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Operational Efficiency Monitoring metrics in the pursuit of continuous improvement is the model for success at Dixie Industrial Finishing.

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Page 1: platers profile Dixie Metal P P Profile Template#A117 USE THISdixiefinishing.com/wp-content/uploads/platers-profile.pdfZinc and tin plating Manganese and zinc phosphate coating Trivalent

Operational EfficiencyMonitoring metrics in the pursuit of continuousimprovement is the model for success at Dixie Industrial Finishing.

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“If you can’t measure it, then youcan’t manage it.” That’s the drivingphilosophy espoused by the folks atDixie Industrial Finishing, theTucker, Ga.–based surface finishingoperation whose dedication to finishquality and technological innovationis rivaled only by its relentless focuson operational management andmaximizing productivity. Informally referred to by the more

palatable acronym (“DIFCO”), the51-year-old Dixie IndustrialFinishing Company has a long-standing reputation as one of thelargest finishers in the SoutheastU.S. Specializing in zinc plating/elec-tro-galvanizing, phosphate coating,and tin plating—among otherprocesses—DIFCO’s combination oflarge part-size capacity tanks andreliably automated computer con-trols facilitates the production ofhigher volumes in a shorter timethan “most metal finishing facilitiesin North America,” the companyboasts. All this at competitive pricepoints not only regionally but glob-ally as well. But this is not a tale of grandeur

and scale. (Although, at 175,000total sq. ft. DIFCO clearly holds itsown.) Rather, it’s a study in theuncompromising level of detailedoperational analysis that goes intovirtually every aspect of Dixie’s busi-ness. From incorporating just theright mix of chemicals/additives inthe bath make-up, to the utilizationof water for rinsing vs. other applica-tions, to the impact of line speed,etc., each and every activity, process,system, and asset is measured and

tweaked according-ly. This ensures theplant is function-ing at optimumefficiency from amanu f a c t u r i n gstandpoint but alsocost-effectively interms of dollarsallocated to materi-als, personnel, han-dling, and mainte-nance. “We scrutinize

every aspect ofthese machines,”said Jim Jones,DIFCO’s vice presi-dent. This is madepossible, he says, via sophisticatedsoftware and programs employed ingenerating the various metrics.(Visual Shop1 and other informationprocessing systems together allow thedata collection. Visual Shop providesprimarily tracking information relat-ed to customers’ parts, while othersystems generate additional opera-tional and financial information.) Allof these systems together feed into areal-time, activity-based cost account-ing report system that compiles rou-tine data on usage of labor and rawmaterials in production terms (permachine cycle, per amp hour, per sq.ft); generates daily productionreports, i.e., surface area covered vs.lbs of parts finished; tracks all inputsand outputs; and sends reports to keydepartments and vendors. These seemingly endless reams of

information routinely rolled out bythe systems DIFCO employs is sim-ply mind-blowing. Via the sophisti-cated software and measurements

utilized, managers and supervisorscan isolate a host of variables, includ-ing: chemical and anode usage permachine; direct labor costs permachine cycle; maintenance andtechnical services time allocation;water consumption by specific pieceof equipment; and electricity and gascosts per process line. What’s more,DIFCO can run scenarios to see howa potential new job might impact thebottom line, changing variables suchas price, volume, and which processline to utilize, etc. The various met-rics can then be further representedas a percentage of sales dollar. All this allows DIFCO—originally

ISO-certified in 2002—to estimateprofitability, study performance andefficiencies, manage costs, and evencatch problems quickly. The minuti-ae of the reporting is a bit much totake in at first, but when you realizethe bottom-line impact on the busi-ness, it all seems well worth theinvestment in time, resources, and

BY REGINALD TUCKER

www.metalfinishing.com July/August 2011 I metalfinishing I xx

DIXIE INDUSTRIAL FINISHING4925 South Royal Atlanta Drive, Tucker, GA 30084Tel.: 800-893-6214 Atlanta OfficeTel: 706-342-2644 Madison Office Fax: 770-939-8106E-mail: [email protected] www.dixiefinishing.com

Number of employees: 62 Businesses served: Aerospace, Agricultural, Automotive,Construction, Defense, Heavy Equipment, ElectricalDistribution, Fastener, Outdoor Power Equipment, MaterialHandling, Transportaion Equipment

Primary suppliers: Atotech, Heatbath, MacDermid,PAVCO

AT A GLANCE �

Lawn mower parts, caster brackets, and electrical distribution components are just a few examples of the kinds of parts DIFCO can run through at high volumes.

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ongoing self-examination is theongoing reductionin water usage.Between 2007 and2008 DIFCOreduced waterconsumption by39%. Another eye-opening statistic:In 1998, the company used 36 mil-lion gallons of water in operating itsprocess lines for an average of 5 gal-lons of water per sales dollar; by2010, consumption had beenreduced to 5.2 million gallons for anoverage of 0.88 gallons of water persales dollar. Additional savings areachieved by reusing water in non-critical rinse applications. Again, according to Henderson, it

all goes back to the core metrics. “Weconstantly monitor usage to makesure we use just the right amount offresh vs. recycled water in ourprocesses,” he explained. “Thisallows you to minimize waste andlower costs.” And when you’re flush-ing through 150,000–200,000 gal-lons per week across the operation,an adjustment here or there canmake a big difference. DIFCO employs advanced technol-

ogy and analytics to boost produc-tion efficiency in other areas of itsoperation as well, namely its coreplating processes. This is due in largemeasure to the fact that the compa-ny’s in-house engineers design, fabri-cate, and install their own lines.Among the production gains andimprovements accomplished as aconsequence:

2007—Modified load-unload area ofhigh production process (Rack #5) toaccommodate flexible racking sys-tem. The combination of redesignedfixtures and racking area more thandoubled productivity.

2007—Designed, constructed andinstalled an automated, high-volumezinc barrel plating process line, withprogrammable logic controls (PLC),and laser positioning for hoist opera-

money. “Tracking the measurables allows

us to set goals and cascade themdown to all levels of the organiza-tion,” said Chris Henderson,DIFCO’s information manager. “Weclosely analyze operations, allocatelabor, and structure shifts according-ly. We’re always looking at the vari-ous facets of the operation and ask-ing the question, ‘Why?’ ”A classic example of the tangible

results DIFCO achieves through its

tion. Boasting multiple process selec-tions, this line—which replaced twoolder, less-flexible units—is capableof churning out 6,000 lbs of productper hour.

2009—Re-engineered plating rackson one process line (Rack #3) forhigher piece/part population, goingfrom 60 sq. ft. of surface area to 105sq. ft. of surface area per cycle—a 75%productivity gain.

2000–2004—Increased capacity onits rod-plating line by 260%, allowingDIFCO to be more competitive withimports and grow its market share.

2010—Re-engineered the rackingsystem of the rod-plating line (Rack#6) to increase productivity by 20%over and above the productionincreases that were implementedbetween 2000–2004. For DIFCO, the achievements rep-

resent much more than a list of cele-bratory milestones. They reflect anoperational mindset that puts theemphasis on consistently highacceptance rates. “Reject reduction +cost reduction = efficiency,” declaredJones in one of his signature expres-sions. The end result, he says, is areject rate of work (processed andshipped to the customer) totalingless than .001%.

LEAN AND GREEN On its own, DIFCO’s efficient, activ-ity-based system serves a model oper-ation for aligning costs withresources and output. But at closerinspection, you’ll find that there’s aalso symbiotic relationship betweenthe company’s approach to produc-

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xx I metalfinishing I July/August 2011 www.metalfinishing.com

CAPABILITIES & CERTIFICATIONS �

High-quality, high-volume rack & barrel processing (5 automatic lines; 4 manual process lines) Chromating of aluminumElectro-galvanizingZinc and tin platingManganese and zinc phosphate coating Trivalent chromating of zinc (clear, yellow, black) Stainless steel passivation Large part size capacity tanks ISO 9001:2008 Certified

DIFCO has the capability to mask parts for selec-tive processing.

DIFCO believes it’s very important to provide aclean, safe work environment for its employees.

Using the right amount of fresh water vs. recy-cled water is critical to controlling consumption.

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www.metalfinishing.com July/August 2011 I metalfinishing I xx

was when it entered the plant. That “green” thought process

applies to solid wastes, too. Forinstance, DIFCO regularly recyclescardboard, scrap steel, and contain-ers such as totes and drums.Additionally, the company sendssolid by-product (sludge cake) to anoff-site location for stabilization andneutralization. Typically, Hendersonnotes, 70% of waste is reduced to 30%waste after drying sludge. In recognition of DIFCO’s empha-

sis on green, the United StatesEnvironmental Protection Agencyin 2003 identified the company asthe model for an international tradetour to America. As part of thisevent, DIFCO hosted a delegationof Vietnamese government repre-sentatives studying the manage-ment of hazardous waste generatedat small and large facilities in thesteel industry. The company alsohosted a tour for Peru’s vice presi-dent, who is involved in manufac-turing in that country. As any finisher or chemical suppli-

tion and its overall environmentalphilosophy. The technological inno-vations DIFCO employs in its plat-ing and finishing methods are thesame advances utilized in facets ofthe business pertaining specificallyto environmental protection andresource conservation. Case in point: During a severe

drought situation back in 2007, thelocal governor’s office requested a“voluntary” 10% reduction in wateruse by commercial industries. AfterDIFCO reviewed its processes, itenacted a water-reduction use pro-gram that exceeded that amount byfive-fold. This was accomplished inpart by: using flow restrictors; pro-gramming solenoids to open onlywhen the hoist on the equipmentwas operating; regulating frequencyof rinse tank dumps; and modifyingplumbing infrastructure. Severalyears prior, DIFCO installed a high-tech micro-filtration wastewatertreatment system that, according toJones, ensures the water that leavesits facilities is cleaner than what it

er will tell you, environmental com-pliance comes at a premium, but forDixie Industrial Finishing it is wellworth the expense. “We made theinvestment so our customers wouldhave a great sense of security and sowe could sleep at night,” Jones said.“There’s also a sense of fulfillmentthat you’re doing the right thing.”The same can be said for the

lengths DIFCO goes through toensure the overall safety, health, and

PLATER’Sprofile A+ FOR ADVOCACY �If there’s one thing Jim Jones is

perhaps more adamant about than

quality plating, it’s advocacy on

behalf of the surface finishing

industry.

Jones is a perennial fixture in

Washington, D.C., a function

of membership in a variety of

manufacturer-oriented groups. He

presently sits on the boards of the

NASF, the Precision Metalformers

Association, and the Georgia

Association of Manufacturers. In

2002, Jones testified before the

House Small Business Committee,

and in 2009 testified to the effect

the automotive industry had on

other manufacturing sectors.

Dixie Industrial Finishing has also

hosted congressional tours of its

facility over the years, welcoming

Congresswoman Denise Majette of

the 4th District in Georgia. In addi-

tion, DIFCO•regularly participates in

the NASF Annual Washington Forum

in D.C. For its advocacy efforts,

DIFCO earned the 2004 Pete Grey

Award from the Georgia Industry

Association.

Chris Henderson (left), Information manager,and Jim Jones, vice president, review reportsfrom one of Dixie Industrial Finishing’s racklines.

Crunching the numbers. “Tracking the measur-ables allows us to set goals and cascade themdown to all levels of the organization,”Henderson says.

DIFCO increased capacity on its rod-plating lineby 260%, allowing the company to be morecompetitive with imports and grow its marketshare.

Dixie Industrial Finishing operates five automat-ed plating lines, including large part size capaci-ty tanks (13 feet long X 5 feet deep X 34 incheswide) that allow efficient processing of parts.

Jim Jones, DIFCO vicepresident, presents the2004 NAM VotingExcellence Award toJohnny Isakson (right),former Representative(R—6th District). Sen.Isakson’s NAM votingrecord was an exemplary100% in the 110thCongress. In addition,Sen. Isakson workedclosely with NASF•on theChrome PEL issue.

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well being of its employees. In illus-tration, Jones recalled the storyabout how an inspector toured hisfacilities during a routine ISO audit.While Jones was eager to take the vis-itor straight to the plant, the inspec-tor first asked to see some of thecommon areas (bathrooms, kitchen,etc.). “If you are taking care of thoseareas for your employees,” theinspector told Jones, “then it’s likelyyou are also taking care of the opera-tional aspects of your business.” Andhe was right. DIFCO’s workman’scompensation modification rate was0.84 for 2010 (and falling). It’s alsoworth noting that the average termof employment for all employees atDixie Industrial Finishing is 131⁄2years. Attributes such as these helped

DIFCO earn the 2005 Manufacturerof the Year Award (SmallManufacturer Category). For thosewho nominated the company for the

coveted honor, the justification isabundantly clear. “Dixie Industrial Finishing is rec-

ognized as a valued and respectedpresence in DeKalb County,” statedDr. Robbin Hoffman, president ofDeKalb Technical College. “Its cus-tomer base includes small, medium,and large manufacturers who, inturn, supply parts to large automo-tive manufacturers and other globalcompanies. Many large companiesuse the parts plated by DixieIndustrial Finishing in the produc-tion of goods distributed through-out America. Dixie consistentlyproves to be a leader in corporateresponsibility, economic impact, andworkforce excellence.” In addition, Dr. Hoffman notes,

DIFCO boasts a multi-national,multi-cultural workforce and pro-vides company-funded English as aSecond Language (ESL) classes tomore than 20% of its employees. The

company offers in-house computersoftware and keyboard training forits employees, encourages them toattend job skill seminars, and offersreimbursement for tuition expens-es. “As a local business leader, Dixieis an advocate for education andsees the need for technical trainingprovided by DeKalb TechnicalCollege,” Dr. Hoffman added.“Dixie Industrial FinishingCompany genuinely cares about itsworkforce family and community.”Good corporate citizenship, tech-

nical wizardry, green focus, and ana-lytical prowess aside, DIFCO’s suc-cess and continuous improvementessentially hinges on a genuine“team spirit” and the fact that allemployees—from production lineoperators, to management, toporters—take a strong sense of prideand ownership in the company. Onone end, supervisors are continuallychallenged to boost quality and pro-ductivity, while performance-basedincentives aim to motivate andreward line workers. At the end of theday, everyone comes together toachieve a common goal: operationalexcellence. Jones, in another of his parabolic

catch phrases, smiles and states sim-ply: “All of us are smarter than one ofus.”

REFERENCES1. Visual Shop from CornerstoneSystems, Inc. (CSI) is a customiz-able software system that allowsfinishers to measure a variety ofvariables and perform differentfunctions, including: productionoptimization, quality assurance,cost/benefit assessment, quota-tions, order invoicing and track-ing, among other aspects.

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The quality is in the finish, says Jim Jones, vicepresident, Dixie Industrial Finishing.

DIFCO engineers design, fabricate and installtheir own equipment, including this line dedi-cated to processing bulk parts.

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