• Research and Design – New product and process development
• Workforce development – Training in technical and process improvement topics
• Authoring of standard work methods – Job Instruction Sheets
• Developing their Knowledge Management System – IBET
• Creating an eCommerce presence – Marketing parts on-line and redesigning web site
• Expanding international business presence

Collectively, these efforts have already helped lower costs and improve efficiencies. They combine to build Schneider’s competitive advantage now, and in the future when the economy rebounds.

Investing in Research and Development

During busy times, Schneider engineers routinely have new and innovative ideas as they design projects for customers, but typically cannot take the time to develop them during the project. By assigning engineering teams to develop these ideas now, they will be in a more competitive position when the economy recovers. One success is the development of a new robotic palletizer. This new case palletizing application reduces the number of complex components required to do the job, thus reducing costs. It also lowers operating costs for the customer. Schneider demonstrated this new robotic palletizer at a recent trade show, generating customer interest for current and future demands.

Schneider engineers also work to continually improve Schneider’s design processes. Standard software modules of Visual Basic programming were established that can be plugged into project designs where needed, saving future design time and costs.

Workforce Development

Jon Christopher, Schneider’s Director of Organizational Development, became a certified TDO Training Within Industry (TWI) Trainer. He is providing training in all three TWI programs to supervisors, employees and managers throughout the organization. The first program, Job Methods, worked to improve work methods by reducing costs and waste. Employees identified $125,000 in annual savings from the first 10-hour JM Training session. One resulting process improvement initiative established Gemba boards providing key project status information at each project assembly site on the floor. The boards improve communication leading to better on-time delivery performance.

Standard Work Methods

Schneider also provided training in the TWI – Job Instruction (JI) program. It is used to develop work instructions and training standards for each job performed. Schneider employees wrote JI’s for key processes in the business from manufacturing (e.g. drilling holes) to engineering (e.g. issuing change notices) to the office (e.g. entering purchase orders). The documentation of these processes has significantly reduced training time and reduced errors associated with the learning process.

Knowledge Management

Another of Schneider’s infrastructure investments was in Knowledge Management. Schneider employees designed the web-based system, IBET (IBET is an acronym for Information Based Engineering Technologies). IBET allows any employee to access Job Instructions, CAD drawings, Device Data Sheets and other technical information on the systems Schneider designs and builds. The company’s Quality Management System has also migrated from a hard copy system to the IBET web. Service technicians access IBET from their laptop computers while at customer sites. Employees can even scan a video library of systems to assist them in troubleshooting and designing new jobs. The investment in TWI and IBET enables Schneider to bring new employees up-to-speed faster and more consistently. They are able to contribute to the work sooner and feel better about their contribution. Once the market improves, these investments will provide a significant advantage in ramping up capacity without extending lead times.

eCommerce

Schneider also enhanced their website and added eCommerce capability to offer customers the option to purchase parts for their equipment on-line. The spare parts business required a lot of employee time – from taking orders over the phone to processing the order and process invoicing. Now, customers can order and pay for parts on the web. The customers obviously benefit by being able to order parts around the clock. The new web site also includes access to parts drawings and bills of material by equipment.

International Business Development

Schneider has also intensified their international business initiatives. Steve Saleski, Schneider’s CFO/Vice President – Finance, participated in the ExportNY program run by TDO and Syracuse University. ExportNY helps businesses develop their international business plans. Saleski successfully identified markets and customers in Canada where Schneider systems provide solutions the markets need. Schneider is currently targeting those markets as well as working to expand their international presence in other ways.

Schneider Packaging Equipment Company has found a recipe for success. President Rick Schneider made a strategic decision as the realities of a soft market loomed after the events of 9-11. Rick communicated this integrated approach to every employee. There were no “sacred cows” -- every facet of the business was challenged to use this time to improve. Rick, with the help of every employee, turned the challenge of a soft marketplace into an opportunity to strengthen the infrastructure that allows Schneider to provide superior products and services at competitive prices. Schneider Packaging Equipment Company turned a problem into a challenge; turned that challenge into an opportunity, and used the opportunity to make Schneider Packaging Equipment Company, Inc. a stronger and more competitive company.