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Targeting Customer Service and Market Growth Using Lean Methodology

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, 2004 -- Oakville, Ontario. Presentation Topics. Company Profile The Need to Change

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Targeting Customer Service and Market Growth Using Lean Methodology

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  1. Targeting Customer Serviceand Market GrowthUsing Lean Methodology Presentation by George Foss, CEO 3L Filters Ltd. Cambridge Ontario High Performance Manufacturing Consortium Conference May 13, 2004 -- 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. Keys to Success Complementary partnership skills…

  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. 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. 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 PHT Gland Seal and F/M Filter Basket for Pickering NGS Spent Fuel Bay Basket For Pt. Lepreau NGS

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

  16. Nuclear Products 600 SCFM Twin Tower Vapour Recovery Dryers

  17. 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. Aviation Products Vertical Filter/SeparatorsforTank 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 MonitorsforMobile 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-400-20 Fuel Monitor

  21. Aviation Products Horizontal Filter / Separator / Monitors forSkid 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 Need for Change The old ways weren’t working

  27. Customer Resource Depletion Changes in Manufacturing Code Offshore Competition Labour Pool Pricing 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? 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 • errors • Engineering throughput • Quotation success rate • response time • Manufacturing delivery lead time • Cost competitiveness • Quality control • Require payback in less than 1 year

  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 Component Parameters Assembly Configuration 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 • 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

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