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Appendix

A - Remmele Growth and Event Chart
B - Remmele Mission
C - Remmele Strategic Policies
D - Remmele Organizational Structure and Characteristics


Appendix A - Remmele Growth and Event Chart


Appendix B - Remmele Mission

Our Goal

Our goal is to be the BEST company in our industry.

Who We Are

We are a company which specializes in high quality, difficult and complex work requiring innovative technologically advanced processes in the areas of: (1) contract fabricating, machining, and assembly; (2) designing and building of tooling; and (3) designing and building custom equipment for automating a variety of manufacturing processes.

Contract machining services are primarily directed toward high value-added machining of complex, close tolerance parts. These services encompass small lot non-repetitive machining, repetitive-batch machining, and high volume continuous-run machining. Customers for our services consist primarily of manufacturing industries throughout the world.

Why We Want To Be The Best

We want the satisfaction and pride of achievement associated with being important, highly skilled members of an organization that is constantly working toward being the BEST in its industry and, with our families to share the material rewards that this success brings.

When We Will Be The Best

To be the BEST in our industry, we will have a consistently growing number of loyal customers who recognize us as the leader in providing customer satisfaction. Our employees will demonstrate a high level of satisfaction with our company and their jobs. We will be recognized as a good corporate citizen by our employees and those people we impact in our communities, and our vendors will recognize us as an ethical and valuable customer. We will be at or among the top companies in our industry both in terms of sales and profitability, and we will maintain a record of consistent growth. As an aid in measuring our performance, we will compare ourselves annually to a select number of the top performing companies in our industry, and to the industry data available through our trade associations.


Appendix C - Remmele Strategic Policies

A. Guiding Principles

We at Remmele Engineering believe that conducting our business with the following principles in mind will ensure the accomplishment of our goals and provide job security for all.

Customer Satisfaction

  • By aspiring to excellence in quality, delivery, and productivity, which will assure competitive prices.
  • By committing to continuous improvement in every service or product we provide a customer.
  • By treating everyone with courtesy, integrity, and friendliness.

Employee Satisfaction

  • By making Remmele an economically secure and personally rewarding place to work.
  • By providing an atmosphere of trust and open communication where people can continue to grow in knowledge, skill, responsibility, and compensation.
  • By maintaining high standards of concern for the needs of the individual and the community.
  • By involving everyone in our organization to ensure we accomplish our goals.
  • By maintaining a clean, orderly, well lighted, and safe working environment.

Growth

  • By attracting and further training outstanding people who are intelligent, honest, hard-working, skilled, and self-motivated to excel.
  • By maintaining an innovative environment through challenging the status quo, embracing change, and encouraging informed risk taking.
  • By regularly investing in the best tools, systems, and equipment available to be effective and competitive.
  • By following a strong, well planned, effective marketing program.
  • By formulating detailed, specific action plans to aid in accomplishing our goals.

Community Service

  • By being a good corporate citizen, protecting our environment and supporting worthwhile community activities.

Profits

  • Sufficient to accomplish these goals and provide a fair return to our stockholders.

Success in following these principles will result in an ever increasing number of satisfied customers, the retention and growth of our people, and increasing profitability to be shared with all employees.

B. Customer Satisfaction Policy

Meeting customer expectations results in customer satisfaction. Customer satisfaction goes far beyond the products we manufacture and encompasses the total business relationship between our customers and all our people and activities within our company. Leadership in the marketplace can only be sustained by constantly meeting or exceeding the expectations of our customers and anticipating their future needs through continuous improvement of our products and services.

Consistent with our Guiding Principles, we will accomplish this through teamwork and employee involvement; by regularly investing in the best equipment, tools and systems available; and by investing in the ongoing training and development of our people to enable each of us to perform in a manner that meets or exceeds the expectations of our customers.

C. Organization

1) To better serve our customers we will utilize small (200 people or less) focused plants to ensure good communication, maximize the involvement and commitment of our people, and ensure responsiveness.

2) In the interest of enhancing the psychological ownership of our business by all employees we will continue to (1) involve people in the process of making decisions which affect them, (2) provide for decision making and problem solving at the most appropriate level, (3) encourage risk taking, and (4) empower employees with the freedom and authority to make the decisions necessary for effective job performance.

3) Emphasize communication at all levels within the company so all our people will understand (1) what is going on in the business, (2) the issues the company is facing, and (3) how they can help.

4) During times when sufficient work is not available, we will implement a series of responses to try to cause additional business to happen while simultaneously reducing working hours to match the available workload. Recognizing that our people are our most valuable resource, we view layoffs as the last resort to be undertaken only during a sustained severe business downturn when the survival of the company may be at stake.

D. Management

1) We will continue to develop a supervisory team that successfully plans and leads in reaching objectives that benefit our company and all of those associated with it.

2) We will continue to encourage all members of the supervisory team through various forms of education, to increase their managerial skills, such as:

a) Enhancement of our interpersonal skills so that:

  • Our communications are candid and open;
  • We develop the trust of our peers and subordinates;
  • We constructively manage conflict;
  • We are aware of our use of, and do not abuse, power;
  • We develop competence through delegation;
  • We accept and support the need for change.

b) Improvement of our group process skills so that:

  • Our communications are candid and open;
  • We accept the ideas and communications of others;
  • We are supportive and cooperative;
  • Our focus is on team building;
  • We have more productive meetings;
  • We accept and support the need for change.

c) Increase our verbal and written communication skills so that:

  • We eliminate "jargon" when talking with customers and others in the company;
  • Our written communications are clear and concise;
  • All of our communications reflect care and competence.

3) We will continue to encourage all members of the supervisory team to increase their technical skills through various forms of education; i.e., college courses, seminars, in-house training, etc. In addition, we must develop a structured program of continuous technical training for each managerial and technical field, i.e., design engineer, designer, project manager, plant manager, etc.

4) We will continue to manage with honesty, thoughtfulness, compassion, humility, courage, and enthusiasm. We will demand of ourselves, and encourage from those with whom we work, the highest standards of performance, emotional stability and maturity, consulting supervision and leadership.

5) Continuous improvement of quality and productivity are an integral part of our management philosophy.

E. Community and Industry

1) We will support worthwhile community projects by:

  • Donating at least two percent of pre-tax profits to various charities and programs.
  • Our Matching Gift program.

2) We will encourage our people to support community activities by:

  • Recognizing the need for good citizens to run for public office and encouraging people to do so.
  • Having people serve on advisory boards to schools and foundations.
  • Encouraging people to take an active part in other community activities, such as church, civic, and youth groups.

3) Through our company communications system and, more importantly, through our actions, we will strive to be a good corporate citizen. Realizing that it is important to our long-range survival to be part of a vital, growing industry, we will:

  • Support our trade associations, e.g., NTMA, AMT, NPMA, and local and national professional associations with the needs of our company, e.g., APICS, SME, TCPMA, through membership and active participation.
  • Assist other companies in establishing machinist and machine operator training programs.
  • Assist our industry in various other training programs for the overall improvement of management standards.
  • Be a good competitor and follow ethical standards of business conduct.

4) We will protect the environment by acting in an environmentally responsible manner, conforming to environmental law, communicating this responsibility to the entire organization, and periodically auditing this conformance.

F. Market

As a supplier to many companies much larger than ourselves, we must avoid dependence on any single industry or customer to avoid excessive risk and maintain our independence. To accomplish this we will apply the following guidelines:

1) Attempt to limit our sales to 15% of our total sales volume to any single customer or major corporate division and to 30% of our total sales volume to any single industry.

2) Attempt to limit sales of each plant within the guidelines of allocating no more than 30% of the available hours to a single customer or division of a major corporation.

G. Resources

1) Minimize short- and long-term borrowing by ensuring that our ratio of debt to equity does not exceed 25%. This policy coincides with the independence and freedom of choice that come from being financially secure. "The lender cannot dictate business decisions to us."

2) To ensure that we keep our productive equipment up-to-date we will invest each year an amount at least equal to our depreciation in new equipment.


Appendix D - Organizational Structure and Characteristics

1. Products and Services – Our business consists of four basic business segments:

a) General Machining Division (Plants 10 and 40): This Division serves customers that require precision machining services in the design and build of tooling; low quantity part and assembly manufacturing; or production parts and assemblies in the size range over a two-foot cube. The parts are generally complex and difficult to machine. They require close tolerances and encompass a broad range of part sizes up to 75 tons.

b) Production Machining Division (Plant 30): This Division specializes in high quantity, continuous run production utilizing a focused-factory organization concept. Plant 30 is currently in the process of developing new capabilities to manufacture small parts (smaller than a one-inch cube) also in production quantities.

c) Repetitive Batch Machining Division (Plant 20): This Division specializes in smaller quantities of parts up to a two-foot cube in size that are manufactured in repetitive lots. Our manufacturing focus in this plant is based on Flexible Manufacturing Systems.

d) Automation Division (Plant 50): This Division designs and builds special machines and systems for automating nonstandard applications of assembly and testing, web handling, and metal removal and fabrication.

  Contract Machining & Fabrication Plant Missions

Volume

Part Size

Low Quantity Repetitive Batch Production Continuous Run Production
Up to 75-Tons,
Up to 100-Feet
Plant 40 Plant 40 Plant 40
Up to Ten-Tons,
Up to Ten-Feet,
Over Two-Foot Cube
Plant 10 Plant 10 Plant 10
Two-Foot Cube to
One-Inch Cube
Plant 10 Plant 20 Plant 30
One-Inch Cube and Below Plant 30 Plant 30 Plant 30
 
2. Organization – Our organizational structure is built around highly autonomous business units which are focused on different market segments, and which have developed capabilities to meet the needs of each segment. These business units are linked with the following centralized functions:
  • Financial and general accounting activities are centralized to provide consistent performance monitoring.
  • Human resources activities are centralized to assure consistent and equitable administration of all human resource practices.
  • The leadership of our organization of independent sales representatives is consolidated company-wide to benefit from economies of scale, and to avoid conflicting activity and messages in the marketplace.
  • Information systems support is centralized to reduce duplication of effort at the plant level and to maintain system and database integration were necessary.
  • Our capital expenditures are coordinated and controlled on a centralized basis, although responsibility for their initiation and specification rests with the business units.

Important requirements and characteristics of this organizational structure are as follows:

a) Profit and loss accountability reside at each plant.

b) Our plants have been focused on different market segments recognizing that these segments have different competitive patterns technical demands, and customer needs and, therefore, require different technical capabilities and management systems.

c) Autonomy and decentralization in the areas of decision making that are critical to meeting customer needs, and achieving profit goals are important to our long-term success.

d) By decentralizing key decision making at the plant level we become more responsive to customer needs and get more ownership of our business processes.

e) A minimal hierarchy with division management teams focusing on building capabilities at plant level and operating with minimum staff necessary to avoid duplication of expenses and utilize critical management skills.

f) A strong commitment to selecting outstanding people and to investing in their training and development to insure they have the skills necessary to function effectively and reach their full potential.

g) The effective use of teams, particularly at the plant level, for increased involvement of individuals in decision making and effective execution of projects.

h) The creative use of a collaborative process without a staff structure whereby people with similar types of responsibilities meet periodically to find innovative ways to link their business units together and share information, expertise and technology. Examples of this would be individuals in functions such as marketing, purchasing, manufacturing engineering, project management, etc.

i) A strong commitment to sharing resources between our plants.


View Executive Overview: Abstract, Preface, Table of Contents

View Section A: Intro to Model | Change Proficiency Maturity Model | 24 Business Practices | Summary

View Section B: Intro to Remmele Case Study

View Section C: Integrated Model & Case Study | C-1.3: Strategic Plan Buy-In | C-2.1: Capital Investment Justification | C-3.1: Business Unit Relationships | C-6.2: Operating Metrics

Download This Report: PDF

Order Hardcopy Bound Report: An Agile Enterprise Reference Model and Case Study of Remmele Engineering


Features: Home | Library | Corp Info
Major Concepts: Realsearch ||| Enterprise Model ||| Maturity Model
                        Knowledge & Agility ||| Agile System Principles
Book: Response Ability - The Language, Structure and Culture of the Agile Enterprise
Book: Value Propositioning - Perception and Misperception in Decision Making

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Paradigm Shift International, 2051 Lama Mtn., Box 289
Questa, NM 87556, 575-586-1536, -2430(fax)
Last modified: February 14, 2012