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Situation

Hoosier Magnetics, Inc. requested CITEC help them with a project to assist them in determining the optimum procedure for cooling the “clinker” that was generated in their process to make strontium hexaferrite, a brown magnetic powder used for commercial, industrial and military applications. Hoosier employs a clinker cooling system that consists of four enclosed cooling screws which use non-contact water as the cooling agent. The cooling screws move the product to a ball mill while reducing the product temperature from 2200 F to 350 F. The current system generates the following issues: the process uses 63,000,000 gallons of water a year, cooling screw repair can cost tens of thousands of dollars a year and the process requires 546,000 kWh a year.

Solution

CITEC approached the New York State Pollution Prevention Institute (P2I) with the business case to assist Hoosier to determine an alternate method to cool the clinkers without utilizing water as a cooling agent. P2I engineers were able to define a fluidized bed system that required less maintenance than the water cooling system, increased the surface area of the clinker to improve the cooling process, and reduced the amount of ferrous oxide dust created in the movement of the product. CITEC took the information from the new parameters and identified companies that had the capability and experience to implement such a system. Hoosier is contracting with one of those companies.

Results

Hoosier is one of only three companies throughout New York State that has been qualified to go to the next tier in developing an innovated means of reducing their energy consumption through P2I.

The new process will:

• reduce energy consumption by >372,000 kWh a year, with an average electrical savings of $50,410/year;
• reduce natural gas consumption by >200,000 therms a year, with a cost savings in excess of $188,000/ year;
• reduce water consumption by >60,000,000 gallons a year. Maintenance on the cooling screws will be eliminated which will generate a significant cost savings annually.
• With estimated equipment costs at $267,000, the payback period will be 10 months or less.

Mold-Rite Plastics was recently acquired by Irving Place Capital (IPC) as part of their strategy to develop a strong presence in the packaging market. IPC recognized that MRP has substantial growth potential. IPC's deep industry knowledge and significant resources will enable MRP to quickly execute a number of initiatives to further support the needs of their customers. Recognizing that the cornerstone of any improvement effort is 5S, Bob Bode, Managing Director of IPC, asked CITEC to facilitate a 5S implementation in a specific area of the plant which would help jump start MRP’s improvement initiatives.

Solution

CITEC’s manufacturing engineer worked with a team of Mold-Rite employees to implement 5S in the molding department as a pilot for a 5S implementation plant wide. Mold-Rite management worked with the team to establish a 5S vision for the target area. CITEC then provided overview training for Mold-Rite’s 5S team and facilitated a week-long 5S kaizen with the team during which the bulk of the implementation work was completed in the target area.

Results

MRP’s team accomplished the vision for this area in categories including safety, quality, equipment, efficiency, inventory levels, and information sharing. Excess equipment was removed from the area to be used where it was needed. Equipment and material locations were defined for each molding machine. Molding machines were thoroughly cleaned and leaks were repaired as required. The team addressed work and material flow issues by specifying locations for boxes and finished product. An area was organized for QA personnel to conduct shift change meetings out of the aisle. Marking of aisles will also improve safety as there is a lot of forklift and personnel traffic in this area. Due to the high visibility of the target area, the team received a lot of good feedback from other employees about the 5S process. This project generated a lot of interest in making improvements plant wide which are necessary to achieve IPC’s goals for MRP. The results in this area will enable MRP to better serve its customers as it adopts this model for the rest of the plant.

“In completing the 5S process throughout the plant. It has made finding areas of improvement much easier and has resulted in more productivity based on the increase of morale by employees. A cleaner and more organized plant has resulted in more productivity.” Matthew P. Desch, Molding Manager

Situation

Salerno was facing high scrap due to unstable processes, equipment not being maintained and attempts at Lean implementation in manufacturing processes not being sustained. Quality systems were inconsistent leading to high scrap.

Solution

Business Advisor Terry Wiley met with the management team at Salerno to determine the best way to reduce scrap. There was a lot of good data available to track process performance and scrap losses. It lead to developing an OEE tool for Salerno’s applications to improve key processes immediately. The results had an immediate impact on waste reduction and productivity in areas originally not highlighted.

Results

Results were driven by upper management’s support to implement OEE in all departments, with the following impact:

1. PM program was initiated to keep the equipment in optimal running condition.
2. Teams were formed and rewarded for performance using monthly OEE results.
3. Productivity measurements penalized excess scrap and downtime in each dept.
4. Monthly trends for key indicators were created in all departments and employees trained to understand impact.
5. OEE results drove process changes using Lean applications.
6. Moral improved when employee suggestions were implemented and teams were formed.
7. Company has saved $250,000 since beginning the effort.
8. Reduced scrap has resulted in a 15% improvement in productivity on the first pass.

Situation

Nova Bus began construction on a new bus assembly plant in Plattsburgh in 2008 and took occupancy in the spring of 2009. Nova Bus needed to hire roughly 100 colleagues in May and June of 2009 in order to ramp up to full production by the fall of 2009. Each new colleague was to receive 9 days of training. With a class size of 8-12, Nova Bus planned 10 training cycles to cover all of the new hires. Nova Bus asked CITEC to deliver “day 6” of the training to cover the Volvo Production System – a system built on the principles of Lean. Nova Bus’ training director asked CITEC to use a Lego bus simulation they had developed in St. Eustache, QC a year earlier. The Volvo Production System was relatively new to Nova Bus. In addition, the simulation was designed for a half-day rather than a full day course.

Solution

CITEC worked with Nova Bus to develop a full-day course that integrated the Lego bus simulation with Volvo Production System principles, workplace organization, and material supply. We developed a Kanban and pick material supply system for the Lego simulation. We also added exercises in 5S, Standard Work, and Cross-Training. To illustrate mistake-proofing, we developed a fixture for the assembly of the Lego bus floor. CITEC also made improvements to the course throughout the 10 delivery cycles. This course will be used as the basis for Nova Bus’ standard Volvo Production System training by in-house trainers.

Results

CITEC trained 109 Nova Bus colleagues in the Volvo Production System. We also delivered a complete training course package to Nova Bus for future training needs. Participants consistently rated the Volvo Production System course higher than any of the other courses they had attended. Most importantly, the training prepared Nova Bus’ new colleagues to implement the Volvo Production System on the line. Nova Bus’ newest colleagues have a solid foundation on which continue to gain the knowledge and experience necessary to supply world class quality buses to its customers.

"It was a pleasure to work with the CITEC team. Their professional approach and flexibility allowed us to tailor the training session to meet our immediate needs but also provide a basis for additional training on this topic later. Some of our employees have told me that CITEC made the training fun. Great work and thank you to everyone involved." Jim Tooley, Plant Manager

Situation

Current Applications is a growing company that was incurring significant expense in manufacturing its products to ensure top quality, quick turn-around, and customized design of short-run motors and parts. To help contain these costs, Current Applications asked CITEC, one of New York State's MEP centers, to assess its manufacturing processes, with a special focus on wasted materials and scrap.

Solution

CITEC's Business Advisor John Pinkerton conducted a full business analysis of Current Applications’ operation and noted many opportunities for improvement. The first finding that Current Applications’ management chose to address was to replace one of their old milling machines with a new state-of-the-art CNC milling machine. CITEC helped the company find $20,000 in New York State grant funding for the $65,000 machine. In addition, CITEC helped the company borrow the remaining $45,000 from one of CITEC’s local economic development partners. In fact, because of New York’s program rules, CITEC is the actual owner of the machine and the borrower of record for the $45,000; CITEC leases the equipment to Current Applications, whose rent repays the loan. At the end of the five year lease period, the company will own the machine after it pays CITEC $1.

Results

Current Applications achieved at least three benefits from the project:

• It now has a multi-purpose CNC milling machine that has vastly expanded its production capacity and flexibility;
• It is already on track to save more than the projected $35,000 by avoiding re-work and scrap and by recycling coolant and attaining longer life from drill bits; and,
• It received a $20,000 grant from New York State and a $45,000 low interest loan from the Jefferson Co. Industrial Development Agency to enable it to purchase, ship, and install the equipment.

“That we were pleased with CITEC’s service is proved by the fact that we also asked them to help us design the layout for ideal flow at our new plant.” George Anderson, President

Situation

In 2008, Current Applications had already outgrown the factory space they were using in the Watertown Business Center and had arranged to move into a new facility. Before they could make the move, they needed to address their existing space work cells to improve flow and increase capacity. Then, they wanted to replicate those flow improvements and add others when they moved. To help optimize production flow at their former and new facility, they turned to CITEC for help with their new plant layout.

Solution

CITEC worked with Current Applications leadership personnel to develop and implement a plan for the new plant layout. CITEC experts analyzed the existing facility layout with an eye toward improving the flow, efficiencies and increasing productivity.

Once the layout was agreed upon, then CITEC worked with production personnel to determine the best layout for the various assembly areas. Current Applications’ people and CITEC studied various cell design options and implemented the designs that were considered the most advantageous for increasing production capacity.

Results

As a result of the Lean / New Facility Layout assistance provided by CITEC, Current Applications has realized:

• A reduction of travel by 67%;
• Productivity increases of 62%;
• Successful completion of the move into their new “Lean” facility;
• And, an increase in capacity that is enabling them to pursue new business opportunities.

Situation

Asept Pak asked CITEC to help it accomplish two major tasks – assist in securing the financing necessary to get the company to production and to provide the oversight of the installation of the production equipment and processes. The key problem the company faced was the long lead time from financing to production – caused primarily by the need to put the quality controls in place in the production process that would ensure that the products were indeed sterile when they went to market. The banks were reluctant to lend money because of the 12-18 month lead time between their investment and the beginning of production. Since the principals of the company had no experience in the aseptic packaging industry, they also required assurance that the production equipment and processes would be up to industry standards.

Solution

CITEC's Business Advisors Terry Wiley and Tom Plastino teamed up to help Asept Pak address these two associated problems. In October 2007, Mr. Wiley began to serve as Asept Pak’s temporary operations manager, responsible for overseeing the installation of the packaging equipment and its associated peripheral systems, as well as the quality control system that supported their operations. Mr. Wiley’s 35 years of experience in the drug industry not only allowed CITEC to provide assurances to the financing agencies that the company had access to experienced management, but Mr. Wiley was also charged with training local talent to continue operations.

Mr. Plastino had helped Asept Pak prepare its business plan in 2007 and make presentations to several commercial banks. One of them agreed to provide some of the financing under a USDA loan guarantee that the company needed to bring its operations to the market. The USDA required a feasibility analysis of the company’s business plan. Asept Pak convinced the USDA that CITEC’s earlier involvement in the preparation of its business plan was not a conflict of interest and in fact would effectively position CITEC as the best third party to do the feasibility analysis. CITEC finished the analysis in late March. The USDA agreed to guarantee the bank loan six weeks later and the bank committed to make the loan shortly thereafter. The loan closed in late June.

The bank loan made it possible for Asept Pak to secure additional funding commitments from at least three other public financing agencies – the Franklin County IDA, the North Country Alliance, and the Governor’s Office of Small Cities. Counting owners’ equity, the eventual financing package exceeded $3 million.

Results

Asept Pak achieved at least three benefits from the project:

• A financing package in excess of $3 million;
• The company was able to begin production in July, 2008; and
• The company’s own management were trained to take over complete control of operations.

“CITEC stuck with us. It would have been tough for us to bring this project to fruition without Terry and Tom.” Gary Hanley, President