Some companies talk about customer service.
Plastic Components, Inc. has taken steps to move beyond the words,
connecting with its customers in a way that is rewarding for both the
company and the people it serves. Using non-traditional marketing
techniques, hands-free production processes, and an innovative customer
advisory council, Plastics Components is thriving in the
globally-competitive molding industry.
Competing on a Global Level
Tom Duffey was a manufacturers’ representative in the early 80s. He
represented a number of companies, two of which were in the plastics
industry. “Even in the 1980s, you could see trends developing in the world
of manufacturing. Some of the manufacturing industries, like foundry, were
very mature and there wasn’t a lot of growth potential,” explained Duffey.
He returned to school for his MBA, with the goal of starting a manufacturing
company after obtaining his degree. “After all the research was done, I felt
plastics had the most upside potential,” said Duffey.
The potential was transformed into solid
success when Plastic Components, Inc. was formed in April of 1989 in
Germantown, Wis. As a new player in the plastics industry, Plastic
Components needed an immediate ‘in’ with the purchasing crowd. Luring
customers away from established producers would be difficult, but Duffey had
thought this through. He had an idea that would produce the needed parts in
a unique and accurate way, while at the same time reducing the costs to
manufacture the molded piece.
“We knew we were going to have to compete in a
global marketplace… We had to do something different right from the
beginning,” stated Duffey. That ‘something different’ was complete process
automation. For seventeen years, since Plastic Components molded its first
part, the plant has been fully automated. “We’ve never had an operator in
the direct molding process… ever,” emphasized Duffey.
With 55 employees, 40 production cells, and
40,000 square feet of space, Plastic Components is hardly hands-free but
automation is the key to the company’s productivity. “Each production cell
is a self-contained work-cell, with the molding press as the cornerstone of
an entire array of support equipment,” explained Teresa Schell, Marketing
Manager. “The strategy requires an aggressive investment in molding presses,
as well as all of the necessary support equipment (material handling
systems, robots, parts conveyors, and automated packaging systems) to run
the cells effectively on a fully automated basis.”
While this production environment requires a
significant capital investment, it also allows for the elimination of all
non-value added labor in the manufacturing process. The plant is staffed
solely with molding technicians, who are responsible for mold changeovers
and process adjustments; quality technicians, who monitor the quality of the
parts molded; and material handlers, who bring the raw material to the press
and the molded parts to the warehouse.
The manufacturing process itself, however, is
monitored through the IQMS Enterprise Resource Planning System, a software
system used throughout the organization to provide real-time feedback on
each aspect of the production process for every production cell. In addition
to its monitoring capabilities, IQMS provides full scheduling capability to
the plant manager.
Another factor that adds to the success of the
complete process automation system at Plastic Components is the elaborate
design process at the front-end. The company has plastic part design experts
in-house to help customers create the parts they require, with the design
considerations needed for the lowest possible cost. These experts ensure
that all aspects of the plastic component are considered before the mold
creation begins. An investment in engineering software - Moldflow Part
Adviser 7.3 and Mold Adviser 7.3 - has assisted customers with those design
considerations.
Seventeen years later, it’s obvious that
Duffey’s hands-free manufacturing concept is working. The company is
providing custom injection molded plastic parts for long-term customers
located throughout North America, including Briggs & Stratton, Pentair, and
a number of automotive customers, including Delphi, Eaton, and Siemens.
Plastic Components continues to find new customers, many of them companies
who would previously have gone overseas for molded parts. In fact, one
company has asked Plastic Components to mold the parts needed, which will
then be shipped to China for assembly. Plastic Components’ reputation for
excellence is forcing its customers to rethink the traditional methods of
parts manufacturing and assembly.
Communicating Success
The challenge, as with any company, is choosing a methodology to communicate
the success of the business to its customers and prospects. The traditional
method of communication is often a phone call or visit by the regional sales
person. Using this method, the information can be passed on only if the
sales person is successful in obtaining a visit, and has the ability to
convey a large number of facts in the short amount of time allotted for
his/her visit.
“We asked our customers how they preferred that
we communicate with them and how they thought we could communicate most
effectively with our prospects. We heard that they have no time to talk to
new suppliers and barely time to talk to their existing suppliers. We needed
to give people a sense of the success we’re having without leaving them
fifteen voice mails,” said Duffey.
To accomplish this goal, Plastic Components
implemented a fresh, multi-functional approach. The first step was to
introduce an Internet marketing strategy to create new market opportunities
and find customers in non-traditional ways. “We needed to use that medium
more effectively,” said Schell, “and not just as a static brochure.”
However, Schell has been careful not to rush the process and carefully
monitors the way the web site is used. “We still have customers who are
old-school and want the personal touch. We learned that a new feature we
added to the web site – Quick Quote – was not being used as originally
intended. Customers were bailing out when the system asked them to choose a
resin. The customers wanted to interface with a member of the management
team, someone to help them with the decision – a personal opinion.” The
Quick Quote feature will be reevaluated as web site development continues.
To increase communication to customers and
prospects, Plastic Components has implemented a system of e-mails, on-line
newsletters, and letters from the president. This allows the company to
communicate with customers on a regular basis about its growth – everything
from new equipment to plant size to technology investments. Duffey is
enthusiastic about the company’s efforts: “We need to communicate with our
customers in a way that respects their time and is cost effective on our
part. It allows us to share information about the addition of new technology
and its impact on our operations. For example, we have a brand-new,
all-electric 300 ton press. Through these new communication methods, we have
told all of our customers about our investment and what it means for them.
We can now mold bigger parts and we’re no longer losing opportunities for
business because the customer doesn’t know what our capabilities are.”
Listening to the Customers’ Point of View
Another marketing strategy with a personal touch is Plastic Components’
Customer Advisory Council - a concept developed by the company to gain
valuable insights into what its customers truly need. The council benefits
both Plastic Components and its customers through organized sit-down
sessions with topics that are carefully chosen to provide feedback that is
beneficial on both ends of a product sale. Schell explained why the company
took such an unusual step: “In today’s highly competitive environment, an
organization must create an active dialogue with the customer in order to
retain and maintain the customer relationship. Feedback relative to
delivery, performance, products, and services is vital to continued
success.”
The members of the advisory council were
carefully chosen for what they could bring to the table and their ability to
provide productive feedback. “We have customers and we have people who buy
parts from us. Customers are people who we trust, whose opinions we value,
and who can provide insight into making us a better company. We have
developed a strategic relationship that allows them to tell us what they
need. Other customers – the ones who buy parts – may not make suggestions
based on what’s best for us,” said Duffey.
The Customer Advisory Council process was
developed to create the most value for everyone in attendance. A survey was
sent to the members before the first meeting to gain an understanding from
the council members about their customer sourcing thought process. Schell
and Duffey knew cost was king in the manufacturing environment… but what
were the second tier factors in the buyer’s sourcing decision? To get the
conversation flowing, Schell kept the session interactive. One of the
council members was invited to lead a brainstorming session, which created a
list describing criteria for ‘best’ suppliers. If cost wasn’t a factor, what
would convince the purchaser to buy from a particular supplier. To keep the
advisory council members thinking outside the box, Schell asked them not to
think specifically about the plastics industry or the manufacturing process,
but to consider every type of consumer interaction.
The answers? Quality, engineering support,
location, and consistency. Plastic Components is committed to excelling in
each of those categories, responding to the items its valued customers have
said are important.
Another change resulting from the input of the
Customer Advisory Council was the need for communication regarding the
overall number of parts shipped, part names, etc. – essentially, an
inventory list. “The people we interface with may be here in Milwaukee, but
their plant locations could be all over the country, so our main contact
person may not be in the loop about what we ship to other locations,”
explained Duffey. “They have no idea how much business they do with us
through other locations - no idea about the magnitude of our relationship
with the entire organization.” As a result of this feedback, Schell sent the
shipping information for the first six months of the year to every Plastic
Components customer. She is looking to add this information on-line in a
password-protected area so that shipment history is always available to
customers when needed.
“We want to create value for the customer, as
well as us,” said Schell. “Not only did we receive critical customer
feedback, but we created an environment for our customers to collaborate
with their peers.”
Building on a Strong Foundation
In the seventeen years since it was founded, Plastic Components, Inc. has
added 30,000 square feet to its manufacturing facility and added 47
employees to its workforce. The company has become a global competitor in
the plastics molding industry. And in the first six months of 2006 alone,
Plastic Components grew by 21.7 percent.
Tom Duffey is justifiably proud of the success
of his company. “We built a manufacturing model that is unique and allows us
to compete globally on the basis of cost and performance. Now we are trying
to take this foundation and build it, using new and creative marketing
concepts that are non-traditional in the plastics industry.” |