Ace Clearwater, Metal magic

Manufacturing in Action, Source : The Manufacturer US

Executives at ACE Clearwater teach Mali Schantz-Feld about forming a soaring business with the right tools

ACE Clearwater Enterprises was founded as Ace Welding in 1949 by the grandfather of the current president, Kellie Johnson. The business grew with the generations; first, with Kellie’s father, Tim Dodson, and continuing with Kellie assuming leadership in the mid-1980s. With Kellie at the helm, “the business expanded, almost tripling in sales,” recalls Gary Johnson, company vice president and Kellie’s husband.

Performing processes for aerospace including welding, forming, tube bending, five-axis water jet, metal spinning, drop hammer, hydroform, hydraulic press forming, engineering, tool designing, model/pattern production, and pressure testing, sales revenues reached $26 million in 2005 and are forecast to increase to $28 million to $30 million in 2006. On the concept of expansion, Kellie reflects: “Bigger isn’t always better. We want to focus on our core competencies, tighten up on processes, and maintain quality while keeping costs in line.”

Operations run in three California facilities: an 80,000-square-foot administration building in Torrance; a 250,000-square-foot plant for heavy machinery in Paramount (formerly named Clearwater), and a 22,000-square-foot hydroform facility in Compton. Clients include Honeywell, Lockheed Martin, Bell Helicopter, the US Government, Cessna, General Electric, Boeing, and Liebherr Aerospace.

ACE recently purchased the metal forming division of Honeywell, acquiring its hydroform equipment in the deal. Another $2 million investment purchased three machining centers that “allow us to take raw blocks of metal and machine forming tools,” says Gary. “We used to have to go to outside vendors for some of our large forming tools,” he adds. “It was like being held hostage. It ate into our lead times. Now we make the tools ourselves in two to three days instead of waiting six to eight weeks.” Electronic data is fed directly through secure data links from the customer into the machining center.

A new ERP system is yet another step toward efficiency. The Epicor Vantage Version 8 is “a make-to-order system that fits ACE well, is user friendly, Windows compatible, and capable of .NET architecture,” explains King Lum, director of progress. The system tracks the entire process, from estimating through shipping and invoicing. The old store-and-forward data system “wasn’t in real time, and we couldn’t use the data fast enough,” he adds. The new system, which collects data in real time as operators bar-code items on the shop floor, “tracks costs better and improves scheduling and production control,” says Lum. “We’ve made a strategy of going paperless,” he notes, describing the purchase of large scanners that can digitize drawings and specifications into the system. Gary adds that customers will soon be able to log into ACE’s Website and track their own parts’ progression, ensuring compliance. “If we tell them a part is in the weld shop, it better be in the weld shop,” he says.

The 182 people in the ACE Clearwater workforce are integral to the R&D process. For many projects, says Gary, “innovation happens on the factory floor.” Responsibility is also important. “People don’t always know when they’re doing the right thing; but they always know when they’re doing the wrong thing. All our employees are empowered to stop the production process and ask questions if they feel something is wrong.”

The high-end, low-volume aerospace business entails tracking many part numbers and organizing as many as 2,000 job orders on the shop floor at one time. Instead of using a cellular configuration for machinery, “we have functional departments,” says Lum. “People cells,” rather than cells of machines, work on programs for similar products. Cells consist of a program manager, welders, machinists, and other craftspeople dedicated to a project. “It’s easier to move people around than machines,” says Lum, who adds that this method reduces lead time. “This is a strategic concept of utilizing people more efficiently. When we produced the primary nozzle for the Apache helicopter with a direct contract for the US government, they wanted 100 a month of this complex assembly. We had to orchestrate a lot of details. They didn’t think we could ramp it up. But with people cells we finished 100 percent quality and 100 percent on time.”

Finding skilled personnel is often daunting. The firm hires summer interns from University of Southern California, technical colleges, and local high schools to “train the next generation of engineers,” says Lum. A shop mentoring program encourages senior operators to assist younger people in augmenting their skill levels. Gary sums up: “We really need to see a resurgence in this country of educational skills programs to stress that people can make a good living through the many opportunities that manufacturing has to offer. Manufacturing is what makes this country great, and we can’t afford to lose it.”

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