Koch Metal Spinning Co., Inc.

AS9100 and ISO9000 Implementation

> RESULTS

  • Received ISO 9001:2000 and AS 9100 Standard certification
  • 18% average revenue growth maintained across all market segments
  • 20% increase in employment
  • 2 new major accounts landed
  • >$1 million investment in new equipment and infrastructure improvements
  • 25% reduction in lead time
  • Doubled on time delivery performance
  • >10% reduction in scrap and rework
  • 40% reduction in customer rejects due to quality reasons

> COMPANY

Koch Metal Spinning Co., Inc. is a contract manufacturer of precision, sheet metal-spinnings for a variety of OEM industrial applications including aerospace (includes both tier I and tier II), semi-conductors and medical products. The 4th generation, family-owned business was established in 1939 and has grown steadily in both annual sales volume and overall market penetration. The company's products are sold nationally with a limited amount of export business; traditionally over 75% of its customer base is outside of Western New York. Its major, key customers include Steris Corp., Luminator, Applied Materials and several key aerospace accounts including Honeywell Aerospace, Vought Aircraft Industries, Cessna and Piper. Within the aerospace industry its components are used in duct work, search lights, instrument cases, and various flanges as well as nose and tail cone assemblies. Koch Metal Spinning has produced components for the Predator Unmanned Air Vehicle, C-17 Globe Master and prototype parts for Boeing's new Dreamliner.

Manufacturing operations are conducted on a single-shift within an older three-story facility of about 45,000 square feet located in Buffalo, NY. Current employment is 50 people including 40 non-union production workers with temporaries utilized during peak periods.

Most of the company's key competitors are domestic due to the short lead times required and the defense aspects of the business. Nationally there are numerous manufacturers of metal spinnings, many similar in size and scope to Koch Metal Spinning. Although there are no major, direct competitors within New York State, there is extensive competition nearby in the mid-west. Two of its primary competitors are Gem City (OH) and Globe Metal Spinning (KS).

> SITUATION

Several years ago company ownership projected strong strategic growth within its targeted market segments. However, it was also recognized that significant investment would be required for upgraded manufacturing equipment, as well as improved manufacturing processes and a more robust quality system. This was further reinforced by key aerospace customers demanding AS 9100 certification within 1-2 years. Based on this situation, management decided to pursue initiatives in both lean manufacturing and ISO 9001/ AS 9100. Lean manufacturing would enable Koch Metal Spinning to increase throughput, reduce lead times, accelerate inventory turns and improve customer service levels. In addition, ISO 9001/ AS 9100 would provide the dual benefits of improving overall quality and internal controls, while providing a marketing advantage associated with these certifications.

> SOLUTION

Koch Metal Spinning contacted Insyte Consulting to begin the process of introducing these improvement initiatives into the organization. Upon the successful completion of the lean manufacturing implementation, attention was turned to the development of the formal quality process that would replace the compliant system that had been used.

An internal project leadership team was formed, and combined with AS 9100 system facilitation and coaching from Insyte Consulting, they guided the organization through the project.

An initial review of existing procedures and documentation was conducted at the outset in order to develop a realistic project plan. An overview of the AS 9100 standard was presented to all employees. This overview set a strong, common foundation of understanding across the organization, and validated the importance of the quality system implementation to the company's future.

The management team developed a quality manual, along with a quality policy and objectives to provide the structure for a quality system that was aligned with the company's vision. An ISO 9001/ AS 9100 registrar was also selected and scheduled for the formal audit.

Personnel were trained in process mapping to assist in development of internal procedures. Teams were assigned to develop area and process specific procedures, while Insyte Consulting reviewed the created documentation and coached the team to ensure compliance to the ISO 9001/ AS 9100 standards.

Internal auditor training was also completed. The internal audit schedule was created and one complete audit cycle implemented. Review of the quality system was done as scheduled with the project management team as well as the related management reviews. This aided in the system implementation while developing the practice of management reviews and corrective actions required by the standard.

Koch Metal Spinning's registration audit was conducted by an accredited registrar and the company received both the ISO 9001:2000 and AS 9100 Standard certification in January 2008. This was accomplished with no major or minor non-conformities identified by the auditor.

Since initiating the above activities, Koch Metal Spinning has maintained average compounded growth of 18% over the last several years within all market segments. In addition to retaining its key aerospace accounts, Koch has also landed Tube-Fab, who is a supplier to both Cessna and Boeing, as well as adding Diamond Aircraft as a new customer. This business expansion has helped to fund over $1 million of investment in both new equipment and infrastructure improvements.

The company has also realized synergistic improvements because of the dual lean manufacturing and quality system implementations. While lean manufacturing has contributed to a 25% reduction in lead time with a doubling of its on time delivery performance, significant measurable improvements have also been realized in the quality area. Scrap and rework have been reduced by over 10%. More importantly customer rejects for quality reasons have been reduced by 40% and are now negligible, which has resulted in a significant increase in customer satisfaction.


"Because of Insyte Consulting's support with our AS 9100 implementation, our internal documentation has been improved significantly. We have now achieved a consistency of practices across the organization. This has resulted in both improved internal processes as well as a marketing advantage to help build our business base." - Erik Koch, President