CUSTOMER CASE STUDY
A Special Brand of "Lean" Manufacturing


Bob Hafey, Director of Mfg.
Besides being a lean expert, Bob is an artisan.  On the photo above he is holding one of his detailed wood carvings.



Early machine shops used Flexco quick splicers to repair the belts driving their machines.


Jerry Paulson, President & CEO
Office


Jerry's Filing System

by Joe Romanowski
Chairman and CEO


Flexible Steel Lacing (Flexco) started their journey to “lean” almost nine years ago.  Most “lean” manufacturing organizations focus all their resources to build product ever faster to customer order.  Not Flexco.  They build inventory for stock, which means they carry significant inventory.  This in itself makes their lean formula slightly different.

Bob Hafey, Director of Manufacturing, described their culture as one of, “all resources focused on continuous improvement and waste elimination.”  As Bob said, today “lean” is the buzz word everyone uses.  It has been called things like Six Sigma, JIT, supply chain and TQM and will probably have another name in the future.  Lean is a way of thinking, a manufacturing philosophy that shortens lead time by eliminating waste.

Flexco (www.flexco.com) began operations in Chicago in 1907.  Their innovative product was a quick splice for power transmission belts.  Today, they are the brand to use if you are building or maintaining conveyor systems.  The Flexco belt splice dominates the U.S. market.  They are headquartered in Downers Grove, IL with plants in Grand Rapids, MI and the U.K.  The Downers Grove plant employees 266 people, organized into factory cells and teams.  The factory cells are managed by lean teams all working cooperatively toward shared goals.

When I asked Bob what has driven and continues to drive their lean culture, he said, “leadership.”  As he explained, “It’s not about whipping the horses harder.  The process is always the problem, not the people.” (movie link)

Look down on the left for a photograph of the desk of their President & CEO, Jerry Paulson.  Jerry was up and about the plant when I took the photograph, but you get the idea.  Jerry moved onto the plant floor years ago to communicate his commitment to lean and has continued to use this as his only office in the facility.   An even more determined "lean" message is Jerry’s filing system, also pictured below.  Strong statement?  You bet!

All teams have measurements with targets to manage their safety, quality, cooperation/learning, productivity, delivery and continuous improvement. For example, while most companies measure days without injury, Flexco measures “safety observations.”  Also, while most companies measure customer complaints, Flexco measures “quality improvements.”   Their metrics are proactive. Learning is very important…   i.e., the annual AME (The Association for Manufacturing Excellence) conference is in Cincinnati this year and, yes, Flexco will be represented, but not by just management.  Five of the eight attendees to this week long conference are from office and shop floor non-management positions.

Every member of the company is expected to submit four Implemented Process Improvements (IPI) annually.  Everyone means the CEO, Bob Hafey, all managers and administrative people.  And, an IPI cannot be submitted until the improvement has been implemented.  Every Flexco member risks 20% of their annual bonus if they miss their IPIs for the year.

Every time I visit a customer I look to find what makes them really special in their industry.  Bob captured the Flexco differentiation extremely well, “world class empowerment.”  This high level empowerment supports high performance teams.  The staff members are, very informed, motivated, adaptable, highly involved, skilled and individually accountable to their team peers. 

I could go on and on about this unique organization, but I will begin my conclusion by highlighting just a few more interesting Flexco characteristics.  Team members interview and hire their new team members (with Human Resources (HR) support).  Teams determine when they take vacations, and if they can leave their shift early.  Bob told us that every staff member understands they have employment security, but not job security.  So, to remain employed at Flexco they have to remain flexible, willing to take on new challenges, innovate, learn and grow with the entire organization.

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Revised: May 11, 2006.