REPORT OF SURVEY CONDUCTED AT

WAINWRIGHT INDUSTRIES, INC.

ST. PETERS, MO

JUNE 1995

BEST MANUFACTURING PRACTICES

Center of Excellence for Best Manufacturing Practices

P R E F A C E

During the week of 26 June 1995, a Best Manufacturing Practices(BMP) survey was conducted at Wainwright Industries, Inc. in St.Peters, Missouri. Wainwright Industries, Inc. is a family-owned busi-ness that manufactures stamped and machined parts for automotive,aerospace, home security, and information-processing industries, aswell as providing technical services. With annual sales of $30M, thecompany employs 275 associates at its 110,000 square foot headquartersand main manufacturing facility in St. Peters, Missouri and at a 190,000square foot plant in Grand Prairie, Texas.

A company commitment to its employees is very strong at Wainwright and is solidly based on thesincere trust and belief in its people. This commitment in turn provides the basis for the company’sassertion that any product can be made “best in class” with the right “people” approach. Trainingand support for the associates constitute a critical aspect of its business, and Wainwright consistentlyinvests up to 7% of payroll toward training and education. Wainwright personnel are properlytrained, work in a safe environment, and average 1.25 implemented continuous improvement processsuggestions per employee per week. As a result, Wainwright has achieved many awards includingthe 1994 Malcolm Baldrige National Quality Award.

BMP surveys are conducted to identify best practices in one of the critical path templates of theDepartment of Defense (DOD) 4245.7-M, “Transition from Development to Production” document.This document provides the basis for BMP surveys that concentrate on areas of design, test,production, facilities, logistics, and management. Practices in these areas and other areas of interestare presented, discussed, reviewed, and documented by a team of government engineers who areinvited by the company to evaluate the company’s policies, practices, and strategies. Only non-proprietary practices selected by the company are reviewed. In addition to the company’s bestpractices, the BMP survey team also reviews potential industry-wide problems that can be referredto one of the Navy’s Manufacturing Technology Centers of Excellence. The results of the BMPsurveys are entered into a database for dissemination through a central computer network. The actualexchange of detailed data is between companies at their discretion.

The Best Manufacturing Practices program is committed to strengthening the U.S. industrial base.Improving the use of existing technology, promoting the introduction of enhanced technologies, andproviding a non-competitive means to address common problems are critical elements in achievingthat goal. This report on Wainwright Industries, Inc. will provide you with information you can usefor benchmarking and is part of the national technology transfer effort to enhance the competitive-ness of the U.S. industrial base.

DESIGN

PRODUCT

FUNDING

MONEY PHASING

TEST PRODUCTION FACILITIES LOGISTICS MANAGEMENT

DESIGN REF MISSION PROFILE

TRADE STUDIES

DESIGN PROCESS

PARTS & MATERIALS SELECTION

COMPUTER - AIDED DESIGN

BUILT-IN TEST

DESIGN REVIEWS

DESIGN REQUIREMENT

DESIGN POLICY

DESIGN ANALYSIS

SOFTWARE

DESIGN FOR TESTING

CONFIGURATION CONTROL

DESIGN RELEASE

INTEGRATED TEST

FAILURE REPORTING

SYSTEM

UNIFORM TEST

REPORT

SOFTWARE TEST

DESIGN LIMIT

LIFE

TEST, ANALYZE & FIX (TAAF)

FIELD FEEDBACK

MANUFACTURING PLAN

QUALIFY MFG. PROCESS

PIECE PART CONTROL

SUBCONTRACTOR CONTROL

DEFECT CONTROL

TOOL PLANNING

SPECIAL TEST EQUIPMENT (STE)

COMPUTER-AIDED MFG. (CAM)

MANUFACTURING SCREENING

MODERNIZATION

FACTORY IMPROVEMNTS

PRODUCTIVITY CENTER

LOGISTICS SUPPORT ANALYSIS

MANPOWER & PERSONNEL

SUPPORT & TEST

EQUIPMENT

TRAINING MATERIALS & EQUIPMENT

SPARES

TECHNICAL MANUALS

MANUFACTURING STRATEGY

PERSONNEL REQUIREMENTS

DATA REQUIREMENTS

PRODUCTION BREAKS

TECHNICAL RISK

ASSESSMENT

TRANSITION PLAN

BREADBOARD DEVELOPMENT

BRASSBOARD DEVELOPMENT

PROTOTYPE DEVELOPMENT &

REVIEW

CONCEPT STUDIES & ANALYSIS

SPECIFICATION DEV./ALLOCA./

VALID.

DESIGN FOR ASSEMBLY

TEMP DEVELOPMENT/

EXECUTION

SOFTWARE SIMULATOR

PRODUCTION FABRICATION

ENVIRONMENTAL ISSUES

FIELD VISITS/ SITE SURVEYS

COST ASSESSMENT

LOGISTICS ANALYSIS

DOCUMENTATION

DETERMINING DEFINING NEED

FOR SYSTEM

PREPARE REQUIREMENT DOCUMENTS

QUALITY ASSURANCE

DESIGN/ MILESTONE

REVIEW PLANNING

NEW PMWS TEMPLATES (SEE APPENDIX E)

“CRITICAL PATH TEMPLATESFOR

TRANSITION FROM DEVELOPMENT TO PRODUCTION”

i

C O N T E N T S

1. EXECUTIVE SUMMARY

1.1 BACKGROUND ......................................................................................... 11.2 BEST PRACTICES .................................................................................... 11.3 POINT OF CONTACT ................................................................................ 2

2. BEST PRACTICES

2.1 DESIGNCOMPUTER-AIDED DESIGN

Unigraphics Profit Center ........................................................................... 3

2.2 PRODUCTIONPRODUCTION FABRICATION

Deep Draw Metal Stamping ....................................................................... 3

2.3 MANAGEMENTMANUFACTURING STRATEGY

Vendor Certification Process ...................................................................... 4Mission Control Room ................................................................................ 4External Customer Satisfaction Index ........................................................ 5Customer Service Department ................................................................... 5

PERSONNEL REQUIREMENTSAssociate Empowerment ........................................................................... 6Internal Customer Satisfaction Index ......................................................... 6Training ...................................................................................................... 6Safety First ................................................................................................. 7

QUALITY ASSURANCEContinuous Improvement Process ............................................................. 7

APPENDIX A – TABLE OF ACRONYMS ................................................................................. A-1

APPENDIX B – BMP SURVEY TEAM ..................................................................................... B-1

APPENDIX C – PROGRAM MANAGER’S WORKSTATION ................................................... C-1

APPENDIX D – NAVY CENTERS OF EXCELLENCE ............................................................. D-1

APPENDIX E – NEW BEST MANUFACTURING PRACTICES PROGRAM TEMPLATES ..... E-1

APPENDIX F – COMPLETED SURVEYS .................................................................................F-1

ii

F IG U R E S

2-1 Synchronous Organization Continuous Improvement Process ............................... 3

2-2 Raw Material (% Late) ............................................................................................. 4

2-3 Steel Inventory Levels.............................................................................................. 5

1

S E C T I O N 1

EXECUTIVE SUMMARY

1.1 BACKGROUND

Wainwright Industries, Inc. is a family-owned businessthat manufactures stamped and machined parts for automo-tive, aerospace, home security, and information-processingindustries, as well as providing technical services. Withannual sales of $30 million, the company employs 275associates at its 110,000 square foot headquarters and mainmanufacturing facility in St. Peters, Missouri and at a190,000 square foot plant in Grand Prairie, Texas. Themetal stamping and assembly division provides a broadrange of high-volume, close-tolerance metal stampings andassemblies shipped throughout the United States, Canada,and Mexico. The highest-volume product line consists ofdeep drawn housings for electric motors used on powerwindows, antilock brakes, power seats and windshieldwipers. The CNC machining division specializes in ma-chining complex, multi-contour parts for the commercialand military aircraft industries. Technical services providedinclude computer model file maintenance and program-ming using a Unigraphics CAD system. In addition, productsequencing is provided for automotive assembly centers.Sequencing services include inventory management, sub-assembly of components, and just-in-time shipping.

“People are our most important asset” is a phrase frequentlytouted by companies and corporations during BMP surveys.However, at few other facilities has the commitment beenbased more solidly in the sincere trust and belief in its peoplethan at Wainwright Industries. This commitment in turn pro-vides the basis for the company’s assertion that any product canbe made “best in class” with the right “people” approach. Thecompany is also committed to long-term improvements in-stead of looking for quick gains. Because training and supportfor the associates is a critical aspect of its business, Wain-wright consistently invests up to seven percent of payrolltoward training and education.

The dedication of these assets helps ensure that Wain-wright personnel are properly trained, work in a safe envi-ronment, and are dutifully rewarded for the significantnumber of implemented, employee-recommended processenhancement changes. This company averages an impres-sive 1.25 implemented suggestions per associate per week.

The significant emphasis on employee value, involve-ment, and training have produced significant returns andbenefits for the company. Wainwright has achieved manyawards including General Motor’s Mark of ExcellenceAward, Ford Motor Company’s Q-1 Preferred Supplier

Award, McDonnell Douglas bronze level supplier certifica-tion, and the Missouri Quality Award in 1993. Theseawards were complemented in 1994 when WainwrightIndustries, Inc. was presented the Malcolm Baldrige Na-tional Quality Award.

1.2 BEST PRACTICES

The following best practices were identified at Wain-wright Industries.

Item Page

Unigraphics Profit Center 3

Wainwright’s Unigraphics Profit Center has be-come a successful business unit that resulted froma 1985 strategic investment decision to procure theUnigraphics system to develop machining pack-ages for its CNC machines.

Deep Draw Metal Stamping 3

Wainwright’s deep draw stamping process formotor housing production has been successfullyreengineered and refined since 1985.

Vendor Certification Process 4

Wainwright’s Vendor Certification Process en-sures that a supplier has the capabilities to providequality products and services on time and withinthe agreed price.

Mission Control Room 4

Wainwright has a Mission Control Room which isthe center for all continuous improvement efforts.

External Customer Satisfaction Index 5

Wainwright Industries’ External Customer Satis-faction Index survey process produces a key per-formance indicator to measure how effective thecompany is to its external customers in communi-cation, delivery, quality, and responsiveness.

Customer Service Department 5

The Customer Service Department is a quick re-sponse team that prepares quotes, takes orders,provides job status, processes order changes, andaddresses customer concerns in an efficient, highlysuccessful effort.

2

Item Page

Associate Empowerment 6

Wainwright believes that people are more impor-tant than any manufacturing process, and that allproducts can be produced as best-in-class with theright “people” approach. Further, Wainwright em-powers its personnel by giving them the tools andcapabilities needed to improve any process.

Internal Customer Satisfaction Index 6

The Internal Customer Satisfaction Index surveyprocess produces the same key performance indica-tors as its External Customer Satisfaction Indexcounterpart and measures the effectiveness withinand between Wainwright departments in commu-nication, delivery, quality, and responsiveness.

Training 6

Training is an integral part of business at Wain-wright Industries, and the company budgets up to7% of its annual payroll (an average of 2.8 hours perweek) toward training its associates and managers.

Safety First 7

A safe environment is the first and most importantpriority at Wainwright Industries. Safety is not a

Item Page

program but a process that includes on-goingtraining, safe work practices, properly guardedmachinery, clean facilities, teamwork, and man-agement support.

Continuous Improvement Process 7

The Continuous Improvement Process is followedby all associates for submitting, processing, andimplementing suggestions and defining awards.The system emphasizes the application of softtechnology, 100% participation by the associates,and 1.25 suggestions implemented per employeeper week.

1.3 POINT OF CONTACT

For any information regarding items in this report, pleasecontact:

Ms. Jo SandersCustomer Service ManagerWainwright Industries, Inc.17 Cermak Blvd.P.O. Box 640St. Peters, MO 63376314-278-5850FAX: 314-278-8806 or 314-278-8072

S E C T I O N 2

BEST PRACTICES

2.1 DESIGN

COMPUTER-AIDED DESIGN

Unigraphics Profit Center

Wainwright’s Unigraphics Profit Center has evolved as asuccessful stand-alone unit that conducts business with outsidecustomers. This Center resulted from a 1985 strategic invest-ment decision to procure the Unigraphics system to developmachining packages for its CNC machines. Originally pur-chased because of its powerful solids modeling software,analysis tools, and capability to do complex work, theUnigraphics system was also chosen by a Wainwright cus-tomer as its standard design tool. This factor would allow easyfile transfer between the two companies. Because yet anothercustomer was having difficulty using the Unigraphics system,Wainwright began helping the company to properly use thesystem. As this relationship progressed, Wainwright was con-tracted to do Unigraphics work for that customer, and theoutside work on the Unigraphics system now accounts for 80%to 90% of the Center’s total work.

The Unigraphics Profit Center has prospered because ofWainwright’s expertise on the system, but other factorshave also played important roles in the growth. The com-pany maintains a strong philosophy in sharing informationand expertise. Although sharing of what it knows with itscustomers led to this initial work for others, Wainwright

also believes that there should be direct dealing with the endcustomer on any technical issues. Potential problems areidentified, the customer is contacted and then consulted onwhether the problem should be corrected.

Also, Wainwright asserts that from its perspective, rela-tionships with its customers and suppliers are based ontrust, respect, and good communication. In support of thoserelationships, the company expends significant effort onsharing knowledge and expertise with both. And just asWainwright addresses its suppliers based on these impor-tant qualities, it is working with its customers to cultivate asimilar environment where Wainwright’s position towardssuppliers is paralleled from the customer’s perspective.This critical balance of two-way trust, respect, and commu-nication is the principal reason behind the success of theUnigraphics Profit Center as well as the success of Wain-wright as a business.

2.2 PRODUCTION

PRODUCTION FABRICATION

Deep Draw Metal Stamping

Wainwright’s deep draw stamping process for motor hous-ing production has been successfully reengineered and refinedsince 1985 (Figure 2-1). This process uses progressive toolingand requires two 400-ton presses and one 600-ton press for

Receive Raw Material Stamp Product Clean Product Packaging Storage Shipment To Customer

Opera

tion

Trans

port

Inspe

ction

Storag

e

Opera

tion

Trans

port

Inspe

ction

Storag

e

DRAWN HOUSING

Receive Raw Material Stamp Product Pre-Clean Product Packaging Storage Ship To Plater (Tennessee) Storage Plating Storage Return Shipment To Wainwright Inspection Packaging Storage Shipment To Customer

WWT2-1.EPS

SYNCHRONOUS ORGAIZATION CONTINUOUS IMPROVEMENT

PRIOR PROCESS CURRENT PROCESS

FIGURE 2-1. SYNCHRONOUS ORGANIZATION CONTINUOUS IMPROVEMENT PROCESS

3

4

FIGURE 2-2. RAW MATERIAL (% LATE)

different motor housings. The capability to make the deepdrawn housings using progressive tooling provides a sig-nificant cost advantage over Wainwright’s competition.

Examples of process enhancements include using a pre-coated material instead of plating the part after stamping.This had led to significant savings in lead time since the partdoes not have to be sent out for plating. The cleaningprocess has been improved with the addition of rust inhibi-tors in the cleaning solution to increase the parts’ shelf lives.The process has also been improved by performing the pre-rinse and the media tumbling in-line with the press, insteadof in an off-line operation. Using the pre-coated materialinstead of plating afterwards has resulted in a 35% costreduction that was passed on to the customer. Productionlead time was also reduced from 8.75 days to 15 minutes.

The motor housing production rate is currently 425,000parts per week of 10 different part numbers. In-die sensorshave been installed for three part numbers, with moreplanned in the near future. The sensors detect the absence ofany portion of the tool at each operation. The press can thenbe stopped before damage is done to the die by a portion ofa broken tool progressing to the next stage of the process. Inthe six months since the sensors have been installed, teninstances of potential serious die damage have been averted.Returnable packaging material is recycled by Wainwrightcustomers and is used on 225,000 housings per week.Additional housings will be shipped using the returnablepackaging in the future as more customers agree to acceptthe new packaging.

2.3 MANAGEMENT

MANUFACTURING STRATEGY

Vendor Certification Process

Wainwright’s Vendor Certification Process ensures thata supplier has the capabilities to provide quality products

and services on time and within the agreed price. Theprocess also provides a method for measuring and provid-ing feedback to the supplier through pre-survey question-naires, on-site reviews, and delivery-rating and discrepant-material reports. This process helps Wainwright maintainacceptable quality standards and capabilities within itssupplier base.

The Vendor Certification Process consists of two keyelements – a pre-survey evaluation report completed by thevendor and a survey evaluation report completed by aWainwright evaluator through an on-site review. The on-site review captures firsthand testimony and validates thesurvey results. A point scoring system is applied to thesurvey results that ranks the vendor’s conformance in thefollowing categories: general (quality) systems, statisticalprocess control, drawing and specification control, mea-surement and test equipment control, subcontracted sup-plies and services control, nonconforming materials con-trol, and final inspection/audit. An internally developedstandard survey form is used to collect the data and calculatethe scoring results as a percentage. The process rates ven-dors as Approved, Preferred, or Certified, the latter beingthe highest level. A score of 50% or more classifies acompany as an Approved Vendor, 70% or more as aPreferred Vendor, and 65% or more with a score of two orbetter on each question as a Certified Vendor. Additionally,the process feeds back to the vendor information on itsstrengths and opportunities associated with each section.

Approximately 45 vendors supply over 50% of the mate-rials required by Wainwright based on purchase cost. Thesevendors are the focus of the Vendor Certification Process,with an additional 12-15 vendors targeted for future certifi-cation. Since 1993 when the program was initiated, 41vendors have achieved Approved ratings, one has achievedthe Preferred rating, and four are at the Certified level.Wainwright strives to bring the Approved and the Preferredvendors to the Certified level.

Under this Vendor Certification Process, raw materialdelivery dates have improved from an average of 50% latedeliveries in mid-1993 to less than 10% in mid-1995 (Fig-ure 2-2). On-time deliveries have contributed to steel inven-tory levels decreasing from 2.3 million pounds to 1.15million pounds (Figure 2-3). Rejection rates have also beenreduced from 30% in 1993 to 10% in 1995.

Mission Control Room

Wainwright has a Mission Control Room which is thecenter for all continuous improvement efforts. Qualitytrends and performance indicators are displayed as well asmonthly customer satisfaction index scores. Training ses-sions, staff meetings, and presentations to customers andsuppliers are held in the Mission Control Room to keep the

100

80

60

40

20

0JAN MARCH MAY JULY SEPT NOV

FEB APRIL JUNE AUG OCT DEC

1993 1994 1995

WWT2-2.EPS

RAW MATERIAL LATE DELIVERY

% L

ate

5

indicators visible. A green flag/red flag system is used toillustrate if Wainwright is on track to meet customer goals,and a green flag indicates that the company is on track. A redflag indicates a problem. If a red flag is displayed, an actionteam is formed to work with the customer, study theproblem, and identify and implement corrective action. Acustomer champion is assigned for each customer.

Five key indicators, ranked according to priority, aretracked and include safety, internal customer satisfaction,external customer satisfaction, six sigma quality, and busi-ness performance. The priority was determined based on asurvey of the associates and what was important to them.The order was exactly opposite from the company’s previ-ous order. By accepting the results of the associate’s survey,management was demonstrating the importance it places onthe employees. The company had trust in the associates andacted on that trust to change the way Wainwright ap-proached its business.

By highlighting the five key indicators and applyingcorrective actions to any problems, on-time delivery ratesare approaching 100%, and there has been a 35% reductionin product cost. Overall customer satisfaction has improvedto 97.5% with a goal for 1995 of 98%. Process re-engineer-ing and simplification have resulted in the lead time for oneproduct decreasing from 8.75 days to 15 minutes, whiledecreasing defect rates by a factor of ten.

External Customer Satisfaction Index

Wainwright Industries’ External Customer SatisfactionIndex survey process produces a key performance indicatorto measure how effective the company is to its externalcustomers in communication, delivery, quality, and re-sponsiveness. The index creates a customer focus andenhances quality performance towards the outside cus-tomer, defined as a person or company that receives prod-ucts or services from Wainwright Industries (the supplier).

Wainwright has developed guidelines for this processand uses it with all external customers. Performance datathat includes a rating on the level of customer satisfactiontoward supplier communication, delivery, quality, and re-sponsiveness is collected from the customer on an evalua-tion form. The Customer Service Department distributesthe evaluation forms to customers, collects the forms andcomments, calculates the scores, enters the data in a data-base, and provides a copy to the Customer Champion. Theforms are sent every month to any customer who representsat least 0.5% of the company total sales. Other customersare sent an evaluation form on an as-shipped basis. Eachmonth, customers phone, fax, or mail in their grades. Anyscore below 95% results in the Customer Champion assem-bling a cross-functional team which develops an actionplan within 48 hours. Customer scores and comments areposted in Wainwright’s Mission Control Room for visibil-ity to associates and management.

The External Customer Satisfaction Index survey pro-cess provides a sound vehicle for measuring Wainwright’seffectiveness toward its external customers. Scores haveincreased from 84% in 1992 to 97.5% currently. A 98%rating is the goal for 1995.

Customer Service Department

The Customer Service Department provides all interfacebetween Wainwright Industries and its customers. TheDepartment is a quick response team that prepares quotes,takes orders, provides job status, processes order changes,and addresses customer concerns in an efficient, highlysuccessful effort. External Customer Satisfaction Indexsurveys are also administered by the Customer ServiceDepartment and sent to all customers representing at least0.5% of Wainwright sales.

At Wainwright Industries, the Customer Service Depart-ment has a staff of five cross-trained personnel who providea quick and efficient response to all the Wainwright custom-ers. This consolidation eliminates the need for customers tonavigate through a company’s organization to identify theappropriate point of contact and acquire the informationneeded. The team closely coordinates customer interfacewith the internal resources of the company. Team personnelattend weekly meetings with Production Control for projectupdates and to maintain a status record of each job includingshipping dates, quantities, and schedule. The team coordi-nates the routing of purchase orders and relative documentswith Production Control and assembles individual job fold-ers that include copies of quote work sheets, formal quotes,latest drawings, and the purchase order. The team, companypresident, quality assurance, project coordinator, plantmanager, design manager, and production manager thenattend feasibility meetings to address each new job.

FIGURE 2-3. STEEL INVENTORY LEVELS

2500000 2400000 2300000 2200000 2100000 2000000 1900000 1800000 1700000 1600000 1500000 1400000 1300000 1200000 1100000 1000000 900000

LBS

1995 GOAL 1995 ACTUAL

1995

2/13 2/27 3/13 3/27 4/10 4/24 5/8 5/222/20 3/6 3/20 4/3 4/17 5/1 5/15 5/29

6/5 6/196/12 6/26

STEEL INVENTORY LEVELS 1995 GOALS

WWT2-3.EPS

6

The practice of providing a quick response CustomerService Department has proven highly satisfactory to theWainwright customers. The collocation and cross-trainingof the staff personnel have contributed significantly to amost efficient and effective operation.

PERSONNEL REQUIREMENTS

Associate Empowerment

Wainwright believes that people are more important thanany manufacturing process, and that all products can beproduced as best-in-class with the right “people” approach.Further, Wainwright empowers its personnel by givingthem the tools and capabilities needed to improve anyprocess.

The first step at Wainwright in empowering its associatesis based on a sincere trust and belief in its people. Trainingand support represent the second most important aspect,and Wainwright routinely spends up to 7% of its payroll ontraining. The suggestion system is the third empowermentstep at Wainwright and is administered by the associates inorder to properly solicit and implement associate ideas ofthe associates. The company encourages the identificationand implementation of small issues directly related to theassociate’s job. Larger ideas then surface even if associatesare concentrating on the smaller issues. The fourth step isthe Internal Customer Satisfaction Index. Each internalsupplier is graded quarterly on performance with an A, B,C, and D grading scale. This allows the early identificationand correction of problems. Each manager at Wainwright isalso graded on an A, B, C, and D grading scale by theassociates on how well he/she is facilitating the associates’ability to do their jobs.

Wainwright has found that to empower the associates,middle managers must be firmly committed to the programbecause middle management is the key to the success orfailure of change. All personnel wear the same uniform witha Team Wainwright patch, eliminating the normal manage-ment/worker distinctions. All personnel are also paid on asalary basis. These efforts have produced a strong teamspirit, and the improvements have culminated in manyquality awards, including the 1994 Malcolm Baldrige Na-tional Quality Award.

Internal Customer Satisfaction Index

The Internal Customer Satisfaction Index survey pro-cess produces the same key performance indicators as itsExternal Customer Satisfaction Index counterpart andmeasures the effectiveness within and between Wain-wright departments in communication, delivery, quality,and responsiveness. As with the external survey, the

internal index creates a customer focus and quality perfor-mance on the internal customer. In this case, an internalcustomer is defined as the associate or department thatreceives a product or service, while the supplier is theassociate or department that supplies a product or serviceto other associates or departments.

The Internal Customer Satisfaction Index survey pro-cesses is applied to all Wainwright associates. Survey datais collected on an evaluation form to provide a level ofcustomer satisfaction in supplier communication, delivery,quality, and responsiveness. A facilitator is assigned todistribute the forms to internal customers, collect the formsand comments, calculate the scores, and distribute them tothe suppliers. Ratings below a perfect score of total cus-tomer satisfaction become an issue that requires action.Associates, managers, and supervisors create action plans,and strive to meet goals of 100% customer satisfaction.

The Internal Customer Satisfaction Index survey processprovides a sound vehicle for measuring the effectiveness ofthe internal supplier, focusing on the issues, and helping toprioritize actions.

Training

Training is an integral part of business at WainwrightIndustries, and the company budgets up to 7% of itsannual payroll (an average of 2.8 hours per week) towardtraining its associates and managers. Training programshave been tailored to incorporate the company philoso-phy; classes are administered internally with most classestaught on site.

As new processes come on line, associates and managersreceive training to understand and perform these new pro-cesses. The employees also drive the need for classes toimprove work skills. For example, classes are arranged ifrefresher courses in basic skills such as math, writing, orreading are required. The same situation applies to trainingin machining operations, SPC, or equipment maintenance.Considerable training focuses on safety, teaming, problemsolving, and human behavior – areas that affect the internalcustomer. Examples include Being a Team Player, Re-questing Help, Taking on a New Assignment, Keeping YourBoss Informed, Resolving Issues with Others, and Dealingwith Emotional Behavior. Training classes administered byWainwright are also complemented with a tuition reim-bursement program that allows associates and managers toattend off-site classes at other learning institutions.

Training helps develop self-confidence and self-recog-nition at Wainwright, and its effectiveness is measuredthrough improvements in quality and operational perfor-mance, and through associate promotion percentage.Currently, 60% of all Wainwright associates have beenpromoted at least once.

7

Safety First

A safe environment is the first and most important priorityat Wainwright Industries. Safety is not a program but aprocess that includes good training, safe work practices,properly guarded machinery, clean facilities, teamwork,and management support. Every aspect of the WainwrightIndustries business has benefited from this emphasis onsafety. In 1991, Wainwright Industries prioritized safety –identified as the most important concern of its associates –as the first and most important measurement category,ahead of internal customer satisfaction, external customersatisfaction, quality, and business performance.

Several factors contribute to the safety process at Wain-wright. For example, up to of 7% of its annual payroll is spenton training, with substantial emphasis placed on safety. Newassociates receive a one-day orientation on company safety.They are then required to work at least two weeks with thetrainer and a longtime associate learning to safely and cor-rectly perform their jobs before being released to work alone.Refresher courses on safety-related issues are also con-ducted. Safety suggestions are encouraged through thecompany’s Continuous Improvement Process suggestionprogram. Every day, each area of the facility is randomlychecked and graded on housekeeping, safety, and organiza-tion. A failure in any of these areas requires a ContinuousImprovement Process to improve the situation. A WorldClass Safety Committee helps associates prioritize safetygoals, is responsible for conducting safety investigations,and acts as liaison between management and associates onsafety issues. Video reenactments made by the associates andthe World Class Safety Team are made to evaluate circum-stances that could lead to an accident or resulted from anaccident. The circumstances around the accident are thenused in corrective actions and safety training to ensuresimilar accidents will be avoided. Safety expenditures are notsubject to the same scrutiny as other requests. Each jobcoming on line is reviewed for safety, from receipt ofincoming material to shipping the parts, with the same detailas given to the design, fabrication, and test requirements.

The safety-first priority has benefited every aspect of theWainwright business. Associates have a high degree ofcertainty that they will be injury-free. Since 1991, workers’compensation claims have dropped to zero. The number ofaccidents per year are nearing zero. Lost time due to

accidents has decreased by 85% resulting in an attendancerate that is up to 99%. Customer satisfaction ratings are at95% and continue to improve.

QUALITY ASSURANCE

Continuous Improvement Process

The Continuous Improvement Process (CIP) at Wain-wright is followed by all associates for submitting, process-ing, and implementing suggestions and defining awards.The Continuous Improvement Process suggestion systememphasizes an ongoing flow of ideas from associates andemphasizes the application of soft technology, 100% par-ticipation by the associates, and 1.25 suggestions imple-mented per associate per week.

A Continuous Improvement Process suggestion can beany associate’s idea which has potential to improve an areaof the work place. The associate determines the opportu-nity, proposes a solution, submits a completed CIP form tothe supervisor, and consults with the supervisor for assis-tance whenever necessary. Each associate has primaryresponsibility for submitting, completing, and verifyingcompletion of the CIP suggestion. The form is completedonly after the suggestion has been implemented.

Recognition and awards are based on ideas that havebeen implemented. Each completed CIP counts as onecredit; however, safety CIPs count as three credits to-ward recognition and awards. Cost savings and benefitsanalysis are reviewed but not overly-scrutinized to avoidstalling the process. Associates are not negatively af-fected on reviews for a lack of CIP participation, al-though enthusiastic participation indicates promotabilityand leadership qualities. Recognition is based on thenumber of credits accumulated from CIPs completedduring a specified period. Awards are made to associ-ates and departments through quarterly lunches, randomweekly drawings, departmental bi-weekly drawings,and an annual grand prize drawing.

Since CIP implementation in 1991, savings have in-creased by a factor of ten with annualized cost reductionaveraging 5.8% of sales. The number of CIPs completed perassociate per week has increased to 1.25, which translates toan average of 65 implemented suggestions from each asso-ciate per year.

A P P E N D I X A

TABLE OF ACRONYMS

ACRONYM DEFINITION

BMP Best Manufacturing Practices

CIP Continuous Improvement Process

A-1

A P P E N D I X B

BMP SURVEY TEAM

TEAM MEMBER ACTIVITY FUNCTION

Larry Robertson Crane Division Team Chairman(812) 854-5336 Naval Surface Warfare Center

Crane, IN

Larry Halbig Naval Air Warfare Center(317) 353-3838 Aircraft Division - Indianapolis

Indianapolis, IN

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A P P E N D I X C

PROGRAM MANAGER’S WORKSTATION

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The Program Manager's Workstation (PMWS) is a seriesof expert systems that provides the user with knowledge,insight, and experience on how to manage a program, addresstechnical risk management, and find solutions that industryleaders are using to reduce technical risk and improve qualityand productivity. This system is divided into four maincomponents; KNOW-HOW, Technical Risk Identificationand Mitigation System (TRIMS), BMP Database, and BestManufacturing Practices Network (BMPnet).

• KNOW-HOW is an intelligent,automated method that turns“Handbooks” into expert systems,or digitized text. It provides rapidaccess to information in existinghandbooks including AcquisitionStreamlining, Non-DevelopmentItems, Value Engineering, NAVSOP-6071 (Best Practices Manual),MIL-STD-2167/2168, SecNav5000.2A and the DoD 5000 seriesdocuments.

• TRIMS is based on DoD 4245.7-M(the transition templates), NAVSO P-6071 and DoD5000 event oriented acquisition. It identifies and ranksthe high risk areas in a program. TRIMS conducts a fullrange of risk assessments throughout the acquisitionprocess so corrective action can be initiated beforerisks develop into problems. It also tracks key projectdocumentation from concept through production in-cluding goals, responsible personnel, and next actiondates for future activities in the development andacquisition process.

• The BMP Database draws information from industry,government, and the academic communities to in-clude documented and proven best practices in design,test, production, facilities, management, and logistics.

Each practice in the database has been observed andverified by a team of experienced government engi-neers. All information gathered from BMP surveys isincluded in the BMP Database, including this surveyreport.

• BMPnet provides communication between all PMWSusers. Features include downloading of all programs,E-mail, file transfer, help “lines”, Special InterestGroups (SIGs), electronic conference rooms and much

more. Through BMPnet, IBM orcompatible PC's and Macintoshcomputers can run all PMWS pro-grams.

• To access BMPnet efficiently,users need a special modem pro-gram. This program can be ob-tained by calling the BMPnet us-ing a VT-100/200 terminal emu-lator set to 8,N,1. Dial (703) 538-7697 for 2400 baud modems and(703) 538-7267 for 9600 baudand 14.4 kb. When asked for a

user profile, type: DOWNPC or DOWNMAC <return>as appropriate. This will automatically start the Down-load of our special modem program. You can then callback using this program and access all BMPnet func-tions. The General User account is:

USER PROFILE: BMPNET

USER I.D.: BMP

Password: BMPNET

If you desire your own personal account (so that you mayreceive E-Mail), just E-Mail a request to either Ernie Renner(BMP Director) or Brian Willoughby (CSC Program Man-ager). If you encounter problems please call (703) 538-7253.

A P P E N D I X D

NAVY CENTERS OF EXCELLENCE

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Automated Manufacturing Research Facility(301) 975-3414

The Automated Manufacturing Research Facility (AMRF) –a National Center of Excellence – is a research test bed at theNational Institute of Standards and Technology located inGaithersburg, Maryland. The AMRF produces technicalresults and transfers them to the Navy and industry to solveproblems of automated manufacturing. The AMRF supportsthe technical work required for developing industry stan-dards for automated manufacturing. It is a common groundwhere industry, academia, and government work together toaddress pressing national needs for increased quality, greaterflexibility, reduced costs, and shorter manufacturing cycletimes. These needs drive the adoption of new computer-integrated manufacturing technology in both civilian anddefense sectors. The AMRF is meeting the challenge ofintegrating these technologies into practical, working manu-facturing systems.

Electronics Manufacturing Productivity Facility(317) 226-5607

Located in Indianapolis, Indiana, the Electronics Manufac-turing Productivity Facility (EMPF) is a National Center ofExcellence established to advance state-of-the-art electron-ics and to increase productivity in electronics manufacturing.The EMPF works with industry, academia, and governmentto identify, develop, transfer, and implement innovativeelectronics manufacturing technologies, processes, and prac-tices. The EMPF conducts applied research, development,and proof-of-concept electronics manufacturing and designtechnologies, processes, and practices. It also seeks toimprove education and training curricula, instruction, andnecessary delivery methods. In addition, the EMPF isstriving to identify, implement, and promote new electronicsmanufacturing technologies, processes, materials, and prac-tices that will eliminate or reduce damage to the environ-ment.

National Center for Excellence in MetalworkingTechnology(814) 269-2420

The National Center for Excellence in MetalworkingTechnology (NCEMT) is located in Johnstown, Pennsyl-vania and is operated by Concurrent Technologies Corpo-ration (CTC), a subsidiary of the University of PittsburghTrust. In support of the NCEMT mission, CTC’s primaryfocus includes working with government and industry todevelop improved manufacturing technologies including

advanced methods, materials, and processes, and transfer-ring those technologies into industrial applications. CTCmaintains capabilities in discrete part design, computer-ized process analysis and modeling, environmentally com-pliant manufacturing processes, and the application ofadvanced information science technologies to product andprocess integration.

Center of Excellence for Composites ManufacturingTechnology(414) 947-8900

The Center of Excellence for Composites ManufacturingTechnology (CECMT), a national resource, is located inKenosha, Wisconsin. Established as a cooperative effortbetween government and industry to develop and dis-seminate this technology, CECMT ensures that robustprocesses and products using new composites are avail-able to manufacturers. CECMT is operated by the GreatLakes Composites Consortium. It represents a collabora-tive approach to provide effective advanced compositestechnology that can be introduced into industrial pro-cesses in a timely manner. Fostering manufacturingcapabilities for composites manufacturing will enable theU.S. to achieve worldwide prominence in this criticaltechnology.

Navy Joining Center(614) 486-9423

The Navy Joining Center (NJC) is a Center of Excellenceestablished to provide a national resource for the develop-ment of materials joining expertise, deployment of emerg-ing manufacturing technologies, and dissemination of in-formation to Navy contractors, subcontractors, Navy ac-tivities, and U.S. industry.

The NJC is located in Columbus, Ohio, and is operated byEdison Welding Institute (EWI), the nation’s largest indus-trial consortium dedicated to materials joining. The NJCcombines these resources with an assortment of facilitiesand demonstrated capabilities from a team of industrial andacademic partners. NJC technical activities are divided intothree categories - Technology Development, TechnologyDeployment, and Technology Transfer. Technology De-velopment maintains a goal to complete development quicklyto initiate deployment activities in a timely manner. Tech-nology Deployment includes projects for rapid deploymentteaming and commercialization of specific technologies.The Technology Transfer department works to disseminatepertinent information on past and current joining technolo-gies both at and above the shop floor.

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A P P E N D I X E

NEW BEST MANUFACTURING PRACTICES PROGRAM TEMPLATES

Since 1985, the BMP Program has applied the templatesphilosophy with well-documented benefits. Aside from thevalue of the templates, the templates methodology hasproven successful in presenting and organizing technicalinformation. Therefore, the BMP program is continuingthis existing “knowledge” base by developing 17 newtemplates that complement the existing DoD 4245.7-M orTransition from Design to Production templates.

The development of these new templates was based inpart on Defense Science Board studies that have identifiednew technologies and processes that have proven success-ful in the last few years. Increased benefits could be realizedif these activities were made subsets of the existing, com-patible templates.

Also, the BMP Survey teams have become experiencedin classifying Best Practices and in technology transfer.

The Survey team members, experts in each of theirindividual fields, determined that data collected, whilerelated to one or more template areas, was not entirelyapplicable. Therefore, if additional categories were avail-able for Best Practices “mapping,” technology transferwould be enhanced.

Finally, users of the Technical Risk Identification andMitigation System (TRIMS) found that the program per-formed extremely well in tracking most key program docu-mentation. However, additional categories – or templates– would allow the system to track all key documentation.

Based on the above identified areas, a core group ofactivities was identified and added to the “templates base-line.” In addition, TRIMS was modified to allow individualusers to add an unlimited number of user-specific catego-ries, templates, and knowledge-based questions.

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A P P E N D I X F

COMPLETED SURVEYS

BMP surveys have been conducted at the companies listed below. Copies of older survey reports may be obtained throughDTIC or by accessing the BMPNET. Requests for copies of recent survey reports or inquiries regarding the BMPNET maybe directed to:

Best Manufacturing Practices Program4321 Hartwick Rd., Suite 308

College Park, MD 20740Attn: Mr. Ernie Renner, Director

Telephone: 1-800-789-4267FAX: (301) 403-8180ernie@bmpcoe.org

COMPANIES SURVEYED

Litton Honeywell, IncorporatedGuidance & Control Systems Division Undersea Systems DivisionWoodland Hills, CA (Alliant Tech Systems, Inc.)October 1985 and February 1991 Hopkins, MN

January 1986

Texas Instruments General DynamicsDefense Systems & Electronics Group Pomona DivisionLewisville, TX Pomona, CAMay 1986 and November 1991 August 1986

Harris Corporation IBM CorporationGovernment Support Systems Division Federal Systems DivisionSyosset, NY Owego, NYSeptember 1986 October 1986

Control Data Corporation Hughes Aircraft CompanyGovernment Systems Division Radar Systems Group(Computing Devices International) Los Angeles, CAMinneapolis, MN January 1987December 1986 and October 1992

ITT Rockwell International CorporationAvionics Division Collins Defense CommunicationsClifton, NJ (Rockwell Defense ElectronicsSeptember 1987 Collins Avionics and

Communications Division)October 1987 and March 1995

UNISYS MotorolaComputer Systems Division Government Electronics Group(Paramax) Scottsdale, AZSt. Paul, MN March 1988November 1987

General Dynamics Texas InstrumentsFort Worth Division Defense Systems & Electronics GroupFort Worth, TX Dallas, TXMay 1988 June 1988

Hughes Aircraft Company Bell HelicopterMissile Systems Group Textron, Inc.Tucson, AZ Fort Worth, TXAugust 1988 October 1988

Litton GTEData Systems Division C3 Systems SectorVan Nuys, CA Needham Heights, MAOctober 1988 November 1988

McDonnell-Douglas Corporation Northrop CorporationMcDonnell Aircraft Company Aircraft DivisionSt. Louis, MO Hawthorne, CAJanuary 1989 March 1989

Litton LittonApplied Technology Division Amecom DivisionSan Jose, CA College Park, MDApril 1989 June 1989

Standard Industries Engineered Circuit Research, IncorporatedLaMirada, CA Milpitas, CAJune 1989 July 1989

Teledyne Industries Incorporated Lockheed Aeronautical Systems CompanyElectronics Division Marietta, GANewbury Park, CA August 1989July 1989

Lockheed Corporation WestinghouseMissile Systems Division Electronic Systems GroupSunnyvale, CA Baltimore, MDAugust 1989 September 1989

General Electric Rockwell International CorporationNaval & Drive Turbine Systems Autonetics Electronics SystemsFitchburg, MA Anaheim, CAOctober 1989 November 1989

TRICOR Systems, Incorporated Hughes Aircraft CompanyElgin, IL Ground Systems GroupNovember 1989 Fullerton, CA

January 1990

TRW MechTronics of Arizona, Inc.Military Electronics and Avionics Division Phoenix, AZSan Diego, CA April 1990March 1990

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Boeing Aerospace & Electronics Technology Matrix ConsortiumCorinth, TX Traverse City, MIMay 1990 August 1990

Textron Lycoming Norden Systems, Inc.Stratford, CT Norwalk, CTNovember 1990 May 1991

Naval Avionics Center United Electric ControlsIndianapolis, IN Watertown, MAJune 1991 June 1991

Kurt Manufacturing Co. MagneTek Defense SystemsMinneapolis, MN Anaheim, CAJuly 1991 August 1991

Raytheon Missile Systems Division AT&T Federal Systems AdvancedAndover, MA Technologies and AT&T Bell LaboratoriesAugust 1991 Greensboro, NC and Whippany, NJ

September 1991

Tandem Computers Charleston Naval ShipyardCupertino, CA Charleston, SCJanuary 1992 April 1992

Conax Florida Corporation Texas InstrumentsSt. Petersburg, FL Semiconductor GroupMay 1992 Military Products

Midland, TXJune 1992

Hewlett-Packard Watervliet U.S. Army ArsenalPalo Alto Fabrication Center Watervliet, NYPalo Alto, CA July 1992June 1992

Digital Equipment Company Naval Aviation DepotEnclosures Business Naval Air StationWestfield, MA and Pensacola, FLMaynard, MA November 1992August 1992

NASA Marshall Space Flight Center Naval Aviation DepotHuntsville, AL Naval Air StationJanuary 1993 Jacksonville, FL

March 1993

Department of Energy- McDonnell Douglas AerospaceOak Ridge Facilities Huntington Beach, CAOperated by Martin Marietta Energy Systems, Inc. April 1993Oak Ridge, TNMarch 1993

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Crane Division Philadelphia Naval ShipyardNaval Surface Warfare Center Philadelphia, PACrane, IN and Louisville, KY June 1993May 1993

R. J. Reynolds Tobacco Company Crystal Gateway Marriott HotelWinston-Salem, NC Arlington, VAJuly 1993 August 1993

Hamilton Standard Alpha Industries, IncElectronic Manufacturing Facility Methuen, MAFarmington, CT November 1993October 1993

Harris Semiconductor United Defense, L.P.Melbourne, FL Ground Systems DivisionJanuary 1994 San Jose, CA

March 1994

Naval Undersea Warfare Center Mason & HangerDivision Keyport Silas Mason Co., Inc.Keyport, WA Middletown, IAMay 1994 July 1994

Kaiser Electronics U.S. ArmySan Jose, CA Combat Systems Test ActivityJuly 1994 Aberdeen, MD

August 1994

Stafford County Public Schools Sandia National LaboratoriesStafford County, VA Albuquerque, NMJuly 1994 January 1995

Lockheed Martin McDonnell DouglasElectronics & Missiles Aerospace (St. Louis)Orlando, FL St. Louis, MOApril 1995 May 1995

Dayton Parts, Inc. Wainwright IndustriesHarrisburg, PA St. Peters, MOJune 1995 June 1995

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