Johnson Machine & Fibre Products Co., Inc.

ISO 9001:2000 Implementation

“The ISO 9001:2000 quality system has enabled our company to become better and maintain continuous improvement. As a result, we have seen a significant increase in both sales and profitability over the last couple of years. The involvement of Insyte Consulting enabled us to complete the implementation of the quality system in a very efficient and effective manner."

D. Michael Marshall, President

Johnson Machine & Fibre Products Co., Inc. Operator, Robert Straight, performs setup on verticle machining center.

Benefits

• Obtained ISO 9001:2000 registration
• 60% increase in sales
• 100% increase in profitability
• Four major new customers added in past year representing sales increase of 10%
• 99.8% first pass quality rate on production of 4.5 million parts in past year
• Customer rejects virtually eliminated
• Eliminated need for customer in-plant inspections
• 3.7% reduction in scrap rate

Johnson Machine & Fibre Products Co., Inc., located in Jamestown NY, is a contract manufacturer of tight-tolerance, precision components for a variety of applications in the automotive, transportation, computer and cabinetry industries within upstate New York. The company has extensive machining and secondary operations capability including CNC turning, vertical machining and screw machines. Manufacturing operations are conducted in a single-level facility of nearly 15,000 square feet on a two shift basis. Johnson Machine & Fibre Products currently employs twenty-two people, including eighteen non-union production personnel.

The company was founded in 1945 and has been under the present family owner-ship since 1992. In the 1990's the company employed over sixty people, but generally produced low margin, commodity products that had excessive labor content. After the year 2000, the company's sales declined by over 60% due to the economic decline and the effect of foreign imports (particularly from China) on commodity manufacturing. With poor profitability and employment down to eleven people, Johnson Machine & Fibre made a strategic decision that would eventually reverse this trend. The company now pursues business that offers the opportunity for value-added services so that it can differentiate itself based on fast turnaround time and exceptional quality.

Situation
In the 1990's, the company experienced serious product quality issues, much of which were due to poor internal processes. Scheduling problems, missed delivery dates and lack of machine calibration were among the problems cited by the company as a result of poor internal discipline. ISO 9002:1994 registration was seen as a means of introducing improved processes and procedures into the organization. Furthermore, registration was demanded by a key customer in the transportation industry and was also being required as a tier II automotive supplier. Johnson Machine & Fibre Products achieved certification under this standard and began to correct many of the deficiencies noted above. The quality improvements and new strategic direction provided the foundation for the company's business transformation that has occurred over the last few years.

Although its customers did not dictate that Johnson Machine & Fibre Products eventually upgrade to the ISO 9001:2000 standard, company management recognized that the new standard offered an opportunity to further increase competitiveness and sustain continuous improvement.

Solution
The company engaged the services of Insyte Consulting to support the upgrade of the quality system to the ISO 9001:2000 standard. Johnson Machine & Fibre Products believed that Insyte Consulting's trained staff could work effectively with their employees. Insyte Consulting's intent was to clearly link the quality system, including the manual, processes and procedures, to the company's business structure and operations. A joint Johnson Machine & Fibre/ Insyte Consulting team was formed to implement the elements of the current ISO 9000 standard. The team reviewed the existing processes and documentation and determined specifically which sections of the quality system required revision. A project plan was subsequently developed to identify and execute these tasks. This approach was completed in both a timely and cost-effective manner. Furthermore, the company personnel now have ownership of the quality system and are effectively maintaining it after formal registration and completion of Insyte Consulting's involvement.

Over the last three years the company has experienced a dramatic turnaround in its business. Sales have increased by 60% and profitability has doubled. Within one year the company has added four major new customers, who represent a sales increase of 10% and higher margins. The internal benefits have also been significant. Over the past year the company has produced about 4.5 million parts with a first pass quality rate of 99.8%. This has virtually eliminated customer rejects. Also because of ISO 9001:2000 registration, in-plant inspections by customers have likewise been eliminated; this benefits both customer and supplier. Finally, Johnson Machine & Fibre Products' scrap rate has been reduced to 3.7%. Because of the company's spirit of continuous improvement, this is projected to be less than 3% by year end.

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