Challenge
DaMar Plastics has been pursued by several states to move its operation out of California with offers for incentives and low costs for industrial buildings. While the idea of relocating out of state was alluring, the realities were daunting and confusing. DaMar Plastics devised a strategic plan, which included long-term goals of augmenting production capacity and increasing profitability while staying in California. Despite the enticements from other states, DaMar decided to harness Federal, State and Local programs, including assistance from CMTC, to contain costs, develop its workforce, make significant improvements in its operations, and strengthen the company for growth.
Solution
CMTC worked with DaMar Plastics, between 2015 and 2018, in a number of areas and on several projects, beginning with assistance in developing a strategic roadmap to detail a prescriptive path forward. The method used was Hoshin Kanri, a 7-step process used in strategic planning in which strategic goals are communicated throughout the company and then put into action. Hoshin Kanri is a top-down approach, with the goals being mandated by management and the implementation being performed by employees. As a result, systems needed to be in place to ensure that objectives from senior management were effectively communicated throughout the organization.
CMTC also assisted DaMar Plastics in leveraging a series of no-cost electrical infrastructure upgrades offered by local utility providers, which included comprehensive audits, lighting retrofitting and a custom measures program. Savings from these efforts helped to support operational improvements delivered through workforce training and assistance from CMTC in preparing for ISO 9001:2015 certification. The types of assistance provided included, among other things:
- San Diego County Workforce Development Board Grant Funding
- CMTC’s California Manufacturers Accelerator (CMA program): Sales and Marketing Growth Track, Strategic Planning Growth Track and Quality Systems Growth Track
- ISO 9001:2015 training and audit support
- Guidance from CMTC’s Advanced Manufacturing Technology Practice - Comb Pick and Place and Bottle Inspection
- Enterprise Resource Planning System Selection
Impact
DaMar Plastics realized a number of benefits from the various programs and projects provided by CMTC. The company successfully achieved certification to ISO 9001:2015 through the training, consulting and guidance provided by CMTC’s quality systems consultants; realized costs savings through improved energy management; efficiently implemented an ERP systems selection to improve the company’s information systems; and received guidance and coaching to improve in the areas of marketing and further developing its strategic plan for continued growth.
- 2 new jobs created
- 25 jobs retained
- Investment in plant, equipment, workforce and processes of $110,000
“We are committed to continuous improvement and growing the company’s top line sales, as well as identifying key projects that will continue to improve work flow, safety and results.
Due to our success, employee loyalty, local supply chain and customer base plus the financial cost of moving our plant equipment, we found it to be to our advantage to remain in California.”
Bill Dickinson
President, DaMar PlasticsDownload This Case Study