AERCO International Achieves Goal Through 5-S Project
AERCO International, Inc., of Northvale, New Jersey, is a manufacturer
of gas and steam-fired hydronic boilers and water heaters. With 106
employees, the company is known by HVAC and plumbing engineers
worldwide for its innovative product designs, a renowned manufacturing
process, a strong reputation for consumer education and a solid network
of sales agencies.
Although AERCO had long been
recognized as a reliable manufacturer of high quality and innovative
products, President Fred Depuy contacted NJMEP in 2002 to obtain
assistance in achieving his goal of establishing AERCO as a world-class
company. His plans entailed increasing overall quality of the product
line, improving operations, bolstering operational safety and expanding
the product line worldwide.
As a starting point, AERCO
managers visited the L.A. Dreyfus Company, which had recently completed
a successful 5-S project with NJMEP. During these visits, the managers
benchmarked specific elements of the Dreyfus operation. The principals
then determined that the Dreyfus model would be extremely useful in the
AERCO project, and thus decided to establish it as the foundation for
quality improvement and implementation of NJMEP’s Quality Management
System.
NJMEP performed a Quick View Assessment of AERCO
to obtain a “snapshot” of operations. Based on the Quick View results,
NJMEP instituted a 5-S program led by two highly qualified
trainer/consultants specializing in 5-S. The trainers developed a solid
understanding of AERCO’s goals and overall culture, and connected well
with the entire AERCO team. NJMEP also participated in each 5-S
training class, and provided input and support to the 5-S activities.
The 5-S program was followed by a Root Cause seminar, conducted by
third party resource Prism eSolutions, which taught employees the
methods used to identify the true cause of a problem. Following AERCO’s
plan, this led to the implementation of a Quality Management System,
which currently is in the procedural and process mapping stage. NJMEP
also aligned AERCO with E Prism as a training consultant and provider
of project management software designed to support the Quality System
implementation.
Throughout the project, the NJMEP field
agent worked closely with AERCO to determine the company’s goals,
desired time frame and budget. The agent prepared the proposals,
obtained and processed the order, selected the most suitable resources,
and managed the project to ensure effectiveness, professional oversight
and on-time, successful completion.
The AERCO project,
implemented over a period of months, achieved and, in some cases,
surpassed its goals. AERCO’s participation in the 5-S training was 100
percent. The company committed to – and succeeded in – sending over 75
percent of its team to the benchmark visits, many of which were
arranged and supported by NJMEP.
The project had a
positive outcome for the entire AERCO team. The operation is more
efficient and safety has improved. The 5-S implementation is being
utilized as a sales team support tool in selling AERCO’s product line.
Prospective customers now deal with a more organized, cleaner, more
efficient operation. This positive image has helped to bolster sales
and solidify company morale.
According to the NJMEP
field agent, AERCO is unusual in the commitment of its personnel in
acting as a team. 5-S proved to be an excellent tool to foster a
positive team environment. Even all members of the management team
scrubbed, painted and worked their way through the entire 5-S process.
The extent of benefits realized by the company’s participation in this
project can largely be attributed to this extraordinary display of
teamwork.
AERCO is now focused on implementing its
Quality Management System over the next six to nine months. This is an
essential support component to AERCO’s aggressive growth plan. NJMEP
will provide support through training as necessary.
For
the future, AERCO plans to continue its partnership with NJMEP on the
addition of new training programs and skill sets. AERCO also will
provide potential NJMEP clients with access to on-site training
overviews and facility tours to highlight how 5-S works in “real world”
application.
AERCO has defined its Ideal State of
operations according to the following principles: Safely produced;
Defect free – zero defects; On demand: to every internal and external
customer’s needs; No waste in our operation; and One piece flow: 1 x 1
through each process.
In reviewing the joint NJMEP/AERCO
undertaking, AERCO President Depuy said, “The project was aggressive
but well managed, and the overall operation is a much more efficient
and safer environment to work in. It is the foundation to the
implementation of our Quality Management System,” he continued, “and
improving the overall quality of processes, products and services to
both our internal and external customers.
“NJMEP is an
excellent organization to work with” Depuy assessed. “They provide a
wide variety of training and services. They provide a network of
contacts to support manufacturers in that journey to improve your
business.” In summary, he concluded, “It was a positive experience – a
“win-win” experience for both teams!”
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