Industrial Case Study
Hannibal Industries, Incorporated
Formed in 1985 through a leveraged purchase of the assets of Kaiser Steel Tubing, Hannibal Industries, Inc. (HII) occupies an 11-acre site in Vernon,
California. The Tubular Products Division (HTP) produces welded tubular products used in industries such as fencing, scaffolding, fitness equipment,
motorcycle mufflers, furniture, motor homes, construction and automotive aftermarket. The Slitting and Steel Products Division (HSSP) provides carbon
steel slit coil and sheet products used in computer cabinets, safes, tools, brake components, display units, lighting and automotive aftermarket. The HTP
and HSSP Divisions employ approximately 170 people.
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“We are extremely satisfied with CMTC’s services
and with our now certified quality management
system.”
George E. Christiansen
VP Special Projects
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Issue/Needs
HII saw the opportunity to increase business with automotive industry
customers by obtaining registration to ISO 9001:2000 or ISO/TS
16949, both international quality management system standards. The
company also recognized ISO 9001 as a means to improve the business
overall. On a referral from one of its ISO 9001-registered customers,
Hannibal Industries contacted CMTC to discuss its need to establish a
quality management system and obtain third-party registration.
Implementation Highlights
After a series of discovery meetings between HII Management and
CMTC, it was decided on which standard and approach to use for
implementation. HII and CMTC agreed on a project to implement ISO
9001:2000 that combined consulting with customized training. The
project scope included: training in ISO 9001:2000, planning and project
management, working with HII’s management to establish a quality
policy, objectives and a management review process, establishing a
“process approach” to managing the business, completing a documented
quality manual and procedures required by ISO 9001, assisting in training
and implementing the procedures, training 16 employees to perform
internal audits of the process and procedures and assisting in the
selection of a third-party registrar. The 12-month project kicked off in
August 2003. In January 2005, Hannibal Industries achieved third party
registration to ISO 9001:2000 for its HTP and HSSP Divisions.
Improvement Description
The ISO 9001:2000 implementation project led to the following
significant improvements: establishment of a formally documented set of
business processes across two divisions, increased interdepartmental and
interdivisional cooperation and understanding of business operations,
improvement in employee skills and competencies, establishment of a
preventive maintenance program for plant equipment and establishment
of a framework for continual improvement through quality objectives,
management review, analysis of data, corrective action, preventive action
and internal audits of the system. These improvements have directly
impacted the bottom line.
Financial and Investment Impact
During the course of the project from 2003 to 2004, HII increased
annual sales by approximately $5,000,000, realized cost savings of
approximately $60,000 annually, retained 4 employees and invested
approximately $50,000 in plant equipment.
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