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Improvement by Relentlessly Striving to be the Best |
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Joe Romanowski Chairman and CEO I selected the title for this article from the quality policy statement of Manitowoc Tool and Machining LLC (MTM) in Manitowoc, WI. Mission statements and quality statements are many times just words, but it doesn’t take long to recognize that at MTM it is their culture. There are a lot of things that point to MTM as a Hi Tech operation… barcode traceability on all parts, automation, multiple machines being run with few people and 24/7 operations. But, Hi Tech is only part of the story. Scott Mertens, President, and his right hand man, Larry Jaeger, Executive Vice President, are the classic example of complementing personalities driving and building a culture one person, one day at a time. Scott is enthusiastic, excited and always looking to the next rainbow. Larry is logical, thoughtful, focused and the consummate engineer. Scott is ready and willing to tell you what MTM can do. Larry will show you. Both are high energy, determined and driven. There are no short cuts here, no easy answers, just hard work, cooperation and relentless focus on the customer. MTM was started in 1965 by Scott’s father, Wayne, who still shows up occasionally to lend his enthusiasm and wisdom. When asked, “where do you get your courage,” Larry said Scott and Scott said his dad. How do we define courage at MTM? Ten plant expansions since 1980, millions of dollars of capital equipment within the last year and 220 highly engaged employees in a job shop business that has been seriously challenged by China and other off shore threats. Both Scott and Larry acknowledge their concern for the competitive nature of their business, but they are not afraid. Here’s what Scott said when asked about their China strategy. (Movie link) When asked what their differentiation was in the marketplace, they echoed, “don’t let an opportunity pass MTM by.” In other words, whatever their customer wants they will figure out a way to get it to them. They also agreed their culture is fiercely tenacious. I would add that I felt an atmosphere of intense, high energy entrepreneurial spirit everywhere I went in the plant. Scott and Larry repeated over and over the high regard they have for their customers and staff. They spend a lot of time in the hiring process to make sure their people are intelligent, creative, innovative and have high computer aptitude along with top machining skills. Since every MTM customer part is potentially an automated job, employees must be excited to continuously improve every process. An example of their continuous improvement, tenacious attitude is how they handled the implementation of their first Mazak Palletech system, which is now about three years old. You can feel the power of Larry’s conviction when he told us that the Palletech system runs 24/7 and 75% of every hour of every week is in process, cutting metal. While this number is extraordinary, he’s not satisfied. He wants even more time in-the-cut. Scott emphasized that their basic strategy to Chinese labor is “no labor.” As they strive to automate, they have not had to reduce their workforce. They have explained to their people that they expect to keep growing and will keep the people who are willing and able to grow with them. Their people believe that automation, rather than being a threat, secures their future. It fuels more growth because as they develop each automated cell, everyone becomes collectively smarter and even more capable with each customer opportunity. When asked how they keep their people focused on their objectives, Scott said they meet with every employee three to four times a year in company wide meetings. They explain what it takes to earn and keep their customer’s business. They make sure that everyone understands that the easiest part of the operation may be machining the part. The most difficult part is securing and maintaining the customer’s confidence. MTM is a company that has the courage to invest in resources and the ability to mobilize those resources. Their “secret” is simple. To be successful they have to make their customers successful. |
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Revised: May 11, 2006.