Montana Manufacturing Extension Center

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1 Montana Manufacturing Extension Center Growing Montana s Economy Through Manufacturing Since 1996 A proven record of positive impact for Montana manufacturing

2 Accountability & Results MMEC staff has over 170 years of experience in growing and improving manufacturing business operations 8X Return on Investment for Montana manufacturers Since 1996 (as reported by customers) 3,500 New and Retained Jobs $1 Billion in New and Retained Sales $180 Million in Capital and Workforce Investment $ 100 Million in Cost Savings Worked in 54 of the 56 counties

3 Bottom Line Improvement - 1 Efficiency, Compliance & Management Quality Management Systems (ISO 9000, AS9100) Lean Manufacturing Lean Office Lean Accounting Lean Product Development/Lean Engineering Inventory Reduction Supply Chain Optimization Plant Expansions/Layouts Changeover Reduction Food Safety Certifications Employee Safety/OSHA Environmental/EPA Accounting Compliance International Certifications (CE Marking) Government Accounting Mil Specs

4 Bottom Line Improvement -2 Efficiency, Compliance & Management Human Resources Leadership Training Temporary Executives and Managers Financial Ratio Analysis Business Valuation Succession Planning Energy/Water Consumption Reduction Waste Reduction Energy Use Reduction AP/AR Reduction Strategic Planning Lean Culture Capacity Planning Equipment Selection, Justification, Financing & Layout Employee Training Financing/Capital

5 Top Line Growth/Innovation New Market Development & New Product Development ExporTech Business Plans Feasibility Studies Sales Leads Marketing Plans Most Valued Customer Analysis Technology Driven Market Place Intelligence Marketing to DoD New Product Development and Design Technology Scouting 3d Modeling Rapid Prototyping 3d Printing Engineering Management Small Business Innovative Research (SBIR) Government Contracting

6 Bill Nicholson Northwest MT 28 years in Manufacturing 10 years with MMEC Former VP of Operations for 3D Printer Manufacturing Company BS Mechanical Engineering Technology, MSU 1987 Professional Engineering License Formerly with Boeing & Honeywell Nationally known Lean Manufacturing Consultant

7 Jeremy Wolf West Central MT 13 years in Manufacturing 4 years with MMEC Former Lead Manufacturing Expert for NASA s Max Launch Abort System BS Mechanical Engineering, MSU 2003 MS Product Development Engineering, USC, 2005 MBA Business Administration, Pepperdine, 2009 MSU Athletic Hall of Fame

8 Rob Cook North Central Montana 27 years in Manufacturing 1 year with MMEC Former Managing Partner of Intercontinental Truck Body Formerly with Boeing, Texas Instruments, and Peterbilt. BS Mechanical Engineering, MSU 1988 Holder of 10 US patents Montana Legislature 2011, 2013, 2015

9 Alistair Stewart Southwest Montana 33 years in Manufacturing New with MMEC Former Director of Business Development Chicago MEP. Formerly with Baxter Healthcare and British Gas BS Maritime Studies, University Plymouth, 1983 MS Managerial Communications, Northwestern University 1997 Nationally known Business Growth, Supply Chain, Lean Environmental Expert

10 Claude Smith Food Safety & Manufacturing 33 years in Manufacturing New with MMEC Former Plant Manager at Pasta Montana Formerly with Pillsbury and J.R. Simplot BS, Biology, Chemistry, Jamestown University Nationally known Food Manufacturing and Food Safety Expert

Jenni West Associate Director/Marketing 10 years in Manufacturing 1 year with MMEC Formerly with Gulfstream Aerospace, Ulster Carpets, American

11 Jenni West Associate Director/Marketing 10 years in Manufacturing 1 year with MMEC Formerly with Gulfstream Aerospace, Ulster Carpets, American Institute of Baking, and Export Trade Service BA Spanish, Western Carolina University 1992 MA, Latin American Studies, University of Kansas 1994

Paddy Fleming Center Director 25 years in Manufacturing 13 years with MMEC/MilTech Former Plant Manager for International Paper Formerly with International Paper,

12 Paddy Fleming Center Director 25 years in Manufacturing 13 years with MMEC/MilTech Former Plant Manager for International Paper Formerly with International Paper, Tenneco, Pactiv, BW Paper Systems BS Mechanical Engineering, MSU 1990 MBA Business Management, Olivet Nazarene University, 1999 Department of Defense, P&L and SBIR experience

13 OPEN Eastern Montana Expect to hire by December 1

14 OPEN Business Manager Expect to hire by December 1

15 Montana Manufacturing Extension Center EXAMPLE PROJECTS A proven record of positive impact for Montana manufacturing

Applied Materials - Semitool Problem: Applied Materials is a world leader in innovation and manufacturing of

Overseas customers were demanding that the company become ISO 9000 certified in order to retain business.

Required extensive employee training, mentoring, auditing and coaching.

16 Applied Materials - Semitool Problem: Applied Materials is a world leader in innovation and manufacturing of precision semiconductor manufacturing equipment. Overseas customers were demanding that the company become ISO 9000 certified in order to retain business. Solution: Implement an auditable ISO 9000 Quality Management System. Required extensive employee training, mentoring, auditing and coaching. Partners: Applied Materials Semitool, Kalispell, MT Montana Manufacturing Extension Center Montana State University College of Engineering MMEC Fees: $35,000 Benefits/Impact: $36,000,000 in retained sales 285 jobs retained $500,000 savings $1,120,000 invested Applied Materials Raider MLO and iphone 6

Gibson Guitar Problem: Growing backlog of orders and a nonlean production system was causing considerable rework, late deliveries to customers, and very long lead times to produce & finish guitars.

customer, limited work-inprocess inventory, a leveled production schedule, supermarkets of parts for the assembly processes, and other best practices.

17 Gibson Guitar Problem: Growing backlog of orders and a nonlean production system was causing considerable rework, late deliveries to customers, and very long lead times to produce & finish guitars. Partners: Gibson Guitars, Bozeman, MT Montana Manufacturing Extension Center Montana State University College of Engineering Solution: Develop a lean production system that involves pull of the customer, limited work-inprocess inventory, a leveled production schedule, supermarkets of parts for the assembly processes, and other best practices. MMEC Fees: $10,000 Benefits/Impact: Inventory Turns doubled direct labor per unit reduced 30% $500,000 in cash freed up, from inventories $100,000 invested in machinery (smaller) Sales increased by $10,000,000/year Production lead time reduced by 75% Gibson s Sheryl Crow Southern Jumbo Special Edition

Native Seedster Objective: Assist SBIR company in developing the Native Seedster via USDA SBIRs Status: MMEC provided extensive assistance in the design of the product, supplier development and

18 Native Seedster Objective: Assist SBIR company in developing the Native Seedster via USDA SBIRs Status: MMEC provided extensive assistance in the design of the product, supplier development and project management. Company is currently marketing the technology to farm implement manufacturers. Technology: The Native Seedster was developed to harvest native seeds for use in reclamation of native grasslands. The technology leaves the harvested grass intact without damage. Participants: USDA SBIR Arbuckle Ranch (Alzada, MT) Montana Manufacturing Extension Center Impact: Increased Sales: $641,000 Retained Sales: $411,000 Jobs Created: 9 Jobs Retained: 3 Cost Savings: $177,000 Additional Investments: $256,500 Costs Avoided: $2.04 million 18

Bitterroot Tool & Machine Problem: The company needs to become ISO 9001 registered in order to retain it s existing aerospace

Partners: Bitterroot Tool & Machine, Stevensville, MT Montana Manufacturing Extension Center Montana State University College of

Develop documents and implement processes compliant with ISO 9001 Identify an ANAB approved registrar Assist the company with the

19 Bitterroot Tool & Machine Problem: The company needs to become ISO 9001 registered in order to retain it s existing aerospace business. Partners: Bitterroot Tool & Machine, Stevensville, MT Montana Manufacturing Extension Center Montana State University College of Engineering Solution: Conduct a Gap Assessment audit and write the audit report. Develop documents and implement processes compliant with ISO 9001 Identify an ANAB approved registrar Assist the company with the registrar's Pre- Assessment audit Assist the company with the registrar's Registration audit. MMEC Fees: $36,500 Benefits/Impact: ISO 9001:2008 Certified Montana Manufacturer of the Year 2015 Retained key aerospace customer Retained sales of $1M New investments of over $100k Bitterroot Tool & Machine Stevensville, MT

Montana Department of Justice Problem: The Montana Department of Justice wants to

They asked MMEC to facilitate meetings and to introduce the concepts of Lean

(September 2014) Partners: Montana Department of Justice Montana Manufacturing

Facilitated a two day event that consisted of training and application using the

Created a Current State map of the IT Department Customer Service process.

20 Montana Department of Justice Problem: The Montana Department of Justice wants to create a culture of Continuous Improvement and Problem Solving. They asked MMEC to facilitate meetings and to introduce the concepts of Lean Office / Administration. (September 2014) Partners: Montana Department of Justice Montana Manufacturing Extension Center Montana State University College of Engineering Solution: Facilitated a two day event that consisted of training and application using the tools of Lean Office. Created a Current State map of the IT Department Customer Service process. Developed action plans to support development of Future State map. MMEC Fees: $3,500 Benefits/Impact: Current State 73% of steps No-Value Added Value Added Time: < 1% VA: 63 minutes, L/T: 4 6 weeks Redo Loops: 11 Currently working on Action Plans

Northwest Factory Finishes Problem: 2010: Increased sales is driving expansion to larger facility.

senior manager to oversee the operations while the president focuses on growing the operation. Founded in 1992. Currently 30 employees.

Expansion: Capacity Model, Layout Analysis & Design 2013: Updated existing facility layout for Oven 3, 4 & cold storage 2014: Updated existing facility

July to current MMEC Fees: 2010: $5,800 2013: $1,378 2014: $1,045 2014: $15,000+ Benefits/Impact: Increased Sales: $2M plus Retained Sales: $4.

21 Northwest Factory Finishes Problem: 2010: Increased sales is driving expansion to larger facility. 2013: New Equipment Addition Oven 3, 4 & cold storage 2014: New Equipment Addition & expansion Oven : Growth of the company is requiring another senior manager to oversee the operations while the president focuses on growing the operation. Founded in Currently 30 employees. Partners: NWFF, Missoula, MT Montana Manufacturing Extension Center Montana State University College of Engineering Solution: 2010: New Facility Expansion: Capacity Model, Layout Analysis & Design 2013: Updated existing facility layout for Oven 3, 4 & cold storage 2014: Updated existing facility layout for Oven 5, Measured and drafted expansion area. 2014: Hired MMEC to act as temporary Manager of Manufacturing two days per week. July to current MMEC Fees: 2010: $5, : $1, : $1, : $15,000+ Benefits/Impact: Increased Sales: $2M plus Retained Sales: $4.5M Created Jobs: 15 plus Retained Jobs: 12 Investment: $2M plus 2014 Manager of Mfg. 5S System with audits Inventory Mgmt System Lean Office / Lean Mfg Quality Mgmt System Batch Size 66% reduction Capacity Modeling NWFF Pre-finished Building Materials

Pasta Montana Problem: Not having certification to Global Food Safety Initiatives (GFSI) and lacking the resources to fully implement compliant systems jeopardized

Partners: Pasta Montana, Great Falls, MT Montana Manufacturing Extension Center Montana State University College of Engineering Solution: Developed a project plan

organizational and GFSI requirements, and participated in the certification process.

22 Pasta Montana Problem: Not having certification to Global Food Safety Initiatives (GFSI) and lacking the resources to fully implement compliant systems jeopardized existing sales and prevented expansion into new markets. Partners: Pasta Montana, Great Falls, MT Montana Manufacturing Extension Center Montana State University College of Engineering Solution: Developed a project plan to accommodate a tight timeline, identified and provided external expertise, coordinated internal and external resources in the development of systems to meet organizational and GFSI requirements, and participated in the certification process. MMEC Fees: Under $40,000 Benefits/Impact: Achieved the highest rating possible during certification (A rating) Completed project within a three month timeframe Retained $5 million in sales annually Increased sales by $1.5 million annually Cost savings in excess of $275,000 New investments of over $300,000 Pasta Montana pasta made from Montana Durum Wheat

Great Falls Food Manufacturers Network Problem: Food manufacturers face similar problems of food

equipment, marketing, and distribution yet don t have the time to connect and work together.

Falls Development Authority Montana Department of Agriculture Great Falls College Montana State

through organizational meetings, development of a network strategy (mission, vision, and

MMEC Fees: None Pilot Project Benefits/Impact: Increased networking for eighteen food manufacturing

over $130 million in annual sales Scheduled first collective food safety training class for the

23 Great Falls Food Manufacturers Network Problem: Food manufacturers face similar problems of food safety and defense requirements, workforce development, buying and maintaining specialized equipment, marketing, and distribution yet don t have the time to connect and work together. Partners: Great Falls Area Food Manufacturing Network Montana Manufacturing Extension Center Great Falls Development Authority Montana Department of Agriculture Great Falls College Montana State University Solution: Facilitated the development of a Food Manufacturing Network in Great Falls through organizational meetings, development of a network strategy (mission, vision, and objectives), and support of ongoing critical issues identified by the network and its partners. MMEC Fees: None Pilot Project Benefits/Impact: Increased networking for eighteen food manufacturing business owners and managers in the Great Falls area who combined employ over 230 Montanans with over $130 million in annual sales Scheduled first collective food safety training class for the Great Falls Area Food Manufacturers Network in September of 2014 Ongoing quarterly meeting and plant tours Great Falls Area Food Manufacturers Network Products

24 What doesn t MMEC do? Advocate to the Legislature on behalf of Manufacturers Who does? Montana Manufacturing Association

25 Montana Manufacturing Association The Montana Manufacturing Association (MMA) is the statewide association for manufacturers and their supporters. The MMA formed in 2001 (known then as the Montana Manufacturing Council) as a subsidiary of the Montana Chamber of Commerce. Many state chambers of commerce in America serve as the state's manufacturing association, as well. Purpose The MMA helps build manufacturing in Montana in several ways: connecting manufacturers and supporters to build business advocating for legislation and rules that benefit manufacturing supporting and promoting international trade educating Montanans about the importance of manufacturing Membership Manufacturers and their supporters are eligible to become members of the MMA at the base rate of $250 per year, plus $5 per Full-Time Equivalent (FTE) employee in Montana. Contact: Bryan Wood or Webb Brown at

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