Scotsman Ice Systems

Ice in their viens┬áContinuous improvement has been a fact of life at Scotsman Ice SystemsÔÇÖ Fairfax plant for nearly 25 years. Small wonder then that teamwork and employee involvement are a keystone of its operations. Greg Jarvis talks to Gay Sutton about the journey to manufacturing excellence. Headquartered in Vernon Hills, Illinois, Scotsman Ice Systems is a leading manufacturer of refrigeration products, with more than 300 models of ice machines, storage bins, and ice and water dispensers, which it supplies largely to the food and beverage, retail, hotel and healthcare industries.  Recently acquired by equity firm Warburg Pincus, Scotsman employs more than 200 people in its manufacturing plant in Fairfax, South Carolina.This plant has been recognized three times in the last six years by IndustryWeek as one of the best plants in North America, and it was a finalist in 2006 for the prestigious and much-coveted Shingo Prize. But the long road to excellence comes as the result of a dedication to continuous improvement. ÔÇ£It all began in 1986 with a three-day seminar in Atlanta by Richard Schonberger entitled ÔÇÿJapanese Manufacturing MethodsÔÇÖ,ÔÇØ explains plant manager Greg Jarvis. ÔÇ£It turned on the light. We realized that we needed to changeÔÇönot radical change, but continuous changeÔÇöforever.ÔÇØ The changes that followed this pivotal event were far-reaching and transformed the company into the competitive market leader it is today. ÔÇ£We faced the truth about where we stood among our competitors and in the eyes of our customers. And this was the catalyst for our transformation,ÔÇØ Jarvis says. ÔÇ£We wanted to be the best ice machine company in the world.ÔÇØThe company immediately set out to benchmark itself against other world-class companies and visited the likes of Kawasaki, Maytag, Honda and Gilbarco. ÔÇ£Not all we learned could be applied, but each benchmark stimulated further thinking and adapting of new ideas,ÔÇØ Jarvis explains. Perhaps the most influential assistance it received came from Toyota of Kentucky, which threw its doors open to ScotsmanÔÇÖs managers and employees, welcoming them into the plant to see the Toyota Production System (TPS) in action, to ask questions, to learn and gain an understanding of it. The continuous improvement process really began to take shape when Scotsman began implementing elements of the TPS.┬áÔÇ£We went to ÔÇÿpoint-of-useÔÇÖ manufacturing, eliminating sub-assembly departments. We implemented kanban systems for ordering internal purchased and fabricated parts, and we installed a few supplier kanbans too. We also decentralized the storage parts. We eliminated many material transactions, including the use of shop orders to schedule the fabrication shop, and we reduced changeover times.ÔÇØAt the same time, the company recognized that genuine continuous improvement could not happen with the top-down management structure that was in place. ÔÇ£Management wouldnÔÇÖt be able to do this alone; they would need the close involvement of our hourly employees, who live with the problems daily and understand the issues that affect the plantÔÇÖs performance.ÔÇØThe company therefore set about changing the management structure and drawing the shop-floor workers into the improvement process. The plant was divided into manufacturing cells, and each cell was given a team of middle managers whose focus was making improvements using the point kaizen process. Each team consisted of the unit manager, manufacturing engineer, quality engineer, materials planner and an industrial engineering technician who was an hourly employee. Meanwhile, teams of hourly workers were also created and encouraged to take part in the day-to-day decision making, devising ways of reducing costs and improving quality.ÔÇ£Forming teams from the hourly workforce took an incredible amount of effort and resources,ÔÇØ Jarvis says. ÔÇ£But today the plant has 25 such teams organized along the lines of the TPS highly involved employee team model.ÔÇØ This has been a transformational experience for the Scotsman management. ÔÇ£WeÔÇÖve also learned that the most thorough and efficient method of management is through teamwork. And we now employ teams from top management down.ÔÇØNone of these sweeping changes would have been possible without one important cultural attribute: the willingness to make changes, to take risks and try something different. And the company has been instilling the philosophy of questioning everythingÔÇöthat nothing should ever be just ÔÇ£good enoughÔÇØÔÇöthrough all its employees. ÔÇ£The risk of being penalized for failure when attempting to improve processes is virtually nonexistent in our company,ÔÇØ Jarvis says, ÔÇ£and the recognition of success far surpasses any criticism of failure.ÔÇØOver the past few years, the company has initiated week-long kaizen events designed to bring major improvements to specific areas of the plant. ÔÇ£Other companies and our suppliers have sent employees to participate, in order to learn the process,ÔÇØ Jarvis explains.The supply base is an essential element of ScotsmanÔÇÖs operations, and good supplier performance is recognized at an annual presentation. Since the 1990s the company has also been working to develop what it calls an elite supplier base, companies that are intimately involved in ScotsmanÔÇÖs manufacturing operations. ÔÇ£Today, teams of suppliers work with us on the design of our products,ÔÇØ Jarvis says, ÔÇ£and we all benefit from reduced cycle times and more cost-effective and manufacturable designs. But in order to achieve this, we have to share information with our suppliers that was traditionally considered proprietary, and this has required high levels of commitment from both sides and occasionally nondisclosure agreements. However, through this approach we enjoy lower defects and products with higher reliability.ÔÇØExcellence in technology development and application and in manufacturing lead to one thingÔÇösuperior products. In the past two years, one Scotsman product in particular has continually impressed audiences and led to a variety of industry accolades. In addition to the 2007 Kitchen Innovations Award from the National Restaurant Association, the Prodigy Cuber received the Best Equipment Award from the California Restaurant Association when it launched at the Western Foodservice & Hospitality Expo in late 2006.Improvement at Scotsman is an ongoing process, and, along with the concepts of lean manufacturing, the company is investing in plant and equipment. ÔÇ£As older equipment needs replacement, we are looking to newer technology to improve our capability and to lower costs and enable us to remain competitive globally.ÔÇØ As recently as April this year, a $9 million investment in automated fabrication equipment was installed and commissioned. ÔÇ£This equipment, along with many other investments, is a clear demonstration that Scotsman is committed to the Fairfax plant and is going to stay American made,ÔÇØ Jarvis concludes. ÔÇô Editorial research by Howie Gordon┬á