profiles in manufacturing excellence - iqms software ... profiles in manufacturing excellence: four...

Profiles in Manufacturing Excellence Four IQMS Customers Win Manufacturing Leadership Awards in 2014

A Manufacturing Leadership White Paper

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contents

Introduction ................................................................................................................................... 3

ML Award Profile: Micro Mold Co. Inc. ....................................................................................... 4

ML Award Profile: Protoplast Inc. ............................................................................................... 5

ML Award Profile: Plastic Molding Technology .......................................................................... 6

ML Award Profile: Poly-Cast Plastics Co., Ltd. .......................................................................... 7

A History of ML Award Achievement ........................................................................................ 8

Research and Writing Team ......................................................................................................... 9

About the Manufacturing Leadership Council ........................................................................... 9

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Profiles in Manufacturing Excellence: Four IQMS Customers Win Manufacturing Leadership Awards in 2014

INTRODUCTION

Now in its 10th year, the Manufacturing Leadership Awards honor companies and individuals that have demonstrated innovation, excellence, and leadership.

Whether it is in a new product or service innovation, an improvement to a business process, or in leading an organization and its people, recipients of the Manufacturing Leadership Awards share a passion for the manufacturing industry and a commitment to continuously make it better.

For four winners of the 2014 Manufacturing Leadership Awards described in this white paper, a common thread underlying their outstanding performances was that they are all users of the EnterpriseIQ enterprise software platform from IQMS.

Serving repetitive, process, and discrete manufacturers in aerospace and defense, automotive, assembly, medical, packaging, plastics, and stamping market segments since 1989, IQMS offers a uniquely integrated product line that covers ERP, manufacturing, MES, supply chain, and CRM functionality. That level of integration allows customers to avoid the added cost of melding best-of-breed solutions at implementation time.

IQMS (http://www.iqms.com/) is also known for its customer focus, maintaining a consistent and collaborative dialogue with manufacturers.

The following pages will profile the four IQMS customers that won Manufacturing Leadership Awards in 2014. Taken together, their stories provide a useful roadmap to the achievement of manufacturing excellence:

• Micro Mold Co. Inc. won an Engineering & Production Technology Leadership Award for its Lights-Out Manufacturing Workcell Initiative;

• Protoplast Inc. won an Engineering & Production Technology Leadership Award for its Injection Transfer Blow Technology project;

• Plastic Molding Technology won a Sustainability Leadership Award for its Building Value through Sustainability project and an Operational Leadership Award for its Operational Excellence through Continuous Improvement project; and

• Poly-Cast Plastics Co., Ltd. won an Enterprise Technology Award for its PRC Tax Standard project.

http://www.iqms.com

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ML AWARD PROFILE: MICRO MOLD CO. INC.

Reducing Lead Times with “Lights-Out” Capabilities

Custom mold manufacturer Micro Mold Co. Inc.’s fully automated EDM centers also improve mold-making efficiency, reduce waste, and lower overtime costs.

Determined to eliminate costly bottlenecks in mold manufacturing that are primarily the result of manual processes, Micro Mold undertook its Lights-Out Manufacturing Workcell Initiative in 2011 to create a fully automated electrical discharge machining (EDM) center.

Micro Mold’s EDM room had historically been a bottleneck in its production process as a result of multiple manual and semi-manual steps required to make a finished piece of steel. The bottleneck was jeopardizing on-time deliveries of products to customers and putting pressure on Micro Mold’s profit margins.

The answer to these problems was the implementation of an automated work cell that consists of a high-speed Mori Seiki machining center coupled with an AgieCharmilles CNC EDM, both of which are integrated with a System 3R robot. The new system enables toolmakers to program a job in the production schedule, while the automated workcell completes a job in parallel, creating the ability to run continuously in a lights-out environment.

The project provided a number of benefits to Micro Mold, including:

• Improved uptime and greater throughput;

• Shorter lead times and lower overhead; and

• Higher profit margins.

Micro Mold expects additional benefits in production process accuracy as new technology is provided by both AgieCharmilles and Mori Seiki.

The success of the Lights-Out Manufacturing Workcell Initiative prompted Micro Mold to invest in a second automated manufacturing cell in 2013 using the same equipment. This time, however, qualification and implementation times were less as a result of experience gained in the first project.

Key Facts

Company Name: Micro Mold Co. Inc. Location: Erie, Pa. Industry: Injection molding Sectors Served: Aerospace and defense, automotive, fabricated metal products, high tech, life sciences, plastics and rubber products Project Name: Lights-Out Manufacturing Workcell Initiative Project Executive Sponsor: Ryan T. Katen, general manager ML Award Category: Engineering & Production Technology Leadership

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ML AWARD PROFILE: PROTOPLAST INC.

Combining Processes for a Breakthrough in Injection Molding

Plastic injection molding manufacturer Protoplast Inc. develops a new manufacturing technology that combines injection molding and blow molding in one process.

One of Protoplast’s key automotive customers had a problem. The automotive supplier needed a new type of air duct made, but the part couldn’t be manufactured using conventional injection molding systems or with standard blow molding techniques.

Inspired by the challenge, Protoplast’s research and development organization came up with a solution: a process that could manufacture the part by combining both injection and blow molding. Called Injection Transfer Blow, the new manufacturing technology combines the accuracy of injection molding with the flexible variability of blow molding in one process.

Not only did the new technology satisfy the needs of the automotive customer, it has enabled Protoplast to identify many new applications, including air induction ducts, constant velocity joint boots, protection for suspension components, and other under-the-hood applications. Moreover, since the success of the initial automotive project, which began in 2000, the company has made 12 different variations of injection blow air ducts. By the end of 2013, Protoplast was working on a version of Injection Transfer Blow for high-temperature environments.

The breakthrough represented by Injection Transfer Blow has resulted in a number of business process improvements within the company, including:

• Improved cycle times in comparison to other molding techniques;

• Greater control of part diameters;

• Less risk of debris entering an air flow part;

• Improved customer comfort through sound insulation and reduction;

• Creation of lighter-weight parts; and

• Use of recyclable thermoplastic materials.

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There have been clear financial benefits as well. In 2013, Injection Transfer Blow products accounted for 2.5% of Protoplast’s sales. The company’s goal for this year is to have the technology represent 10% of sales. In 2015, Protoplast anticipates an additional 5-10% growth.

Key Facts

Company Name: Protoplast Inc. Location: Cobourg, Ontario, Canada Industry: Injection molding Sectors Served: Aerospace and defense, automotive OEM/supplier, construction materials, consumer packaged goods, instruments and controls, machine shop, packaging and printing, plastics and rubber products, electrical equipment and appliances. Project Name: Protoplast develops new Injection Transfer Blow Technology Project Executive Sponsor: Andy Rolph, president ML Award Category: Engineering & Production Technology Leadership

ML AWARD PROFILE: PLASTIC MOLDING TECHNOLOGY

Recovering from the Recession with a Vengeance

Plastic Molding Technology embraces a wide range of sustainability and operational improvement initiatives, cutting costs, improving efficiency, and significantly improving customer service.

Like many manufacturers, Plastic Molding Technology Inc. (PMT) was thrown for a loop by the recession and escalating raw material costs. The maker of precision-engineered, injection-molded plastic components saw its revenues dip by 50% in 2008.

But the industry-wide downturn prompted company leaders to roll up their sleeves and launch scores of initiatives aimed at achieving greater efficiency, reduced costs, and enhanced customer service through greatly improved sustainability and operational efficiency.

PMT, for example, launched a comprehensive set of sustainability improvement initiatives that touched every part of the company. Among those initiatives, PMT:

• Developed and implemented a controller that integrates with the company’s IQMS production monitoring system and automatically shuts off production machine pump motors when machines are not in use;

• Developed a grinder control system that significantly reduces energy consumption;

• Launched a program that reduced production scrap by more than 50% in one year; and

• Launched an Economy-Energy-Environment (E3) improvement program in conjunction with local and state agencies that resulted in significant savings in solid waste and CO2 creation, as well as reduced energy and water usage.

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At the same time, PMT launched a series of continuous improvement projects that reduced waste and improved operational performance. Through new employee training programs, the addition of new mold storage systems and processes, inventory accuracy improvements, and cost-of-quality improvement initiatives, PMT was able to reduce operating costs and improve operational efficiency across the board, leading to enhanced customer service. PMT, for example, estimates that a successful push to improve on-time delivery and quality acceptance resulted in $1.75 million in new customer contracts.

Taken together, PMT’s sustainability and operational improvement initiatives are saving the company $550,000 annually and enabled the company to enjoy an EBITDA (earnings before interest, taxes, depreciation, and amortization) compound annual growth rate of 32% from the end of 2009 to 2012.

Key Facts

Company Name: Plastic Molding Technology Inc. Location: El Paso, Texas Industry: Precision-engineered, injection-molded plastic components Sectors Served: Automotive, appliances, electrical, and consumer products Project Names: Building Value through Sustainability; Operational Excellence through Continuous Improvement Project Executive Sponsor: Charles A. Sholtis, CEO ML Award Categories: Sustainability Leadership and Operational Leadership

ML AWARD PROFILE: POLY-CAST PLASTICS CO., LTD.

Taking Control and Taking Off

Poly-Cast Plastics uses a cross - cultural team to implement new systems at its plant in China, gaining more timely insights into financial data and, ultimately, boosting performance.

When Poly-Cast Plastics decided in 2006 to set up a plant in Suzhou, China, to support a customer there, the small maker of molded parts had little experience with that country’s complex tax laws. So the decision to outsource financial accounting for the Suzhou plant was a no-brainer.

Soon, however, the company began to realize the downside of that decision: Poly-Cast found it difficult to gain the kind of timely access to detailed financial and cost information that it needed to improve the efficiency of the growing Suzhou plant. The lead time just to process a monthly financial statement was sometimes up to 60 days.

So, in the fall of 2011, company leaders decided to take control, implementing their own finance and accounting system for the Suzhou plant and replacing the expensive outside accountant. Within a year, using cross-cultural teams, Poly-Cast had implemented its own systems, based on EnterpriseIQ by IQMS, at the Suzhou plant.

The decision paid off handsomely, soon allowing Poly-Cast to establish the following processes:

• Daily reviews of financial results;

• Proactive projections of month-end results, using system-driven data, allowing Poly-Cast to make sure financial goals are met; and

• Business intelligence-driven reviews of operational data, including product break-even points and production floor costs.

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Fully in control of financial and operational data coming out of the Suzhou plant, Poly-Cast was able to better manage its operations there. As a result, Poly-Cast was able to increase its overall net profit levels in 2013 to well above the standard for its industry.

Key Facts

Company Name: Poly-Cast Plastics (Suzhou) Co., Ltd. Location: Tigard, Oregon Industry: Custom-molded components Sectors Served: Automotive, medical, consumer electronics, industrial, recreational products Project Name: Poly-Cast Utilizes EnterpriseIQ’s Financial Management Modules to Maintain Rigorous PRC Tax Standards Project Executive Sponsor: Jeff Leedom, director, China operations ML Award Category: Enterprise Technology

A HISTORY OF ML ACHIEVEMENT

Sixteen IQMS customers have won ML awards since 2010.

2014 Micro Mold Co. Inc. Protoplast Inc. Plastic Molding Technology Poly-Cast Plastics Co., Ltd.

2013 KLW Plastics, Inc. Nicolet Plastics Plastic Components Inc. Plastikos Inc. (2) Thogus Products Co. (2) Tribar Manufacturing

2012 Mar-Bal Inc. Tessy Plastics (ML100 High Achiever Award) Aribex Inc.

2011 About Medical Inc. Steinwall Inc.

2010 Tessy Plastics

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RESEARCH AND WRITING TEAM

David R. Brousell, Global Vice President, Research, and Editorial Director

Jeffrey R. Moad, Research Director and Executive Editor

Paul Tate, Research Director and Executive Editor

ABOUT THE MANUFACTURING LEADERSHIP COUNCIL

The Manufacturing Leadership Council, a unit of Frost & Sullivan, is the world’s first member-driven, global business leadership network dedicated to senior executives in the manufacturing industry. The Manufacturing Leadership Council’s mission is to help senior executives define and shape a better future for themselves, their organizations, and the industry at large. The Council produces an extensive portfolio of leadership networking, information, and professional development products, programs, and services, including the Manufacturing Leadership Community website, an online global business network with over 6,700 members worldwide; the Manufacturing Leadership Council, an invitation-only executive organization of over 100 members; the annual Manufacturing Leadership Summit; the Manufacturing Leadership Awards, celebrating industry achievement; and the thought-leading Manufacturing Leadership Journal. For more information, visit www.MLCouncil.com.

http://www.MLCouncil.com

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