Learning by Example: NJ Manufacturing Success Stories (Part 4)
In business how does growth occur? For some it occurs by mere good fortune but for others it occurs by design. Growth occurs in some cases from noticing and acting upon emerging trends or calling in experts for a second opinion even when a resident expert already exists. Growth could depend on a strategic plan to achieve organizational goals. Here are tangible examples of how NJ manufacturers have embraced growth through various initiatives:
Sabert Corporation: New Processes and Procedures Improve Packaging and Competitiveness
About the Company: Sabert Corporation is a global leader in the food packaging industry designing, manufacturing and distributing solutions for displaying and serving fine food. Its headquarters are located in Sayreville, New Jersey where it employs 248 people. Additional domestic offices are located in California and Kentucky with foreign offices located in Belgium and China. The company was founded by a young visionary who saw how changing lifestyles would dictate food choices. He launched the company from his apartment with his own modest savings.
Challenges: The company grew exponentially and experienced several challenges. As the company grew, employee skills as well as communication between employees and management needed to be improved. Inefficiencies created low productivity and long changeover times. Even though Sabert had a resident Six Sigma expert, management still chose to work with NJMEP to help correct these problems.
Solutions: A plan introducing Lean manufacturing was proposed and accepted. Sabert was also identified as an excellent candidate for a NJ DOL Customized Training Grant. NJMEP assisted with the application and administration of the grant making the entire process cost effective.
Results: Over the course of a year 107 employees were trained in the principles and tools necessary for transitioning to a Lean organization. Courses included:
- Implementing quick changeover
Quality at the Source Tactics
Implementing 5S for Workplace Organization
Financial benefits of Lean
An independent group was surveyed 6-12 months after completion of the project. Sabert reported the following results:
Achieved 2% in cost savings
Increased sales by 9.3%
Hired 10 new employees
Invested $75,000 in workforce development and $500,000 in new processes and products
EMI Industries NJ/Marlo Division: Food Service Manufacturer Includes Safety Compliance Training in its Overall Improvement Plan
About The Company: Marlo Manufacturing opened its doors in 1971 and was acquired by EMI Industries in 2012. The company was founded by two men who worked together for many years for a major national fabricator of stainless steel equipment. EMI Industries is an award winning metal and millwork manufacturer of standard and customized fixtures, displays and restaurant equipment. The Marlo Division employs fifty-five individuals, has $9M in sales and has equipment that can be found in national food industry giants such as Panera Bread, Chipotle, Starbucks and Wawa.Challenges:” The company was interested in making operational changes and wanted to grow the business. It needed an improvement plan to achieve the stated goals. The results of a Quickview Assessment recommended the introduction of Value Stream Mapping, which helped identify production and process waste. It also needed to conduct OSHA Safety & Compliance Training because the company’s Hazard Communication plan, the necessary PPE Assessments as required by OSHA.
Solutions: NJMEP helped the company apply for the NJDOL grant providing training for its Lean transformation. An effective HAZCOM program was developed as employees were included in the safety and health decision making process. Employees received job specific training and all employees received OSHA training.
- Cost savings of $240,000
- Invested $100,00 in new processes
- Retained 6 employees and hired 6 additional workers.
- Saved $46,000 in training costs
- Invested $130,000 in workforce practices
Davion Inc.: Personal Care Product Manufacturer Grows Bottom Line through R&D and New Markets
About the Company: Devon Inc. manufactures and distributes products from two facilities in New Jersey serving domestic and international markets. Both New Jersey locations are capable of manufacturing shampoos, body washes, bubble bath and numerous other personal care items. The company continually invests in new product development to find new ways to expand its client base.
Challenges: Davion Inc. faced two challenges. First they needed to take advantage of R&D tax credits but information needed to be compiled regarding processes and expenses before completing the application. They also needed to reap the benefits from ExporTech which would help them understand regulations and increase their exports into new markets
Solutions: To achieve both goals the company worked with NJMEP and compiled all of the required information and identified all of the qualifying activities for the tax year. Items such as expenses attributable to the identified research and R&D processes were compiled. After all information was gathered NJMEP provided Davion an R&D Tax Credit Study.
Results: As a result of Davion investment in learning about R&D Tax credits and participating in ExporTech the company saw many benefits.
- Identified over $2.5 million in qualifying research expenses over a four year period.
Qualified for over $300,000 in Federal and State tax credits in that four year period
Invested $550,000 in new products and processes and reported $5,000,000 in new sales.
Learned the do’s and don’ts of doing business internationally
Read the rest of the story here.
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