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Dene H. Stone Receives ASQ-Certifie...
December 23rd, 2009
Dene H. Stone Receives ASQ-Certified Manager of Quality/Organizational Excellence
The Certification Board of American Society for Quality is pleased to announce that Dene H. Stone has completed the requirements to be . . . Full Story
CNI Celebrates 40 Years of Business
October 14th, 2009
It was 1969 in Adair County. Jobs were scarce and most families relied on seasonal employment. The economic outlook was bleak for the area, heavily populated with Cherokees. A group of business leaders, government officials and citiz. . . Full Story
Cherokee Nation Red Wing, LLC. Rece...
October 13th, 2009
Cherokee Nation Red Wing, LLC. Receives 2009 Best of Kellyville Award
U.S. Commerce Association’s Award Plaque Honors the Achievement
WASHINGTON D.C., June 8, 2009 -- Cherokee Nation Red Wing, LL. . . Full Story
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News & Events
November 25th, 2008
Oklahoma Manufacturing Alliance Benchmark Magazine, Summer 2008
Two of a Kind
Stilwell manufacturer grows business by partnering with former competitor
Sometimes the most productive business relationships form in the most unlikely of places and among the most unusual circumstances. If you don’t believe it, just ask Connie Cunningham.
Recently, Cunningham—a manufacturing extension agent with the Oklahoma Manufacturing Alliance—helped coordinate activities between two companies from different parts of the country in a mentor-protégé program. The project involved a Stilwell manufacturer, Cherokee Nation Industries, and EDO-CAS, a company based in Alabama.
Cherokee Nation Industries was established in 1969 to meet the need for business development and to generate revenue, which helps the Cherokee Nation and its members move toward an economic self-sufficiency. CNI’s 250-plus manufacturing employees have benefited from the strengthening of Lean processes offered through the mentor-protégé program to enhance its business processes. CNI operates as a government contractor in the aerospace and defense sector of manufacturing and distribution. EDO-CAS provides a variety of services throughout the Department of Defense, specializing in the full spectrum of weapons systems support. The company has comprehensive expertise in all phases of systems engineering and technical assistance. EDO-CAS’s 130 manufacturing employees provide services that sustain theater missile defense, air defense, aviation, and land-combat missile systems.
The unique business relationship started when the two companies bid on the same multi-million dollar project, but neither was awarded the contract. It would be easy enough to write it off and move forward. But neither did. After the bidding process, each company realized the importance of working together and utilizing one another’s capabilities. They chose to build a relationship in order to position themselves to work toward future opportunities together. The mentor-protégé program seemed to be a natural fit.
EDO-CAS management initiated the process when it contacted Jeff Cochran, an agent with the Alabama Technology Network, a sister organization to the Oklahoma Manufacturing Alliance. “It was unique in that you had two minority-owned companies that do very similar things coming together to improve their processes,” said Cunningham, who is one of 20 MEAs working throughout Oklahoma. She is sponsored locally by Indian Capital Technology Center, Northeastern State University, Muskogee Development, and Muskogee Port Authority.
During initial talks and meetings, it quickly became apparent that some of the components utilized by EDO-CAS, such as certain wiring, could be produced by CNI in Stilwell. A thorough technology-needs assessment further revealed that expertise related to sheet metal fabrication was a capability CNI did not possess but wanted to acquire to meet its strategic goals.
EDO-CAS had the knowledge and equipment, and already had a deep relationship Alabama Technology Network.
Before long, EDO-CAS and Cherokee Nation Industries agreed to partner in the Department of Defense’s Mentor-Protégé program.
Forming a partnership between a state located smack in the middle of the country and one in the Deep South was not without challenges. Cunningham and Cochran both agreed open communication made the process easier to implement.
“The communication worked so well between us,” said Cunningham. “Everybody was kept informed, and everybody in both companies worked to make it successful.”
“Once the communication lines were established, everything went very smoothly,” added Cochran. “I think this was the most challenging part of the process—knowing who to talk to about what. Once Connie and I met face to face it was much easier to move forward.”
Brian Morris, CNI’s director of manufacturing, said one of the first items discussed was the implementation of Lean Manufacturing.
Lean Manufacturing produces more with existing resources by eliminating non-value added activities while establishing a systematic approach to eliminating waste and creating flow throughout the whole company. It also helps develop and implement a long-term plan to streamline operations for success. In short, Lean programs dramatically transform the way manufacturers do business.
One of the first projects tackled involved a large wiring harness for military helicopters. Management and employees identified a few areas where they could reduce production time before going back to its military client to share how Lean could make it easier to produce. Almost overnight the military allowed them to revamp the process.
CNI broke down the process piece-by-piece and made it more efficient, improving production time by 58 percent and reducing production line travel by 96 percent.
“Cherokee Nation Industries was able to take a project that had been a concern and, with help, turn that concern into a successful effort,” Cunningham said. “They empowered the workforce to make the improvements and it worked. In fact, they are now using those Lean concepts on smaller harness projects.”
A visit to CNI’s Stilwell facility now reveals physically obvious changes throughout the plant. Employees did simple things like make massive wires—with which they frequently work—more accessible to frontline employees.
With the help of new 5S and Kanban systems, various components were placed in easy-to-find order, meaning employees no longer have to dig for the tools or parts they need.
The changes have created time savings, meaning increased opportunities for business. For instance, in an area where two major harnesses are used in aircraft assembly, CNI managed to increase work efficiency by more than 25 percent. When you consider they complete 48 units a year, the change is significant.
“It was amazing,” said Cunningham. “They went through six weeks of Lean implementation. They just dissected it, broke it down and got input from the frontline people. That’s the greatness of Cherokee Nation Industries.”
Morris admitted one of the biggest challenges faced by CNI was convincing employees the changes were positive and wouldn’t result in lost jobs.
“We have to convince them that we are gaining more capacity, which will improve our situation here,” said Morris. “For us, Lean was a new concept, but the employees understand that we are trying to make the plant more efficient. They have welcomed it, really. Especially once they started seeing the benefits in the changes.
“The buy-in has been slow and is happening, but it all starts with management,” he added. As with any process or project, there are inevitable peaks and valleys. Cunningham, Cochran and Morris all agree these twists and turns offer experience for future endeavors. It also can provide valuable advice for those thinking about diving into a similar process.
“My advice to any company thinking about starting a Lean transformation is to make sure you are serious about the process and have the correct objectives,” said Cochran. “Lean is a never-ending journey and in most cases requires a total change in management philosophy. Lean is not a quick fix, but an on-going transformation by a company to create a continuous improvement environment in an organization. It allows employees to do more with less waste. Contact the Oklahoma Manufacturing Alliance and get a manufacturing extension agent to sit down with you and lay out a plan for the implementation. A needs assessment is always a good place to start.”
“There are no negatives,” added Morris. “You have to be aware that there are no bad ideas. Any idea will be a good idea.”
Cunningham said her advice would be to get employees involved early and heavily in the process.
“Bryan Collins, CNI’s CEO, said he wanted to leave the Lean process up to the experts—the people who work on the frontline,” he said. “I think the employees took the task to heart and really took ownership of the project, and I think that’s what made it a real success.”
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