CONNSTEP advantage Summer 2011

New Opportunities14 Your New Rolodex

18 Carpe Diem22 Keeping Pace with Technology

24 The Heat is Onww

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advantageSummer 2011

Vol 1, Issue 2

Improved ef ciency.

Faster ROI.

Higher pro ts.

Companies that move ahead and stay ahead choose CONNSTEP to guide their

continuous improvement and growth strategies. Through close collaboration

with our industry experts, CONNSTEP accelerates top line growth, operational

ef ciencies and long-term sustainability.

Ready to experience a new level of success with your company? Bring us your

business goals and we’ll work together to make them happen.

CONNSTEP. Your total business improvement resource.

www.connstep.org

CONNSTEP, Inc.

1.800.266.6672

>>> CONTENTS

connstep.org 3

advantagesummer 2011

18Carpe DiemWith a business strategy fi rmly rooted in

continuous improvement, Lex Products is able to

create opportunities and control their own destiny.

4The Future is Local

I recently read an article with some great

advice from a fourth generation business in

Maine, looking to open another location on

the West Coast. The grandfather’s advice

was “Pick your community well. You’re not

there solely to make money; you’re there to

play a larger role.”

22Keeping Pace

with TechnologyWe need to create economic value through the

production of parts at a competitive price and in a

shorter time than our competitors. The question

is how?

24The Heat is OnBirk Manufacturing is blazing a new trail - with the

strategic implementation of Lean, investment in

their people and the development of a continuous

improvement culture - they’re leaving the

competition in the dust.

14 22

18 24

14Your New RolodexWith over 100 million users, LinkedIn is the fastest-

growing professional networking site that allows

you to make business contacts and fi nd potential

clients and customers.

4

6

30

6The Buzz

Newsworthy trends, topics, statistics, Q&A

and an opportunity to ask the experts.

30Investment OpportunityMy family has been involved in

manufacturing for three generations and

at no time have we faced such serious

economic challenges; however a new

federal bill called the MRA, Manufacturing

Reinvestment Account brings hope.

First, Our Future is Local

Domestic manufacturers are constantly adjusting. The once monolithic industry has changed; now open-minded to environmental concerns, energy resources and effi ciencies in process and space use. And as always, looking for new ways to grow.

For the last few decades, U.S. companies have turned to global manufacturing production for new opportunities; but challenges exist there, too. Challenges very similar to those inherent in local production such as rising transportation costs, speed of delivery and product quality. Decisions to produce and source from outside of the country are often made non-strategically. Due to this, companies often fall into one of two camps: (mindlessly) global or (hopelessly) local. However, successful companies leverage local and then think global, understanding the need for balance.

The smart companies look inward fi rst, examining what is working and how they can improve on success. When needed, they look to resources close to home, in their community, for support and encouragement to enable growth. Sure, they see international expansion along the horizon, but they see diversifi cation and customization as a pathway with their existing client base as the fi rst step. One of our featured clients in this issue, Birk Manufacturing (page 24), tailors their products per customer demands. They also survey their clients to fi nd out what is important. This is critical as manufacturing in the 21st century needs new business models as patterns for product consumption have changed. Birk says that hearing and responding to what their clients say is vital …. and this sets them apart. And along with this, Birk’s visits to other manufacturers across the state act as models for ongoing continuous improvement activities, sharing in ideas for developing a strong and positive culture within their organization.

Also profi led is Lex Products (page 18). As with Birk, Lex looks to their community to add value and effi ciency to their organization. The notion of jobs leaving the state does not sit well with them. Their new facility in Shelton is testament to their community values. I was fortunate to be invited to their recent open house and witnessed the unveiling of new banners on their building, each representing their dedication to organizational excellence. If you’re near Shelton, go see them - they are a statement. And while Lex is already active in the global market, their involvement with other Connecticut companies as partners and suppliers sets best practices as a solid base for their expansion.

So, as we must be competitive in a global economy, manufacturers, like any other business, have the ability to source and produce in other parts of the world. But perhaps their decision to do so should stem from a solid foundation developed through

local collaboration. I recently read an article with some great advice from a fourth generation business in Maine, looking to

open another location on the West Coast. The grandfather’s advice was “Pick your community well. You’re not there solely to make money; you’re there to play a larger role.”

May your reading be satisfying,

Bonnie Del Conte is the president & CEO of CONNSTEP.

She can be reached at [email protected].

Bonnie

4 advantage summer 2011

CONNSTEP Advantage Magazine is a publication of CONNSTEP, Inc.

Since 1994, the business consultants at CONNSTEP

have helped Connecticut’s small and midsize businesses

compete and grow. Through highly personalized services

tailored to the specifi c needs of our client companies,

we help develop more effective business leaders,

execute company-wide operational excellence and devise

creative strategies for business growth and profi tability.

CONNSTEP is Connecticut’s NIST/MEP affi liate and is

supported by the Connecticut Department of Economic

and Community Development (DECD).

PublisherBonnie Del Conte, President & CEOCONNSTEP

EditorRebecca Mead, Manager, Marketing & CommunicationsCONNSTEP

Contributing WritersRobert Kravontka, CONNSTEP

Kathy Hokunson, Site-Seeker, Inc.

Ken Cook, Peer to Peer Advisors

Michael Perrelli, CONNSTEP

Rebecca Mead, CONNSTEP

Mike Gugger, CONNSTEP

Jamison Scott, Air Handling Systems

Contacts

To subscribe: [email protected]

To change an address: [email protected]

For reprints, PDF’s: [email protected]

For back issues: [email protected]

For permission to copy: [email protected]

To pitch a story: [email protected]

To register for an event: [email protected]

800.266.6672

CONNSTEP, Inc., all rights reserved. Reproduction

encouraged after obtaining permission from CONNSTEP.

CONNSTEP Advantage Magazine is printed four times

a year by CONNSTEP, Inc., 1090 Elm Street, Suite 202,

Rocky Hill, CT 06067. 800.266.6672

POSTMASTERSend address changes to:

CONNSTEP, Inc.

1090 Elm Street, Suite 202

Rocky Hill, CT 06067

advantage

>>> Contributors Summer, 2011

connstep.org 5

Kathy Hokunson is the Vice President of Sales & Marketing for Site-Seeker, Inc., an internet

marketing fi rm specializing in search engine optimization, pay-per-click advertising, social media and ROI.

Site-Seeker, Inc. works with clients to drive qualifi ed visitors to their websites, convert visitors to buyers, measure results achieved and develop improvement plans based on performance.

Kathy was one of the earliest adopters of the business uses of social media, spending her career making the bottom line case for internet marketing, including social media adoption.

12

Robert Kravontka has over 35 years experience in Connecticut manufacturing operations and

technical sales. His book, “Lean Selling,” illustrates to the sales professional the need to streamline the sales approach and general practices, which in turn leads to a more effective sales pitch and client relations strategy.

Robert serves on the board of directors for the Connecticut Green Building Council, and is chair of the Society of Manufacturing Engineers (SME) central Connecticut chapter. He is also a past regional chair of SME New England. A graduate of the University of New Haven, Robert holds a bachelors degree in Manufacturing Engineering and a Masters in Business Administration.

Ken is the Founder and Managing Director of Peer to Peer Advisors. His background includes over

twenty years consulting with high growth and middle market companies, focusing on marketing, sales and growth strategies. Ken’s consulting includes fi ve years as a Senior Contract Consultant for Inc. Magazine.

He’s written two books published by The American Marketing Association and McGraw-Hill, and is completing his third book, appropriately titled “Rainmakers.” He has written columns for The Hartford Business Journal, The Boston Business Journal and The AMA website.

1

Michael Perrelli is the Marketing Specialist with CONNSTEP where he is responsible for developing

the content, markets and promotions of CONNSTEP training, networking and outreach programs. Additionally, Michael works with the Manger of Marketing & Communications on organizational market development, website maintenance and trade show efforts.

Before joining CONNSTEP at the end of 2010, Michael worked for the Alcone Marketing Group, a promotional agency based in Darien and for SourceMedical in Wallingford, where he controlled multiple direct marketing and trade show efforts for the leader in ambulatory surgery center management software.

Rebecca Mead is the Manager of Marketing and Communications for CONNSTEP where she directs

the marketing, public relations, legislative communications and all CONNSTEP outreach events, including the annual CONNSTEP Manufacturing & Business Conference.

Rebecca is the President-Elect of the American Marketing Association Connecticut Chapter and is an alumnus of Randolph-Macon Woman’s College and The University of Hartford.

Rebecca was named as one of the 2011 Hartford Business Journal 40 Under 40 recipients and was honored with the 2010 NIST/MEP Unsung Hero Award.

Mike Gugger is CONNSTEP’s Machining Technology Consultant where he provides consulting and

training solutions in machining and metal removing technologies.

Prior to CONNSTEP, Mike was with TechSolve, Inc., Ohio’s Manufacturing Extension Partnership, where his roles included Manager of Machining Services, Manager of Special Projects for supply chain and Lean engagements, and Manager of the company’s Manufacturing Research Lab.

He is a Certifi ed Lean Sensei, GE trained Six Sigma Green Belt, and NIST certifi ed Lean Training Leader with more than thirty published articles and research papers.

2 3

4 5 6

1 2 3

4 5 6

CICCCONTINUOUS IMPROVEMENTCHAMPION CERTIFICATIONSeptember 20 to December 13

Windsor, Connecticut

The gist: This thirteen-week course provides

intensive exposure to the principles and

practices needed to develop and sustain the

Lean Enterprise. You will receive immediate

reinforcement of the classroom learning by

applying your training to a real-life project

within your organization. Together with on-site

mentoring and knowledge assessments, this

approach dramatically reduces the time frame

from training to bottom-line results.

Who attends? Those tasked with

implementing and sustaining a culture

of continuous improvement within their

organization.

http://bit.ly/CICCprogram

Training a Green Collar ChampionCombining Lean and Green practices is fast

becoming one of the foremost methods to

cut costs, increase productivity, implement

sustainable practices, retain jobs and

engage new customers, all while minimizing

the impact on the environment.

The gist: This training certifi cation

program will raise worker awareness

of the importance of becoming more

environmentally focused and provide the

skills needed to lead workplace-based

sustainable practices.

Approach: this intensive three-day

combination of classroom and on the shop

fl oor training provides project-based return

on investment results for participating

manufacturers. This certifi cation program

is partially funded through the Connecticut

Green Jobs Partnership Grant.

http://bit.ly/aj2BPF for more information.

Team Leader & Facilitator TrainingThe backbone of sustainable transformations

is the team-based culture of continuous

improvement. Training your workforce on the

technical aspects of Lean is an important fi rst

step along the transformation journey. In order

to sustain the gains, you must also develop key

people as team leaders and team facilitators

- people who can facilitate, align and focus

the processes and dynamics of continuous

improvement teams.

The gist: The Team Leader & Facilitator Training

program integrates presentation, discussion, best

practices, role play and exercises to develop the

skills necessary for team leaders and facilitators to

manage the tasks and lead the people through

eff ective continuous improvement events. It is

designed to build the knowledge and confi dence

that will enable team leaders and facilitators to

create a robust environment for innovation.

http://bit.ly/biXOxc for more information.

>>> calendar

Manufacturing RoundtablesThe Connecticut Manufacturing Coalition

hosts an industry roundtable to provide

opportunities for manufacturers to network

and share best practices on topics important

to the operations within their organizations.

The dynamic roundtables are a mix of plant

tours, open group-directed conversations

and guest speakers.

http://bit.ly/5m4MLA for more

information.

Online LearningRegularly scheduled informational webinars led

by industry experts on topics such as continuous

improvement, leadership, environment and

energy, culture and change management,

marketing and sales, performance measurement

and strategic management.

Schedule updated weekly; no cost to attend.

http://bit.ly/hqi2Q6 for webinar descriptions

and registration.


Q: What other problem solving methodologies are available to me in addition to the traditional ones that everyone uses?

In a world where life and technology moves very quickly, creative problem solving has become a must. Saddled with the problems of keeping product quality and product cost attractive to prospective customers, design and process engineers rely on creative problem solving skills to meet these formidable challenges.

One of the lesser known but very effective problem solving tools is called TRIZ (pronounced trees), which is an acronym for the Russian phrase, “Theoria Resheneyva Isobretatelskehuh Zadach – Theory of Solving Problems Inventively.”

Invented by a Russian born patent research analyst, Genrich Altshuller, TRIZ offers possible problem solutions using inventive and engineering principles compiled from thousands of patents.

A specifi c example of TRIZ in practice can be seen on the jet engine inlet for the Boeing 737 twin engine commercial airline. Boeing engineers were confronted with the problem of upgrading the 737 engine thrust which required a larger diameter engine than the airframe was originally designed to carry.

Initially, this problem was considered “simple” until the engineering team discovered that a larger diameter engine inlet could allow the engine to ingest debris from the runway and possibly cause engine damage or failure during takeoff.

The engineering team selected TRIZ as the

problem solving tool. TRIZ is made up of 39 Engineering Characteristics (where unwanted results can be explored) and 40 Innovative or Engineering Principles that were used to solve the 39 unwanted results. The Boeing engineers noted that Altshuller’s table of 39 unwanted results listed “Area of a Moving Object” and “Length of a Moving Object”. These were selected because by increasing the area of the jet engine inlet the diameter or “length” increased and that was the core problem.

Imbedded in the 39 unwanted results table are the 40 Innovative or Engineering Principles allowing the Boeing Engineers to see how problems with area increase without length increase were approached.

What they discovered was that “Asymmetry” was one of the solutions suggested and ultimately solved the problem.

The Boeing 737 engineers solved the problem by making the engine inlet shape more along the lines of an oval (wider horizontally than vertically), thereby maintaining proper distance from the runway surface while still providing increased inlet area for the larger engine.

TRIZ is a powerful problem solving tool allowing the user to explore problems and solutions confronting other engineers and scientists in varying applications. The process is simple and intuitive for the user to manage and provides clues and pathways to solving diffi cult problems in an effective and effi cient manner.

You have questions, Roy Laun fi nds

the answers. An expert in continuous

improvement methodologies including

Lean and Six Sigma, Roy answers your

questions using his experience and the

knowledge of industry’s top thought

leaders.

Roy Laun is a Lean Consultant with CONNSTEP, providing consulting services to a variety of manufacturing companies with a concentration in Lean Manufacturing and Six Sigma process improvement.

Reach Roy at [email protected].

>> > Ask the Experts

Invest in Human Resources

to Drive Innovation

A survey of 296 Human Resource professionals in the

U.S. reported that HR spending averages $1,218 per

employee, an increase of 1.4% over last year’s levels.

What is it being spent on?

Investing in Human Resources is vital to any growth

strategy - in the coming year, recruiting and retention

are likely to take center stage as companies plan their

talent needs for the next stage of their growth.

Total turnover averaged over 17% last year. Sharp

and forward-thinking companies are creating career,

compensation and development strategies to retain

key employees.

According to Karen O’Leonard and Stacey Harris of

Human Resources Executive Online

(www.hreonline.com), companies that have invested

the resources to improve their HR capabilities will

be better equipped to hire the right talent, expand

quickly and allow for quicker recovery – all leading to

better business outcomes.

10% Strategic HR Services employee engagement, workforce

planning & wellness programs

30% Talent Managementrecruiting & development

60% Core HR Services compensation, payroll &

employee relations

connstep.org 7

BUZZthe >> > Business Barometer

Earlier this year, Congressman Chris Murphy and Senator Richard Blumenthal conducted a survey of Connecticut Manufacturers. 151 responses were collected, representing a broad cross-section of the industry.

Survey results refl ected optimism - manufacturers are confi dent in the health of their businesses and are looking optimistically toward the future. Throughout the survey, respondents expressed the need for tax reform, a reduction in the cost of healthcare and demanded that the government do a better job training students for the current job vacancies and for future opportunities. Calling for increased support for vocational schools and grants to allow students to take advantage of internships, the survey illustrated the need for increased collaboration between government and the industry.

Outsourcing and contracting with the federal government were also discussed with survey participants and when asked if the federal government adequately meets the needs of Connecticut business, the jury was unable to come to a unanimous decision - 43.6% feel they are not being served, while 41% feel the government is somewhat meeting their needs.

For the complete report of the 2011 Survey of Connecticut

Manufacturers, please visit http://chrismurphy.house.gov/.

“Manufacturing is not dead; it’s diff erent. If the state and federal government do not wake up and embrace ma second class country. I am not talking about the larger manufacturers. I am talking about the thousands omanufacturers who supply a lot of the innovation and a large portion of the new jobs.”

From a fi nancial perspective, how do you feel about the future of your company?

How diffi cult is it to attract skilled and qualifi ed candidates for your company’s vacancies?

"Help with infrastructure - transportation, rail, etc. Helwith energy policy. Our higcost has a dramatic impact our competitiveness.”

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Web Watch

Regardless of your mobile gadget predilection - iPhone or iPad, BlackBerry or Android - apps

make our lives easier. And while Angry Birds is a fun stress reliever while waiting at the

doctors offi ce or for your next fl ight, there are a number of apps with business benefi ts.

Flight Track Pro ($9.99 www.mobiata.com) Stay on top of your

travel plans including gate changes and fl ight delays with this handy

travel companion. Simply import your trip information from your

travel confi rmation e-mail and Flight Track Pro will follow your itinerary

and notify you of delays, boarding announcements and the inevitable

cancellations.

Evernote (free, www.evernote.com) Don’t leave home without it.

Evernote allows you to organize your tasks and make virtual memos

whenever needed. Evernote can store text, audio recordings and photos

and synchronizes across tablets, computers and smart phones so you’ll

never lose the next big idea.

XE Currency Exchange (free, www.xe.com) Convert every world

currency on the go with this handy dandy app. Features live currency rates

when you’ve got an internet connection and will store the last updated

rates, working even when you’re roaming. Next time you travel, you’ll

know exactly how much you really spent on that lunch, what that duty

free actually costs and if that “deal” is really a “deal.”

LinkedIn (free; www.linkedin.com) Access the leading social network for

professionals while you’re on a train, a plane or in an automobile. This

app has almost all of the functionality of the website so you can search

for people, make requests to link with new strategic partners and share

business news with your connections.

manufacturing, we will become f small and medium sized

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“The history & signifi cance of manufacturing in Connecticut has led to the development of world-class manufacturers in this state who can out produce any company in any part of the country or the world; however being able to manufacture something in half the time of your competition doesn’t make a diff erence when your costs are twice as high, which is often the case.”

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connstep.org 9

BUZZthe

What is your passion?Making a difference for the community in which I live. It makes me happy.

Have a quote that resonates with you? “It is what it is.” You have to take what you get and make the best of it. Having a recession isn’t fair, but we’ve all got to work together to get out of it.

What is your greatest strength?Being a good leader. Not a lot of things scare me - lightning yes - but in business, not too much. I am not afraid to ask for anything - the most someone can say is no.

If you were stuck in an elevator, who would you want with you?Someone tall and someone strong. I’m practical. No really, someone who is my friend so I can count on them to work with me to get us out.

Fierce. Tenacious. Committed. When we asked Connecticut manufacturers, who have worked with Anne, to describe her, a theme developed. Fiercely committed to helping the state’s industry reach new global markets, tenacious and steadfast in her efforts, Anne Evans, Director of the U.S. Export Assistance Center in Middletown, Connecticut realizes the agency’s work has a simple end goal: jobs, “Simply, our job is about jobs. And our job is to bring U.S. companies to global markets and for me it’s the state of Connecticut.”

Working with approximately 3,500 companies, the U.S. Export Assistance Center conducts training - teaching companies how to work with companies overseas and how to correctly complete documentation, “But more importantly,” Anne adds, “We train on markets. What is the best market for your product and how can we get you to that market.”

With offi ces in over 80 countries, Anne’s offi ce works to coordinate efforts to bring Connecticut companies into overseas

with the state’s fi ve congressional and two senatorial delegates, trade missions for companies to visit overseas markets and make valuable connections, “We were just notifi ed that a Connecticut company has gotten a $23 million dollar contract following our China trade mission this past July.”

Leveraging technology to become more cost and time effi cient, the agency uses webinars for training and e-mail to communicate their successes, “We like to talk about what we do, show companies that we are here to help.”

“The best part of my job is working with the companies. These men and women are working hard and we’re happy to work hard right next to them. When we succeed, we make our communities stronger.”

Learn more about the services offered by the U.S. Export Assistance Center by visiting http://export.gov/connecticut/

markets, “Basically, companies need more customers. They can do a great job here in the U.S., but getting more customers overseas means more sales, more opportunities to grow and to create jobs.”

As one of two full time staff members, Anne is assisted by interns who are members of a military internship program providing business skills to transitioning military or new veterans, “These men and women are mission-focused, mature individuals who are vital parts of our staff.”

With a small staff, the agency’s focus is on companies who are already exporting and are looking to enter new markets, or companies who are well-positioned and ready to export for the fi rst time, “When I began this job a little under four years ago, we immediately went into a recession. I have had meetings where companies tell me that they were ready to lay off whole assembly lines if they did not get into overseas markets.”

Part of the U.S. Department of Commerce, Anne and her staff organizes, in partnership

Q&Awith Anne Evans

Anne Evans with Congressman Chris Murphy and Marc Nemeth at Jonal Laboratories in Meriden.


Your Customers’ Perception of Quality, by Kureemun and Robert Fantina, is an interesting look at how a customer’s perception of quality can affect your bottom line.

A recent survey showed that up to 60% of customers are looking for a new supplier. Service, delivery and quality used to be enough to maintain customer loyalty. But on whose perception is the quality based?

To understand your customer’s perception of quality, you must measure what the customer states is important to them, not what you think is important to them. One way, as illustrated in the book, to capture your customer’s satisfaction, is “short pay” invoices; invoices for your product or service that state if the customer is not happy with the quality, they can take off whatever dollar amount they think is appropriate from the total as long as they explain why. This will give you more valuable information than a client satisfaction survey with questions written from your perspective on what you think was important in the transaction.

A customer who loves your product and orders 1000 pieces, then receives them all individually wrapped, and must then discard/recycle all that wrapping, may view your quality as less than perfect. Maybe one of your customers buys your product through a third party distributor, and experiences problems with the distributor, they too may view your product as having poorer quality.

Use the principles of Lean and problem solving tools to get to the bottom of customer complaints. But not just for the vocal customers - make sure to pay attention to those “non-complainers” - being the vast majority, who can silently add or detract from your bottom line.

ISO – AS – TS – NADCAP are all great standards of quality to attain, but do not forget to measure your customer’s perception of your overall quality.

- Robert Kravontka, CONNSTEP

Since I began my sales career in 1996 I have been a voracious consumer of performance material. Sales performance books, audio cassettes (yes cassettes - remember those??), cd’s, and videos. Authors and content that struck a chord with me were the ones that focused on sales strategies and skills that were centered around client success - not traditional, manipulative selling strategies. After awhile, most of the consultative sales stuff started to sound similar and redundant, nothing really new or inspirational. So I packed up my stuff and put it away, until now.

Let’s Get Real or Let’s Not Play, by Mahan Kahlsa and Randy Illig, is an easy, straightforward read. The authors convey a less than lively subject matter in an engaging, interesting and dynamic way so reading was enjoyable. But where it really struck me as fresh and new was the depth of defi nition in the sales process of high-level consultative sales.

Khalsa and Illig address the true issues of the buyer/seller relationship – mistrust and stress. When the client’s success is placed above your own goals and objectives, you remove these friction points and create an open channel of communication. Let’s Get Real or Let’s Not Play defi nes a sales process that takes consultative sales to its highest level and true place utilizing this concept. Through their defi ned process they identify every opportunity to reduce stress and increase trust, how to keep the sales process on providing the solution that delivers success for the client.

This book is a must read for everyone in sales or sales management or, is an entrepreneur. I have completely redefi ned our sales process and tools based on what I learned from this book and it has taken a solid successful team to top performance.

- Kathy Hokunson, Site-Seeker, Inc.

Biz Lit

connstep.org 11

BUZZthe >> > Newsy & Noteworthy

Congressman Jim Himes (CT-

4) toured CONNSTEP clients OEM

Controls of Shelton and Macton

Corporation of Oxford to learn

more about the manufacturing

processes and the companies’

integration of Lean methodologies.

Following the tour, Congressman Himes

held town hall meetings with the employees to

take questions and provide updates on his efforts in Washington.

OEM Controls is a leader in the design and development of

electrohydraulic controllers and control systems for over

40 years. Offering complete system design

and assembly capabilities, their

core products include one, two

and three axis joystick controllers,

ergonomically designed multi-grip

handles, electronic valve driver

boards, microprocessor-based

logic controllers and integrated

panel systems. www.oemcontrols.

com

Macton Corporation has been

engineering, fabricating and installing high

quality moving structures for six decades, from

140-foot diameter turntables and 75 ton lifts, to 95-ton people movers

and 55-ton transporters. Macton produces permanently-installed

equipment and support structures for a wide range of commercial,

institutional and residential building applications. www.macton.com

The Hologic client profi le in the Spring 2011 issue of advantage

prompted Governor Malloy to make the

company a stop on his summer jobs tour.

Hologic, Inc. is a leading developer,

manufacturer and supplier of premium

diagnostic products, medical imaging

systems, and surgical products

dedicated to serving the healthcare

needs of women throughout the world.

Hologic recently developed and received

FDA approval for the ground-breaking 3-D

digital mammography technology, Selenia Dimensions system. Read

more about Hologic and their commitment to continuous improvement

in our spring issue online at http://bit.ly/springadvantage.

Governor Dannel Malloy has made over 40

visits to businesses, chambers of commerce

and industry groups across Connecticut

as part of his summer jobs tour.

Accompanied by Commissioner Catherine Smith of the

Connecticut Department

of Economic and Community

Development, the focus of the

tour is to listen to the business

community about ways in which

the state can be more hospitable to

business growth and development.

Tour stops include TRUMPF in Farmington, Dymotek in Ellington,

Hologic in Danbury, Bridgeport Fittings in Stratford as well as

companies of the United Technologies Corporation including

UTC Power. The Governor intends to incorporate ideas and

suggestions gleaned from the tour into a package submitted to the

legislature for consideration during a special fall legislative session

focused solely on job creation.

On August 29th, CONNSTEP President

Bonnie Del Conte participated on a

panel, convened by Congressman John Larson that included

representatives from state and federal

agencies to address manufacturing jobs

in the state. The event was the second in

a pair of events organized by Congressman

Larson and addressed what can be done to foster

growth in the state’s manufacturing sector. Manufacturers had the

opportunity to consult with the panelists on topics such as growth

strategies, worker training, exporting opportunities and the new

Affordable Care Act.

Panelists included Jeannette DeJesus, Deputy Commissioner,

Connecticut Department of Public Health; Anne Evans, Director of

the U.S. Department of Commerce Export Center; Glenn Marshall,

Commissioner, Connecticut Department of Labor; Elliot Ginsberg,

CEO, Connecticut Center for Advanced Technology; and Richard

Mullins of CCSU.

Cheers! Rebecca Mead, CONNSTEP’s

Manager of Marketing & Communications,

has been named to the 2011 Hartford Business Journal 40 Under 40 Class.

The 40 Under 40 recipients are recognized

for their dedication and commitment to their

profession and their community involvement.

This year’s class is profi led online

http://bit.ly/HBJ4040.

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Congratulations to Ray Snyder, CONNSTEP’s Quality

Systems Specialist, recipient

of the 2011 MEP Champion

of the Year Award for

his dedication to the

Manufacturing Extension

Partnership and the

Connecticut manufacturing

community.

With CONNSTEP for over 14 years, Ray

has provided assistance to Connecticut manufacturers in their quest to

obtain and maintain quality registrations. During his tenure, Ray has

been personally responsible for managing the certifi cation process of

285 Connecticut companies and for each of these companies, Ray has

delivered his trademark “blue banner”– a banner he proudly awards

so that they can showcase their new registration to all who drive by!

Please help us welcome Norman Schaefer

to the CONNSTEP team. Norman joined

CONNSTEP this summer as the Manager of

Business Services where he will be responsible

for directing the service areas of Lean,

Sustainability, and Quality with an increased focus

on the quality of delivered services, strategic business

growth, and the development of new products and services.

Norman brings a wealth of experience from his time with Gerber

Scientifi c where he served as the Executive Director of New Product

Development and as the Executive Director of Gerber Business

Systems. There he developed industrial equipment, led the efforts of

an enterprise wide Lean transformation and the led the development

of a quality management system.

Su

th

sound off

Q: What helps you keep your continuous improvement strategy on course?

A: Strategic Policy deployment helps Electri-Cable Assemblies ensure that our mission critical improvement initiatives stay priority one. As with any business there are always daily interruptions which could potentially sap scarce resources from these key projects. While some issues need to be addressed to ensure that customers are happy, we always need a mechanism to bring us back to what is going to help ECA be a success in the long term. For us it is effective policy deployment.

- Paul Murphy, Director of Operations, Electri-Cable Assemblies

A: Management commitment, guidance, momentum and tenacity are not only helpful to stay on course, but necessary to survive in today’s economy. Continuous improvement is not a new concept, but it seems to be a new buzzword. I don’t think any business owner could have been successful in the past, and especially not today, if we weren’t always on top of technology, training our personnel and striving for greater profi tability. Mediocrity and success can’t be used in the same sentence and we should all be striving for nothing short of perfection.

- Lisa P. Fekete, President, Modern Woodcrafts

A: The one thing that keeps our continuous improvement strategy on course is Policy Deployment. Policy Deployment is our overriding tool to ensure all of our employees and projects are focused on achieving our short term, mid range, and long range vision. It is imperative to use continuous improvement tools within each project to ensure we meet our objectives.

- Brian Montanari, President, HABCO, Inc.

A: Having Continuous Improvement as a key strategy in support of our overall business plan as well as having all management support CI allows the Pegasus team to balance CI with day-to-day tactical activities and therefore keep us on course.

- Chris DiPentima, President, Pegasus Manufacturing

A: Fostering and sustaining a culture of continuous improvement is fundamental to the viability of any organization. As Dymax continues to gain Lean knowledge, we have come to realize that defi ning, measuring and improving our value streams is paramount to our success. This improvement cycle propels our ability to differentiate ourselves from our competition while maximizing value through the eyes of the customer. Additionally, this process provides structure for the Lean Steering Committee to drive the organization and planning needs, clarify training requirements and facilitates proper channels of communication. Removing waste from a system is onerous when the value stream is not fi rst clearly identifi ed.

- Lance Boynton, Director of Operations, Dymax Corporation

connstep.org 13

TTENTION – Social media needs to be part of

your marketing and sales mix. This means using

LinkedIn, Facebook, Twitter, and/or blogs as

means to connect to, converse with, and educate clients

and prospects. Covering all of these channels in one

column would do a disservice to all of the channels.

So, we’ll focus on just one of the social media tools –

LinkedIn.

If you are in business-to-business sales, LinkedIn is a

great resource for marketing, prospecting and building

relationships. The reason is that in business-to-business

sales, market segmentation strategies involve on a

macro-level industry segmentation and on a micro-

level specifi c identifi cation of target clients. In this

environment LinkedIn is one of your best friends.

In B:B sales the power of LinkedIn is the online

placement of the Rolodex that used to sit on your desk.

Everyone you connect to on LinkedIn becomes part of

your online Rolodex, and for every connection you have

With over 100 million users, LinkedIn is the fastest-growing professional networking site that allows you to make business contacts and fi nd potential clients and customers.

A

your

New

Rolodex

by Ken Cook


you can see their online Rolodex. It’s like

the decision maker from 20 years ago

telling you before you leave his offi ce –

“here, take my Rolodex. See if there is

anyone there you want to meet, and then

let me know”.

When viewed this way, LinkedIn is great

for developing warm introductions and

referrals. And as most business people

will admit, the best source of business is

through warm introductions and referrals.

Everyone on your sales team should (if

they have not done so already) develop

their LinkedIn profi le and invite at least

70+ people to connect.

Let’s step through some specifi cs on why

this works and how to do it. First, why it

works.

• LinkedIn is almost exclusively a

business focused tool.

• Well developed LinkedIn profi les

provide good business background

information, including one’s

experience and areas of expertise.

• LinkedIn features such as postings

and groups afford opportunities to

be generous with your connections,

providing expertise, information and

insights on topics where you are an

expert.

• Enabling at least 70+ connections

opens up a world of 2nd level

connections where you will fi nd your

warm introductions and referrals.

How to proceed

• Think strategically fi rst. You want

1st level connections that will open

up the most opportunities for you.

Look back over the last year or two

and see where your new business

opportunities came from, particularly

the referral business. Identify your

best sources of referrals and Link to

them.

• Link to everyone you know that looks

like your referral sources.

• Invite all of your clients, past and

present, to Link.

• Invite everyone up and down your

supply chain to Link.

• Invite prominent individuals in your

industry to Link.

• Invite association personnel and

industry infl uencers to Link.

Think of your connections in LinkedIn in a

“hub and spoke” confi guration. Ideally,

your 1st level connections are hubs that

are potentially connected to a wide array

of warm introductions, referrals and new

opportunities.

Once you connect to enough 1st level

people take the time to peruse the

connections each of them have on

LinkedIn. You are looking for people

to whom you should connect for

introductions and business opportunities.

Once you identify the people you want to

meet, go back to your connection with a

simple request – “I saw on LinkedIn that

you are connected to Jane Rogers. I’ve

wanted to meet Jane. Would you mind

if I use your name in reaching out to her?”

Your connection will say yes, say no for

a variety of reasons, or in the best case

offer to make the connection call for you.

Bottom line -- if you don’t get a no you get

a warm introduction.

A few other things to bear in mind –

• Your connection is putting their

relationships on the line. Respect that

and respect the relationships.

• Don’t ask your connection to work for

you. They are not your sales force. All

you want is permission to use their

name.

• Limit the number of requests per

connection. Don’t abuse your

relationship with them.

To help with your efforts I recommend

(believe it or not) LinkedIn for Dummies.

It really is a great primer for getting your

LinkedIn strategy up and running.

For B:B companies LinkedIn is one of

your best marketing and prospecting

resources. Develop a strategy for what

you want to do, and use LinkedIn to fi nd

warm introductions, referrals and new

opportunities. If done well and consistently

LinkedIn can become a cornerstone of your

proactive marketing efforts.

Everyone on your sales team should

develop their LinkedIn profi le and

invite at least 70 people to connect.

connstep.org 15


connstep.org 17

>> for more examples of Lean Manufacturing transformations, improving the performance, quality and profi tability of Connecticut companies, visit www.connstep.org.

CARPE DIEM

by Michael Perrelli & Rebecca Mead


hether it’s a military base camp or fi eld hospital, the

summer’s biggest concert or on the set of the next

blockbuster fi lm, in the aftermath of a natural disaster or on a

construction site, Lex Products provides power distribution and

control systems to the most demanding markets.

So, when your company tagline is, “We Deliver the Power,”

you’d better! Lex President, Michael Scala, explained the Lex

philosophy of quality and reliability when speaking recently to

a group of his peers at a Connecticut Manufacturing Coalition

Roundtable, “Our focus is to design and build portable

power systems to deliver electrical power when and where

it is needed. It could be free, but if my customers don’t get

it in time, it is of no value. And quality is simply the price of

admission - if we kill our customers, they won’t buy from us

again.”

In 2005, the focus on quality and on-time delivery was

intensifi ed. Lex acquired a sheet metal fabricator and was

selected as the sole supplier of portable power distribution

units for the US Marines; the need to standardize processes,

increase effi ciency and open fl oor space in support of increased

production was critical. Lex turned to Lean Manufacturing

and through the Connecticut Department of Economic and

Community Development’s Aerospace and Defense Initiative,

took advantage of funding to support implementation of

W

With a business strategy fi rmly rooted in continuous improvement, Lex Products creates opportunity and controls their own destiny.

connstep.org 19

move contributed

to the remarkably

short downtime

experienced

by customers

and vendors

explained Jim

Leffl bine, Lex’s

Manager of

Continuous

Improvement,

“We

communicated

our plans to

our clients and

our California

facility helped by

taking on extra

responsibilities, but all in all, we only

experienced a slight dip in on-time delivery

and were shut down only for a few days

over a weekend.”

As part of the relocation to Shelton,

Lex made signifi cant investments in

new equipment and technologies to aid

production processes, reduce costs and

improve safety. New equipment in the

plant allows manufacturing to go directly

from engineered 3D CAD models to

automated production, positively affecting

their defect-free rate and saving valuable

production time in the process.

Lex’s relocation also had a positive effect

on the local and state economy, the

local communities and other Connecticut

organizations. United Illuminating was

brought in during the design phase to

implement new lighting fi xtures, increase

the use of natural light and recommend

energy effi cient equipment. Lex purchased

fl ooring systems from Dur-A-Flex, an East

Hartford based manufacturer of anti-

slip and impact resistant fl oor covering,

installing a safe fl ooring system in the

production area.

The 185 Lex Connecticut employees

embraced their new community -

purchasing homes in town, volunteering

as fi remen and community service

volunteers, and participating in fund-

raising for the local children’s hospital.

While other companies are downsizing

workforce, consolidating space or leaving

altogether, Lex Products made a long-

term commitment to the state with this

new facility, “We believe in Connecticut

manufacturing. It kills me that jobs are

We use Lean and continuous improvement to fully engage our staff , be responsive to our customers’ needs and remain competitive in a commoditized world.

Mike Scala

“ “Lean training and consulting provided by

CONNSTEP, “Lex was encouraged, as a

company holding a government contract,

to participate in and receive funding for

effi ciency initiatives,” Scala added.

And over the past six years, Lex has fully

integrated Lean methodologies into their

strategic approach to business growth,

“Lean creates velocity and there’s a

rhythm to continuous improvement.

You’ve got to keep the beat; you can’t

start and stop and expect it to work,”

Mike stated adding that the company has

remained steady on an upward trajectory;

sales increased four times over from 2005

to 2010 and profi ts aligned accordingly,

tripling over the same period of time.

With growth came the need for new

space - Lex quickly outgrew their existing

facility in Stamford, Connecticut. A new

location providing adequate space for

new equipment and a cellular layout,

along with room for future expansion,

was needed. With operations in both

Connecticut and California, Lex wanted

to remain close to its key customers in

the entertainment and military markets.

After a comprehensive search, they chose

Shelton, “When we were preparing to

move to a larger facility, we considered

options in several different states, but an

important factor in our decision to stay in

Connecticut was the incentives offered for

Lean programming, including accessibility

to CONNSTEP,” Scala says.

Embracing New Surroundings

The new facility couples 30,000 square

feet of manufacturing space with 24,000

square feet of offi ce space; with an

additional 30,000 square feet available

to Lex for future expansion. The design

and layout of the facility is fl exible

to accommodate new products and

customers’ future needs. The new Shelton

location, offi cially christened in October of

2010, provides the infrastructure allowing

Lex to provide the best service to its

customers. A well-organized and executed

Jim Leffl bine discusses the value-added elements that make Lex Products stand out.


leaving the state or going overseas,” says

Scala.

New Department, Same Goals

Coinciding with the move to Shelton

is the establishment of a Continuous

Improvement Department, “With

the creation of our new department,

continuous improvement has offi cially

been implemented as an enterprise-

wide initiative of Lex Products,” says

Jim Leffl bine, “In addition to optimizing

our processes, having a collection of

continuous improvement champions

who can teach others and develop a

process to optimize production becomes a

competitive advantage for us.”

“It’s all in the name,” says Leffl bine when

speaking of the continuous improvement

process. “It is an on-going process to

always be improving. Lean principles

have been providing the company with

positive results since 2005. My goal is to

sustain it and develop plans for further

implementation.”

Developing continuous improvement

champions is at the core of the

Continuous Improvement Department.

As he is tasked with scheduling and

executing fi ve Lean events per quarter,

the ability to have other staff members

lead events, without compromising the

scope of work or end results, allow for

the department to focus on areas of

need, training and follow-up, “When I

visit other Lean facilities, we always talk

about how hard it is to release production

workers from their duties so they may fully

participate,” Jim explains when pointing

out event dates on his continuous

improvement calendar, “We had 27

employees participate in events in 2010.

Ninety percent of our management team

has attended CONNSTEP’s Continuous

Improvement Champion Certifi cation

or some other formal Lean training, so

they understand the value the employee

will gain when we take them from the

production fl oor for training purposes. It

not only adds value to their team, but to

the entire organization as a whole.”

Lex CI Champions also participate in Lean

exchange programs, “We team up with

other companies in Connecticut, visit their

facilities - they visit ours - to cross pollinate

Lean and spark new ideas which help

everyone, “ Jim added, “I see my facility

every day, they don’t. Their ‘outside eyes’

are great for new applications of Lean in

our operations.”

Training extends to the production fl oor

staff as well, “Lex believes in making

investments in every employee, not only

in Lean training, but in industry related

standards as well. We are working

toward having all 90 assemblers trained

to the national IPC WHMA-A-620 quality

standard.” The company has set up an

in-house training room to ensure that

every employee receives at least 40 hours

of training per year, “Be it as part of the

Continuous Improvement Champion

Certifi cation, a quality standard, computer

skills or product/materials training, we

have an aggressive goal to improve staff

skills,” Jim added.

And while Lex is investing in Lean, Lean

has been paying dividends for Lex. Since

2008, their efforts have returned cost

savings of 20%, an increase in sales of

12% year over year, the ability to retain

50 employees and add 60 new jobs, and

the ability to reinvest over $2,500,000

in plant equipment, “Continuous

improvement is company-wide. Everyone

is involved, from our CEO to our

assemblers. If it weren’t fully integrated

and supported by the leadership, it

wouldn’t work,” Jim said.

Living Wildly

As you tour the new Lex facility, you’re

bound to notice the abundance of fl at

screen monitors displaying departmental

metrics and the status of their Wildly

Important Goals (WIGs) which are the

target for all employees - the scoreboard.

The premise of the WIGs is that people

can only concentrate on two to three

big goals over a long period of time.

Goals, those if not met, lead to failure.

Jim Leffl bine, states it as, “Simply put, it

is wildly important because if we don’t

meet the goal, we have failed. There are

no gray areas; everyone is counting on

their colleagues to be working towards

the same objective. Our Wildly Important

Goals drive all of the strategic activities

that we execute.”

Lex strives to attain their WIGs of 95%

on-time delivery and 95% defect free

production. “We believe all of the

continuous improvement training,

standardizing of procedures and training

in national quality standards will bring

our defect rate down. If those initiatives

weren’t in line with our strategy, we

would have not explored or implemented

them.”

“A company’s job is to please its

customers. Customers are always telling

you what they want, you just need

to listen. These conversations should

drive your company philosophy, your

operations and your innovation,” added

Mike Scala, “We use Lean and continuous

improvement to fully engage our staff, be

responsive to our customers’ needs and

remain competitive in a commoditized

world.”

For more information about Lex

Products, visit www.lexproducts.com.

connstep.org 21

eedless to say, this down turn has been tough.

But I believe something very good will come of

it - a much needed change in the culture of our manufacturing

community. Simply put, the United States need to compete.

We need to create economic value through the production

of parts at a competitive price and in a shorter time than our

international competitors. The question is how? One of the

answers is the right technology, combined with trained staff

to create effi cient processes, that will provide us with the best

chance at success.

We’re all guilty for being creatures of habit and I bet there

are processes and methodologies you haven’t changed in

your shop - you’re doing it the same way you did fi ve years

ago - three years ago. If so, you are behind. Something new,

in machining and material removal is developed every day.

We, as an industry, need to keep up. Keeping current with

technology is vital for US manufacturers to compete.

But before we even attempt to identify the technologies we

NWe need to create economic value through the production of parts at a competitive price and in a shorter time than our competitors.

The question is how?

>>> opinion

Keeping Pace

with Technology

by Mike Gugger


need - the “what” - we need to admit

that we are often to blame for the

lack of focus on staying current - the

“how” which needs to be considered.

In my experience, there are three levels

of response to the question of new

technology implementation:

• Type 1 – “I know that there are new,

better, faster methods for what we

do but I don’t have [time; money; skill

set; knowledge] to implement them.”

• Type 2 – “I have implemented some

new technology and it sits idle,

unused or worse it is used in the

same old way we have always done

it. Why should I invest in more?”

• Type 3 – “I am investing in new

technology. I am investing in my

people to use it. We are seeing

success and continue to compete.”

Type one companies typically have two

issues; fi rst - they really don’t have the

time. They are caught in the vicious

cycle whereby the more time they

spend working to maintain (or increase)

current production on old technology,

the further they fall behind. This type

of company has an iffy future as long

as they are stuck on this roundabout,

becoming less competitive and unable to

win bids. This is a downward spiral that,

if not changed, will most certainly drive

this company out of business.

This type of company is often also

affl icted with a risk adverse culture,

afraid to try something new, “We know

that if we do what we have always done

we can make this part correctly, right

now, with success. If we take the time

to try new things, we risk not getting

the part out on time and will lose the

business.” This shortsighted position will

cause the company to become stagnant,

unable to court new customers and

deteriorate their competitiveness.

Companies who fall into the second

type rarely invest in proper and thorough

training of their people. Often, they take

the risk, make the investment in a new

machine tool that has all of the bells and

whistles, but proceed to operate the

machine in the same way they used the

equipment that was just replaced.

These companies do not leverage

the advancements to improve their

machining experience - failing to

benefi t from technology advancements

like probing, higher horsepower, high

pressure coolant, etc. And the results

are dismal. There is no productivity

increase since they are still running at the

same speeds and feeds; no reduction in

throughput time because parts are still

going to wait in the inspection queue;

and with no complementary upgrade in

cutting tool technology, they miss out on

the increase in machining power they

just purchased.

Why does this happen? These

companies did not take the value-

added time to train the staff to take

advantage of the new technologies.

Investing in skills training is just

as important as having the new

technology available. If you’re people

don’t grow, your company can’t

grow.

Last, but certainly not least, are the

rarest of the breed, the type three

companies who regularly upgrade

their technology and the skill sets

required to successfully use it. These

companies understand that it is an

investment - of not only dollars, but

of resources - to reap the full benefi ts

from new technology.

They are role models for the

behavior that will bring the end of

the economic downturn. These

companies understand that

manufacturing is changing at warp

speed; if they don’t constantly work

to fi nd ways to upgrade equipment

and the corresponding skill sets of

their people, they will fall behind.

The US manufacturing industry can’t

afford that.

Evaluate your current state; envision

your future state; fi nd a way to

upgrade; and make the training

mandatory. Start making the

incremental investments now, so that

your company helps to lead industry

out of harm’s way.

connstep.org 23

Birk Manufacturing is blazing a new trail - with the strategic implementation of Lean, investment in their people and the development of a continuous improvement culture - they’re leaving the competition in the dust.

>> for more examples of Lean Manufacturing transformations, improving the performance, quality and profi tability of Connecticut companies, visit www.connstep.org.

The Heat IS On

by Michael Perrelli & Rebecca Mead


hile touring the

33,000 sq. ft. facility

in East Lyme, Connecticut, Mike Mattox,

President of Birk Manufacturing, is quick

to point out areas in which his staff of 86,

has implemented Lean and continuous

improvement measures. As he stops to

explain their new scheduling board and

visual control system, he quickly wrangles

employees to discuss their personal

experiences with the improvements. While

staff at other facilities may be shy of the

tour spotlight, the production staff at

Birk Manufacturing is proud to stop and

talk about previous challenges, how they

approach new initiatives and the numerous

positive outcomes.

WAfter the impromptu presentations end,

Mattox never fails to smile, shake hands

and thank the unplanned presenter for

a job well done. Genuine in his efforts,

Mattox is proud to show off the work of

his staff, “We have a great culture here;

we’ve come a long way in the past year.

The staff has accepted and embraced the

change to a Lean organization because it

was gone about the right way.”

Mattox’s commitment to keeping their

processes Lean, employees engaged

and customers satisfi ed provide the

expectation for continual growth to occur,

“For us, Lean is a growth strategy. We’ve

grown 40% over the last year and have

become a much more profi table, fl exible

organization. Our Lean transformation has

guided that growth and everyone in the

organization has a stake in that claim.”

Having the ability to react quickly

to customer requests keeps Birk

Manufacturing on that growth curve and

towards the top of a long list of competing

fl exible heater manufacturers, “Once your

organization gets to a certain size, and you

haven’t implemented Lean, or continuous

improvement systems, you lose the ability

– the ease – to react to customer requests

and needs. A year and a half ago, we were

close to that point. A lot of our competitors

have a standard 12 week lead time and

tell you that’s just the way it is. Very few

of our competitors have the ability to react

as quickly as we can – a true competitive

advantage for us. Using Lean affords us the

luxury of staying fast and keeping margins

intact.”

connstep.org 25

Thanks to continuous communications

with their customers, Birk clients are

aware of the positive transformation

taking place within Birk, “They know

we are doing everything we can to

hold or lower our prices, regardless of

increases in material costs. It allows us to

remain competitive

with pricing while

meeting shorter lead

times and keeping

quality rates high.”

Because it’s Birk

Following the

success of

Lean initiatives

throughout

the facility, the

company has been

able to focus on

a new approach

for acquiring new

business.

With the exception

of in-house stock

heaters, all fl exible

heaters designed

and manufactured by Birk Manufacturing

are custom, proprietary products and are

not resold without the consent of the

originating client.

Recently, Birk’s production team was

able to turn around a new prototype in

a single day, due in large part to their

newly implemented panel supermarket

– a stock point of inventory that supplies

a downstream channel. Each of the

company’s custom products requires

a specifi c size and shape panel made

of Kapton® or silicone rubber, “Until

recently, most of the production time was

spent waiting for a panel to be produced.

We now have most of the panels

complete and tagged by dimension in our

supermarket where the team member

can go and grab exactly what they need.

With the most time consuming part of

the production now signifi cantly reduced,

we can turn around prototypes much

faster, cutting days off of the request.”

With this new fl exible prototyping system,

Birk is able to go after customers, who

before, were off limits, “We’re also looking

at potential jobs differently now. In the

past, we probably wouldn’t have gone

after jobs because of volumes, but now,

we realize that we can start right, setting

up a cell to get it done effi ciently and

profi tably.”

This type of effi ciency tends to create

customers that become repeat buyers,

“We conduct phone interviews with all of

our clients. It gives us valuable insight on

our processes and the effect on the fi nal

product. As in any relationship, personal or

professional, communication is the key,”

he says.

Mattox and his senior management

team pay attention to all of the feedback

received and treat it as if it were gold,

“Reviewing the feedback and taking

necessary action is the key. For example,

we have a question regarding lead time

where certain responses are fl agged for

Birk Manufacturing

has over 20 years

of experience in

the design and

manufacturing

of Kapton® and

Silicone based

fl exible heating

elements, fl exible

heaters, and

thermal heating

systems for the

medical device,

semiconductor and

defense industries.

Carlton Birk, QA/QC Manager, holds material readily available at Birk’s newly implemented panel supermarket.


notifi cation. If a customer date is not met,

we can follow-up on it and take corrective

action. It is important to fi nd out why we

missed the date.”

Feedback has led to the adjustment of

a signifi cant key performance indicator,

or KPI, of ‘on time fi ll rate’ – while it was

originally the ‘on time delivery rate,’ based

on when Birk anticipated product delivery,

Birk’s KPI is now based on when the

customer requests product delivery, “The

new metric gives us a much clearer picture

of how we are doing. When a customer

calls and says I need it tomorrow; can we

meet that expectation? That’s what we

need to know.”

Birk believes that all feedback, whether

positive or negative, is invaluable. In a

highly competitive market, responding

to input can be the differentiator, “Time

and again we have received survey

feedback that quotes clients choosing Birk

because it’s Birk. Clients love the personal

connection; we strive to ensure that when

a customer calls they speak to a live person

- no voicemails, automated receptionists or

phone trees – they speak with an engineer

directly. In our industry, this is not a

common practice and sets Birk apart.”

Developing a Positive Culture

As any Lean leader will attest, company

culture greatly infl uences daily productivity

and the sustainability of continuous

improvement strategies. Low or no

involvement from the staff can result

in a project derailing as quickly as it

started. As Howie Birk, Vice President

of Operations explains, “Some of the

changes can seem counter intuitive at

fi rst. We experienced some resistance

at fi rst because we were not clear on

the long-term benefi ts of the changes.

Once we proved that Lean was not

going away, that it was important to the

future of the organization, people came

around.”

Staff members need to understand and

be assured of Lean’s ability to grow the

company and provide a better work

environment, not eliminate staff, “We

wanted everyone in the company to see

the results of our initial Lean efforts,

so we picked really visible events to

clearly illustrate the positive effects of

the changes,” Mattox says. “Highly

visual results led to the team embrace

of the concepts and encouraged staff to

contribute suggestions of their own. It

really took off from there.”

Company growth has not only led to

Our Lean transformation has had a profound eff ect on our staff , culture, business strategy and bottom line.

The foundation developed through our work and training with CONNSTEP has provided the staff with the tools needed to sustain our continuous improvement initiatives as we continue to uncover opportunities to help us grow as a company.

Mike Mattox

“ “Birk’s president, Mike Mattox, discusses with CONNSTEP’s Michael Perrelli, the utilization of visual signals to display the status of the current jobs in process.

connstep.org 27

an increase in sales, but an increase in

the ability to invest in the employees.

“We have added some staff members

over the course of the last year, but

more importantly, we have been able to

cultivate and grow our internal employees.

If process improvements have led to

the elimination of staff or head count

in an area, our growth has created new

positions at a higher level in other areas.

We are able to fi ll those roles internally

- it is a win-win for everyone,” Mike

explained.

Developing the skill set of the entire staff

and sustaining the strategic initiative of

continuous improvement has led to the

planning and development of a university-

esque training program. Highlighting

more than Lean training, developing the

skills of employees on a personal and

professional level builds a community that

is aligned for growth.

At the heart of the program are the Lean

principles that have been instrumental in

Birk’s transformation. The goal is to build a

steady stream of continuous improvement

champions to constantly develop ideas

and processes for effi cient gains. It

starts with Lean Awareness training for

all incumbent and new staff members,

progresses to leadership training for

managers and Value Stream Coordinators

and extends to front offi ce personnel and

customer service representatives.

Always looking

for ideas to enrich

the professional

and personal

development

of staff, Mike

learned of Dur-

A-Flex University,

a program of

Dur-A-Flex, Inc., a

manufacturer of

fl ooring systems

in East Hartford,

Connecticut.

Dur-A-Flex’s

philosophy for their

continuous learning

system is that a

happy, healthy

and learned staff

builds and sustains

a profi table

company. The Dur-A-Flex University goal

is to inspire personal growth through

various learning opportunities. “I had my

Quality Manager and two Value Stream

Coordinators take a tour of Dur-A-Flex

and they came back ecstatic about the

opportunities this may present for our

staff,” Mike added.

Inspired by what they experienced at

Dur-A-Flex and knowing that they needed

to formalize and centralize staff training,

Birk is in the process of developing BALL,

the Birk Academy of Leadership and

Lean. Led by QA/QC Manager Carleton

Birk and Value Stream Coordinator Jay

Spellmeyer, BALL will start in September

and be responsible for training all staff in

Birk products and customer requirements,

Lean Manufacturing and continuous

improvement methodologies, and

leadership skills, “We will be using internal

staff for the foundation courses. Co-

worker to co-worker training works well

here, but when we need assistance with

advanced leadership topics, we’ll bring in

outside experts,” explains Spellmeyer.

Carleton Birk added, “Communication is

key to making BALL and our Lean culture a

Once your organization gets to a certain size, and you haven’t implemented Lean, or continuous improvement systems, you lose the ability – the ease – to react to customer requests and needs.

Using Lean aff ords us the luxury of staying fast and keeping margins intact.Mike Mattox

“

“

Maintaining the company’s 5S program.


success. We’ve maintained a newsletter,

‘The Beat to the Heat’, to communicate

our efforts, progress and future plans so

that everyone is informed.”

BALL will also explore everything from

wellness classes to fi nancial management

and plans are ongoing for programs that

can improve the health and morale of the

entire culture, “We have a badminton and

basketball court at the facility now and it’s

great to see some of the staff members

utilizing the facility after work, even if it’s

for a short period of time,” he says. “We

have held tournaments where randomly

selected teams compete against each

other during a scheduled shut down and

everyone seems to enjoy it. It’s something

that enhances the camaraderie across all

of the departments. It provides a healthier

atmosphere where people have more

energy throughout the day.”

All extra-curricular activities aside, the

ultimate goal of the initiatives is to develop

and maintain a healthy business. And

while many of Birk’s peers are not able

to provide profi t sharing as a benefi t to

employees, Birk leadership considers profi t

sharing bonuses a form of appreciation and

recognition, “I enjoy handing [bonuses]

out during functions - I love what it means

- it shows the company is doing well.

We have been lucky enough to provide

bonuses for fi ve quarters in a row and

our expectation is that it will continue.”

Setting the Tone for the Future

Based on goals originally set at the

beginning, Birk Manufacturing has

achieved overwhelming success with the

implementation and institutionalization

of Lean Manufacturing. While their

efforts have reaped profi table impacts,

Mike Mattox and his team know that

future success and growth lies with

sustaining the gains, continuously

working the Lean strategy and extending

the methodologies to all aspects of the

company, to suppliers and to customers,

“We view our Lean initiatives as an

ongoing, continuous journey,” he says.

“We have had so many benefi ts from

the Lean transformation that we are now

in the process of sustaining it and using

it to discover opportunities that can

improve us strategically and culturally.”

Since the initiatives began, Birk

Manufacturing’s product lead time

has decreased from four weeks to

three weeks, which is two weeks

less than their closest competitor.

Sales have increased by $2,000,000

and the company has been able to

reinvest savings of $220,000 in new plant

equipment and workforce development.

The success, according to Mattox,

directly correlates to the commitment the

organization places on every Lean initiative,

“While visiting other facilities in the state,

I hear of Lean initiatives starting strong,

but more often than not, experiencing

road blocks or a failure to fully implement.

I believe this is due, in part, to a lack

of leadership commitment. We have

committed - across the organization - to

follow through and complete every Lean

project we begin.”

“As we continue to grow and expand,

our staff and culture are at the core of the

strategy,” Mattox says, “We are fortunate

that we have a group that cares and has

invested so much.”

For more information about Birk

Manufacturing, visit www.birkmfg.com.

Birk’s “Leg-Up Award” - awarded monthly to a team member who has gone above and beyond their duties, sets the bar for work ethic and/or someone who has developed a process improvement that has made a large impact on the company.

Production in a re-designed, highly organized work cell.

connstep.org 29


Investment Opportunity

Jamison ScottAir Handling Systems

Manufacturing is the backbone of our American economy. From the highly skilled factory worker,

to the technical engineer, to the small machine shop owner, manufacturers are fi ghting to be

productive in this challenging world. My family has been involved in manufacturing for three

generations and at no time have we faced such serious economic challenges; however a new

federal bill called the MRA, Manufacturing Reinvestment Account brings hope.

I fi rst brought this concept to my Congresswoman, Rosa DeLauro, last year after a manufacturing

friend, Hugh McCann, president of Identifi cation Products Corp., in Bridgeport, shared with me

some of his ideas to help stimulate manufacturing growth, the concept of the MRA being one.

Congresswoman DeLauro introduced the current version of the bill along with co-sponsor from

Illinois, Rep. Manzullo as HR 110. Most recently Senator Blumenthal introduced a companion bill in

the Senate as S 1237.

Helping smaller manufacturers like me, a third generation manufacturer, invest in new technology,

job training, workforce development, green energy enhancements, plant expansions and ultimately

job creation are the real values of the MRA, Manufacturing Reinvestment Account.

With an MRA, manufacturers can make annual contributions up to $500,000 each year over a

period of seven years. If a manufacturer contributes $500,000 annually and the account earns

interest at 5 percent, with a 15% tax rate on amounts distributed from the MRA, after seven years

the manufacturer would have approximately $3.6 million to reinvest in his or her business.

Many thanks goes to Congresswoman DeLauro and Senator Blumenthal for supporting the MRA,

Manufacturing Reinvestment Account and for having the foresight and understanding on the

profound effect this will have on the local, state and national manufacturing community.

To help support manufacturing and the Manufacturing Reinvestment Account, please contact your

US Representative and US Senator. A simple e-mail letting them know you are a manufacturer and

you need their support to sponsor the MRA is all it takes. Together we can not only make the MRA

a reality, we can continue to let our elected members of congress know that manufacturing is one

of the strongest assets of our country. Don’t forget to remind them for every person employed

in manufacturing we support three other non-manufacturing jobs – the multiplier effect of

manufacturing is truly the way to get America back to work!

Find your US Representative here to support HR 110: http://www.house.gov/

Find your US Senator here to support S 1237: http://www.senate.gov/

Additionally, both the House and the Senate have bipartisan manufacturing caucuses. Rep.

Manzullo from Illinois is the Chair of the House Caucus, click here for more info: http://manzullo.

house.gov/HouseMfgCaucus/. Senator Stabenow is the Chairwoman of the Senate Manufacturing

Caucus. If your member of Congress serves on the manufacturing caucus it is even better.

Today we are seeing resurgence in the importance of manufacturing. More and more

manufacturers and elected offi cials understand that indeed manufacturing is the backbone of

our economy and by working together we can be a powerful force in ensuring the success of

manufacturing nationwide!

Jamison Scott is the Executive Vice President

of Air Handling Systems, a third generation

family-owned business in Woodbridge,

Connecticut.

Jamie is a member of the board of directors

of the New Haven Manufacturers Association

(NHMA) and the Greater New Haven

CHamber of Commerce, and is the treasurer

of the Wood Manufacturers of America

(WMMA).

A fi erce advocate for Connecticut industry,

Jamie is in constant communication with

both Washington and Hartford delegates

on behalf of Air Handling Systems and

manufacturers aross the state.

The Connecticut Manufacturing Coalition Roundtables provide unique &

rewarding opportunities for manufacturing professionals.

The roundtables offer a con dential forum where manufacturers share and learn about common challenges as well as best practice solutions to achieve sustainable continuous improvement and pro table growth.

You’ll gain an invaluable network of trusted peers, business development opportunities, best practice presentations, as well as industry related resources.

Benefi ts include:

• Peer-to-peer knowledge sharing• Exclusive to manufacturing professionals• Structured meetings with professional facilitator• Best practice benchmarking• Business development opportunities

Who should attend?Manufacturing professionals interested in benchmarking, networking and learning from their peers.

2011-2012 Schedule*

10.20.11 Electri-Cable Assemblies, Shelton11.17.11 Platt Technical High School, Milford12.15.11 Legrand/Wiremold, West Hartford1.19.12 ` Dymax, Torrington2.16.12 Howmet, Winsted3.15.12 CooperSurgical, Trumbull4.19.12 Modern Woodcrafts, Plainville5.17.12 Marion Manufacturing, Cheshire*plant tour locations subject to change

For more information and to register, please visit

www.connstep.org or call 800.266.6672.

Join a group designed exclusively for manufacturing professionals.

connstep.org 31

Tel 860.529.5120Fax 860.529.5001www.connstep.org

CONNSTEP, Inc.1090 Elm Street, Suite 202

Rocky Hill, CT 06067

CONNSTEP assists Connecticut manufacturers and other businesses with strategic leadership and operational methodologies to become more competitive, thus supporting the growth of Connecticut’s economy.

NONPROFIT ORGU.S. POSTAGE PAIDHARTFORD, CTPERMIT NO. 518

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