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Targeting Customer Service and Market Growth Using Lean Methodology Presentation by George Foss, CEO High Performance Manufacturing Consortium Conference.

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Presentation on theme: "Targeting Customer Service and Market Growth Using Lean Methodology Presentation by George Foss, CEO High Performance Manufacturing Consortium Conference."— Presentation transcript:

1 Targeting Customer Service and Market Growth Using Lean Methodology Presentation by George Foss, CEO High Performance Manufacturing Consortium Conference May 13, Oakville, Ontario 3L Filters Ltd. Cambridge Ontario

2 Presentation Topics Company Profile The Need to Change Why Now? Front Office Initiatives Measured Improvements Future Vision

3 What We Do Engineered Filtration Solutions for Industrial and Nuclear Power Plant Applications

4 Markets Served

5 Established in 1965 Head office and 2 manufacturing plants in Cambridge, Ontario, Canada. Total 60,000 ft 2 manufacturing capacity Design, development, fabrication and servicing of high value-added liquid filtration and separation systems Reputation for fast customer response Company Profile

6 History of Ownership

7 History of Market Strategy

8 Keys to Success Complementary partnership skills… Qualifications Market Focus Daily Activities Bob Goel President MSc (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

9 State-of-the-art Engineering & Manufacturing In-house design, analysis and manufacturing DesignSeismic AnalysisStress AnalysisManufacturing Core Competencies

10 Nuclear Products 50% of revenue Market Focus

11 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

12 Disposable Radioactive Liquid Waste Treatment Filter for Nuclear Stations Design & Engineering Test & Performance Manufacturing & Assembly Nuclear Products

13 Permanent Nuclear Filter Vessels with Replaceable Basket Primary Heat Transport Filter Moderator System Filter PHT Gland Seal Filter Nuclear Products

14 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

15 4000 SCFM Single Tower Vapour Recovery Dryers 3831 DR-1,2,3,4,7,8,9,10 Nuclear Products

16 600 SCFM Twin Tower Vapour Recovery Dryers Nuclear Products

17 Market Focus Commercial Product Applications Engineered to Order 50% of revenue

18 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

19 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

20 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 Fuel Monitor Aviation Products Fuel Monitors for Mobile Refueling Trucks

21 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 / Monitors for Skid Refueling Components

22 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

23 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

24 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

25 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

26 The Need for Change The old ways werent working

27 Target The Vision

28 Corporate Issues Responsiveness to customers Availability of skilled engineering personnel Employee loyalty Rapid changes in technology Quality Market focus Trend forecasting Profitability

29 Market Issues Price pressures Rising Canadian dollar Need for global reach Declining customer loyalty Customer convenience Customer resource depletion

30 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

31 How to Improve? Apply principles of Lean Manufacturing Step #1 Value-Stream Map Analysis

32 The Old Way 10 weeks Typical Time Frame

33 Why Now? TIME 1960s 1980s 2000s PROFITABILITY 1990s 2002 Economic Boom of China & Pacific Rim 1970s

34 Strategy 1.Get closer to the Customer 2.Eliminate internal layers that waste time and money 3.Build on in-house product knowledge

35 –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

36 The Steps Adopting a new Lean methodology…

37 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

38 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

39 3) Built Knowledge Database Configuration Control Rules & Data Assembly Configuration Component Parameters

40 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

41 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

42 Intuitive Interface Product Specs

43 Automated Design 3D CAD Assembly

44 Costing Detail B.O.M. & Routing

45 Documentation Quote Drawing

46 Sales Collaboration 3D Reference

47 Automation Product Examples Component Detail Welding Detail

48 Innovation Is Fostered With more time for Engineering to improve product, new inventions yield new competitive advantage…

49 Compare Old & New Closures Time-Consuming Swing Bolt Effortless patented Easy Access

50 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

51 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

52 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)

53 Skid Package Example

54 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

55 Contact Information George Foss, CEO 3L Filters Ltd. 427 Elgin St. Cambridge, Ontario Tel: (519) ext Targeting Customer Service and Market Growth Using Lean Methodology

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