Sr Managers: Airboss plant manager Steve Barefoot provided an overview and history of Airboss and the old facility the company currently occupies at 101 Glasgow St with one million square feet!

Airboss has developed a sophisticated operating system consisting of performance metrics that are closely tracked and measured and linked to continuous improvement and a quarterly incentive program. Steve provided an overview of these tools and how they are leading Airboss forward. Members enjoyed a tour followed by feedback to the host that included some of the following:

• Procurement and logistical strategies
• Employee culture and communication
• Facilitating change and reinforcing the right behaviours to move to a lean enterprise
• Labour relations
• Export and new customer development

Continuous Improvement: This session involves a tour followed by an overview of lean principles and a brainstorming session on a problem presented by the host.

Airboss's CI Problem for the Group:

"Managing Multiple Raw Material Skews While Reducing Customer Lead Times

Background

AirBoss is one of North America's leading custom rubber mixers with the capacity to supply over 250 million pounds annually. Our Rubber Compounding division is one of North America's foremost custom rubber mixers, manufacturing custom rubber compounds made from natural and synthetic polymers. Our one million square foot mixing facility in Kitchener, Canada, combined with our Acton-Vale, Quebec facility and our newest state-of-the-art mixing facility in Scotland Neck, North Carolina, provide us with the capacity to supply up to 250 million pounds annually in all key geographic areas of North America.

Airboss's formula for delivering what our clients demand-products that offer enhanced productivity and performance-is built on three pillars: Consistent Quality, Cost Efficiency and Dependability

Context

Airboss customers usually require a shorter lead time on their orders, i.e. 2 days to 3 weeks. Some of our commodity based raw materials have longer lead times to order, in some cases 8 weeks.

Question

How can we better manage our logistical  resources  to ensure  continuous supply of materials to 4 mixers with combined output of 800K lbs/day, of which 500K is finished goods?

Some of the challenges we have to contend  includes:

1. Having the right materials on hand, considering we carry around 13M of materials at any given time, we do  have an MRP system that is used to help manage inventory
2. Kitchener facility is about 1M sq. ft. consisting of 5 levels, basement to 4^th floor,  all 5 mixers (only 4 being utilized) can be considered as monuments, i.e. each mixing unit have various equipment stages on multiple floors

The brainstorming session resulted in a multitude of suggestions for opportunity for Airboss. For some of the details o these suggestions, please contact Mike Baker at mbaker@emccanada.org

Engineering:- Engineers gathered from across all manufacturing sectors to discuss Challenges faced in New Product Development as it Relates to Improving Speed to Market. Airboss provided an overview of their rfq tracking structure and database. Many opportunities were found to take ideas from this format to member's own methods in other companies. Some other topics of discussion included:

• Internal Wiki database for new product development learnings as they take place
• Database development for a virtual R&D chemical mixer to simulate the interaction of chemical bonds in product development before going to prototype phase
• Cross-functional segment teams in product development
• Visual mgt practices is engineering departments\

Human Resources: HR Managers from across all manufacturing sectors gathered to benchmark and discuss Attendance Management, and also receive a presentation from Jan Papke of the Community Action Centre. The Community Action Centre provides service for employers and workers in transition: http://www.actioncentre.net/

To address Attendance Management, the group was polled on who has a formal program in place and which companies do not. The group was then polled on absenteeism rates. Among the 20 odd companies in attendance, it was obvious to see that absenteeism rates were higher for those companies that did not have some form of attendance mgt program in place. Rates ranged from 1-3.5%.

The group then divided into two discussion groups to benchmark each other's programs, and share the successes and challenges experienced in each. Great work everyone!

The HR group also set topics for 2010 that include:

 Jan - HR Support Strategies for Supervisors

Feb - Morale Strategies

Mar - Hicks Morley Legal Update

Apr - Profiling / Fit / Selection

Jun - Creating a Flexible Workforce

Sept - Ageing Workforce - Transitions, Preparations

Thanks again to Steve Barefoot and everyone at Airboss for hosting a great day of learning and networking for Waterloo region manufacturers!

Mike Baker mbaker@emccanada.org

EMC