This is a vivid picture of what Cast-Fab will be in the future. It will happen because our people will make it happen. It is written from the perspective of January 1, 2016, as we plot the next three-year plan.
Our managers and leaders were asked to close their eyes and imagine the future of the company they wanted to build. Every single one of us pictured a bright shop, with smiling faces, people in crisp uniforms, a very clean and organized facility, and product moving through at a high velocity. If 25 people in a room can all individually dream something at the same time, then those same people can build it together.
In 2016, Cast-Fab will feel much different. On the way to reaching our BHAG- our Reach for the Stars goal—we will have a lot of fun. I hope this document helps us “lean out” towards the future.
Our Vital Signs
We have reached our BHAG numbers from 3 years ago—50% sales growth, 50% profit growth, and Tier 1 type relationships with all customers. We now operate at more than $60 million dollars a year in revenue. Our pre-tax profit percentage is now north of 5%. We are able to share a larger percentage of this growth with our people as a result of their hard work at reducing costs. Our Hedgehog is that we manufacture, make, and pour metals based stuff. Our people know what a Hedgehog is.
Our 370 people work hard and play hard. Our Managers openly refer to the Strategy with our people— and specifically discuss it in terms of what specific departments can do to help. Many of our employees can give a nice explanation of what our Mission Statement logo really means. Our newly constructed office structure in the old cafeteria area has two floors and houses 12 people plus meeting space. Our team rooms are decorated by the employees and are uplifting places to spend time.
We operate this company with the Safety of a Volvo, the Agility of an Audi, and the speed of a Corvette.
The property around us has undergone changes over the last few years. We work hard at keeping the “look” of Cast-Fab neat and tidy to people passing by. Our lawn and landscaping look great and the American flag proudly flies next to our building.
Our company purpose remains the same—to Reaffirm America’s Manufacturing Excellence. We chose “reaffirm” very carefully. Some of us never thought it left- but we will REAFFIRM this country’s excellence to anyone who will listen. “Made in the USA” isn’t a slogan for us, it is a way of life—and how we make our livelihood to support our families.
Customers
We cherish opportunities to help customers when they have an urgent or critical need. No one circles the wagons for a customer like the people of Cast-Fab. Our customers are energized by us, often asking us for advice on how we have tackled an operational issue or made improvements. Even with all of our Sales growth, we still have an intimate customer base, but no one customer is more than 15% of our business.
We understand THEIR plans and what they ask of us to help them be successful. Our customers trust us—we know this because they keep rewarding us with their business. They know we respect them and honor our commitments. We make every aspect of dealing with us EASY for the buyers, managers, planners and technical people. We root for our customers to succeed—we do this not only for our joint success- but because manufacturing companies (and their jobs) are vital to our country.
We have done a good job at one other aspect of our BHAG—finding and caring for customers that best fit our Sweet Spot. It’s not just finding parts that fit a production line perfectly, but rather finding customers who (1) value our input, (2) make us better, and (3) with whom we can grow something together.
Our People
The people of Cast-Fab are young in heart and spirit. We employ Safety Fanatics, Schedule Fanatics, and Continuous Improvement Fanatics. We seek and employ competitive people who want to improve, want to win, and have fun in the process. Life is too short to be miserable. Miserable people find homes elsewhere rather quickly–because the teams themselves demand we have positive and productive team members.
Our people do hard work. Sometimes conditions are less than desirable (think heat in July and August). But the work we do is important and it affects many lives all over North America. Our people feel they make important decisions every day that will impact our and our customers’ success. Our people get a lot of responsibility to run their individual area. They have a chance to make improvements and changes. Cast-Fab may not be for everyone and that is OK—we can part ways professionally and as friends.
Safety is our Number 1 priority. All of our people–especially our managers–must be a Safety Fanatic. They must be someone whose FIRST thought is “how safe is that act” when looking at things in our operation. We won’t compromise on this–people who aren’t able to adapt quickly find employment elsewhere. Those who Lead and Supervise are held to an even higher standard–your team must be safe. This is YOUR duty and service to them.
Our managers have changed their focus over the last few years. They no longer focus on building the business—they focus on building the organization to build the business. Performance reviews spend a large percentage of the time talking about successes and opportunities in doing just that.
We “Plan for Perfection” (to steal a Top Gun Pilot term) in everything we do—including scrap and rework reductions. A large portion of the funds we share with our employees come from success in driving out needless waste. Planning for Perfection is what allows us to fulfill our Purpose–to Reaffirm America’s Manufacturing Excellence.
Our Shop
We employ people who see clutter AND fix it. Yes—we process sand and metal, but we don’t accept that it can’t be clean and organized. Sand, dirt, dust and metal chips do not sit around long. One little known measure we use to judge performance is gallons of paint applied–how much safety yellow, safety orange and machine gray we apply in a year to keep things looking the way we want them to.
Our office areas are neat and organized. They do not have stacks of papers or cardboard boxes piled up around them. Our customers see that we are engaged, efficient, and organized. Pictures of our families, pets and special events are evident and spark conversations. It is easy to spot an engaged employee, they–are productive, offer thoughtful suggestions, sit in the front, participate, ask thoughtful questions, and listen.
The only question we have to ask ourselves with respect to on-time deliveries is where in the High 90’s it will be this quarter.
Our Foundry scrap and rework rates are under 2%, our Fabrication shop doesn’t even spend time calculating it because it is such a small insignificant number.
Our maintenance team has done an unbelievable job of creating a NASCAR “Pit Crew” mentality to address breakdowns at breathtaking speed. Emergency items rarely happen though because our maintenance group has done a great job enhancing our preventative maintenance program.
As the CEO, hiring decisions are very easy for me to approve. In fact, I don’t approve them at all—I just get kept in the loop. Our people understand the numbers so well—and what bringing on additional costs means to the business—that I know they have made a smart business decision. Our rigorous process ensures we get serious candidates. Our success rate at hiring people is much higher because we have vetted them multiple times- not just for their specific skills, but how they fit in and enhance our culture.
Our Training and Development
We know that there are very few technically trained people walking through our door to apply. We don’t use that as an excuse for not growing. We train them. We use the “next man up” philosophy when opportunities arise. Employees seeking additional duties actively volunteer to be that “next up”. Our Cast-Fab University (Cast-Fab U) has now grown to 25 specific offerings of classes important to our business and for the development of our people. Our own people (and some of our vendor / partners) teach the classes. It is an honor to be asked to lead a class and those that do it consider it to be rewarding.
Words Behind the BHAG
The number goals in the BHAG are lofty for us in three years (50, 50 and 1). The words (and their meaning) in the BHAG logo were chosen very carefully.
Velocity – the pace of things through the facility: think speed in a bright open shop.
Value – we are at our best when we find customers that best fit our sweet spot capabilities.
Inspired – We are known as a great place to work. We employ Happy, Inspired people who are Engaged in life.
People Development – refers to our deep desire to grow with our own personnel–promoting from within if at all possible. That is why we work hard at Cast-Fab U- giving people who have shown promise an opportunity to further their skills.
Our Community (Engagement)
Our people are generous with their time. Our people volunteer all over the community a combined 10,000 hours a year. That’s the equivalent of 5 full time people working to make our community a better place. Our managers are often quoted by local reporters due to their success and unique perspective on building a great company for the long term. Someday I will be asked to write an Opinion Editorial in the Wall Street Journal—crossing something off my own bucket list.
(Our) Next...
Since we are Continuous Improvement Fanatics, we are not satisfied with our progress. We certainly enjoy the success, but have now realized we have just scratched the surface on what we can be and what we can do. Plotting the course for the next few years will be fun.
To Be Continued……
