NORWICH – Steve Palmatier admits that when he walks into an office, he often counts the reams of copy paper he sees lying around. It’s a habit which the president of Walking Ridge Development chalks up to his days in manufacturing, when he was encouraged to by a major customer to cut costs.
“It wasn’t a suggestion; it was a mandate,” he said.
But by following the directive and instituting lean manufacturing techniques, he was able to not only cut costs, but also waste. The end result was a more efficient business model which was able to meet the customer’s price points without sacrificing profitability.
The experience also had a profound impact on Palmatier himself, who says it fundamentally changed the way he looks at processes and the workplace. Including the amount of inventory kept on hand, hence his habit of counting copy paper.
Palmatier shared this tale yesterday with approximately 50 area business leaders and elected officials, all of whom had gathered to learn more about “lean” as it applies to both the private and public sector during the latest installment of Commerce Chenango’s “Good Morning, Chenango!” breakfast series.
The session, titled “Building a High Performance Organization,” was held at Park Place Restaurant. NBT Bank sponsored the event.
Commerce Chenango’s new president and CEO, Steve Craig, welcomed those in attendance before turning the program over to Palmatier, who, in turn, introduced each of the event’s featured speakers. There to share their first hand experience with helping organizations implement “lean” strategies such as Six Sigma were Jack Roque of Golden Artist Colors, Don Wiesenforth of the Center for Economic Growth and Kari Kron of Visionary Tactics.
Roque’s official title may be that of process engineer, but in lean Six Sigma lingo, he’s a black belt. During his tenure with Golden Artist Colors, he has helped the Town of Columbus-based paint manufacturer down the path of continuous improvement to become a leaner, less wasteful and more profitable enterprise.
“There are no free lunches in continuous improvement,” he said, explaining that the process requires a commitment of time, effort and money. At Golden Artist Colors, that investment has paid off.
The key, he explained, was using data, not opinion, to drive decision making.
“Our early efforts were really focused on our measurement,” Roque said.
He and his team of “green belts” started with gathering data and doing statistical analysis of aspects of their production process and capabilities with an eye at gauging repeatability and reproducibility.
“A lot of our routine was excessively long,” he said. “We were wasting all that time.”
They employed Lean Six Sigma tools, such as value stream mapping, to identify areas which could be streamlined for greater efficiency. Over time, the daily use of Lean Six Sigma has enabled the company to reduce their cost of reworking batches of paint and working capital, while increasing their yield, quality and level of service. All of which he said have increased profitability and helped secure new business, particularly in their private label products.
Wiesenforth delved in to greater depth about Six Sigma and touched upon how it can be applied not only on the manufacturing floor, but also in the public sector. He cited examples in other states - including Iowa, Maine, Ohio, Connecticut and Minnesota - where these methods have been employed at the local and state levels to achieve “leaner” government.
“It can be employed anywhere,” he said.
Kron, a consultant with some 18 years of experience who recently moved to South Plymouth, talked about her extensive experience helping businesses small and large implement the method of continuous improvement which was a best fit for their business model. The first step being to assess where you are as an organization and what you want to achieve.
Kron said everyone in the room should be able to take something away from the session.
“You may not have an answer; but you know what the next question is you want to ask,” she said.
According to Jill Eddy, Commerce Chenango’s membership and programs coordinator, the program was the first in a series of three sessions to focus on the topic of “lean.” The second installment, scheduled for Oct. 27, will be geared toward government, non-profit organizations and information based businesses. The final session, which will take place on Nov. 10, will focus on manufacturing.
Both sessions will be held from 8 to 11 a.m. in the Commerce Chenango offices.
For more information on the series, or to register, contact Eddy at 334-1402.