Less is More

Ergon Case Studies in Business Improvement

“More” is not always better. Too much of anything in a work environment can often mean waste – in work-arounds, misplacements, spillage, damage, breakage, delays, or even wasted time, often spent searching for what you need. Here are some examples of change-for-the-better noted at Ergon facilities in streamlining and organizing, making their operations more efficient. The ironic truth in simplifying is that they now accomplish more – working more productively, more effectively, more safely, and more economically.

Ergon Asphalt and Emulsions, Inc. – Ennis, Texas
“I’ve been at this plant over 13 years and have seen a lot of change. A previous owner was concerned in 1998 about losing customers and realized it was because they were losing focus. The managers read a little book titled, Who Moved My Cheese? about resistance to change, and companies who don’t evolve and change often go out-of-business,” said Tony Doblado, Plant Manager. “Our transformation started out quite small, we picked a small project – just a supply room that had become a congested ‘catch-all,’ which took too long to find anything,” added Tony, taking an annoyance and turning it around to a solution.

Once it was organized into a useable area where everyone could find the contents, they picked other areas to overhaul, and eventually the whole plant was transformed, section by section. “We made two categories: Keep and Discard. Everything that we kept was organized and labeled,” described Tony. “What surprised me most was that the employees who seemed least involved and the ones most resistant at the start became our biggest champions, who really stepped-up and took charge in related jobs, after seeing how much difference we were making.” Mr. Doblado said the formula has worked for them: Start with small, manageable steps; make it a team effort, and keep going. “The momentum will surprise you. Our Lock Out/Tag Out (LOTO) program is exemplary, I think, with a reason matrix for every piece of equipment, a related operating procedure, a job hazard analysis before each LOTO, pre/post meetings, and even employee photos on the locks for instant traceability,” he summarized.

“It has certainly impressed visitors, not just internal Ergon customers and colleagues, but external customers like the new roofing plant opening down the road. That company’s plant manager and engineer came by for a tour and are very eager to do business with us now that they’ve seen how we work, the efficiency and environment in which we operate,” he said, “Now we plan on being their newest supplier. I come from a background of companies who believed in training and supported me in developing employees and a good work atmosphere,” said Tony, who also built diversity training around the 1957 film, “12 Angry Men”, starring Henry Fonda, Lee J. Cobb, and E.G. Marshall, after he noticed some “don’t know/don’t care” behavior developing. “Our employees are a diverse group, from all types of backgrounds and cultures. The keystone for us was getting, then showing respect for each other, and focusing on the strengths that each of us brings to this plant. That range has made us a great team. The employees know that each of us must manage these operations, that each of us ‘owns’ what happens here, and that they are the most valuable asset to our success.” There’s a phrase by Senator Slade Gorton that Tony knows by heart and acts upon continually, “Culture is forever. To change hearts and minds and the attitudes individuals have toward their jobs is a difficult and human task and is never complete.”

ErgonArmor – Kansas City, Kansas
According to Sam Engleman, Assistant Manager for ErgonArmor, “I’ve seen more change here in the last year than the previous seven combined. We have moved worlds ahead of where we used to be regarding inventory management. With the use of a pervasive SQL (Structured Query Language) database, Macola, for inventory management, we have standardized our operations to an unprecedented level. SAP has been another system helping our operations. We continue to improve these standards as we take on future challenges, working to satisfy new and existing customers’ needs.” while describing the more traditional manufacturing environment of ErgonArmor that includes production throughputs and product packaging before shipping.

Sam commented, “Another vast improvement has been the employee and management training. Ergon’s Systems and Performance Improvement Department (SPID) and training departments have worked diligently with our facility personnel to devise customized processes and procedures that are unique to our operations. These were never in place previously, and have made a big difference.”

With a good range of perspectives from being in the business 14 years, Mark Berthold, Plant Manager, has worked with different business philosophies and manufacturing methods. “For us, too much floor space and too many dollars were tied-up in Inventory. With this new business strategy, we’ve spent the last year cutting back and streamlining, which we found necessary not only for ourselves but also our suppliers,” Mark explained.

In their most recent project, Mark described working with Ergon’s corporate offices to downsize raw materials and finished goods inventory. “We met with vendors, which is critical to form a successful game plan,” explained Mark, “setting up parameters to create a ‘Win-Win’ approach that now gives more reliable schedules to vendors each month, better forecasting for the facility, and the flexibility of multiple-item deliveries on the same truck. Since adapting this new strategy, we’ve slashed Inventories by 30%, saving a little over $500,000.00.”

“Yes,” agreed Johnny Pyles, Operations Manager, “Reducing inventory has been one of our ways of eliminating waste, which is more than just reducing scrap. It also includes reducing wasted time, floor space, efforts, and motion.” Johnny praised the Kansas City team and the corporate Procurement Department for working with suppliers to reduce minimum lot shipments with guaranteed delivery times. “The Kansas City team along with SPID worked smart in authoring new operating procedures, process and workflow mapping, along with implementing a 5S approach to workplace organization and benchmarking the Ertech quality database to our operations and business.” He elaborated, “They’ve accomplished an incredible set of outcomes in a brief span of time, and far exceeded what I thought possible.”

Mark defines the project with credits, “The people here have worked hard to ensure this and other programs are successful. They understand the concept behind our improvements and buy-in was immediate. Together we’ve built an operation that is based upon trust, integrity, and respect for each other. Becoming aligned throughout our business has allowed for a huge change to be welcomed and successful. Our greatest attributes have been flexibility and a desire to overcome challenges. This team is versatile enough to go from designing complex mixing and packaging systems to actively partnering with customers in making the best products possible – this team that’s comprised of ErgonArmor, operations, sales staff, Paragon Technical Services, and the corporate offices like SPID, Procurement, Engineering, and Environmental, Health & Safety.” “After all,” added Johnny, “providing the highest quality industrial coatings and adhesive products is our core value, shared throughout the organization. The best way to accomplish that is by continual improvement of our products, processes, teams, strategies and resources.”