Quality
Management Helps Mohawk Electrical
Strengthen its Bottom Line
By Robert J. Hartman
After surviving the sluggish economy of
the past few years, most manufacturers would eagerly invest time and
other resources to quickly respond to requests for proposals (RFPs), and
then anxiously wait for the result. Savvy manufacturers such as
Mohawk Electrical Systems do this and much more.
Mohawk analyzes new
business opportunities and invests resources as appropriate in order to
grow and to substantially improve their bottom line. The company
recently received RFPs from two large prospective customers located
halfway around the world. Although Mohawk's management team was
eager to gain the business, they wanted to be certain they could stand
up to global competition and meet all customer requirements.
For almost 40 years,
Mohawk has been making electrical cable and harness assemblies,
electromechanical assemblies, elastomeric and plastic moldings, and
printed circuit board assemblies in Milford. Today, with 33
employees, the company provides prototyping and pilot production,
build-to-print manufacturing, in-house tooling design and manufacturing,
and design assistance.
Mohawk's customers
typically require high quality products for demanding applications, from
cable assemblies and printed circuit boards for medical instruments, to
power supplies for fiber optic modems, cord sets for electrical blasting
caps and harness assemblies for radar systems.
Although Mohawk sells to
many local and regional customers, such as Dade Behring, ILC Dover and
the US Department of Defense, opportunities for substantial growth are
emerging in other parts of the world.
Although these recent
sales opportunities were good new for Mohawk, they brought with them a
new set of operational challenges.
OPERATIONAL CHALLENGES
The two new international
contracts were not only large, but they were also demanding. They
called for consistent, on-time delivery of products that met clearly
defined specifications, and they required Mohawk to acquire ISO
9001:2000 registration from the International Organization for
Standardization (ISO).
Mohawk management knew
operational changes would be needed to meet customer demands.
"Achieving sales growth of more than 20 percent per year while
maintaining or improving profitability requires careful planning and
effective execution," says Scott Welch, Mohawk president.
After reading the initial
RFPs, management knew their production capabilities would be tested.
"We had to quickly earn ISO registration, and we had to streamline
operations to improve productivity and increase throughput," says Welch.
Management realized the
company could not do the job alone. About 80 components are
required for molded and bridged assemblies for the devices Mohawk
supplies to one of its new international customers. "Some of the
production technologies needed to fulfill customer needs were beyond our
capabilities," says Welch. "We needed to build partnership
relationships with selected manufacturers and we needed to manage the
relationships to ensure that quality products would be delivered on time
and on budget."
To supplement their
capabilities, the company partnered with several other Delaware
manufacturers, including Atlantis Industries, Inc. in Milton, Clariant
Corporation in Milford, and First State Manufacturing in Milford.
"Outsourcing is a critical element of our growth strategy," says Welch.
"Although quality is a key factor in our selection criteria for
partners, working with outside suppliers presents additional quality
management issues."
All these changes required
a commitment of substantial resources, Welch continues. Overall,
they believed the time and money invested would strengthen the company
and help position it to thrive in the future. When Mohawk was
faced with these major challengers, they knew where to go for help.
FINDING SOLUTIONS
Welch had previously
worked with the Delaware Manufacturers Extension Partnership (DEMEP) on
several projects to strengthen Mohawk's business. He called on Kim
Kilby, DEMEP manufacturing specialist, for help.
"We addressed Mohawk's
challenges by establishing a quality management system that included ISO
registration," says Kilby. To make certain Mohawk's quality
initiative met all their needs, the DEMEP partnered with Linda Bankoski
of Quality Leadership Associates and Kathleen (Kit) Eisel of Quality
Performance Services, Inc.
"Linda and Kit worked
closely with the Mohawk staff to design, develop and implement a quality
management system that would meet all the requirements for ISO 9001:2000
registration and would help prepare the company to compete globally,"
says Kilby.
THE RESULTS
Twenty-one Mohawk
employees participated in ISO 9001:2000 training and four additional
employees were trained as internal auditors. As a result of
Mohawk's quality management initiative, the company is reaping the
following benefits:
Increased Sales -
Mohawk has already enjoyed a substantial increase in sales during the
past year. As a result of its ISO 9001:2000 registration, the
company has locked in two substantial new sales contracts, and it has
opened several sales opportunities with prospects in the U.S. as well as
in other parts of the world. "Based to a large extent on the
widely recognized benefits of our ISO registration, we forecast an
additional 20 percent increase in sales each year for the nest two
years," says Welch. "We expect this success to generate momentum
for continued growth in the following years."
Improved Quality -
"By establishing performance metrics and implementing the company's new
quality tracking system, Mohawk is holding its suppliers accountable for
quality," says Kathy Cooper, Mohawk's quality assurance supervisor.
"In one case, we concluded that a major supplier could not meet our new
quality standards, so we developed a partnership agreement with a more
reliable source." The company's quality tracking system not only
monitors supplier quality performance, but it also detects in-house
non-conformance, and labor and material cost estimates versus actual
costs.
Improved Productivity -
By applying quality management techniques, Mohawk has reduced
in-house reworks from about 10 percent to approximately 5 percent.
Further reduction of reworks is expected within the next six months as
more production experience is gained with the quality management system
and with the new products. Manufacturing process times were
reduced by more than half, from three to four days to one to two days.
Floor space in several areas was reduced by 20 to 50 percent, allowing
Mohawk to increase capacity.
Project management and
scheduling has become much easier because procedures are documented,
work processes are standardized and quality issues are identified
earlier in the process.
Improved Employee
Performance - Skills training prepared workers to make more
decisions independently. Cross training provided depth and a more
flexible work environment because employees were prepared to assume
several responsibilities. Improved communications and a sense of
urgency across the company provided a strong team atmosphere.
"This was particularly
noticeable when all employees were involved in the company's effort to
obtain ISO 9001:2000 registration," says Welch. "We all had a
short timeframe to fulfill the requirements of the new contracts.
As employees completed quality management training, they became more
comfortable and confident that they could assume the new roles and
responsibilities needed to meet increased demand. Employees took
the initiative to assume responsibility for production lines."
"Although establishing our
quality management system was challenging, there is no doubt our company
is in a stronger position to grow," says Welch. "As a result of
our quality management initiative, productivity is improving, sales are
increasing, costs are decreasing, and our employees know that Mohawk is
moving toward a bright future."
Mohawk is well along its
way toward substantial, sustainable and profitable growth, and its
employees are committed to continuous improvement. "Our next major
initiative will be to assess opportunities to apply Lean Manufacturing
techniques that will help prepare us to compete in additional industries
and in other countries to further expand our business," says Welch. |
