Read ACL Newletter 3 text version

ACL REPORTER

V O L U M E J U L Y 3 19 9 4

In this edition...

R EPORT

TO EMPLOYEES

P RESENTATION

AT

E NGINE P ARTS

O UR C OMPETITION W INNER I NTRODUCING ACL A MERICA ! ACL E XPORTS O UR M AN

IN TO

A SIA

M ALAYSIA

M EET TONY A VERY T HE B IG C RICKET C HALLENGE ! ACL D IGS D EEP F OR F IRE V ICTIMS

Australian Engineering Excellence

Marion Crooks from the Viewpack/Inspection team has worked at ACL Bearing Company for 27 years!

"I'm happy to report that sales for the ten months to the end of April were up 14% - that's $99 million compared to $87 million.

ACL Maidstone's Piston Machining Department celebrating a wedding with morning tea.

I'm also able to report that profit is back to the pre-recession figures that we achieved in 1990, of $8.9 million.

expected to recover in the next quarter. ACL Gasket Company has seen substantial improvements in quality

Report to Emplo

A P R I L C U M U L A T I V E S A L E S

10 8 Millions 6 4 2 0 '89

78.5

92.8 83.4 82.1

99.3 87.1

'90

'91

'92

'93 '94

When you compare this to the profit we made last year of $1.1 million, and the 1990 profit of $9.3 million, you can see that the figures are heading in the right direction. A healthy increase in new car sales during 1994 assisted our sales of original equipment components by 22% over 1993. Sales of replacement parts have also improved by 16% against the same time last year.

and productivity, and the results from Brisbane have been very encouraging. The Comcork team has been working hard to develop sales of corkrubber flooring, and in the next edition of the "ACL Reporter" we'll highlight some of their achievements.

A P R I L

C U M U L A T I V E P R O F I T

O P E R A T I N G

10 8 Millions 6 4 2 0

9.6

9.3

8.9

3.9

1.3

1.1

'89 14 12 Thousand 10 8 6 4 2 0 '89

'90

'91

'92

'93 '94

A P R I L

E M P L O Y E E S

ACL's operations in America and New Zealand have been growing at a buoyant pace, with sales up 19% and 21% respectively.

ACL Bearing Company is still experiencing growing demand for its bearings and powder metallurgy parts, and plans are under way to increase production in the new financial year. Orders have slowed down for ACL Engine Parts, but this situation is

Con O'Brien from ACL Gaskets.

1,231 1,116

1,112 1,133 1,145 1,136

'90

'91

'92

'93 '94

ACL New Zealand has notched up an impressive performance in sales over the past few months, and their continuous improvement programme is starting to really show what can be achieved through a combination of dedicated teamwork and good leadership. Our people in Atlanta have prepared a strategic plan for expansion of sales in North America through to 1998,

and we are all extremely pleased how the ACL name is being accepted in this huge market. Strong growth should be a feature of our North American operation in the next four to five years.

May was Budget month in ACL, and our plans for 1995 are nearly ready to go to the Board for approval.

The economic outlook for Australia, New Zealand, SE Asia and North America is improving, and I'm happy to say that our share of these markets is continuing to grow.

1995 should be a good year for ACL. Our enterprise agreements have started to produce real results. However, we still have a long way to go to achieve the kinds of benefits we believe are possible from the successful introduction of lean production.

On behalf of the Directors, I would like to thank you for your support. ACL is on the move. We are getting better, and you are one of the people who are making it happen. IVAN JAMES Managing Director.

yees...

A number of long-time employees were presented with awards since the last issue of the "ACL REPORTER" . Congratulations to everyone pictured here.

Alison Dearness and Scot Place from ACL Gaskets.

Presentation at Engine Parts

From left Anna Mavridis 20 years; Gary Steinlein Team Leader Warehouse, and Betty Bartletta 20 years.

From left Anna Mavridis again with Jeff Clark with 30 years, and Betty Bartletta.

"And the winner was...' '

When we called for suggestions for a new name for our newsletter, we never thought we'd receive the number of submissions we did. Frankly it was overwhelming. They came from all areas of ACL both here in Australia and overseas. After agonising over more than 140150 different names it was universally agreed that Bearing Company's Michael Bauld entrant "ACL TORQUE" was the winner. That's the good news. The bad news is that since Michael's award-winning entry, one of our customers Repco has also published a newsletter, and guess its name? That is right"REPCO TORQUE"! That being the case, we've decided to (a) give Michael his trip to Brisbane with accommodation, and (b) retain the present name "ACL REPORTER". We wouldn't put staff members through dreaming up names again.

Camera caught Ivan James presenting Michael with his ticket to Brisbane for winning the "name-the newsletter" competition.

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Names left to right: Tyrone Ranson, Obie King, Chuck Daniels, Stephen Slatter, Joseph Gay III, Jane Bohmann-Strauss, Lynn Sealy, Beverly Sanders, Steve Cox, Ingrid Williams, Susan Petersen-Tucker, Nelda Burke, Walter Emerson, Debbie Jackson, Patricia Tranum, Antony Pearse, George Ranson and Drexel Blossomgam.

"ACL Automotive America is a small company by American standards. We have 21 employees, 18 in Atlanta and 3 in Los Angeles; however, it is our view that this smaller size is an advantage, because we are able to offer very personalised service, as well as being more closely acquainted with our customers and their needs. ACL America has now been in operation for three years. Over that time we have built a strong distribution organisation across America, which will continue to grow as more and more products from ACL Australia are distributed through ACL America. We are headquartered in Atlanta and we also have our own warehouse in Los Angeles. Our satellite warehouses are located in Tampa, Minneapolis, Kansas City, Denver, Spokane, San Francisco, Memphis, Baton Rouge, Dallas, Houston,

and Chicago. These warehouses are strategically located close to our major customers. Our principle customers are

and we estimate that we have eight percent marketshare. When we started off in the business three years ago, our marketshare was about six percent. As well as servicing the

Introducing ACL America!

Antony Pearse, President ACL Automotive America prepared this look at our North American operation.

produc-tion engine rebuilders and specialised engine parts distributors who sell to machine shops and smaller engine rebuilders. The size of the market for engine bearings is approximately US$130 million,

American market, we also are supplying engine bearings to customers in Mexico, Venezuela and Canada - all from our Atlanta location. One of the reasons we have been able to obtain this business is the prompt turnaround we are able to offer on all orders. With all of our customers, we pride ourselves in the service that we provide; therefore we turn their orders around in 24 hours or

at worst 48 hours. We know that none of our competitors can achieve this high quality of service. Our customers therefore are able to keep stock on their shelves knowing that they will receive this superior service to

back up their business needs. Going into F95, our major challenge will be the continued introduction of ACL gaskets. We now have a complete line of gasket sets for Japanese vehicles, and we have a range of gaskets for US gasoline engines. Our customers are recognising the quality of our gaskets, especially the presentation of the product, which is as good or better than the alternatives that are available. The gasket market is massive and worth US$220 million per annum. If ACL were able to obtain five percent of that market, it would probably double the current size of ACL Gasket

Meet

Pat Tranum......

"If you don't recognise the face, my name is Pat Tranum. I have been a member of ACL Atlanta for a period of nine years. As a team player I have the responsibility as the Data Processing Supervisor. I operate a Wang computer which drives the production of our packing slips, warehouse order pick lists, invoicing, and other areas which require data processing, and in our section there are two of us. If you come looking for me in the computer room and I'm not there, look outside. Bill - my husband - and I may be camping, fishing, hiking, walking five miles around Stone Mountain Park, or rushing down a ski slope in the Rocky Mountains. ACL is my "home-away-from-home" and I have grown close to each member of our Atlanta team."

EDITOR'S NOTE: It has been reported to us by person or persons who should know, that Pat is the first to open the office at 7.30 am and has to be told, to go home at night. Well done Pat.

Meet

Los Angeles Employees Carlos Gonzalez, George Salasar, David Sanchez.

Ingrid Williams...

One customer I work with is Sun Engine in Dallas Texas. Sun faxes in orders to us at least once a week. After entering the order in the computer, it is printed and given to the warehouse. In order for Sun to have their order the next day, (which we try to do for all our customers) the warehouse pulls, packs, and ships the same day. I also prepare all documents for shipment to

Company. What a challenge in front of us! ACL America offers to the organisation of ACL in Australia and New Zealand, the opportunity to market their products throughout North America. We have a very dedicated and knowledgeable staff who are keen to expand their company. Because we are on the spot, and only a toll-free number away from all our customers, we are able to offer extraordinary service and the convenience of being located in North America. ACL is very fortunate to have these facilities, and we have the opportunity to utilise this organisation to sell our products

"My name is Ingrid Williams and I started work with the former Vandevell America Inc on September 25, 1989. My position is Customer Service Representative. There are three other people in this department. Jan Strauss, Operations Supervisor and Debbie Jackson, Customer Service Representative. Most of the customers I talk to are in the western half of the United States.

Australia, Canada and Mexico. I enjoy the personal contact with customers and agents. I was recently nominated `Employee of the Month' for April. My husband's name is Charles and he's interested in electronics, fishing, and auto races. My son's name is Tomarr. He's 13 and likes fishing, and basketball. Since Charles has 8 siblings we spend a lot of time with family and friends."

ACL

As the growing Asian middle class undertakes repairs to their Nissans, Mazdas, and Toyotas, the parts that many of these people will use will be manufactured in ACL plants in Maidstone, Launceston, or Brisbane. While the old Repco Engine parts sold replacement parts to every part of the globe, ACL's approach to export is more finely tuned and structured. Allan Gray, Manager International Aftermarket explains... "Part of the development of ACL's export plan for the next few years is for a very strong focus for sales in Asia. We inherited from Repco a distribution network which was in some cases inappropriate, and this has now been restructured. The appointment of Tan Kit Long (TKL) as Regional Manager, South East Asia is a major step for us, as it gives us a

sees Asia as huge potential for automotive products

T

he re-organisation of Australia's car manufacturing, and the push by governments for Australian industry to be "world competitive" has seen a huge resurgence by local manufacturers to export their product around the world. No better example of this push for "export orders" can be seen than in the area to Australia's near north, in the countries of South-East Asia.

very experienced person (see story this page), permanently in the area who understands the regional automotive market. Our new plan demonstrates a much more aggressive position for bearings, piston rings and pistons than before, in the target markets of Malaysia, Indonesia, Thailand and the Philippines. Since TKL joined the company in late 1992, we've seen strong steady growth in Malaysia for engine bearings of 50% in FY93, 58% FY94 and we're expecting a further 50% growth for FY95. Besides Malaysia, ACL is serious about supplying the growing Indonesian market with product." Marketing Manager John Capuano's recent visit to Malaysia, and TKL's trip to Jakarta demonstrates the importance ACL places on these two countries. "We see Malaysia as being an important first step in the Asian sales push, with the correct infrastructure being put in place that can be used throughout the region. We'll service the area from out of Australia, and progressively develop local regional offices and representation," said Allan. "Our product range suits the Japanese aftermarket very well. After Malaysia, we'll be looking at the other ASEAN countries." After ASEAN what next? "Hong Kong and China will be the next area we will look at. While we've sold some product to these huge potential markets in the past, we haven't had the capacity to really sell to these countries in any volume. That position is now changing, and we see the area offering an enormous potential."

Our man in Malaysia

While he may have only been wearing the ACL hat for 18 months, South East Asian Regional Manager Tan Kit Long ACL's man on the spot and the "quiet achiever" steadily obtaining sales for ACL bearings throughout the Malaysian after-market. A former Marketing Manager for SKF Tan Kit Long brings a depth of automotive and engineering experience to his regional position. Not only does he speak Bahasa the Malaysian native language and English, but is also conversant in a number of Chinese dialects. This ability is critical when communicating with a diverse customer base. "Since taking over in Malaysia I have been successful in selling ACL products to the Malaysian Japanese car and industrial markets. While it is bearings now I believe we can also sell pistons and gaskets to local car owners. "PROTON" and other Japanese makers have some-thing like 80% of the local Malaysian car market, so you can see how important they are. They even export "PROTON" to the U.K." "I believe we can do a lot with ACL products in the area, and that is why it was important to complete the forward planning which is now in its final stages."

From left John Gaitanis, Tony Avery and Nigel Tait.

Meet Tony Avery

T

o most of the older ACL hands the name Tony Avery is synonymous with Repco Limited in its heyday. He, and a number of the senior staff of ACL grew up and worked in one of Australia's most innovative manufacturing companies. Repco Limited was a pace setter, in the size of its work force, number of plants, and its commitment to training; it trail blazed new export markets and nurtured good employee relations.

were the immediate post-war years of high manufacturing development and full employment. Very heavy tariff protection and in many cases import restrictions heralded the real start of the Car Industry as we know it today. Repco grew enormously in this time and as one of the most dynamic publicly listed companies during the'60s and early '70s, acquired many other companies including the original Automotive Components Ltd who name we bear today. In terms of Apprentice and Job-Training, technology, Research & Development, Employee Communication and Exports, Repco was a leader in its time. This was all basically developed under the umbrella of tariff protection of the home market which is totally different from today.

market supplier of engine parts to the Domestic Automotive Industry. In the range of products we manufacture we are the leader in supply to the aftermarket, and we must continue to work very hard and very closely with our customers to be first class in all respects. Our major competition in the domestic market is from the overseas manufacturers; the same people we compete with in our export markets. We have performed well in the supply of products to the Original Equipment market for new vehicles, but we must continue to upgrade our technology to the highest level, and in Industrial practices perform at the world's best standard.

Q. WHAT ARE ACL'S CHANCES TO IMPROVE ITS EXPORT MARKETS?

The man at the helm during some of those exciting and often heady years was A.B. Avery - Tony to the hundreds of staff members who knew him by name. As a former Managing Director and Senior Executive, Tony Avery worked with the old company through this period. Today he's Chairman of ACL. With more than 40 years automotive experience we asked Mr Avery to look back over his years at both companies and look for the differences and similarities.

.The opportunities for Export growth in all of our traditional markets is excellent, limited only by our capacity to manufacture products of quality, price and service. In this respect we still have a lot of work to do. The real task before us is to provide enlarged capacity through the successful implementation of the ACL manufacturing system which follows world best practice. In becoming more production efficient, it is not only a question of price competitiveness but also one of the creation of capacity. Our 5-year strategic plan sees the greatest area of future growth as being in the export markets. Our Atlanta-based USA company is to be a key element in this plan.

Q. HOW IMPORTANT IS COMMUNICATIONS WITHIN THE COMPANY?

a

Q. AND WHAT CAUSED

THE CHANGES WE HAVE TODAY?

a.For the '70s and early '80s the continued

effects of a ridiculously high value currency (the Australian dollar at one stage being worth US $1.42) and high internal inflation dramatically exposed the inability of Australian Industry, protected by high tariffs, to keep its product costs competitive with Japan and the developing countries. The post-World War 2 scenario changed forever for Australian manufacturers with the floating of the Australian dollar, the reduction of protection duty rates, and changes in the Australian car manufacturing plan.

a.Totally important. I've always held the

view that no matter what the position you hold within the company, every member of that company is working for the one entity. It's the survival and prosperity of that entity which gives a common prosperity for all. ACL is of a size where the senior people are very visible and I believe this is a tremendous advantage for quick and caring communication. We see today a constantly improving scene in the working relationships within our plants as all of us strive to reach the same goals. The `old' Repco I joined 43 years ago as a lad from the country, exhibited total morality and integrity and above all, warmth to those who worked there. That `warmth' was the major reason I stayed with Repco most of my working life. I believe these same qualities exist within ACL today and will prove to be a major reason for our continued success.

Q. TELL US HOW IT ALL STARTED?

."When I joined Repco back in 1951 as internal auditor we had about 2,000 employees, not much bigger than ACL is today. Growing up in Albury I'd spent my earlier working career in the wool industry and my family's engineering business. Repco at that time was not only a manufacturer and merchandiser of automotive products, but also made light and heavy equipment for the engine repair and tuneup industry such as battery chargers, wheel balancers and heavy machining tools."

Q. WHAT

WAS BUSINESS LIKE IN THOSE DAYS?

a

Q. NOW THAT WE ARE WELL INTO

THE TOTAL OVERHAUL OF THE AUSTRALIAN CAR INDUSTRY, HOW DO YOU SEE ACL FARING?

a.They were challenging times for a

young and developing country. The'50s

a.I see ACL faring very well. ACL sees

its role as continuing to be the major

Eat your

So it was on a typical hot January day this year, when Engine Parts sallied forth to Launceston, to retain the ACL shield they won in Melbourne the year before. Everything was going according to plan, when Bearings dropped their bundle and were all out for an outstanding 67!

Victorian Team - Engine Parts

Allan Border!

When the batting prowess of ACL Engine Parts faces the demon bowlers of the ACL Bearing Company it's a sight to be seen.

victory with 3 for 30. Then Bearings changed tactics and called for a lunch break. The local food proved too much for the "Vics" as wickets tumbled like nine-pins after lunch, due to the good catching and superb spinACL M.D. Ivan James tossing the coin with Ricky Norquay & Lindsay Phillips, captains of Bearing & Engine Parts Divisions. (No truth in the rumour that Ivan was using a two-headed coin?!!!

heart out

his marching orders, stumped. Robert Hallmark 17, and Peter Sheehan 16, made solid contributions but the team was all out for 58. Awards were presented to:Robert Hallmark - batting Paul Bosworth - bowling Mark Boulton - fielding. A tour of the Bearing Company followed next day, which gave the "Vics" time to recover and a chance to see a different plant, and exchange ideas with their Tassie counterparts. While not registering

Kristan Anderson, 15 not out, and opener Andrew Glatte with 13, were the only members who reached double figures. Robert Hallmark took three wickets, Mark Boulton, Brett Dorrington, Rob Gardner and Michael Furci each took two wickets. Engine Parts could taste victory, (and it wasn't Foster's) as they cruised towards

bowling by Paul Bosworth who cleaned up the tail taking 3 for 3 off his 2 overs.

Tasmanian Team - Bearing Company

a "formal protest" the

Not even "Vics" Captain Lindsay Phillips could talk his way into another innings, when the local umpire gave him

"Vics" felt that the local food, local umpires, and too many younger people contributed to their downfall. There's always next year!

ACL Dug Deep for NSW Fire Relief

From Left to right, Geoff Turner, Production Worker - Strip Manufacturing Plant; Sherri McKenna - Red Cross and Helen Lynch, Quality Control Auditor - Powder Metallurgy.

YOUR CONTACTS ARE: Ray Gibbs.........Gasket Company Kevin Condon .........Engine Parts Craig Petterwood ..Bearing Company

During the January '94 bush fires, collections were undertaken throughout all plants at ACL Bearing Company to be put towards the Fire Relief Fund. The social and cricket clubs contributed, and

the company agreed to match employee donations on a $ for $ basis. The total raised was $1650 and was handed over to a representative of Australian Red Cross.

Steve Jenkins................ACL NZ Antony Pearse.............ACL USA Wayne Pearson .....ACL Comcork Geoff Underwood ..ACL Head Office

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