Off the ropes
Kysor//Warren battling back from near-death experience
By TONY ADAMS
Ledger-Enquirer.com
Five years ago, commercial refrigeration manufacturer Kysor//Warren was like a punch-drunk boxer, knees wobbly from too many blows to the midsection.
Poor planning, execution and leadership were poisoning the once-proud and vibrant company. It appeared more than ready to topple face down onto its industrial concrete floors.
"I felt at that point and time it was a miracle that we still had a company," said Lee McDaniel, a 24-year employee and one of two plant managers at the Columbus-based company.
"Some new management was brought in and took us in the wrong direction and, really, we backstepped," said Charles Roy, the other plant manager. "We lost a lot of business, our customers. We lost some good employees."
But the workers who make supermarket refrigeration cases and cooling systems that keep your milk, eggs, meat and produce safe to eat still had some fight in them. A turnaround specialist, Ralph Schmitt, was hired as president and immediately set to work organizing an operation in disarray.
Dale Sizemore, Kysor's technical services manager, remembers how depressing and chaotic the plant had become. Excess equipment was tossed in tractor-trailers. The aisles were clogged with materials.
"It was a death trap. There was stuff just piled everywhere," he said.
Keeping it 'lean'
One of the solutions the company turned to was "lean manufacturing." It essentially means purchasing just enough supplies and materials for the orders you have. That keeps inventories low and the plant efficient.
Commercial refrigeration manufacturers work on an extremely tight turnaround times. Kysor//Warren may receive orders to outfit a grocery store or delicatessen less than a month before equipment is to be installed.
The company also put in place a system in which employees give feedback about "best practices" on a daily basis. That information is dissected by managers at the end of the day to determine if can be useful on what essentially is a long assembly line.
"It's brainstorming with folks on the floor," said Roy, who manages the Mutec Drive plant that makes rack cooling systems and metal buildings that house the units. "They're the experts at what they do. They know the best ways to do it, the most efficient ways to do it. If you're looking to improve a process, get everybody involved."
The third element behind Kysor//Warren's turnaround effort has been to improve the company's reputation. As turmoil engulfed the company, quality control plunged. Some key customers walked away, including much of the company's business with Wal-Mart, the world's largest retailer.
That was critical because the commercial refrigeration industry is a fairly small fraternity. Hill Phoenix and Hussman, both with plants in Atlanta, are Kysor's top competitors.
Lose a large customer and as much as 20 percent of your business could go out the door. For Kysor, 10 customers make up about 80 percent of its business.
