Steel Partners Recognizes OMG, Inc. for Operational Excellence
May 24, 2016
AGAWAM, Mass. – Three kaizen teams from OMG, Inc. have been recognized as 2016 Steel Partners Business System Hall of Fame winners. The announcement was made by Jeff Svoboda, president and CEO of Handy & Harman, a Steel Partners subsidiary.
The Steel Partners Business System uses lean principles and tools, including kaizens, to increase sales, improve business processes, and reduce and eliminate waste and variation. Kaizen is a strategic activity where employees at every level of a company get together to work on a targeted improvement project. In manufacturing in particular, kaizens often demonstrate that big changes come from many small changes made over time.
Kaizens are focused three- to five-day events that generally include defining a problem or goal, documenting the current state, brainstorming and developing a future state, implementing change, developing a follow-up plan and measurement metrics, presenting results and celebrating success.
“We complete over 40 kaizens a year, each involving on average a team of five, so for these three teams to be recognized by our parent companies is certainly a high honor for which we are very proud,” said Hubert McGovern, president and CEO of OMG, Inc.
A total of 19 employees participated in the three winning kaizens. Two of the kaizens were held at OMG’s headquarters location in Agawam, Mass., and one was held in the company’s Asheville, N.C. facility. Each participant was presented by Svoboda with a bonus and a Steel Partners Business System Hall of Fame polo shirt at ceremonies held in Agawam and Asheville.
“OMG is committed to lean manufacturing and kaizens are just one of the tools we use to drive significant improvement to our overall effectiveness as a company,” said McGovern. “As a result of our lean initiatives, we’ve seen great progress throughout the company including gains in reducing waste, improving product quality, and bringing value to our customers.”
Some of the more significant results for these winning kaizens include:
• A 66 percent increase in drain assembly output;
• A 250 percent reduction in the need for overtime;
• A $10,000 per day increase in sellable units assembled by a packaging team and a related $36,000 annual labor savings; and
• A $100,000 annual cost reduction related to poor quality.
For more information, visit www.OMGRoofing.com.