This Company is RIDGID in Quality, Not in Culture: As a result, employee teams rack up constant savings

The next time you call a plumber, there's a good chance the pipe wrench or other specialty device he pulls from his bag of tools will be a RIDGID product, the most widely recognized name in the professional pipe working field. Produced by the Ridge Tool Company, headquartered in Elyria, Ohio, and a division of Emerson Electric Corporation, RIDGID pipe wrenches, threading equipment and accessories have earned a reputation for quality. After 75 years in business, Ridge Tool has become an American standard that seemingly does not need changing.

But for the past several years, change has in fact been the norm at the company's largest plant, also located in Elyria. Not the kind of change that alters the quality the company is known for, but the kind that enables it to sustain its premier position in the world market and increase employee satisfaction.

Like many successful firms, Ridge began a continuous improvement (CI) journey because it realized that to stay on top it needed to keep getting better. Spearheading the project, then Vice President of Operations John Gajewski and then Plant Manager Dave Engelhardt believed CI teams would help reveal the hidden waste they knew existed. Previous experience with Tunnell Consulting led Ridge to call us to deliver the training and consulting services necessary for a successful CI implementation.

"There were two basic reasons we initiated continuous improvement," says Manufacturing Technology Manager Jim Backs. "First, we wanted our people to have a wider involvement in the day-to-day activities of the plant because we knew their input would be valuable. Second, we wanted process improvement that would overcome the 'We've always done it this way' philosophy."

In early 1995, Elyria's CI Steering Committee was formed, and four pilot teams were soon chartered to begin the change process. The teams attended four days of off-site process training conducted by Tunnell consultants Lou Megas, Larry Meyers and Chris Driscoll, and then received coaching from Chris and newly trained CI facilitators. Success was quickly recorded and resulted in aggressive process team expansion. By the end of 1997, 18 teams of 5 to 9 people each were operating and revealing quality and cost improvement opportunities. On a routine basis, these teams examine and redefine their missions depending on where the data leads.

Through hard work and lots of determination, Ridge Tool and its CI teams have achieved many measurable successes. Here's a small sample:
Labeling and Packaging Successes -- The self-named "Label and Pack Attack" team, one of the original pilot groups, has been quite successful since it was chartered to improve Elyria's product labeling and packaging processes. Through application of Tunnell's six-step problem-solving process, the team spearheaded a corporate-wide conversion from bleached white corrugated shipping cartons to the less costly and more environmentally friendly natural brown corrugated paper: net savings -- $90,000 a year. In the meantime, team-implemented changes in labeling processes have resulted in a 90% reduction in errors, producing rework savings worth nearly $55,000 annually. Because of its energetic work, last year the team was chosen to tell its story of success at the 1997 Team Excellence competition sponsored by the Ohio Manufacturers Association.

Energy Savings -- Two other Ridge Tool teams, the Chaser Blank Quality and Huffman PM teams, have clearly demonstrated the potential benefits of CI. In response to an operator's complaint of uncomfortably cold grinding coolant, the Chaser Blank Quality team began a process of study, experimentation and data collection that ultimately resulted in a 25°F temperature increase and an annual refrigeration savings of $30,000. The Huffman PM team, meanwhile, took up the task of reducing the maintenance requirements and operating drone of the plant's many Huffman grinder hydraulic power supplies. Ideas and experiments led to a $20,000 equipment investment that will nearly eliminate the need for noisy hydraulics and save almost $30,000 annually in electric costs.

Material Handling Rerouting -- During a brainstorming session of the Assembly Material Flow team, forklift traffic congestion in a particular area of the plant was identified as a safety issue. The heavy forklift traffic posed potential hazards to pedestrians and drivers alike. After two months of data collection on traffic patterns, and study of the plant layout and material flow requirements, the team proposed creation of an additional aisle to reduce potential dangers and total travel distances. The accepted proposal had the desired effect on traffic congestion and resulted in a forklift travel savings of 19 miles a day. At current costs, that's an annual savings of $23,000.

According to Backs, results such as these are typical throughout the 750-employee plant. But Backs says cost savings are only the tip of the continuous improvement prize. CI Process Administrator Tim Cole puts it this way: "Before continuous improvement, someone at a higher level would tell you how to run your process even though you were standing right there saying, 'If I could only do this, things would be so much easier'. Now you can collect the data that can help you identify and sell the easier way."

Tunnell Managing Consultant Chris Driscoll credits strong executive support as key to the company's success. Many firms can create good quality teams, but executive support lags and nothing gets done. "This company," says Chris, "was prepared to make teams part of their institution, and they helped do that by training all their front-line supervisors as facilitators who could make things happen. They put in the effort, and they are reaping the rewards..." Next on the Ridge Tool agenda? More teams of course.

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