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In their July 15, 2010 edition of eManufactLine, the Michigan Manufacturing Technology Center is highlighting Saint Clair Systems, Inc. of Washington MI as a Success Story. “I know they work with a lot of companies across the state of Michigan and I know they have had a lot of successes. I am flattered that they chose to highlight our team,” said Saint Clair Systems President, C. Robert Gladstone. “Everybody has worked hard and contributed and I think you can tell when you walk through our facility.”
As you walk through the facility, the first you thing you notice is the cleanliness and organization. Gladstone credits Jeff Makarewicz, the Manufacturing Manager and his Manufacturing Team. “Jeff knew that if we were going to expand our markets, we were going to be talking to several companies that did not know anything about us. We all knew that first impressions mean so much and we wanted to leave potential customers convinced that we would make a great partner. Jeff understood that his team was becoming a significant part of the Sales Process.”
“I know it shows well,” said Makarewicz, “but it shows well because we are operating more efficiently than we have in the past. The waste associated with excess inventory and motion shows up in clutter and in work-in-process. Inefficiency doesn’t show well.” A quick scan of the company Performance Scorecard shows that they are operating more efficiently. Inventory Turns have almost doubled, Vendor On-Time Delivery has increased from 59% to 92% and Manufacturing Cycle Time has decreased from 20 days to 8 days. “We still have much to do but it has been exciting to see the progress,” said Makarewicz.
“One thing that gets missed too often in a lean implementation is culture,” said Gladstone. “MMTC made us aware of that so we partnered with Joe du Lac of Strategis Lean Management Advisors. When you talk to Joe, you know you are talking to somebody different,” Gladstone continued. “Joe worked closely with Jeff Makarewicz until we were certain that we could continue on our own. We were determined not to have a failed implementation. Joe’s transfer of knowledge and leadership helped us make it through an otherwise difficult 2009.”
The final impression when you leave the facility is one of a company confident in its ability to face new challenges. Saint Clair Systems has overcome the difficulties associated with the automotive industry, the threat of “low cost” countries and the effects of the economy on Capital Equipment purchases. “We are focused on the right things,” said Gladstone. “We have reestablished our growth pattern and are excited about the opportunities that are in front of us.”
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“We set some aggressive goals for 2010,” said Greg Kremer, Shareholder and Director of Sales of Saint Clair Systems. “Last year was hard to take from an order standpoint but we set up and supported a large number of efforts that are starting to payoff internationally.” Since the beginning of the year, Saint Clair Systems has received orders from the UK, Germany, Brazil, China, India and Korea. “We have strong partnerships globally,” said Kremer who spends much of his time supporting and following up with Saint Clair’s international sales team. “Many of our global partners see these orders as a start of something much larger,” he continued. “With a larger installed global base, our sales team acquires more credibility. Additionally, those companies not using our technology suddenly find themselves at a competitive disadvantage. All of this is adding up to a healthy 2010 but the bigger payoff will be in opportunities moving forward.” Kremer stated that Saint Clair is currently on track to meet their aggressive 2010 goals. “We were slightly behind target after March but the order we received from Korea this week put us right back on track. We still expect this to be a very good year.”
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The Purchase Order received the morning of February 2, 2010 marked two firsts for Saint Clair Systems. It was the first Coil Coating Temperature Control System scheduled for installation in India and it was the first Coil Coating Temperature Control System scheduled for installation into a brand new Coating facility. All of the previous Coil Coating Temperature Control Systems have been installed on existing lines so introducing it into new construction introduced something new. Waiting. “When we are doing retrofits, we are typically one of the biggest, if not the biggest, projects that a customer has in process,” said Greg Kremer, Shareholder and Director of Sales. “While the sales cycle can be long, it is usually moving. This project was so large and our part of it so small, there were times where it seemed to stand still. We received verbal confirmation over a year ago. We are glad it is finally here and the people we have been working with so far have been great.”
The project refers to Tata BlueScope Steel Limited, a $250,000,000 USD joint venture between Tata Steel and BlueScope Steel Limited. Tata Steel is among the top ten steel producers in the world and BlueScope Steel is the global leader in the provision of high quality metallic coated and painted steel products for the building and construction sector. Fortunately, Saint Clair has history with both companies. Tata Steel owns the Corus Group and Saint Clair just completed a successful demo and sale of equipment with Corus UK. BlueScope Steel owns Steelscape, Inc. Steelscape has three facilities in North America and each of those plants is successfully using Saint Clair Systems Temperature Control. “It definitely helped,” added Kremer. “We have proven technology and they have direct access to unbiased information. Our end user customers often make our best sales people.”
“This order was great news for our team in India,” continued Kremer. “They have been working hard for a long time and this will help jumpstart their efforts. There are many additional opportunities there and the competitive pressure to keep up with Tata BlueScope will certainly help us. There is a lot of excitement around this order.”
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Midway Direct, Inc. of Novi Michigan, Saint Clair Systems strategic alliance partner in China, spent the last week demonstrating how selecting the right partner can fuel growth even during a global recession. “We asked them to schedule a full week for us and they definitely accomplished their mission,” said Robert Gladstone, President. “We arrived late Sunday Night, had a meeting with Honda Sundiro on Monday morning and did not stop moving until Friday night. Michael Li, our representative in China, had everything set up and scheduled perfectly. The fact that he was able to set up those five meetings without significant help from us was better than we could have asked for.” Those “five meetings” took the team to Honda-Sundiro, Angang Steel, Haier, Guangzhou Steel and Hanko Color Steel. The team included Michael Li, Midway President Jason Zhu, Gladstone and Saint Clair VP of Engineering and Technology, Mike Bonner. There was travel every day and the trip included visits to Shanghai, Shenyang, Qindao, Jinan and Wuhan. “I expected to be tired at the end of the trip,” said Gladstone, “but it was quite the opposite. It was a very energizing experience.”
“Our partners did a great job for us,” said Bonner. “Having Jason there was critical. His ability to translate, present and handle questions was exactly what we needed. Having his skills and coming prepared helped make the trip productive.” This was Mr. Bonner’s fourth trip to China but his first visiting Chinese Coil Coating operations. “I know I am not saying anything new but China is moving very quickly. The equipment, the skill set of the people and their desire to improve was evident at every location we visited. This is an exciting time for China and with the contacts Mr. Li has already established, Saint Clair should be in a great position to work with some very progressive companies.”
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Saint Clair Systems received their first Purchase Order for Coil Coating Temperature Control in the UK. “This is definitely the link to Europe we were hoping to establish,” said Greg Kremer, Shareholder and Director of Sales. “We had such great results and developed such a productive relationship with Corus during the demonstration phase. We are all very excited to see it end with an order.” Saint Clair is expecting the installation to go smoothly and the results to improve when they deliver the system. “This should be one of the easiest installations we have done,” said Mike Bonner, Shareholder and VP of Engineering and Technology. “They have had a lot of time with the demo unit and they have a smart, experienced team. I am excited to see the results improve when they get their new system.” Saint Clair sizes their systems for each Coater’s unique operation. The demonstration unit offers significant improvement but the final system will provide improved consistency regardless of changing variables. “They saw enough improvement with the demonstration unit to provide a very fast return on investment,” said Bonner. “When they get the unit designed specifically for them, it should be like running on their best day, every day. This is great news for both of our companies.”
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As the economy continues to sputter domestically, Saint Clair Systems is finding success overseas. During the summer, Corus, a subsidiary of TATA Steel, installed a demonstration unit for one of its Coil Coating lines in the UK. By all measures, the demonstration was a success. Corus saw significant reductions in both material and solvent usage and an increase in finish quality. “It was a smart and energetic team they had us working with,” said Mike Bonner, Shareholder and VP of Engineering and Technology. “They understood everything very quickly and were tremendously easy to work with. Given the relationships we developed working together, I asked if they would consider allowing us to use their site for training our European Sales and Service group. They could not have been more accommodating and I cannot thank them enough. They were great.” Saint Clair Systems used this opportunity to coordinate a four-day effort in the UK that consisted of classroom concept training, on-site review of the equipment and two meetings with potential customers. “It was a great week,” said Bonner. “We had a smart, technically oriented Sales and Service group absorbing everything they could about the process, the equipment and the industry. We had partners from Germany, Benelux, Spain and the UK and they had already been identifying potential customers. I really feel that we are set up for success in Europe.”
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Nothing is sacred at Saint Clair Systems when it comes to waste reduction and continuous improvement. Not even the sales team. Although the economy is presenting a serious hurdle, the Saint Clair Systems sales team managed to squeeze out a growth year in 2008. “It wasn’t big growth but it was growth,” said Greg Kremer Shareholder and Director of Sales.” Saint Clair Systems was quick to recognize that growing in 2008 was a significant accomplishment but they understood that 2009 was going to bring even more challenges. Understanding that their sales people operated independently and may resist a “process,” they started by reviewing a handful of successful orders and looking for common experiences. “Our sales people have different strengths and different personalities and as a result, they approach opportunities differently,” said Kremer. Even with their differences, there were some common actions that generated results. They used those actions as the foundation for their sales process. “We are fortunate to have solutions that kind of sell themselves,” said Chuck Hasse, Industrial Finishing Specialist. “If we can review customer processes and listen to the issues they are facing, we can typically generate a solution that pays for itself quickly. Generating immediate positive cash flow is key right now and we are able to guarantee that in most cases.” Ideas like guaranteeing immediate positive cash flow, documenting processes for customer’s quality systems and project managing customer installations have all come from continuous improvement discussions within the sales team. Talking about the customers, Kremer summarized, “if we minimize their risk, improve their cash flow and take pressure off their workload throughout the process, it becomes pretty compelling.” The sales process is still evolving but identifying steps, measuring progress and generating improvements appear as embedded in the sales culture as they are in the rest of the operation.
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Saint Clair Systems has entered into a strategic alliance with Midway Direct, Inc. of Novi Michigan. Midway will focus initially in China on the Coil Coating market and on Automotive Body Shops. Saint Clair currently dominates these two market segments in North America. “We are very excited about the opportunity to work with Midway,” said Robert Gladstone, Saint Clair’s President. “This is a very skilled group with experience in both the US and China markets. Their technical expertise, existing relationships and ability to navigate the business differences between the US and China made them a perfect fit for Saint Clair.” Gladstone was surprised to learn that the core management team at Midway was entirely comprised of degreed engineers. “During one of our early meetings, we invited them to tour our facility. After a short review of our shop floor and the equipment we were assembling, they immediately understood our equipment and its benefits. All but one has a PhD and he is only a few credits short. This is a smart ambitious team,” said Gladstone.
In addition to their technical expertise, Midway brings Saint Clair another unique advantage. Three of the four key members of Midway were born and raised in China but each has spent over 15 years in the US, operating in the US business environment and attaining US citizenship. “We have maintained relationships in China and have developed a good understanding of both cultures,” said Jason Zhu, President of Midway Direct. “We expect the China market for Saint Clair Systems to eventually become larger than the US market,” he added. Ted Ying, Chairman of Midway Direct agreed saying that “China seems like the US one hundred years ago; so much energy and activity. China, in many ways, is behaving more capitalist than the US.” We will have to wait and see whether Mr. Zhu’s prediction comes true but it is clear that this unique partnership should generate significant opportunities.
Learn more about what we do at www.stclairsystems.com