Auto Products Manufacturer
Through the 1950s and early '60s the American auto industry was in the midst of its golden age. Detroit dazzled the world with a procession of cars that were reliable, luxurious, powerful, low-priced, often beautiful and always interesting.
In 1958 the sticker price for the average car was $1,180. An Oldsmobile cost $2,933. That was also the year that the Chevrolet Impala first saw showroom floors.
This was the business environment when Auto Craft Tool & Die, Inc., Algonac, Mich., began in 1958 to supply products to the auto industry. More than four decades later the company continues to be a key OEM supplier. It produces high quality assembly tooling, special machinery and material handling systems to a variety of auto manufacturers, including the Big Three - Chevrolet, Chrysler and Ford.
Dramatic Changes In Business
In the 40-plus years that Auto Craft has been in business, the company has seen dramatic changes, not only in the auto industry but also with general business processes.
Auto Craft has successfully navigated these changes and continues to grow. To continue its history of success, the current generation of family owners requested management consulting assistance from the George S. May International Company to fine tune Auto Craft's organization.
"We've weathered slowdowns and boom times with the auto industry," explained Michael DuVernay, Auto Craft's president and one of the two brothers who own the company. "In fact, we are not looking for huge growth. We are more concerned with not loosing control, while remaining profitable."
DuVernay's interest in maintaining controlled growth and making better what the company already has are among the reasons for enlisting the aid of May International.
His father, Arthur, stated the auto machinery maker in the late fifties. The company passed to the three sons - Mike, David and Dan. In 2000 Dan decided to leave the company and sold his share to his two brothers.
Success Factors
Much of the success of Auto Craft is directly linked to the company's exceptional customer service and quality orientation. In fact the company is certified as ISO 9002 and QS9000TE. However, these two ratings are more technical and sales tools.
To continue the necessary high quality standards that the automobile industry demands today, Auto Craft realized the need to measure performance and assign responsibilities.
Being responsible for four plants and more than 100 employees, the brothers wanted the ability to measure the performance of their people and the various departments. Both are essentials in maintaining the high quality of the company's products and service.
Quality And People
"The biggest change I've seen over the years working here has been the rise of quality-driven issues," said DuVernay. "Quality has always been an important element with us, so from a production aspect we operate no differently now than before the manufacturers' emphasis on quality. However, the higher awareness of quality by the manufacturers, has made the issue more formal and detailed. Support documentation is very important and expensive to implement."
Accompanying the manufacturers' quality focus is a need to make sure that the people are also operating with a quality orientation. This is where the George S. May International Company work came into play.
The consultants provided specific recommendations then helped Auto Craft implement an employee incentive system and other people-oriented programs. These programs, along with a coordinated set of job descriptions for the personnel at Auto Craft plants provide the continuity the company requires to extend its quality focus to its people. The programs also re-enforce the need for quality in the products the company produces.
Need For Succession Planning
Another important aspect of business operations for family owned companies is the need for a succession plan. This means criteria for new officers and owners, as well as a general timetable for the transition to take place.
"My brother and I have been involved with the business for 33 years," noted DuVernay. "I started when I was 12 helping my father. I literally worked from the floor up, because the first job I had was sweeping the floor. As the company grew, so did the responsibilities.
"While my brother and I are not about to step down from our positions and responsibilities, we recognize the need to make sure that there are people being trained to move into positions of responsibility with the company. The work accomplished by May International and its management consultants is helping us ensure there is continuity and a strong succession plan in place."
Giving customers Confidence
The succession planning accomplished by May International provides two important benefits. It gives Michael and David DuVernay - and their customers - confidence that the future of Auto Craft is being secured. It also provides the DuVernays the ability to begin easing out of their harried schedule of long hours and extended weeks, to enjoy on a personal level the benefits of their business success.
Today, tail fins are no longer a design element on cars. Oldsmobile, as a brand, is being phased out. And prices of 20 times the cost of an average 1958 car no longer induce sticker shock. Through these years, however, quality has become a key attribute for every auto builder. Auto Craft Tool & Die, Inc. puts that quality into cars by providing quality assembly equipment and machinery to build the cars.
Michael DuVernay, president of Auto Craft Tool & Die Co., Inc. is based in Algonac, Mich., and can be contacted at 810-794-4929 or via e-mail at mcautocraft@ees.eesc.com.
