked
with 63 companies in FY11 on 78 quality
projects. Measuring the ROI for those
companies who focused exclusively on
quality—noting that the impacts can be
even higher when additional improvement
projects are implemented—the impacts
are impressive: $5.15 million in increased
sales, 42 jobs created and 256 jobs
retained, and $21.5 million in retained
sales.
The Process
Companies beginning a quality
program should expect 6-12 months in
implementation work, which includes
some or all of the following: gap
assessments, management reviews,
internal audits, reports and technical
writing, employee training, and
management coaching. This stage also
includes allowing time to gather the data
The Myths about Quality
Given the benefi ts, what is holding
the others back? Some of the most
common misconceptions about quality
systems are:
Quality is a heavy procedural burden.
Rampone simply says, “not true - there are
only six required procedures for ISO 9001
compliance.”
Quality only asks that you do what you
say and say what you do. Today’s quality
registration includes documentation, but
is more focused on helping companies
to do things well - eff ectively, effi ciently,
on-time and by managing costs.
You have to hire someone to keep it
going. While some companies do have
designated employees, like Parent, who
manage their quality program, it’s not
essential. “If you teach all employees the
requirements for quality in their process
and have everyone involved, extra staff
are not needed, “ says Rampone.
It’s costly. A quality program certainly
requires an investment of resources,
yet it need not be out-of-reach, “If
everyone embraces their part and if
senior management is on board, you
can keep costs in check, and the return
will far exceed the investment,” explains
Rampone.
24 advantage Vol. 2, No. 1
AS 9100C for the aerospace industry, TS
16949 is the automotive standard, ISO
14001 covers environmental management
standards, OHSAS 18001 covers
occupational health and safety standards,
TL 9000 is for the telecommunications
industry, ISO 1345 is specifi c to the
medical industry and ISO 27001 and
22001 address information technology
and food safety, respectively, to name a
few.
The philosophies of each are similar, while
the details and focus areas will differ. For
example, AS 9100 C includes attention
to legal, regulatory, traceability and risk
management, while medical standards
focus on tighter manufacturing process
controls, FDA regulations, composition
and consistency, traceability, and
sterilization. “Some companies become
registered to multiple standards,” says
Rampone. And while this requires
a quality management system that
allows the company to fl ex effi ciently,
“companies can become players in more
than one industry,” opening up new
markets.
Future of Quality
The changing needs of OEMs and their
supply chains will drive the continued
evolution of the standards. Rampone
predicts that future iterations will
address the more detail in the supply
chain, the procurement of raw materials
and electronics to ensure against
counterfeit materials, and more quality
in engineering. Risk management, more
tightly defi ned product characteristics and
cost-effi ciency will also continue to gain in
importance.
For certifi ed companies, the process has
been well worth the investment. Especially
for small companies without the internal
governance that large companies receive
from management or headquarters,
quality systems provide the framework
for continuous improvement and ever-
increasing growth in effi ciency and
effectiveness, benefi tting the customer,
a company’s internal operations and the
bottom line. And while some may have
doubted the effi cacy of quality initially,
Sterling Sintered’s Parent says, “Even the
naysayers have now become converts.”
needed to document that systems are
being followed and corrective action is
taken as needed, and to measure the
outputs and impacts of those measures.
Next, the company must bring in
a certifi ed registrar to review the
implementation and interview employees
to ensure that the minimum standards
have been met. Certifi cation has two
initial stages: 1) document review
of manual and procedures, and 2)
assessment audits, which include a start-
to-fi nish review of the production process,
from the front offi ce to the shipping
dock, to ensure all steps follow the
documented requirements. These steps
typically take six to eight weeks. After
that initial certifi cation, the company must
maintain certifi cation for 6 months or 12
months (depending on the standard) to
become accredited and then have annual
maintenance audits.
A Logical Array of Standards
ISO 9001 for overall quality accreditation
may perhaps be the most well known
of the quality certifi cations, but many
industry-specifi c or topical certifi cations
are also growing in use and importance.
“As customer needs change and their demands increase, ISO helps us to keep up. It identifi es weaknesses, insists on customer feedback, and enables us to move in the same direction as our customers. With ISO, we’ve managed to avoid most customer surprises and keep up with their needs.”
Paul Parent
connstep.org 25
>> for more examples of companies leveraging Quality Management Systems for growth and business sustainability, visit www.connstep.org.
A Higher Ca
by Michael Perrelli
26 advantage Vol. 2, No. 1
The pride associated with receiving an award or
honor is a feeling that isn’t easily forgotten. At AeroCision,
an aerospace engine parts manufacturer in Chester, the
glow is still easily recognizable from the certifi cate of export
achievement the Department of Commerce bestowed upon
them in early 2012.
Coming off a year in which they doubled profi ts, aided by a
large increase in export sales, AeroCision has cemented their
relationship with their customers through a “cultural overhaul”
that began just over four years ago. The task of changing an
entire culture can’t be achieved by picking up a business book,
fl ipping through the pages, and implementing an idea. It takes
hard work and discipline to actively cultivate the culture to
the point where it becomes a tangible asset. In the case of
AeroCision, the successful transformation has led them to a
position where their future is secured with long-term contracts
in hand both domestically and abroad.
AeroCision is plotting a new course and with the latest quality registration and the development of a world class culture - they’re turning the aerospace market upside down.
alling
connstep.org 27
With a mission statement that is much
easier said than done, all of AeroCision’s
current and future success hinges on the
continuing effort the staff puts towards
supporting the company’s mission and
vision. “Our mission statement is very
simple. It is 100% on time delivery,
100% quality, and the lowest possible
unit acquisition costs for our customers,”
explains the company’s CEO, Andrew
Gibson, “I know this sounds like simple
stuff, but every person here lives by those
rules and every investment we make has
this mission in mind, that’s why we are
continually successful. We are all average
people who work together to do amazing
things. We make aerospace parts and we
take that very seriously.”
Turning Things Upside
Down
Four years ago, everyone at
AeroCision was asked to vote on
whether or not they wanted to
work for what Andrew termed
an ‘A+’ company. “Before people
answered, I told them this task
would require everyone to work
two jobs. We would all have our
regular day-to-day jobs making
parts and we would have the
additional job of doing the
requisite things needed to become an
‘A+’ company, including shrinking the
company down to only the core people
who believed in creating a positive,
customer-centric culture.”
It was only a year after this vote that
AeroCision’s transformation had taken
hold and was getting the company
noticed in a positive manner. “Being
the best is hard work. You know those
people who try out for the Olympic team?
They are up at 3 a.m., run for 3 hours,
eat and then do it all over again. It takes
dedication.” To AeroCision, being an ‘A+’
company means living and delivering on
the company’s mission statement day in
and day out.
The creation of the mission statement was
based on what every customer, regardless
of the product or service offered, expects
from every purchase they may make. “We
went to Rolls-Royce and Honeywell and
asked them to tell us about their vision
for a perfect supplier. They both said they
wanted 100% quality, 100% on-time
delivery, and a supplier that is constantly
looking to improve costs. That’s exactly
what we, as a team, decided to do,”
Andrew explains. This action of fi nding
out directly from the customer their wants
and needs has resulted in a trend of three-
plus years of near perfect quality and
delivery scores.
One of the unique traits that allows
AeroCision to continuously work towards
achieving their mission and empower
their workforce is their “upside down”
management structure. It’s not a term
you will fi nd in any business book, but it
is a concept that works for AeroCision.
“’Upside down’ means all of the
managers and support staff are here to
serve the people of the shop fl oor, not
the other way around,” Andrew says,
“We manufacture parts for a living.
The key word is manufacture. We don’t
administrate, nor do we engineer for
a living. We manufacture parts and
everyone here has an integral role in the
production of those parts. With that said,
we know that the people on the shop
fl oor are the ones who count the most. If I
go on vacation, it would be a while before
people noticed I was gone. If one of our
people in the factory is out for half a day,
we suffer. Who really has the higher value
to the customer? We know who does at
AeroCision. Supporting the factory with
resources and technology is the most
critical function and responsibility we
all have. This works hand in hand with
the AeroCision philosophy of the entire
management team being part of the pulse
of the shop fl oor at all times.”
Similar to AeroCision’s mission statement,
the theory of the “upside down”
management structure is much easier
said than done. It is easy for a
management team to say they
are there to serve the people
of the shop fl oor and then hide
in their offi ces, leaving staff to
fend for themselves, but that
just wouldn’t be the AeroCision
way. “When an employee wants
to do something, whether it is
switching positions or adjusting
the processes they execute
every day, we’ll move heaven
and earth for them to try and
accommodate their plans,”
explains Andrew, “My business
partner and I wanted to develop
a place where people can be heard,
where they can experiment, and where
it is ok if people fail. As long as they go
through the proper quality channels,
and everything is documented properly
with the appropriate sign-offs, then they
have the freedom and are encouraged
to try different things in an effort to
continuously improve our processes and
systems.”
The offi ce layout within the 25,000 square
foot facility centers on building open lines
of communication and generating points
of interaction among the 64 employees.
None of the employees, including the
CEO, have their own offi ce where they
can easily detach from the rest of the
28 advantage Vol. 2, No. 1
maintaining or growing their position
within that industry. For AeroCision,
a heightened focus was placed on
their quality management system and
upgrading their AS 9100 registration by
the end of 2011.
All companies currently registered to the
AS 9100 standard are required to comply
with the latest ‘C’ revision by June 30,
2012. Companies who fail to upgrade
will lose their registration and any business
attached to it. “Not having the latest
registration was not an option for us,”
says Christina. “We, as a company, always
push for what we know is the best option
even if it is the harder option.”
As a new addition to the company last
summer, Christina arrived at AeroCision,
from a Quality Division of UTC, and was
tasked with upgrading the AS 9100B
registration to
the new ‘C’
revision. “We
were scheduled
for our ‘C’
revision audit
at the end of
the summer so
we only had a
couple of weeks
to prepare.
CONNSTEP was
recommended
to us as a
resource that
could help ensure that we had all of
correct modifi cations and updates in place
for the upgrade,” Christina explains,
“Most companies faced with a task of
this size would have opted to recertify to
rev B and reschedule the upgrade, but
not AeroCision. We pulled in everything
we needed to make it happen and that
included the additional resources from
CONNSTEP.”
The company’s efforts to maintain their
position within the industry and foster
strong relationships with customers and
suppliers are recognized, “Being up to
date with our registration well in advance
of the requirement deadline shows our
customers that we’re dedicated to putting
the initiative in ahead of time to do what
we know is right.” says Christina. With a
project completion netting zero non-
conformances and with a certifi cate and
banner proudly displaying the success of
their new upgrade, the company is set to
add an additional fi ve employees to the
64 they have retained as a result of their
growth due in large part to AeroCision’s
unique company culture. The company
also expects to increase sales by almost
20% over the next year due to initiatives
like early completion of the AS 9100
revision upgrade, their recently obtained
NADCAP Wire EDM certifi cation, and
their current investments in technological
upgrades.
Open door policies, shared workspaces,
team collaborations, a hands on
management team approach, and an
upside down management structure may
not be ideal for all organizations, but it
works for AeroCision and sets it apart
from other companies in the industry.
Since the transformation began over four
years ago, upside down has led to a right
side up sales trajectory that is expected to
yield positive gains in 2012 and beyond.
staff. Offi ces have been enlarged to house
multiple employees in a team approached
work environment. “We all work together
on parts so it’s not just engineering,
production, or quality on their own. We
work together as a whole and talk to each
other about problems in a very cross-
functional fashion,” explains AeroCision’s
Quality Improvement Director, Christina
Lazarin, “An employee on the fl oor has
no problem going right to the engineering
manager with a concern or an idea. We
are proud that this is a unique place in
that we don’t have such a strict chain of
command that people feel like they can’t
make a difference.”
Business Secured
For an organization that exclusively
produces products for one industry, every
effort is strategically directed towards
“Not having the latest registration was not an
option for us. We, as a company, always push for
what we know is the best option even if it is the
harder option.”Christina Lazarin
connstep.org 29
30 advantage Vol. 2, No. 1
Building a Quality Community
Jim GildeaR.C. Bigelow
Here at Bigelow Tea we believe it is our responsibility to build a quality community and we’re committed to the region in which we live and work. The Bigelow family has set a high standard for us to follow; the family’s history of commitment to philanthropy is not only inspirational, it creates an expectation for each of the employees.
Our community service goes beyond monetary donations. While fi nancial support is crucial to all non-profi t organizations, we at Bigelow strive to go further, forming true partnerships with our community leaders.
There are numerous initiatives undertaken each year at Bigelow - whether it’s the Bigelow Road Race, held on the last Sunday of September each year that supports so many great organizations, or our annual involvement with the Town of Fairfi eld where our employees work to maintain and make improvements to the Sandcastle Playground, located near our facility. In addition, we send tea to our troops overseas, collect diapers for new parents, participate in local school read-aloud days, and donate tea and food to local shelters and food pantries.
We’re also working to forge partnerships with our community leaders. We extend invitations to local organizations offering opportunities to visit our facility and spend time with our staff at our employee meetings, so that they may meet all three shifts. We feel it’s a perfect setting for their leadership to showcase the organization and the services they provide the community, and discuss the volunteer opportunities available. It raises awareness on both sides - our employees learn about the services available and the non-profi t gets an opportunity to recruit new helping hands. We see this as a unique win-win situation for both the participating non-profi t organizations and Bigelow Tea.
While this is a fairly new initiative, based on the interactions and feedback, it has been well-received. We’ve hosted the United Way and their Wi-mentor Program, the Bridgeport Rescue Mission and the Wakeman Boys & Girls Club. They are all successful organizations whose goal it is to serve others, improving lives.
We believe in building a quality community and it’s our hope that by becoming involved with the communities in which we live and work, and through learning about the great organizations which support these same communities, we carry on the Bigelow family’s strong tradition of public service.
Please share the ways in which your company builds your local community - we’re always looking for new ways! I can be reached at [email protected].
Jim Gildea has been with Bigelow Tea since 1996.
He began as the Facility Supervisor responsible for
the maintenance and upkeep of the Fairfi eld Plant
and Corporate facility. In 2001, he was promoted to
Maintenance Manager in which he managed the facility
and production maintenance departments. He held this
position until 2006 when he was promoted to the position
of Plant Manager of the Fairfi eld Plant where he currently
manages the Fairfi eld Manufacturing facility including the
Direct Marketing operations.
Jim is involved locally in his town where he has previously
served as Chairman of the Board of Education for 14 years.
He currently serves on his town’s Water Pollution Control
Authority. Jim represents Class 22 on the Leadership for
Greater Bridgeport Board of Directors. As a participant of
the Leadership for Bridgeport Class 22, his project team
received the Bridgeport Rescue Mission’s Compassion in
Action Award at their fall 2011 Restore Hope Reception
for work done on updating and renovating a sunroom /
meditation room at their Women’s Center. Jim was also
recently nominated as a Bank of America Local Community
Hero by the Bridgeport Rescue Mission.
connstep.org 31
You’ll Be in Good Company
Since 1998, CONNSTEP has assisted 288 Connecticut companies in their quest to obtain a quality standard. When you work with CONNSTEP to gain a quality certifi cation, you’ll belong to an elite group of companies that are operationally agile, customer-focused and better able to face the competitive challenges of today - and tomorrow.
ISO 9001A. O. ShermanAbbott BallAeroswissAerotech FastenersAirex Rubber Products CorporationALTA Precision, Inc.Alto Ambel Precision ManufacturingAmerican Molded Products AmtechAnco Tool & ManufacturingApplied Rubber & Plastics, Inc.Argo Transdata CorporationArthur G. Russell CompanyAtlas Hobbing & ToolB & A Company, Inc.Barlow Metal StampingBauer Howden, Inc.Ben Hughes Communication ProductsBurke Precision Machine CompanyCarbon Products, Inc.Carwild CorporationClassic Coil Cogent PowerColt’s Manufacturing CompanyComponent Engineers, Inc.Connecticut PlasticsControl ModuleCorru-SealsCT Fiberoptics, Inc. Davensharpe Screw ProductsDavis StandardDean Machine ProductsDemsey Manufacturing Detotec North America, Inc.Dexil CorporationDonham CraftDow Cover CompanyDynaSys International EFC/WescoEastern ConnectorEastern Metals TreatingEckert & Finard Economy SpringsElectric Motion CorporationE-Lite Technologies, Inc.Eppendorf ManufacturingEyelet Tech, LLCFarmington Engineering, Inc.Fiberoptics Technology, Inc.Floyd ManufacturingFlyte Tool & Die CompanyFoster CorporationFrank Roth CompanyGAR ElectroformingGiering Metal Finishing, Inc.Goodway TechnologiesGreenwald IndustriesGriswold Rubber CompanyThe Guest CompanyHanson & WhitneyHartford TechnologiesHigh Precision of Stratford Horvath Molded ProductsICDI IMSISPGIndeco North AmericaIndestructible Paints, Inc.Innovative ComponentsInterproInterspiroIntersurface DynamicsISOPure Fluid TechnologiesJ & J PrecisionJ K B Tool Company
James L. Howard CompanyJamestown MarineKMPK-TecKendro Laboratory ProductsLabel Systems Laticrete InternationalThe Lee CompanyLex Products CorporationLight Metals ColoringLoos and CompanyLyons Tool & Die Company Macton CorporationMadison CompanyMetal Finishing TechnologiesMicrophase CorporationThe Miller Company Mirror PolishingMirror Polishing & PlatingMott CorporationNational ConveyorNaugatuck Glass NEOPERL, Inc.NerjanNewmark IndustriesNexus, Inc.Northeast Carbide Northeast Quality ServiceNortheast Shaped WireNorwalk Powdered MetalsOEM Controls OSDA, Inc.PCI Medical, Inc.PDQ, Inc.Pall ex CompanyPalmero Healthcare Peabody EngineeringPeck Spring CompanyPenmar IndustriesPetron Automation Pharmco ProductsPIC Design, LLCPlainville Special ToolPlastonicsPrestige Industrial FinishingPreycoPutnam Plastics CorporationQNPQ-TranQuality EngineeringQualtron, Inc.RAM SpecialtyRSL Fiber Systems, LLCRTR TechnologiesReliable Tool & DieRel-Tech ElectronicsRisdonRotair IndustriesScan Tool and Mold, Inc.Schneider Electric MotionSeconn FabricationSiri WireSpring eld SpringSouthington SpringSouthington Tool & ManufacturingStanley Works Access TechnologyStebco Printers CompanySterling SinteredStevens CompanyStraton IndustriesSuperior ElectricSwift Textile Metalizing, LLCSYNTEX Rubber CorporationTEK IndustriesThomas G. FariaTLD-ACETornik, Inc.
TorqMaster InternationalTranstech Airport SolutionsTri-Mar Manufacturing CompanyTri-Town Precision PlasticsTurboCare - Gas TurbineUnited Wire VBrick Systems Vision Technical MoldingVitta CorporationVitekWeb IndustriesWind Corporation Windham Machine CompanyWurth EasternWyre Wynd
AS9100AGC, Inc.AMKO, LLCA. O. ShermanAdvantage Sheet MetalAeroCisionAerospace Alloys, Inc.Airex Rubber Products CorporationAlloy SpecialtiesAmbel Precision ManufacturingAtlas Stamping & ManufacturingAtlantic Inertial SystemsB&A CompanyBNB Manufacturing Company, Inc.BST Systems, Inc.Corru-SealsCursor, LLCCV Tool CompanyDelta RayDi-El Tool & Manufacturing CompanyEmpire ManufacturingFMI Chemical, Inc.Frank Roth CompanyGK Mechanical SystemsGar Kenyon TechnologiesHabco IncorporatedHaydon Kerk Motion Solutions, Inc.Hawk Integrity PlasticsICDIIntegral IndustriesJ.T. Tool CompanyJ & L Machine CompanyJoining TechnologiesJonal LaboratoriesThe Lee CompanyLoos & CompanyMicroboard ProcessingMicrophase CorporationMoore ToolNerjan Northeast Fasteners CorporationOmega CorporationPauway CorporationPhoenix ManufacturingPrecision SensorsPrecision Threaded ProductsPrestige Industrial FinishingProjects, Inc.QNP Quality Engineering ServicesQuality NameplateRadial Bearing CorporationRamar-Hall, Inc.Reno Machine CompanyRotair IndustriesSaar CorporationSpectrum AssociatesSoldream, Inc.The Sousa Company
Stevens ManufacturingStraton IndustriesT&J ManufacturingTachwa EnterprisesTimken CompanyTri-Mar Manufacturing CompanyUnited AvionicsValley Tool & Manufacturing, Inc.Vitta CorporationWestminster ToolYardney Technical Products, Inc.
AS9120AnixterEckert & FinardFaxon Engineering Company, Inc.Simtech, Inc.
ISO 13485Century Spring Manufacturing CompanyComponent Engineers, Inc.Delta RayDiSanto Technology, Inc.Microboard ProcessingPromold PlasticsSandvik Medical SolutionsScott TechnologiesTarry Medical Products
ISO 14001Algonquin Industries, Inc.Dell Manufacturing Companyebm-pabst, Inc.MetallonSchneider Electric MotionSuperwinchWhitcraftWind Corporation
ISO 17025CT Calibration LabsGlastonbury Gage CompanyIndustronics Service Company, Inc.
TS 16949Abbott BallBuswell Manufacturing Company Engineering SpecialtiesFloyd Manufacturing CompanyHartford TechnologiesImperial SpringITW Nutmeg KVT Koenig, LLCMetallonPrime Screw Machine ProductsSouthington ToolStewart EFISummit Corporation of AmericaTele ex Fluid Systems
NADCAP AeroTek Welding Company, Inc.Chem-Tron AnodizingLight Metals Coloring,Whyco Finishing Technologies
Tel 860.529.5120Fax 860.529.5001www.connstep.org
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