MEP images--Fernco Inc.

Responding to Competition
Photo by Thomas Radcliffe
Fernco, Inc. is a manufacturer of flexible PVC pipe connectors. They were founded in 1964 and employ approximately 110 employees at their Davison plant. For many years, Fernco was the only manufacturer of a very specialized product. However, by 1987 other firms had discovered the opportunity and began entering the market. Competition had arrived. Fernco saw its costs climbing and its profits falling. Company president Joe Kryska made a commitment to educate and involve Fernco employees in efforts to become more competitive. The firm began integrating synchronous manufacturing practices. In response to Fernco's interest in this practice, the Michigan Manufacturing Technology Center developed a project to introduce managers to the Saturn Corporation's Five Point Program ( a successful model in this area) through training and implementation assistance. Fernco successfully incorporated the Five Point Approach in four years of business: production, financial, quality/safety, and scheduling/purchasing. Fernco's export sales continue to climb. ISO 9000 has become an important issue as exports rise to nearly 15% of sales. MMTC has assisted Fernco's ISO 9000 program through a baseline audit, training and implementation assistance. Fernco completed the ISO 9000 registration in spring of 1996.

Responding to Competition

Photo by Thomas Radcliffe

Fernco, Inc. is a manufacturer of flexible PVC pipe connectors. They were founded in 1964 and employ approximately 110 employees at their Davison plant. For many years, Fernco was the only manufacturer of a very specialized product. However, by 1987 other firms had discovered the opportunity and began entering the market. Competition had arrived. Fernco saw its costs climbing and its profits falling. Company president Joe Kryska made a commitment to educate and involve Fernco employees in efforts to become more competitive. The firm began integrating synchronous manufacturing practices. In response to Fernco's interest in this practice, the Michigan Manufacturing Technology Center developed a project to introduce managers to the Saturn Corporation's Five Point Program ( a successful model in this area) through training and implementation assistance. Fernco successfully incorporated the Five Point Approach in four years of business: production, financial, quality/safety, and scheduling/purchasing. Fernco's export sales continue to climb. ISO 9000 has become an important issue as exports rise to nearly 15% of sales. MMTC has assisted Fernco's ISO 9000 program through a baseline audit, training and implementation assistance. Fernco completed the ISO 9000 registration in spring of 1996.