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The TPR interviewed Jay Honsaker, President of Design Molded
Plastics, Inc. in Macedonia, OH. DMP specializes in custom plastic
injection molding and labels itself a “customer-driven company”
with an emphasis on high quality workmanship and high
quality results.
What
is your company niche, and what does your company do that is
notable, unique or different?
We
are a Custom Injection Molder that services many industries
including, small appliance, medical equipment, sports equipment,
automotive component and agricultural packaging. Our diverse
customer base provides for consistent sales volume throughout the
year. We do not experience high and low peak cycles due to this
business strategy. Our niche is “QUALITY”. We ship over 50
million engineered components each year with a 5.8 sigma level,
considered by many as “World class quality”. Our quality goals are
set at 0 PPM. We are ISO 9001:2000 registered and work diligently
at becoming the “Best of the Best”. Our culture here breeds
quality and consistency; we accept nothing less. Although we are
not unique by nature as a custom injection molder, we do operate
vastly different than our competition. To give one example, we
offer same day shipment from one box to an entire truckload. Our
philosophy, which provides the foundation to our ability to service
our customers’ delivery requirements, is to carry a minimum of 30
days of finished inventory for every customer. I know this breaks
all the rules about lean manufacturing methods…but it works and at
a surprisingly low cost when compared to the high capital cost and
personnel required for Lean Mfg. Also you must take into
consideration the risk associated with missing a delivery and
jeopardizing the customer and the relationship. The greatest risk I
see with Lean Mfg methods in this business is a catastrophic mold
failure. Molds can take several weeks to repair if such an
occurrence should take place. We simply will not take that
chance.
When
and how did you get into the industry, what attracted you to it?
Design Molded Plastics was incorporated in April, 1985, by its two
principles, myself and Diane Hanson, our Secretary -Treasurer. The
attraction conflicts with all business models. I simply was
intrigued by the molding process. Here is what I say to those who
ask…if you
love what you do for a living, then you don’t work a day in your
life!
Relate
a notable "best time" for your company.
We
have enjoyed many. Probably the first was in 1987 when we received
our first quarter million dollar account. The second most notable
was when we built our 34,000 sq foot (at that time) molding plant
in 1995. Perhaps lastly, a best time was when we hit the $10
million sales goal in 2004. Our growth has exceeded 16% per year
over the last 5 years and, considering the attack on the US on 9-11
and the repercussion it had on our economy, we are very proud of
that.
Similarly, relate notable challenges that your company has
overcome.
Our
challenge is to identify customer needs and then develop methods to
service that need. We found our customers’ greatest need was
engineering support with injection molded part design. The most
notable customer challenge that we were able to meet involved a new
innovation that a company, which specializes in commercial and home
building applications, had failed with. Without divulging the
company name I will be as
concise
as possible. To set the tone, the (at the time) prospective
customer was dealing with having its newest ($20 million) plant
shut down due to its then current molder’s inability to make a good
part. One of our customers that we’d already proven our
capabilities to in terms of part design and part production was
good enough to refer us to the company and suggested they contact
us. With that said, we had a meeting at our facility with the
prospective customer that same day, as they happened to be in
Cleveland. We flew out the following week to visit their facility
and speak with engineering and purchasing. When we sat down at the
conference room table, I had a 1-inch thick contract sitting on the
table before me. They were serious and had full intent on moving
forward with us. We learned their failures and invested in a
testing machine in order to qualify our parts as we made
adjustments in the part design. The main problem was that the
parts were collapsing due to post mold shrinking. So we designed a
prototype to determine what the shrinkage was for the part so that
the production mold would be built to the right specs. We built a
two-cavity prototype mold (TWO Cavity for a prototype is unheard
of; typically a prototype mold consists of one cavity). We knew
just how desperate they were so we built a two-cavity mold in order
to get them up and running while we constructed two 4-cavity molds
for full production. We have shipped approximately
16MM parts over the past four years, allowing our customer to gain
market share and increase
profitability.
The part design itself was a challenge; however the tool design was
of equal importance. We design our customer molds in house using
Pro Engineer 3d modeling software. We know what we need in a mold
and design the mold to meet our exact requirements. Most molders
struggle because they have little input in the mold design. I
believe to be a successful supplier in this business you must have
three key components established. They are: (1) a good part design,
(2) A robust tool design, and (3) The mold must be constructed to
exact specification meeting all tolerances of that design. At the
end of the day that project was a major success for us. It’s an
example of what we strive to do for every customer.
When
you are working on projects with your customers, what aspects would
you like them to better recognize?
Short and simple….The importance of good part design and the value
of a high quality mold.
List
newly acquired technology, machinery or key personnel (in last
year).
The
list is long…
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6
new Battenfeld injection molding machines ranging from 143 tons
to 440 tons
-
5
New 6-axis Servo robots
-
Additional resin drying and conveying equipment
-
Plant expansion to accommodate 10 additional molding machines
-
Additional overhead crane capacity
-
We also added management personnel.
Has your company recently expanded? Plans to expand or
form partnerships/alliances?
We have
developed two China tooling sources this year. While we strongly
support U.S. manufacturing and source the
majority of our
tooling from U.S. suppliers,
there are instances
when tooling made in Asia is an advantage for our customers. I
must
have
visited at
least 20 plants on the
Mainland before
finding two that would
fit our quality requirements. As for how we utilize their
services, it comes down to size of tooling that is manageable for
each of these. One company is located in Guangzhou, northwest of
Hong Kong, and it can handle larger tooling (ie, up to 10,000 or
12,000 lbs),
but not overly
complicated tooling. The second company is located in Shanghai and
offers higher quality tooling due to being more westernized and
having
a more highly skilled
workforce. Shanghai is where most U.S.-based manufacturing
companies started their Asian operations and this is where our more
sophisticated tooling will be produced for
customers requesting Chinese tools.
Are you involved in any industry organizations
or educational programs related to the trade?
Society of Plastic Engineers member since 1994.
What
do you think about changes occurring in the industry due to
globalization? How has it affected the way you do business?
I
truly believe competition is what drives world class companies to
successful futures. Competition globally is
an eye
opening experience. Those that don’t respect global competition
will be rudely awakened. American manufacturers can be globally
competitive providing we don’t waste labor, as labor does command a
higher cost here in the States. Industry leaders automate.
Automation costs have become very reasonable (again due to global
competition) and that in itself demonstrates the importance of
global competition. Although we do not ship our products overseas,
we see ourselves as being globally competitive by not forcing our
customers overseas for lower pricing. We work diligently at
lowering costs for our customers by working ever more efficiently
every day. Continuous improvement of operational efficiency is an
ongoing challenge that strengthens our future. We also recognize
the importance of on-time delivery; we ship product the same day
the product is released. This is of great value to our customers.
Scheduling overseas shipments can be a great challenge in itself.
I think from a delivery standpoint we offer our customers great
comfort.
What
will the industry look like in 3 to 5 years?
That’s the $1MM question. My take on it is this. Only the strong
will survive, as we see that happening now. Strength comes from
the discipline to be a market leader. Market leaders are receptive
to changes and innovators of products or processes. It takes
commitment and to be relentless on quality and cost. Remember
this…”TOTAL CUSTOMER SATISFACTION! “
Additional background information:
Number of years in business: 21
Current
number of employees: 90
Current square footage (each location): Manufacturing 62,000 Sq
feet, Warehouse 27,500 Sq feet
Additional locations: None at this time.
Website:
Designmolded.com
Types of tools built and/or run: Single to 32 cavity Injection
Molds weighing up to 10,000 lbs
Industries served: Small Appliance, Medical equipment, Sports
equipment, Automotive component and
Agricultural packaging
Contact Information:
Design Molded Plastics, Inc.
8220 Bavaria Rd.
Macedonia, Ohio 44056
Phone: 330 / 963-4400
Fax: 330 / 963-4300
Email:
DMP@designmolded.com
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