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Politics, Fabrication and Innovation in Tennessee
Copelands, Inc., in Ooltewah, Tennessee, covers 48,000 square feet and employs twenty-seven. Founder David, who served as state representative from 1968 through 1992, acts as chairman. His son David Michael Copeland (Mike) began working with the company while he was in high school. Mike took over many operational responsibilities while his father was in the state legislature and now holds the position of president and general manager. In 1965, David started Copelands in a two-car garage with one “buzz box” welder. With the PlateLASER-II becoming its most recent acquisition, the company has positioned itself to be a significant supplier of laser cutting services, specialized plate and section rolling, and general fabrication. Although a laser was in the acquisition plans for some time, the timing of the purchase in 2002 was driven by the Government’s Relief Stimulus Package enacted to encourage businesses to buy capital equipment. “I dug into the details of the package and came to the realization that because I had an operation that had been profitable for the past several years, there was tremendous opportunity here which could achieve my objective of putting in a laser and contribute to the national purpose of buying equipment which would create a job somewhere else down the line,” explains David. Expanded Capabilities The need to purchase a laser was recognized when the word “laser” began appearing on part specifications with increasing frequency. “There is a magic about the word laser,” David says. “We now have two generations of engineering students who have come through school with the word ‘laser’ ingrained in their brains through their studies.” Even though the accuracy and precision of a laser cut part is not always critical for a part’s application, Copelands finds that more and more companies are insisting on laser cut parts. “Over time I believe we are going to find that there is a recognition that there is a place and a need for laser, but that just “laser cut” doesn’t automatically mean a better job. Until then, we are going to give the customer what the customer wants,” David adds. Accuracy, Speed, Size Copeland’s PlateLASER-II is the first of its kind. In addition to providing the accuracy and speed of a flying optics system in a work area that is 10' x 20', it has a dual shuttle table configuration that allows the production of parts up to 40 feet long with repositioning. The PlateLASER-II quickly and accurately cuts up to 1-1/4" mild and stainless steel and up to 1/2" aluminum. Its linear motors provide increased speeds, particularly in the thinner materials, due to extremely rapid acceleration and deceleration. Since the purchase of the PlateLASER-II, Mike has spent a good portion of his time prospecting and cold calling. He is seeing what Copelands terms the ‘halo’ effect. Mike explains, “I call on companies to introduce the new laser. They want to know about the new capabilities. This allows us to bid on laser-specified parts that we could not do before. But it also creates an opportunity to investigate the other fabricating needs and offer the full services of our shop. That’s called our ‘halo’ effect.” Copelands’ customer base of over 400 companies changes as rapidly as their shop capabilities. And they are preparing for another shift in shop dynamics, a totally new workflow, as the PlateLASER-II capabilities are incorporated into the daily production schedule. Improved tolerances eliminate secondary operations, in turn reducing the need to move material from station to station. Larger and more complex parts can be completed in one operation rather than multiple operations. And the nesting capability of the machine’s software allows a variety of parts to be nested efficiently on one plate and produced in one operation with reduction in scrap. These changes increase overall throughput and reduce per part costs, fitting well with today’s “lean manufacturing” initiatives. Lean and JMS According to David, lean manufacturing is simply a new term applied to practices that have existed for years in successful shops. Copelands’ version of “lean” began long ago when he wrote a simple payroll program that over time developed into the currently used 4th generation computer-based Job Management System (JMS). JMS begins with an estimate and follows a job all the way through billing. Years of data are used to develop time and cost standards for each operation performed. Each individual process is referred to as a “discrete” operation. For example, drilling a 1" hole in 1" steel is one discrete operation. Drilling a 1" hole in 2" steel is another discrete operation because of the thickness variable. Each job that flows through the shop is considered a “bundle” of discrete operations. By referring to their historical data, Copelands can determine the time it will take to produce the features on any part and provide an accurate estimate. “The estimator reaches back into the computer data, pulls the time values from the records and says, this is what it takes to do this job,” David explains. When the customer places the order, this JMS estimate triggers the purchase of material. JMS coordinates the arrival of the material with the issuance of shop travelers. The travelers track each discrete operation as it is performed, driving the job to the next sequential process. Operators log the start and finish times of each discrete operation on the shop computer, tracking the particular job and collecting additional data. Once the job is finished, shipping posts a record that initiates billing. Unique Compensation Copelands’ employees enjoy a unique compensation plan that also ties into JMS. Employees are paid per process completed, based on the same standards used to create customer estimates. In addition to base pay, they receive an amount based on each completed job as determined by the JMS standards. For example, if JMS estimates that a job should take eight hours, the operator’s compensation for completing that job is pre-determined by the eight-hour standard. If he completes the job in less time, he still receives the full pay and is free to move on to the next available job, putting more dollars in his pocket for his day’s work. David smiles when he says, “At first the employees were very reluctant to try it. Then when the first fellow doubled his pay, everybody wanted to get in on it!” Health insurance is another unique proposition at Copelands. “Copelands doesn’t furnish or sponsor health insurance,” explains David. “For every day you work here we give you extra money. If you choose to buy health insurance, we’ll do the shopping and we’ll do payroll deduction and remit payment for you. But we don’t furnish or sponsor health insurance.” It works like a bonus program. If an employee misses a day of work, his insurance payments will remain the same, even though his paycheck may be smaller. The results are improved attendance, controlled investment for Copelands, and assistance with health insurance costs for employees. “The lawyers and accountants say that this is a new business model. They’ve never seen anyone else do it. It’s worked so far,” David says. Industry Challenges David provides insights to industry challenges based on his years of active involvement in industry, government and his community. He identifies four key problem areas: 1) excessive regulation that diverts resources into compliance requirements; 2) having to compete with significantly lower wage structures such as foreign competitors; 3) heavy tax burdens that divert available resources from new equipment investment (somewhat offset by the Relief Stimulus Package); and 4) general domestic economic conditions causing customers to delay purchases. David remains active in his community, serving on various boards and committees. He also continues sharing his business and industry knowledge with government officials at all levels, working to improve the climate for U.S. manufacturers. As a company, Copelands plans to aggressively serve their customers, providing processed parts and finished products to large corporations and smaller shops. They will continue to search for and incorporate better, faster and more efficient ways of producing parts and doing business. Copelands will continue their innovation. NOTE: The Relief Stimulus Package is in effect through September 11, 2004. The provision allows a first year deduction of 40 percent and 57 percent over two years. There is no limitation on purchase value. (You may want to investigate this opportunity with your financial advisor.) (Used with permission from Whitney Metal Fabrication News, March 2003) Home | All Applications | PlateLASER | PlateLASER Applications |
