 |
 |
 |
 |
Frank Nichols characterizes his business, Silicon Forest Electronics, Inc., as a growth company, but executing that mantra proved difficult during the technology slump and recession of the past few years.
Survival, in essence, became Silicon's focus. The privately held company's reliance on a diverse customer base helped, but Nichols was forced to take action in other areas. On contract, the company manufactures circuit boards and related high-tech products.
The search landed Silicon at the doorstep of Washington Manufacturing Services, where a series of classes on Lean Manufacturing created the blueprint for the company's future.
In October, Nichols implemented the Lean principles, which dictate a business strip away waste and focus on functions that add value to a company's product or service.
Streamlining production already has shown early returns, with revenues rising from $6.4 million in 2003 to $7.5 million in 2004, according to Nichols. Revenues are anticipated to be about $9.5 million this year.
Full implementation of Lean is a year away, Nichols said. Once completed, he expects Silicon to boost revenues 100 percent without adding more machinery. He also believes a standard circuit board's production time will be reduced from two weeks to two days.
Nichols said efficiencies like those will allow Silicon to reach his goal of pushing revenue to $25 million within five years.
The obstacles found at Silicon were no surprise to Nichols, but the training helped set goals and create a mindset of fixing rather than tolerating problems.
It's a common hurdle for companies tackling Lean Manufacturing, according to John Vicklund, president of Washington Manufacturing Services.
"Companies find it deceptively difficult to implement and change the way they've done things with these new methods," Vicklund said.
Washington Manufacturing Services is a private, nonprofit company mandated by Congress that offers a variety of classes and assistance for businesses looking to change manufacturing practices.
The government provides the training to keep small manufacturing companies competitive by giving the operations updates on technology and techniques.
Vicklund said 170 companies last year took advantage of the services. The vast majority of that help went to small businesses, a reality that dispels a common stereotype that most manufacturers are the size of the Boeing Co. or an automotive assembly line at General Motors Corp.
Ninety-eight percent of the manufacturing companies nationally employ fewer than 500 people, and in Washington 93 percent have fewer than 100 workers, according to Vicklund.
Those statistics mean Silicon resembles lots of other manufacturing operations in the state.
Two parallel buildings in an office park off Andresen Road make up Silicon's operation in Vancouver. The eastern building houses administration, a new stock room and final circuit board assembly. Work in the west building centers on the primary manufacturing of circuit boards for the aerospace, industrial, medical and instrumentation industries.
Hewlett Packard; Flir Systems Inc., the Portland maker of infrared camera systems; and Portland-based Planar Systems Inc., which manufactures flat panel display systems, are among Silicon's typical customers.
The Lean system is expected to not only increase production, but instill even greater loyalty in its customers.
The most obvious signs of Lean at work have occurred in the manufacturing building. Computer-controlled machines the size of sofas were moved to improve the production flow.
A team of employees handle delicate hand-soldering work nearby. Nichols calls the group artisans and said it is their work that has created Silicon's niche and gives it a competitive edge.
Nichols anticipates the greatest challenge in the Lean conversion will come from the non-manufacturing end of the business, where results aren't as immediate.
"It's a constant process," he said.
Once Silicon implements Lean in each department, Nichols said the company will restart the evaluation procedures.
"It's a constant process," he said.
