Steel America, a division of Colonna’s Shipyard Incorporated, was established in 2000 to address regional opportunities in heavy machining, fabrication and repair. In addition Steel America supports ship repair, maintenance, and overhaul markets that require steel, stainless steel, or aluminum as materials of construction. A staff of over 70 supports their large facility conveniently located on the Elizabeth River in Norfolk, Virginia to handle both small and large projects (500 ton maximum) requiring custom solutions and appropriate logistics.

Steel America had outgrown its current physical plant and was in midst of an expansion plan. The existing facility consisted of approximately 14,680 square feet of fabrication and 9,600 square feet of machine shops, with some operations in temporary shelters. The expansion plan included the addition of 9,840 square feet of fabrication shop and 11,200 square feet of machine shop in a high-bay facility with appropriate services and bridge cranes up to 100 ton capacity.

Management initially sought assistance in optimizing flow and operation of their fabrication business through the Virginia Applied Technology & Professional Development Center (VATPDC) of Old Dominion University. Given the new challenges associated with a rapidly expanding business, Vice President Kenneth Mebane requested assistance once again from VATPDC for transitioning to the newly expanded facilities. Mike Cory, Principle Consulting Engineer from VATPDC, would lead the project given his extensive experience with optimizing job shop environments.

The project's objective was to assure that the significant capital investment ($5 MM) made in new capabilities would be supported by future sales growth profits, through capacity gains in the machine and fabrication operations. A bonus benefit would be adding more skilled, well paying jobs to the payroll to sustain future growth.

The following action items were common to both operational shops:

-Job Packets to aid in visual management of production jobs. Fabrication included a “First Article Inspection” check off strategy to bolster quality. Machining included a “Sequencing Board”. "Traveler" in job packets following work through production.

-Material Storage areas were established. Fabrication identified types and control of “certified” materials. Machining created specific storage to visually management “stock” and “certified” materials including “commercial” grade raw material inventory.

-A Safety Recognition program was established with visual displays for communication to all employees. Monthly safety lunches to reward accomplishments of the program. This pilot program moved the Steel America division to the top safety performing division within the Colonna’s family of companies,  As a result they have had no time lost to injuries for over the past two years.

-A Central Computerized Project Management Strategy was implemented to aid in project management and project document control. Machining created theirs to better sequence drop-in work orders from internal shipyard customers.

-Several new training programs were kicked off in both divisions for inspection processes. This program assisted Steel America to move forward with a full Quality Management System.

Steel America realized dramatic improvements in the following;  increased “new” sales, increased sales from retained/repeat customers, cost savings from elimination of waste in materials and labor, avoidance of unnecessary capital investments by better utilization of existing assets, improved quality performance, dramatic improvement in the area or worker safety, higher frequency of “on-time-delivery”, faster and more accurate quotation cycle for new jobs, better labor utilization thru better project management techniques, and reduced material costs.

“With VATPDC’s assistance, Steel America has been able to successfully address expansion issues as our business continues to grow. Utilizing Mike Cory’s expertise to optimize our fabrication and machine shops was well worth the time and investment. Realized returns on this  investment continues to exceed our expectations.  Our plans are to continue to utilize the services of VATPDC."  -Kenneth Mebane, VP of Steel America