targeting customer service and market growth using lean methodology presentation by george foss, ceo...
TRANSCRIPT
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Targeting Customer Serviceand Market Growth
Using Lean Methodology
Presentation by
George Foss, CEO
High Performance Manufacturing Consortium ConferenceMay 13, 2004 -- Oakville, Ontario
3L Filters Ltd.CambridgeOntario
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Presentation Topics
Company Profile
The Need to Change
Why Now?
‘Front Office’ Initiatives
Measured Improvements
Future Vision
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What We Do
Engineered Filtration Solutions for Industrial and Nuclear Power Plant Applications
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Markets Served
General Industrial
20%
Water Treatment
20%
Waste Management
5%
Automotive 5%
Aviation 5%
Nuclear Power Plants 30%
Petrochemical & Industrial Chemical
15%
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• Established in 1965
• Head office and 2 manufacturing plants in Cambridge, Ontario, Canada.
• Total 60,000 ft2 manufacturing capacity
• Design, development, fabrication and servicing of high value-added liquid filtration and separation systems
• Reputation for fast customer response
Company Profile
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History of OwnershipE
stab
lishe
d by
Joh
n K
adar
Can
adia
n ho
ldin
g co
mpa
ny
intr
oduc
edU
.S. c
ompa
ny b
uys
maj
ority
Cur
rent
ow
ners
pur
chas
e
com
pany
Acq
uire
d A
llan
Pip
e Fa
b (1
00%
)
and
Urb
an In
dust
ries
(50%
)
1989 20001965 19951984
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History of Market StrategyA
viat
ion
fuel
filte
ring
(Can
ada)
Nuc
lear
app
licat
ions
(Can
ada)
Gen
eral
filtr
atio
n
(Eur
ope
& P
acifi
c R
im)
Nuc
lear
app
licat
ions
(Chi
na)
5 m
arke
ts i
n 15
cou
ntri
es
2000 20051960 1970 1980 1990
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Keys to Success
Complementary partnership skills…
QualificationsMarket Focus
Daily Activities
Bob Goel PresidentMSc (1972), P.Eng. (1976), PhD (1977)
Highly engineered & nuclear products
Technical proposals &
accreditations
George Foss CEO CMA (1975), BusAdmin (1984)
Conventional commercial
product lines
Operations Manager for
2 plants
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State-of-the-art Engineering & Manufacturing
In-house design, analysis and manufacturing
Design Seismic Analysis Stress Analysis Manufacturing
Core Competencies
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Nuclear Products
50% of revenue
Market Focus
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CANADIAN
• OPG Bruce-A
• OPG Bruce-B
• OPG Pickering-A
• OPG Pickering-B
• OPG Darlington
• NBEPC Point Lepreau
• HQ Gentilley
• Maple-1 (AECL Chalk River)
• Maple-2 (AECL Chalk River )
INTERNATIONAL
• Cordoba Argentina
• KEPCO Wolsong Unit-1 Korea
• KEPCO Wolsong Unit-2 Korea
• KEPCO Wolsong Unit-3 Korea
• KEPCO Wolsong Unit-4 Korea
• Cernavoda Unit-1 Romania
• Qinshan Unit-1 China
• Qinshan Unit-2 China
• Washington Power
• North East Utility
Nuclear Power Plants Served
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Disposable Radioactive Liquid Waste Treatment Filter for Nuclear Stations
Design & Engineering
Test & Performance
Manufacturing & Assembly
Nuclear Products
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Permanent Nuclear Filter Vessels with Replaceable Basket
Primary Heat Transport Filter
Moderator System Filter
PHT Gland Seal Filter
Nuclear Products
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Disposable Filter Baskets for Miscellaneous Nuclear Filters
Shield Tank & End Shield Cooling System Filter Basket
Pickering-A NGS
Spent Fuel Bay Basket For Pt. Lepreau NGS
PHT Filter Basket for Darlington NGS
PHT Gland Seal and F/M Filter Basket for Pickering NGS
Nuclear Products
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4000 SCFM Single Tower Vapour Recovery Dryers3831 DR-1,2,3,4,7,8,9,10
Nuclear Products
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600 SCFM Twin Tower Vapour Recovery Dryers
Nuclear Products
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Market Focus
Commercial Product Applications
Engineered to Order
50% of revenue
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• All major engineering consulting companies– Fluor Daniel– Stone and Webster– SNC Lavalin– Bechtel– Kellog Brown and Root
• All major Refineries and Chemical Plants– Exxon, Shell Oil, British Petroleum, Petro Canada, Chevron– Formosa Chemical, Formosa Plastics, Dow Chemical
• Many industrial and automotive in-plant filtration applications
• Aviation installations
Industrial Clients Served
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Vertical Filter/Separators for Tank Farms
• Compact design• Code Qualification• Simplified Maintenance• Field Proven• High Performance
Compact V and VV Series Filter/Separators comply fully with API Bulletin 1581, Third Edition, requirements for Class B equipment.
Compact Filter/ Separator Vessels for Fixed Installations
Aviation Products
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Filters with superior performance and reliability for assuring clean, dry fuel, normally used at the final point in an aircraft fueling system.
Custom Designed 3l-400-20
Fuel Monitor
Aviation Products
Fuel Monitors for Mobile Refueling Trucks
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Filters designed to remove particles and coalesce emulsified water from hydrocarbon fluids.
The horizontal filter/separator design provides more convenient access to the
cartridges than the vertical design.
Aviation Products
Horizontal Filter / Separator / Monitorsfor Skid Refueling
Components
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They can be constructed to
house numerous cartridges
within a variety of diameters to accommodate
flow rates.
Vertically oriented filters using industry-standard pleated paper media to remove particulate to 0.5 microns.
General Industrial Filtration
VF Series Fluid Filters
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Vertically oriented filters designed to remove solid contaminants from a liquid stream using standard spunyarn cartridges which create effective separation using depth filtration. May also accommodate pleated elements.
Water / Beverage Industry
FWH Micron Filters
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Multibag Filters
As standard or custom design, the BF series filters are able to handle high flow rates and large concentrations of particulate for a wide range of liquids.
Constructed to ASME Sec.VIII, MBF series filters are available as code or non-code vessels.
Paint / Ink Industry
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Dehydrators
Repack Cartridges
Horizontally oriented vessels containing replaceable coalescent filter packs. A sump collects separated water and filtered contaminant for easy removal.
Pipeline Course Filtration
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The Need for Change
The old ways weren’t working
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Target The Vision
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Corporate Issues
• Responsiveness to customers
• Availability of skilled engineering personnel
• Employee loyalty
• Rapid changes in technology
• Quality
• Market focus
• Trend forecasting
• Profitability
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Market Issues
• Price pressures
• Rising Canadian dollar
• Need for global reach
• Declining customer loyalty
• Customer convenience
• Customer resource depletion
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Where to Focus?
• Manufacturing?–Currently as efficient as feasible–Engineer-to-order production entirely
dependent on 'front-end' processes
• Engineering!–Greatest opportunity for improvement–Sales performance directly affected
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How to Improve?
Apply principles ofLean Manufacturing
Step #1
Value-Stream Map Analysis
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Bid accepted
?
Bid pkg. assembled
The Old Way
Costing done
BOM accurate
?
Preliminary design done
Data complete
?
Specs. collected
Customer Sales EngineeringEstimating / Purchasing
Staff available
?
Quotation requestedQUOTE
NONOSale Lost
NO
Material ordered
BOM accurate
?
Purchase Order placed
Detailed design done
Data complete
?DESIGN
Order processed
RECEIVING -- FABRICATION -- TESTING
Material correct
?
Drawings accurate
?
BUILD
NO NOEngineering
Change
Preliminary design done
Quotation requested
NO
NO NO
Purchase Order placed
Detailed design done
10 weeksTypical Time Frame
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Why Now?
TIME
1960s
1980s
2000s
PR
OF
ITA
BIL
ITY
1990s
2002Economic Boom of China & Pacific Rim
1970s
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Strategy
1. Get closer to the Customer
2. Eliminate internal layers that waste time and money
3. Build on in-house product knowledge
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–Manufacturing delivery lead time
Tactics
• Standardize products and processes
• Empower Sales staff
• Improve company performance
• Require payback in less than 1 year
–Engineering throughput–Quotation success rate
–Quality control
errors
response time
Cost competitiveness
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The Steps
Adopting a new Lean
methodology…
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1) Management Commitment
• Reviewed technology marketplace–Partnered with established engineering
software development firm–Applied a proven technology platform
• Selected 13 product families for:–Detailed Design–Bill of Materials–Fabrication Planning–Costing
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2) Defined Business Requirements
• Analyzed requirements for:– Sales – Engineering– Purchasing– Manufacturing
• Identified problems and constraints– e.g. lack of internal qualified engineering resources
• Collaborated with vendor to:– Create a simple web user interface– Formalize input / output documentation
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3) Built Knowledge Database
Configuration ControlRules & Data
AssemblyConfiguration
ComponentParameters
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4) Integrated with Operations
• Connected to existing network
• Wrote and tested ERP link to access:–Customer records–Cost standards (purchasing & processing)
• Trained staff–Sales to operate it–Engineering to maintain it
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Overview of Implementation
• Multiuser environment suited for operation by non-technical staff
–Custom interface for specification input–Web-based, works on existing PC network–Server with embedded CAD engine, SQL
database, document output translators–Generates detailed 3D CAD assembly–Transfers B.O.M.s to ERP for costing
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Intuitive Interface Product Specs
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Automated Design 3D CAD Assembly
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Costing Detail B.O.M. & Routing
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Documentation Quote Drawing
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Sales Collaboration 3D Reference
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Automation Product Examples
Component Detail Welding Detail
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Innovation Is Fostered
With more time for Engineering to improve product, new inventions
yield new competitive advantage…
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Compare Old & New Closures
Time-ConsumingSwing Bolt
Effortless patentedEasy Access
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Applications
• Sales Quotations– Rapid product configuration and costing– Design visualization and approval documents
• Purchasing - Accurate Bill of Materials
• Production Engineering– 3D CAD assemblies delivered in minutes– Last-minute design check, quick addition of
custom product details where necessary
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Improvements (on Commercial Product Lines)
• Reduced average quote turnaround from 14 days to 3 day
• Increased sales success rate 8% to 25%
• Reduced pre-production engineering work 90% with generated CAD model
• Reduced schedule conflicts between standard & custom engineering by 40%
• Product quality delivery lead time
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Future Vision
• Improve ERP interface (or replace ERP)
• Generate all low-level manufacturing instructions to improve costing detail
• Expose system to external Internet for access by distribution networks
• Add more flexibility for integrated system product (e.g Skid Packages)
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Skid Package Example
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Conclusions
• Targets for Lean were met– Commercial products and processes now
standardized– Company efficiency improved dramatically– Initiative payback less than 1 year
• A need for continuous improvement– Further streamlining of processes– Introduction of new products– Accommodating changing legislation
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Contact Information
George Foss, CEO
3L Filters Ltd.427 Elgin St.Cambridge, OntarioTel: (519) 621-9949 ext 330Email: [email protected]
Targeting Customer Serviceand Market Growth
Using Lean Methodology