Montana State University |
Montana State University |
by Deborah Nash
02/26/98 BOZEMAN -- Darcova. A name with power. A name with history. And a company that is doing something about growth.
The company name is actually a play of letters from the well known, turn-of-the-century industrial name, Darling Valve Company. Since 1915, Darcova has made seals, gaskets, metal pistons for high-pressure pumps, and similar components for industrial and commercial uses.
Billings, Montana, is now Darcova’s home. Two years ago, the company which manufactures composite and plastic pump seals for crude oil wells began moving its operations from Marietta, Ohio, to the industrial center of Billings. It is there that managing partners Fred Cline and Michael Baugh prefer to live. The partners have held the company for over nine years.
Darcova employs between nine and twelve people and has about $400,000 in annual sales both in the U.S. and international marketplace. It is one of only four companies that make the special seals, which were once made of leather.
The move to Billings promised to bring more focus and hopefully a bigger market share to the company whose product fills a niche market, according to Baugh, who handles day-to-day operations. He explained that while located back in Ohio the company had needs that were not always a priority. The managing partners lived in distant states making oversight sporadic. The move changed that. It also allowed them to do some things differently than "had always been done," which they hoped would improve the business. Cline agrees.
While the move brought about some changes, it was not the panacea for real growth. As part of a positive approach, they had set a goal of three working days to fill orders, but often found themselves significantly backlogged. After layering and painting large sheets of material with their specially formulated, latex rubber compound, they would find that the excess, if stored for very long prior to being vulcanized, would change thickness – a crucial dimension when making their cup-like seals. So waste material was problematic.
"We had losses but didn’t always know why or how much, since we were also building inventory," Baugh said.
"We knew we wanted to grow; we knew we had a marketable product," he said. But they just weren’t able to get a handle on what performance problems were holding them back.
As is often the case in a manufacturing operation, Baugh and the employees were so involved with day-to-day operations, they didn’t have time to step back and assess what more could be changed to promote positive growth. They needed an objective, outside eye to evaluate both plant and performance before further growth would become a reality.
Help was not far off. This past summer, an acquaintance of Baugh who knew about the Montana Manufacturing Extension Center (MMEC) suggested that the center contact Darcova and tell them about its program to help small manufacturers with hands-on technical assistance. MMEC Field Engineer Keith Novakovich, who services Billings and other areas of eastern Montana, contacted Baugh in August. He then met Cline who, after deciding, "he looks like a good nuts and bolts guy," asked Novakovich to do a productivity audit of their operation. Three months later, they are glad they did.
Novakovich came into the plant and observed the processes. He met with employees to discuss work methods and problems. From the audit, significant opportunities for Darcova to improve performance were identified. These were listed in a written report which was presented to the company. It included plans to implement better communication tools for daily production requirements between office and shop, need for consistency of operations policies and training, better tooling control, improved tracking of on-line inventory, and general improvement of housekeeping on the production floor. And Novakovich worked with the company providing follow-up assessment as the changes were implemented.
One very significant, yet inexpensive, recommendation adopted by Darcova was to change the tool for cutting their materials from a box-opener style blade to an ergonomically designed shears, a style that MMEC located for them. This small change will save the company money previously spent on frequent replacement of blades and reduces the potential of injury to employees and its associated costs.
Novakovich helped Baugh work out a formula to get maximum yield from a given amount of layered material. And the company now cuts and paints only the amount of fabric needed for a given order rather than an entire eight-foot sheet. Both of these steps help to significantly reduce waste material. And his cutter, who usually worked only at the cutting station, now has time to work downstream, as well.
MMEC’s engineer trained the company to work orders in a first-in/first-out sequence to better meet their just-in-time delivery goals. And it was suggested that they build inventory of the more common seals during slack times to stay focused on fast delivery. Baugh estimated that they now have over 85 percent of their orders out within three days.
Baugh has also implemented use of a production routing worksheet out on the shop floor for recording daily production. It documents the sequencing of tasks which is especially useful when training new staff. It captures daily yields and gives employees a method to record the circumstances or problems they encounter during production. The staff now meets each morning to discuss the previous day’s documentation which allows management to evaluate and summarize what is happening on the production floor, Baugh said.
Employees are an important source of problem identification.
"Having a daily communication meeting…is an excellent way to get employees involved in the process (of improving performance). Once employees know exactly what is expected of them, they will find a way to accomplish the task," Novakovich explained in his written comments to Darcova.
The hands-on project produced other assessment tools to allow tracking for waste, errors, and workflow in a variety of time configurations useful in management.
"We are much more efficient, now," Baugh said of the newly implemented recommendations. "And we can estimate how long a job will take."
This helps fit their workload with staffing flow. He estimated that the changes will save 15 to 20 percent in man hours on each job and between five and 10 percent in materials costs.
"Keith’s help is greatly appreciated…I’ve got great aspirations for us now," he said when asked if he was pleased with MMEC’s intervention. "We needed someone to evaluate and summarize our production process; he accomplished that for us."
While indicating that he, too, was pleased with the outcomes of the MMEC project, Cline remarked, "It’s enlightening – that the state has this interest in manufacturers, not just farmers and ranchers."
Governor Marc Racicot’s office estimates that manufacturing pays wages that are 26 percent more than other private, non-agricultural jobs in Montana. It employs over 23,000 workers, nearly 10 percent of the state’s non-agricultural workforce. The MMEC program is a not-for-profit organization under contract from the National Institute of Standards and Technology, Manufacturing Extension Partnership. The program works with the state of Montana in conjunction with Montana State University, University of Montana, and other public and private partners to provide a system of technology and information services to strengthen small manufacturers.
To reach Darcova, call (406) 254-9399. For more information about Montana Manufacturing Extension Center, call (406) 994-3812 or in Montana (800) 637-4634.
Send questions or comments to Nash and MSU Communications Services, Bozeman, MT 59717 by email to carolf@montana.edu.
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