The TPR is pleased to present the following case study feature
about Byrne Tool & Die, a Rockford, Michigan-based company
specializing in the manufacture of small and mid-sized injection
mold tooling. Byrne characterizes itself as a small but very
progressive company that’s meeting the challenges of global
competition, and we talked with General Manager Tim Warwick and
Project Manager Andrew Baker to learn more.
What is your
company niche, and what does your company do that is notable,
unique or different?
Byrne
Tool specializes in fast, low-cost small- to medium-size plastic
injection molds. We support the entire life cycle of bringing
plastic components and assemblies to market. From product
development to mold repair and secondary fixturing we try to become
our customers’ department for tooling.
Our biggest differentiator is our
lean culture and customer service. We feel we are a very
progressive company embracing lean in our industry. We have seen
tremendous results over the past 5 years with a rise in sales of
100% with decreased overhead and increased profitability. We
wanted to brand Lean as our own brand so we gave it a new name and
branded it as CSM which stands for Common Sense Manufacturing. In
Lean Manufacturing, “Best is the enemy of better”. Instead of
working on continual improvement when we have time, we take the
blitz approach with lean and do eight CSM events a year, each
lasting 3 to 5 days. Team members are selected from different
areas and an event map is created with specific goals. Following
an event a “results achieved report out” takes place and is
presented to the entire company, with an opportunity for other
employees to give their feedback. We go after areas of waste and
improve operations on an incremental basis – and we get immediate
results.
We focus on reducing our overall
lead time and eliminating the non-value that makes up 70% of the
overall lead time. The customer is only paying for us to remove
chips from the steel, which is the only value-added process in the
lead time and that averages 30-40% of our overall lead time. The
rest of the time is spent on activities like purchasing, design,
programming, electrodes, logistics, lineups, detail drawings etc.
These are the non-value activities that we try reduce to improve
our overall lead time on. By utilizing CSM we have reduced our
overall lead time 35% over the past 3 years.
Another differentiating factor is
that we have a self-directed workforce and not one incorporating
hierarchy. We have had our employees participate in DISC testing
and training to provide our teams with a better understanding of
their own behaviors and emotions as well as that of other team
members. This has really helped with collaboration and
accountability amongst the team. There’s a definite sense of family
here and there’s a total buy-in when it comes to how to work and
improve on everything. We do a lot of team building that includes
quarterly events with activities like bowling, poker nights, trade
shows and Habitat for Humanity. With Habitat for Humanity, we take
the entire company to volunteer a day to help build a home for
someone in need. It’s proven to be very rewarding and indirectly
enhances our own lives and work environment. The team loves it.
Our focus is to empower our team to succeed in everything they do,
both personally and professionally, and to continue that success
for the rest of their lives.
We don’t want to be a company that
just builds tools. It’s that other value-add
and overall customer experience that we really focus on. We also
do product development on items that are not just plastic, but also
metal and die cast. In addition we have micro welding and
fixturing capabilities and we target companies that have a niche
product in an industry that might be growing.
When and how did
you get into the industry, what attracted you to it?
The
company started in 1974 as a small, captive
machine shop. We have grown steadily over the years and
relocated once. The ability to bring people’s ideas into reality
really is what has stimulated the company over the years.
Tim – Our owner Norm Byrne owns over
110 patents. His whole background is really molding and tooling.
It’s what has helped him develop all of these products and that’s
how we were mentored. For me, I went away to business school, but
after two years, started an apprenticeship here at Byrne Tool.
When our old general manager took another job, I was in the right
place at the right time and took his place in 2001. Andy and I make
a great team. He’s the technical one and what I bring is
progressive business ideas to the company. It’s still important to
have a love of the craftsmanship that goes into what we do, but
moving forward with automating and progressive manufacturing
methods is critical. We want our
team to develop and we try to serve them so that they are the best
at what they do. Now our culture is one where the guys are pushing
change instead of fighting it. For us, if we are getting too
entrenched in our comfort zone, we have to pull ourselves out and
challenge what we should be doing differently. It all comes down
to philosophy and how to execute around it, plus knowing how you
are monitoring and measuring it.
Andy – I started out in die casting
in 1993. I was working on a production line and then got into the
tool room at a local die cast company. About a year later, I left,
got into plastics and worked at a couple of mold
shops before landing at Byrne Tool in 2000. After about six
months, I moved into project management and sales. It was about a
year later that Tim became the general manager. I met Tim when I
started at Byrne and as it turns out we make a great team.
Relate a notable
"best time" for your company (can be more than one).
2008 – We experienced a 25% increase
in sales! In addition, there was no additional overhead or hours
worked. It’s one of those things that make us cautiously
optimistic for the future. It was a great year for us. 2009 will
be more challenging, but we’re excited about it. We have a vision,
but we always evolve based on the dynamics of the environment we’re
in, both internally and externally.
Similarly, relate
notable challenges that your company has overcome.
One challenge is getting our
customers the information they need as soon as possible. Our
customers have their own day of the week when we provide progress
reports to them.
Sometimes it would take a lot of
extra time trying to track each other down for the reports, so we
developed a custom web-based portal that really offers a complete
program management interface for our customers and us. It includes
job info, job history, job details, emails about the job, job notes
and real time progress reports. The greatest thing for the
customer is to be able to download progress reports to send to
their customers whenever they desire. This allows behind the
scenes access to the information they need, saving time for both of
us.
Once the job is complete, there is a
built-in search engine available in case they have engineering
changes and updates down the line or they just want to access
information related to the project. We absorb all the costs, and
it’s a strategy that lets us add value to what we do for our
customers and it’s a way we can integrate and work more closely
with them.
Also, with this portal, we are able
to mine sales information for our own use. We drive all of our
sales metrics with it. Reports are all automated and delivered
monthly based on the data we enter each day.
When you are
working on projects with your customers, what aspects would you
like them to better recognize?
Tim – We have a very unique
relationship with our customers. We are very blessed to have formed
very strong relationships with them. We often receive unsolicited
positive feedback and feel very valued by our customers. Throughout
the course of the projects our customers are engaged and
participative.
Most of our customers already
understand what we’re capable of. With new customers, however,
we’d want them to know we can work very effectively with them on
the front end to create more effective and better quality products.
ANDY – We’re pretty transparent.
Our customers know where we stand with them and they know what we
can do for them. We’re able to communicate with them very openly.
We deal mainly with Tier 2, privately owned companies with cultures
similar to our own. It’s very much a partnership situation and
we’re very
lucky
to have that.
List newly
acquired technology, machinery or key personnel (in last year).
Most recently, we purchased a new
OKK vertical machining center. About once a year we’ll purchase
new equipment, minding our overhead costs very closely.
Has your company recently
expanded? Plans to expand or form partnerships/alliances?
-
Expanded in 2006 by adding 2,200
square feet.
-
Renovated all offices and painted
entire facility in 2008
-
Formed a partnership in Asia for
commodity type projects in 2007. There are some projects we’re
just not going to get, but our customers feel better knowing
we’re there to help manage them and they can still gain
advantages via this source.
-
Joined a Michigan Tooling Group
Collaborative 2005 – There are 15 other companies in this
collaborative who are in various sectors of manufacturing. It’s
a support group for sourcing and overflow work; plus we use it as
a tool to gain larger projects from OEMs. It’s a 15-year
collaborative and we’re still working things out, but it’s
definitely been educational and a benefit to everyone involved.
We meet monthly and help each other out with various issues and
have even purchased health insurance together. There is also
tax-free status for the 15 years, too, which has helped us in
various ways including enabling us to buy equipment.
Are you involved in any industry
organizations or educational programs related to the trade?
Andy serves on the board of both the Western MI Chapter of the
American Mold Builders Association (AMBA), and the Michigan Tooling
Group Collaborative. We’re also involved with the Institute for
Supply Management (ISM), the Grand Rapids Chamber of Commerce and
the Rockford Chamber of Commerce.
Editor’s note: See this week’s Market Monitor for the ISM’s
Manufacturing Report On Business.
What do you think
about changes occurring in the industry due to globalization? How
has it affected the way you do business?
I
think the changes have caused multiple ripples throughout the
industry depending on your customer’s product sector and the type
of product you produce. Obviously a commodity type product and/or
service are not the areas to be working in. It’s very difficult to
create any value for your customer above and beyond supplying the
product at the lowest possible price. For us, we have taken a very
intrinsic look at our organization and have channeled the
globalization into energy for driving out waste and improving
efficiencies. Globalization has also caused us to rethink our old
business and sales strategies by targeting specific product sectors
and types of customers that we can provide more value and services
to, like niche manufacturers in
progressive industries. Our corporate culture has transformed over
the past six years from a hierarchal structure with traditional
methods to a flat, self directed work force with progressive
methods of production. Globalization has forced us to go Lean to
survive. “Local Partner Global Value” is what we strive to
provide.
What will the
industry look like in 3 to 5 years?
We are positive and think there is
great opportunity for us. We are cautiously optimistic for the
coming years. We think as long as we stay true to challenging
ourselves we should be fine. Hopefully governmental policies will
change and there will be incentives for US companies to stay
domestic with their tooling needs. We hope to reinvest again in
the coming years and hope to have 10% growth for the next 3 years.
Additional Background Information:
Number of years in
business: Founded in
1974
Current number of employees: 15
Current square
footage: 8,000 square feet
Additional
locations: None at this time.
Website:
www.byrne-tool.com
Types of tools built and/or run: Plastic injection Molds,
Die Cast Molds, Fixtures, Automation, Repair, Engineering Changes
and Specialty Machining
Industries served: Auto, Medical, Office Furniture,
Aerospace and Consumer Products
Contact Information
Byrne Tool and Die, Inc.
316 Byrne Industrial Drive
Rockford, Michigan 49341
Phone: 616.866.4479
fax: 616-866-4575
Email Andy Baker at:
BakerA@Byrne-Tool.com