By Chip Johns, CEO
Butler Automatic builds automatic roll splicers for packaging applications. Butler splicers eliminate roll change downtime, which is the largest contributor to bagging, pouching, or thermoform line output loss.
Our job is to deliver a new machine to our customer on time, facilitate a vertical start up, and ensure the machine serves our customer for many years in continuous operation with minimal maintenance. Butler uses several standard operational metrics to constantly improve our ability to execute on the mission stated above. It is critical to not just measure our performance, but also analyze variances from our performance to improve performance over time.
Butler measures simple things like on time delivery, first time installation success, and parts shipping turn-around times. These are important “final” metrics. But it is also important to go a little deeper on the customer side by measuring whether Butler solutions are operating as the customer expects, 6 and 12 weeks after installation. Butler monitors our after-market business by measuring our time to ship parts orders (80% of our packaging splicer parts orders are shipped on the same day that we receive the order). On the engineering side, we measure how long it takes to release a set of specifications, how many engineering changes are made (ECOs) and the cause of those changes. Our measurements apply on the financial side as well. We measure our vendor payment days, customer collections, and we produce our financial results within one or two days of the end of each month. We try to measure everything that will contribute to a successful delivery, installation, integration, and long-term performance in the field.
How does this data help us deliver better machines, on time to our customers? Having this data allows us to run our business better. If we can run all aspects of our business better, Butler, our vendors, employees, and technical partners will all be able to support our customers when needed.
Measuring the data is not what provides the results. Looking at the variances from the expected results, analyzing those variances, continuously improving processes and checking the results of those process changes are what provide the results. At Butler Automatic we are measuring our results and continuously tweaking our processes to design, build and support better solutions for our customers.
Chip Johns is the CEO of Butler Automatic. He has spent the last 7 years leading Butler Automatic and learning about the packaging industry. Prior to Butler, Chip built a business in the marine industry building about 50% of all the sailboats in North America.