J.C. Gibbons (J.C.), in Livonia, Michigan, manufactures precision screw machine and CNC products. The technical knowledge of its skilled staff has ensured the highest quality product since 1959. J.C. Gibbons can take a prototype job and move it into low or high volume production without ever leaving its facility. A robust ISO9001:2000 program is the driving force behind J.C. Gibbons’s quality system and provides assurance that each job is made in a reliable, consistent manner. Statistical Process Control (SPC) data is analyzed at the shop floor level daily in order to manufacture quality parts. This ensures a better, more consistent product for customers. With all of these strengths firmly in place, J.C. Gibbons Vice President, Jeff Gibbons, was ready to expand his company’s reach beyond the automotive industry to find opportunities in other markets.
With this goal in mind, Jeff contacted the Michigan Manufacturing Technology Center (MMTC) to begin its market diversification program. At the beginning of the program, J.C. identified their biggest challenge as an internal lack of resources devoted to securing new business. Robert Hess, MMTC’s Growth Services Director, conducted an assessment which was critical to illustrating the importance of having dedicated resources. In order to focus as much as possible on diversification, Jeff brought his brother Dan in to help manage the day to day operations. The process of diversification involved learning new tools to help identify key strengths - both in J.C.‘s manufacturing processes and in the finished product itself.
One of the most powerful tools was developing an understanding of the North American Industrial Classification System (NAICS) code process and utilizing it to identify new business opportunities, while avoiding industries with declining trends. This approach helped link J.C. with a medical industry supplier in Troy, Michigan. What began with a quote for one part has developed into a strong working relationship. Now J.C. is supplying 10 different parts to this same company! Another search connected J.C. with a local commercial signage company which led to opportunities in related industries.
In addition to learning how to identify new markets with NAICS codes, J.C. learned a variety of sales and marketing approaches to implement within those selected markets. Activities ranged from developing a telephone call script to creating and sending out e-mail flyers advertising their products and services. They even discovered how to make better sales use of existing assets, such as using on-hold messages to provide informative and compelling messages to clients during any necessary wait times. This is a simple example of an additional sales approach that many companies can take advantage of, at virtually no cost.
Today, through hard work and assistance from the MMTC market diversification program, J.C.’s business is about 49% automotive instead of 75%, and the medical and other diversified markets continue to grow. J.C. continues to pursue excellence in difficult economic times and MMTC has been there right alongside to coach and to encourage implementation. Training with the MMTC has included Activity-Based-Costing financial analysis, LEAN office projects, LEAN Kaizens, Statistical Process Control (SPC), and Geometric Dimensioning and Tolerancing (GD&T) training in addition to the market diversification program. “The MMTC’s goal is to make you better and to help you grow your business,” Jeff stated, “as a small company, we wouldn’t have been able to diversify without help.” As a result of working with the MMTC team, J.C. has been able to grow their non-automotive business 9.3% over the last eighteen months, during one of the toughest economic periods in decades.
(MMTC, 2009)
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