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Targeting Customer Service and Market Growth Using Lean Methodology

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Presentation on theme: "Targeting Customer Service and Market Growth Using Lean Methodology"— Presentation transcript:

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

6 History of Ownership

7 History of Market Strategy

8 Conventional commercial product lines Operations Manager for
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 Core Competencies State-of-the-art Engineering & Manufacturing
In-house design, analysis and manufacturing Design Seismic Analysis Stress Analysis Manufacturing

10 Market Focus Nuclear Products 50% of revenue

11 Nuclear Power Plants Served
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

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

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

14 Disposable Filter Baskets for Miscellaneous Nuclear Filters
Nuclear Products Disposable Filter Baskets for Miscellaneous Nuclear Filters Shield Tank & End Shield Cooling System Filter Basket Pickering-A NGS PHT Filter Basket for Darlington NGS Spent Fuel Bay Basket For Pt. Lepreau NGS PHT Gland Seal and F/M Filter Basket for Pickering NGS

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

16 600 SCFM Twin Tower Vapour Recovery Dryers
Nuclear Products 600 SCFM Twin Tower Vapour Recovery Dryers

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

18 Industrial Clients Served
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

19 Compact Filter/ Separator Vessels for Fixed Installations
Aviation Products Vertical Filter/Separators for Tank Farms Compact V and VV Series Filter/Separators comply fully with API Bulletin 1581, Third Edition, requirements for Class B equipment. Compact design Code Qualification Simplified Maintenance Field Proven High Performance Compact Filter/ Separator Vessels for Fixed Installations

20 Aviation Products Fuel Monitors for Mobile Refueling Trucks
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

21 Aviation Products Horizontal Filter / Separator / Monitors
for Skid Refueling Components 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.

22 General Industrial Filtration
VF Series Fluid Filters Vertically oriented filters using industry-standard pleated paper media to remove particulate to 0.5 microns. They can be constructed to house numerous cartridges within a variety of diameters to accommodate flow rates.

23 Water / Beverage Industry
FWH Micron Filters 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.

24 Paint / Ink Industry 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.

25 Pipeline Course Filtration
Dehydrators Horizontally oriented vessels containing replaceable coalescent filter packs. A sump collects separated water and filtered contaminant for easy removal. Repack Cartridges

26 The old ways weren’t working
The Need for Change The old ways weren’t working

27 Target The Vision Customer Resource Depletion
Changes in Manufacturing Code Offshore Competition Labour Pool Pricing

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

32 The Old Way 10 weeks Typical Time Frame

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

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

35 Tactics Standardize products and processes Empower Sales staff
Improve company performance Engineering throughput errors Quotation success rate response time Manufacturing delivery lead time Quality control Cost competitiveness Require payback in less than 1 year

36 Adopting a new Lean methodology…
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
Assembly Configuration Component Parameters Configuration Control Rules & Data

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 Purchasing - Accurate Bill of Materials
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 Targeting Customer Service and Market Growth Using Lean Methodology
Contact Information George Foss, CEO 3L Filters Ltd. 427 Elgin St. Cambridge, Ontario Tel: (519) ext 330

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