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GenMet Revs Up Sales With Lean
GenMet Corp. of Mequon, a custom metal fabricator, has powered through the recession and is thriving in the face of global competition with the help of a strategic partner – WMEP.
GenMet’s transformation started in 2003, when the company realized it needed a long-term competitive advantage to compete globally. GenMet decided to focus on faster turnaround times and the development of more complex, highly engineered products, and turned to WMEP to help make it happen.
With the help of WMEP, Lean manufacturing was deployed to attack waste and inefficiency. Lead times were cut in half, and today GenMet is able to turn around orders for rapid prototyping on timelines once unthinkable. Employee productivity has doubled, and the company’s lean journey continues. A culture of continuous improvement has been established at GenMet. “One employee coined the phrase, ‘One team, one goal,’” said Mary Isbister, president. “Things are demonstrably different in our organization. The difference is the team focus.”
With the help of WMEP, Lean manufacturing was deployed to attack waste and inefficiency. Lead times were cut in half, and today GenMet is able to turn around orders for rapid prototyping on timelines once unthinkable. Employee productivity has doubled, and the company’s lean journey continues. A culture of continuous improvement has been established at GenMet. “One employee coined the phrase, ‘One team, one goal,’” said Mary Isbister, president. “Things are demonstrably different in our organization. The difference is the team focus.”
In addition to employee training, GenMet has invested heavily in state-of-the-art equipment. Its plants in Mequon and Slinger, Wisconsin are paperless.
Employees are encouraged to be active participants in the company’s success by contributing ideas and driving change relentlessly throughout the organization. Good ideas are rewarded with recognition or higher year-end bonuses. “I believe we’re able to retain our best talent because we continue to challenge our employees,” said Mary Isbister, president of GenMet. GenMet’s Lean culture champions employee advancement. For example, the firm’s Quality Manager started with the company 10 years ago as a materials coordinator.
Growth continues at GenMet. The company hired nine people during the height of the recession in 2009 (and provided average salary increases of 3%). Since Jan 2010 the company has hired 18 new employees and are seeking an additional eight to ten people with specific skill sets. “We are having a difficult time finding qualified candidates,” said Isbister. “Many of the folks we interview have several offers already.”
The results of working with WMEP as a strategic business partner are clear. “It’s very quantifiable – any organization that’s willing to make the investment – time, money, capital investment, training, and culture – will see returns,” said Isbister. “For example from 2003 to 2009, we’ve tripled in revenue. The money we’ve spent on WMEP is one of the best investments we’ve made.”
In five years, WMEP has completed ten projects on-site with GenMet ranging from ISO, supplier development, and progressively more advanced training in Lean processes through Lean leadership development. “It’s all about making everyone have a say, so they can affect their own destinies,” said Isbister.
GenMet also believes in transparency. On the shop floor, a large bulletin board displaying graphics and tables depicting daily, monthly and year-to-date sales numbers, lead times, on-time delivery statistics and accident reports. Everyone can see how the company is doing, and what areas require attention. As the company becomes more profitable, the employees benefit, encouraging even more participation.
The metal fabrication industry has taken notice of GenMet’s transformation. GenMet was honored with The FABRICATOR's Industry Award 2010, presented by the Fabricators & Manufacturers Association, International (FMA). The FMA award recognizes a company within the metal forming and fabricating industry that has successfully improved operations, attained business success, and contributed to both the local and industry communities.
GenMet's Lean Results:
- Tripled in revenue from 2003-2009
- Cut lead times by 50%
- Hired 18 new employees since Jan 2010