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Success Story:PQ Corporation
Improved inventory accuracy by 100 percent

 
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New Jersey Manufacturing Extension Program

Story Title

Accurate Screw Machine Products, Inc. Keeps Jobs in New Jersey

Client Profile

Accurate Screw Machine Products Co. Inc. (ASM) is a manufacturer of electronic hardware and fasteners specializing in JIT (Just-in-time) delivery to the electronics, aerospace, medical, telecommunications and metal fabricating industries. ASM was founded in 1967 and in 1998 was acquired by MW Industries, the second largest manufacturer of springs and specialty fasteners in North America. MW operates eleven manufacturing plants throughout the U.S. The company’s plant in Fairfield, New Jersey employs 99 people.

Situation

Downward price pressure as a result of international competition was impacting ASM’s cost profile. As a division of a larger company, ASM had the option of moving its operations to the much lower cost state of Indiana where it’s corporate headquarters are located. Resisting this option through loyalty to it’s New Jersey workforce, the company had to find ways to make the Fairfield plant more cost competitive. Other than the few employees that would be transferred to Indiana, all others were at risk. ASM needed a competitive advantage and to improve profitability to be able to remain in the New Jersey. ASM looked to the New Jersey Manufacturing Extension Program (NJMEP), a NIST MEP network affiliate, to assist the company with implementing Lean Manufacturing in its facility. The Lean systems would speed throughput and quicken deliveries providing a significant competitive advantage. In addition, streamlining its operations and increasing profitability would allow ASM to secure new business opportunities.

Solution

NJMEP worked with Scott Solomon, Vice President of ASM, to design a workforce training program that would educate its frontline employees on the principles, processes and benefits of Lean. To help bear the cost of the training, NJMEP helped ASM apply for a New Jersey Department of Labor Customized Workforce Training Grant. Funded through the grant, the program, which was implemented over a seven-month period. In total, the assistance provided by NJMEP included technical training (AutoCad) and soft skills (Excel) as well as Lean specific training: Quick Changeover, Pull Kanban, Admin Lean, Quality Control Technology and Value Stream Mapping. Through the implementation of Lean processes, technical and soft skills training. ASM was able to remain in New Jersey and retain over 90 jobs.

Results

  • Realized $250,000 in cost savings.
  • Retained $500,000 in sales
  • Achieved a more competitive and profitable position.

Testimonial

We continue to improve our operations with the expert guidance of NJMEP. Lean manufacturing techniques give us a competitive advantage in the marketplace as we drive down costs and deliver at a faster rate to our customers,”
Scott Solomon, Vice President

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