Like other companies striving to stay competitive from a U.S. manufacturing base, one of Elkay Manufacturing’s biggest challenges is controlling operating costs. That’s why, with IMEC’s help, the company’s Savanna-based Water Cooler Manufacturing Facility recently took a deep dive into assessing economic, energy and environmental efficiencies—emerging with money-saving action items in each area.
The NGM Study provided an optimistic outlook on the process improvement capabilities of manufacturers. An overwhelming majority of manufacturers recognize the importance of process improvement and approximately 43% report that they are near or at world-class improvement. The study identified three elements necessary for world-class process improvement. They are strategy, talent and talent-development programs, and capable business systems and equipment.
In Plymouth Tube Co.’s search for a partner, not a consultant, to help train its workforce, the stretch tube manufacturer found a winning combination—turning to IMEC and Illinois Valley Community College to implement a Training Within Industry project at its Streator facility.
A global supplier of specialty tubing in carbon, alloy and stainless steel, Plymouth Tube operates a large network of metalworking mills in the United States and United Kingdom, primarily serving the automotive, mining, aerospace and recreational markets. The company’s Streator facility, which opened in 1968, is a 100,000-square-foot operation with 64 employees.
Manufacturers recognize the importance of human-capital acquisition, development, and retention but few have the systems in place to achieve world-class status. Of the manufacturers surveyed, only 30% reported they are near or at world-class human-capital management.
Three elements are necessary in human-capital management:
• Company-specific strategy with full-functional involvement and buy-in
• Talent and talent-development programs
• Capable business systems and equipment
Before implementing an upgrade to its enterprise manufacturing software system, Roesch Inc. saw an opportunity to make some long-needed improvements to its make-to-order process and material management systems. The resulting changes, executed with IMEC’s help, have enabled the Belleville manufacturer to meet customer on-time delivery requirements and cut nearly $200,000 in operational costs and excess material inventory.
The study found that manufacturers may not be getting the most out of their customer-focused innovation. Among all manufacturers surveyed, 70% commercialized less than 25% of their R&D expenses. Those manufacturers who identified themselves as at or near world-class innovation, however, enjoyed more return on their R&D investment both in new products and greater profits. Seventy percent of these manufacturers derived more than 5% of sales from products introduced in the past three years.
