York International, Might cool company

Manufacturing in Action, Source : The Manufacturer US

York International began modernizing its business practices in 1889 and everything’s been cool ever since, reports Holly Aguirre

Though the company boasts some 23,000 employees with over 20 factories throughout the world, including locations in the US, UK, France, Denmark, Thailand, China, Mexico, Brazil, and South Africa, one can’t help getting a kind of down-home feeling about York International.

Perhaps the company’s modest origins and vivid past might explain this. It was back in September of 1874 that a group of innovators, including Stephen Morgan Smith, Jacob Loucks, Oliver J. Bollinger, George H. Buck, Robert L. Shetter, and Henry H. LaMotte, pooled their individual resources to form the York Manufac-turing Company. Their company originally manufactured washing machines, corn planters, and water wheels.

Stephen Morgan Smith, the first president of York, made manufacturing history by contributing two patents to the company: the Success Washing Machine (a mechanical clothes washing device) and the Success Clothes Wringer. Smith later became a successful pioneer in the development of hydraulic turbines. Steam engines and boilers were added to York’s catalog of products in 1881. Eventually, these engines were manufactured to drive compressors. In 1883, the company’s president began to focus on the related technology of ice-making machines.

In 1885, York introduced its first ice and refrigerating machine, the Jarman Ice Machine, named for its creator George Jarman. The need for ice-making machines had been recognized when John Gorrie, a physician, had discovered that cooler air halted the spread of malaria. The first machine, with a capacity to produce eight tons of refrigeration, was sold in 1885 to Water Valley Ice and Cold Storage Company in Water Valley, MS.

Then, Mother Nature stepped in and helped the company again make history. In 1889, an unusually warm winter limited the amount of natural ice available, and produced a demand for “artificial ice” to prevent food spoilage. Phillip Glatfelter, the president of York, made an effort to educate the public and to promote company products throughout this demand and through the next 10 years of a shaky economy.

A steady stream of forward-thinking ideas and unique business practices would follow, propelling the company forward, ideas that are still implemented today. In 1897, Thomas Shipley was recruited from a competitor to help modernize the facility. In 1898, under Shipley’s direction, York built the largest ice-making machine in its history. Shipley also led an initiative to standardize the measurement of a unit ton of refrigeration. This was one of the first times York and its competing rivals worked together to set standards for the industry. These leaders established the Ice Machine Builders Association of the United States and later the American Society of Refrigeration Engineers, which exists as ASHRAE today. During this time period, the York Manufacturing Company continued to grow, even expanding into international markets with sales in Japan.

Today, York International Corporation has an effectual legacy of providing space conditioning and refrigeration products throughout the world. York has become the largest independent manufacturer of air conditioning, heating, and ventilation systems, as well as industrial refrigeration equipment, in the world. York is a Fortune 500 company with approximately half of its annual revenue coming from outside North America. York designs, manufactures, sells, and services heating, ventilation, and air-conditioning systems for residential and commercial markets; gas-compression equipment for industrial processing; industrial and commercial refrigeration equipment; and compressors for residential and commercial air-conditioning, as well as refrigeration applications.

Some of the company’s high-end clients and projects include the Beijing Oriental Plaza, Shanghai Grand Theatre, and the Shanghai Sports Stadium, all located in Asia. They cooled the Olympic athletes for both 2000 and 2002 in Sydney and Atlanta, respectively. Projects in the UK include the Metropolitan Hotel and The Chunnel. York may also be responsible for heating and cooling your home or office as well.

Speaking from York, PA, where they are headquartered, Mike Anderson, vice president and general manager; and Bob Snell, director of operations, explain how a company so steeped in tradition continues and maintains the groundwork laid so long ago.

Coming on board just five years ago, Anderson’s focus is to help mainline specific manufacturing practices. “At the corporate level, we formulated the Six Sigma techniques and then we went onto development of a black belt curriculum. Each division began identifying the individuals who become black belts. At the time they were assigned specifically to projects,” Anderson explains.

He admits, though, that after a few years of implementation, Six Sigma can start to lose its prominence in the business. “We went through a little of that phase, but we’ve successfully rejuvenated focus and interest, and successfully incorporated it into a Lean/Six Sigma business philosophy,” says Anderson.

York has now developed a curriculum to support the Lean/Six Sigma business philosophy called Lean Sigma. They hold classes for green and black belts, and have people trained in either or both lean or Six Sigma applications. “Most people continue to look at Six Sigma as a manufacturing focus—we focus the improvement process across both manufacturing and non-manufacturing functions. We have administrative Six Sigma events aimed at business improvements, such as finance, customer service, and contract management,” says Anderson. “In 2003, we continued our commitment to continuous improvement by training 468 employees (5,700 hours of training) in various continuous improvement methodologies.

“In each plant we summarize their cost savings commitments, then link them to individual cost savings projects and to a specific owner, then performance to plans are measured on a monthly basis, and all savings are verified by an independent party,” says Snell.

Employee involvement is a key to successfully meeting the company’s business goals. Anderson has found that communication throughout every sector of York has consequently been improved. “We spend a lot of time reviewing our business goals with our employees, so there is linkage between what the goals are and how our people perform. We see that when they have an idea of what the goals and objectives are and they understand their part and their importance in successfully achieving those goals, it gives everyone more incentive [to improve].”

York constantly reviews areas of opportunity. “We make a lot of coils as a component for our end-use products. Basically, they are fin and copper tubes that require a lot of welding. Liquid is pumped through the coils and that is how cooling is transferred,” Anderson explains. “Through those welding processes we found that you can establish a lot of leaks, if not properly performed. We have obviously put a lot of emphasis on eliminating welding leaks. So it comes back to the welding processes, the equipment, the operator, techniques, and the tools. Understanding these problems through a fact-based process will help you decide how to eliminate those defects.”

Enter the black belts. “We send them into areas where they are needed and conduct joint Six Sigma projects so that we share best business practices. We have a lot of machining at our facilities with some very complex geometries; so we use Six Sigma to track defects and how those defects occur. We then go through the five step problem-solving process about how to identify corrective actions,” says Anderson.

Snell is quick to add, “Additionally, we conduct best practices reviews at all plants for all products, where we leverage successes and lessons learned and integrate them across our business. We have also established a rewards and recognition system as a formal means of recognizing and rewarding our employees for exceptional efforts that link to our business initiatives.

“We utilize process mapping techniques to understand what is really occurring in our business processes, versus what we perceive is being done. The mapping techniques have allowed us to identify critical interfaces, disconnects, and opportunities to improve the overall process, and to use the finalized maps as a training aid for new employees,” says Snell.

Anderson says, “During the improvement process, you have to establish what the key performance indicators are—what are your measurements—and be absolutely disciplined to always track trends. These improvement philosophies are being duplicated in plants across the US, Mexico, Europe, and Asia.”

York expects to see continued growth in all of its worldwide markets in 2004, projecting revenue growth of its service and parts businesses of at least 10 percent. Additionally, the company will continue to expand and invest in its service business, as well as grow its national and global customer relationships, improve productivity and expand the multi-site commercial service business.

York remains an industry leader today because of focus. It has created a compelling vision, one that takes its employees to a new place, and translated that vision into reality.

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