Past Winner Stories
OMC Precision Products
www.omcprecision.com
OMC Precision Products designs and manufactures products for the medical and aerospace industries using computerized equipment and skilled employees. Ninety percent of its products are spinal implants made of titanium or stainless steel. Its business strategy is to serve a few carefully selected and demanding customers very well.
OMC's goal was to be the best supplier for a small number of key customers in the medical and aerospace industries. The company hoped to gain market share by being exactly what its target customers needed. But first it had to gain acceptance in industries with high barriers of entry. This company's customers require their suppliers to pass customer and FDA audits of all business operations. High quality and on-time delivery are absolute necessities in an industry where a doctor will be performing a spinal fusion in 48 hours from the time an order is placed.
Second, it had to manufacture the products it designed for its customers. Spinal implants require CNC mills, lathes and EDM equipment. Two major obstacles to overcome were acquisition of equipment during a booming economy and paying for the equipment.
Third, OMC needed employees who could manufacture the parts. Again, the expanding economy from 1997 through 1999 meant unemployment was extremely low. Finding qualified people was almost impossible.
Fourth, the company needed additional customers to diversify its customer base and increase revenue. Each new customer added brought with it unique challenges and new requirements. New customers required new production methods and additional capacity of both employees and equipment.
Fifth, OMC's customers were always looking to improve the services they offered their customers; hence, they were looking for better performance from their suppliers. OMC customers wanted to improve the time to introduce a new product to market, they wanted more custom products to meet doctors' demands, and they wanted to reduce cost-to-market.
OMC's strategy was to learn the exact needs of a few customers and build a company to serve them. First, the company had to convince its target customers that it could deliver high quality products on time. Second, the company needed equipment and inventory to manufacture its products. Both co-owners drained their savings accounts to purchase raw materials, tooling, and manual machines to make the first order. Third, OMC had flex-hours, part-time hours, full-time, and overtime. The company did anything possible to establish a core of employees over several years to be able to meet customer's needs. Fourth, the company expanded its customer base. OMC learned what its new customers' expectations were and changed the production systems to meet their needs. Fifth, the company continuously improved its operations to meet customers' changing demands. Networking into customers' inventory system, for example, allowed OMC to monitor their inventory levels. The company could better anticipate needs, optimize production schedules, and ship just in time. These added services reduced overall cost of supplying products to the final customer while making it very simple for customers to do business with OMC.
OMC's goal was to be the best supplier for a small number of key customers in the medical and aerospace industries. The company hoped to gain market share by being exactly what its target customers needed. But first it had to gain acceptance in industries with high barriers of entry. This company's customers require their suppliers to pass customer and FDA audits of all business operations. High quality and on-time delivery are absolute necessities in an industry where a doctor will be performing a spinal fusion in 48 hours from the time an order is placed.
Second, it had to manufacture the products it designed for its customers. Spinal implants require CNC mills, lathes and EDM equipment. Two major obstacles to overcome were acquisition of equipment during a booming economy and paying for the equipment.
Third, OMC needed employees who could manufacture the parts. Again, the expanding economy from 1997 through 1999 meant unemployment was extremely low. Finding qualified people was almost impossible.
Fourth, the company needed additional customers to diversify its customer base and increase revenue. Each new customer added brought with it unique challenges and new requirements. New customers required new production methods and additional capacity of both employees and equipment.
Fifth, OMC's customers were always looking to improve the services they offered their customers; hence, they were looking for better performance from their suppliers. OMC customers wanted to improve the time to introduce a new product to market, they wanted more custom products to meet doctors' demands, and they wanted to reduce cost-to-market.
OMC's strategy was to learn the exact needs of a few customers and build a company to serve them. First, the company had to convince its target customers that it could deliver high quality products on time. Second, the company needed equipment and inventory to manufacture its products. Both co-owners drained their savings accounts to purchase raw materials, tooling, and manual machines to make the first order. Third, OMC had flex-hours, part-time hours, full-time, and overtime. The company did anything possible to establish a core of employees over several years to be able to meet customer's needs. Fourth, the company expanded its customer base. OMC learned what its new customers' expectations were and changed the production systems to meet their needs. Fifth, the company continuously improved its operations to meet customers' changing demands. Networking into customers' inventory system, for example, allowed OMC to monitor their inventory levels. The company could better anticipate needs, optimize production schedules, and ship just in time. These added services reduced overall cost of supplying products to the final customer while making it very simple for customers to do business with OMC.