Muncie Power Quarterly

TAKE CONTROL WITH THE V250 FLUID POWER SPECIALIST BRAD SMITH DISCUSSES THE NEW V250

ALSO INSIDE: CEO’S CORNER: KEY INGREDIENTS TO OUR SUCCESS

MANAGER Q&A:

SETTING A CULTURE FOR GROWTH

GET TO KNOW US: FORGING A FUTURE

BEST PRACTICE:

HYDRAULIC RESERVOIRS CUSTOMIZED FOR YOU

2015 - ISSUE TWO

CEO’S CORNER

RAY CHAMBERS Chairman, CEO & President Ray Chambers joined Muncie Power Products as Vice President of the Tulsa (Oklahoma) Division in 2004, became President of the company in 2009 and was named to his current position in January 2012. He holds a bachelor’s degree from Oklahoma Wesleyan University and a master’s degree from Southern Nazarene University in Bethany, Oklahoma.

Mr. Chambers is a thought leader and visionary within the industry.

KEY INGREDIENTS TO OUR SUCCESS Almost every year since 2009, Muncie Power Products has gathered its leadership and sales teams from its multiple locations across the country for a town hall style meeting in Muncie, Indiana. This year, 76 people from plants in eight different states attended the three-day event. While some may consider the meeting slightly time consuming and costly, Muncie Power has discovered it’s a key ingredient to its company’s success.

Q. Why put so much time and money into a company meeting?

A. The connections we make at this meeting are invaluable; they’re priceless. Every single person who comes to Muncie Power’s All Managers Meeting has the opportunity to meet colleagues in each of the disciplines that make our company tick. They hear first-hand what we are doing in each discipline to better appreciate what each team brings to the table, while also learning what’s going right and what we are working to improve.

For some it is about reconnection, while for others it is about making those initial connections. These connections are what “bakes in” or engrains the Muncie Power culture into our employees, strengthening the foundation of our success.

Q. How do you get people ready for such an intense setting?

A. To prep our supervisors and managers for our structured sessions over the next two days, we went to cooking school on opening night. Attendees were divided into teams that worked on different parts of our meal for that evening. For instance, one team cut vegetables for the entrée while another prepared cherries jubilee.

With this exercise we hoped to set the tone that every person is key to maximizing the value to our customers and meeting our future goals, much like every team member was crucial to making the meal complete. It was a fun experience for our supervisors and managers, while also sending the message that we’re “cooking up something special” at Muncie Power – the theme of this year’s meeting.

CEO’S CORNER

Q. You are personally engaged with all of the supervisors and managers at some point during the meeting. How do you handle the hard questions?

A. There are no hard questions, only opportunities to confront tough topics. These are generally subjects that need to be addressed anyway.

They’re topics that everyone is thinking, but only some are willing to question. I welcome the opportunity to show that we understand the need for continuous improvement and discuss how we are investing in those capabilities.

Q. How do you know you’re getting a return on your investment?

A. You cannot calculate it, but you know it is there. Last year, of the 350 employees at Muncie Power, 90 were promoted. That is 25 percent of the workforce elevated to a higher position within the company and that did not happen by accident. At Muncie Power we believe in investing in our employees, offering an array of training and educational programs to assist employees in successful careers. As a result, as our company grows we can promote from within a pool of employees who have already proven that they meet our high personal standards.

Q. How do you keep the communication lines open the rest of the year?

A. Keeping the lines of communication open is engrained or baked into our culture. Most departments meet with their team

every day, but nothing less than once a week. It’s the way everyone keeps up on what’s going on.

Those who leave our annual meeting go back and share what they have heard here, creating more connections and opening further lines of communication.

Q. Over the years, what has surprised you in these meetings?

A. What surprised me was learning that people wanted to hear directly from me - not just from department heads. I did not expect that. They want to know the person leading the company and know that person cares deeply about our business.

This should not have surprised me as this is one thing you just cannot delegate. It’s not your words, but just being present and giving of yourself personally that truly matters.

Q. Muncie Power has employees all over the country. How do you build relationships when a company has so many locations?

A. I learned early on in my career that being a successful leader means that you are present and available to those around you. Individuals believe in leaders who take the time to listen and understand their point of view.

This means that layer-by-layer, you are invested and present. I try to visit every location every 12 to 18 months. With each person you work with as a leader, we believe you have a direct hand in his or her success.

As a result, you should be personally invested in ensuring your direct reports have the tools they need to succeed. n

Let’s Get Cookin’! Muncie Power managers don their aprons and pause for a group shot prior to taking a cooking class at the All Managers Meeting.

Muncie Power Chairman, CEO & President Ray Chambers shares some closing remarks following guest speaker Wil Davis’ empowering speech on creating a culture of excellence.

Cooking Up Something Special! Managers get into a deep discussion during small group rotations, sharing their thoughts on ideas presented during sessions.

COVER STORY

BRAD SMITH Senior Product Engineering Specialist Brad Smith is a Senior Product Engineering Specialist. He holds an associate’s degree in mechanical engineering technology from Purdue University. His latest project has been the V250 Series Directional Control Valves. He has spent 34 years with the company, 14 in his current position. In his spare time, he enjoys small-engine repair and working on automobiles.

TAKE CONTROL WITH THE V250 Muncie Power Products didn’t want to put just another 90V directional control valve into the market.

When developing its new V250 valve, the company strived to find a valve that would meet and surpass the 90V capabilities, according to Brad Smith, senior product engineering specialist.

“It has a higher pressure capability that can go up to 4,000 PSI which gives us greater versatility,” Smith said. “We had customers looking for this size valve with higher pressure capabilities, and this valve meets that need.”

The recently released valve, with an exceptionally versatile design, has a number of features that will make it a leader in the market.

Constructed with high-grade iron castings and nickel-plated or

hard-chrome spools for use in highpressure applications, the valve can be configured with a variety of spool, control and positioning options.

“It will mainly be used for dump trailer applications and large motor drive systems,” Smith said.

The construction materials resist wear, allowing for extended life under extreme conditions. The V250 is designed for flow rates up to 75 GPM (280 LPM) and offers superior performance in a compact package.

The valve’s tight tolerances and precision machining will keep internal spool leakages low. Its internal oil core design enables higher flow rates and low-pressure drops, and high-pressure carry over and closed center options are available.

Load-checks are standard on all work sections. Work-port relief valves,

COVER STORY

anti-cavitation valves, combination relief/anti-cavitation valves and pilotoperated relief valves are available for individual work section protection needs. The product development took a number of shifting factors in the industry into consideration.

For Smith, keeping up with industry developments is a satisfying part of the job. After having been with the company for more than 30 years, his daily activities are rather diverse and he enjoys interacting on a number of different levels.

“There are truck chassis technology changes happening all the time and EPA regulations have resulted in engine operation changes. All these changes affect how you have to interface with the truck chassis system to operate a hydraulic system,” Smith said.

“I assist with product development, research and prototype testing. I also help customers with troubleshooting and assist our sales and application people with some of the more difficult technical questions and applications,” he said. n

V250 Directional Control Valve The V250 directional control valve is constructed with high-grade iron castings, which allow for high-pressure capabilities for the most extreme applications. Hard chrome and nickel-plated spools resist wear, allowing for long life under intense conditions.

K E Y F E AT U R E S • Tight tolerance and precision machining • Internal oil core design

TECH SPECS Design Type: Sectional Maximum Work Sections: 12 Circuit Types: Open Center Parallel, or Tandem Flow Capacity Nominal: 67 GPM; Maximum: 75 GPM Maximum Pressure: 4,000 PSI Maximum Back Pressure: 290 PSI Recommended Filtration: 20/18/15

• Load-checks are standard on all work sections

Oil Viscosity Range: 60 to 1360 SUS

• Inlet relief valve is standard

Oil Temperature Range: -20 to 180 degrees F

• Configured with different spool, control, positioner and accessory options

Recommended Oil Temperature: 85 to 140 degrees

• Designed for flow rates up to 75 GPM (280 LPM) • Pressures up to 4000 PSI

Approximate Weights: Inlet: 17.6 lbs; Outlet: 17.6 lbs; Work Section: 19.8 lbs

MANAGER Q&A

SETTING A CULTURE FOR GROWTH

KATHY WHITE Chief Financial Officer

Chief Financial Officer Kathy White, a CPA and graduate of Ball State University, began working at Muncie Power Products seven years ago as the Corporate Controller and has held her current position as CFO since January 2012.

Kathy and her husband Doug, both natives of Muncie, have been married 28 years. Animal rescue, specializing in the adoption and fostering of elderly and special-needs animals, is one of their heartfelt passions. They currently have five Pomeranians and a Yorkshire Terrier.

Q. What exactly does a CFO do?

A. People know that I work with budgets and financial statements, but they might not realize that I am very focused on incorporating a Lean culture throughout our company. Focusing on our external, as well as our internal customers, so as to consistently provide superior customer service enables all of us to succeed. As we continue on our Lean journey, I strive for additional ways to connect all areas of the company together towards this common goal.

Q. What is one of your biggest goals as the company’s CFO? A. Muncie Power is focusing on four key elements for 2015, which include quality, new products, capacity and the development, training and education of our employees. Full integration that links our operational and reporting modules within Friedman is key to supporting and sustaining these focus areas. This will include looking for ways to standardize processes, whenever possible, between manufacturing and distribution and incorporating Lean within our support groups.

This will improve efficiencies, free up capacity for more value-added activities and streamline the process of introducing new products into our system. This has been and will be my largest focus as CFO for some time to come.

Q: What makes your job most fulfilling?

A. People. Hamer Shafer (former CEO) instilled in us core values that are the nucleus of who we are today.

I enjoy working with people who

are passionate and engaged and being a part of a family that understands the importance of giving back to the community.

Respect for ourselves and for one another is imperative. A positive attitude and a team-oriented environment are important. I get great satisfaction in all of these facets of our company and am proud to tell my friends and family that I am a part of Muncie Power Products.

Q: Through growth and acquisition, Muncie Power Products has become a major manufacturer and distributor with multiple locations. What challenges has that created?

A. For me, integration is one of the biggest challenges. Also, we must continue to incorporate a Lean culture throughout our company. As we introduce new products through internal development and acquisitions, instilling a culture of Lean will be key to our sustained growth.

Q. In your job, how much of the technical aspects of the products do you need to know?

A. I go to a few trade shows and take time to walk with the engineers and sales people. I work with several strategy teams and regularly visit and tour our facilities.

This gives me a good perspective on our technical applications as well as the type of customers and markets we service. This knowledge is helpful as we standardize processes and work towards full integrations.

MANAGER Q&A

Q. How has the company managed to grow during tough economic times in the United States?

A. We base our decisions not only for the benefit of the present, but on what will be best for our company three to five years from now. In the last major economic downturn, we saw a lot of companies make drastic cuts that may have helped in the short term but hurt them in the long term. Making decisions that are beneficial in the long term is key to sustaining growth and stability.

Q. What is the company’s current financial outlook?

A. This year marks the company’s 80th anniversary. We broke company records in 2013 and even more records throughout 2014. With our focus on long-term growth, people, quality and superior service to our customers, our financial outlook is bright and sunny, with no chance of precipitation. n

HIGHLIGHTS FROM 2014 & FIVE YEAR STRATEGIC PLAN

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xceed ustomer uality xpectations

Company Sales Trend +

63.8%

Employee Growth & Development In 2014

Far exceeding pre-recession levels

2010

2011

growth in past 5 yrs.

2012

2013

2014

From January 2010 to January 2015

25%

the team grew by

33%

received promotions 2010

2011

Strategic Initiative Examples

New Product Development

(enhancements and additions that serve our core industry, allowing expansion within select markets)

2012

2013

Exceed Customer Quality Expectations

1.

Capacity Planning

(maximizing and adding facilities while expanding production capabilities)

2014

New Product Development

(enhancements and additions that serve our core industry, allowing expansion within select markets)

2.

Employee Development, Training and Education PEOPLE FOCUSED

Capacity Planning

(maximizing and adding facilities while expanding production capabilities)

3.

Employee Development, Training and Education PEOPLE FOCUSED

4.

GET TO KNOW US

FORGING A FUTURE Michelle McKnight is finding her “happily ever after” story in hydraulics.

MICHELLE MCKNIGHT Pump Cell Crew Leader

Michelle McKnight is Pump Cell Crew Leader at the Muncie Power Products Tulsa site.

Michelle began working for the company in 2007 as an assembler and has been in her current position since 2011.

She has two dogs, which she considers to be her children, and enjoys cooking, traveling in her spare time and spending time with family and friends.

Throughout the year, Michelle also serves as a volunteer at the Community Food Bank of Eastern Oklahoma.

“Little girls don’t typically sit around and dream about being mechanical and hydraulic engineers. It’s not where society points them,” McKnight said. “But I think it is great.

I would like to see more women go into the field.”

As Pump Cell Crew Leader in Tulsa, McKnight has taken a hands-on approach to learning the industry.

“In order to perform my job to the best of my ability, I’ve also developed my skills as a machinist,” she said.

“Some may say it’s uncommon for women to work in these positions; however, times and careers are changing, including women working within a machine shop environment.”

“It’s taken me a long time to get to where I am and I’ve been fortunate to have the full support of management to excel within the company,” McKnight explained.

“Without words of encouragement from Brian Maher, the assistant plant manager, I never would have made it as far.”

One of her primary job responsibilities is to work with Muncie customers to meet specialized pump requirements.

This means that in order to meet these requests for pumps with specialized requirements, Michelle, the engineering department and her team must look at the bigger picture and collaborate together to turn a mere idea into a functioning pump.

“We have certain customers who need specific options on their pumps, whether it’s the hole size or an odd configuration. What I do is take a blank housing and I make what they need,” she said.

For the custom porting jobs, McKnight works with engineers, programmers and assemblers to create and test unique made-to-order pumps.

“We work about 55 hours a week, and we build approximately 40 to 50 a day,” she said.

McKnight enjoys the work.

“I like the machining, building and troubleshooting. I love the hands-on part of my job,” she said.

“When we have tours, a lot of the time, people are interested in the pumps because of curiosity relating to our processes and how it all comes together.

It’s what we have that is unique. It’s a selling point,” she said.”

- Michelle McKnight

GET TO KNOW US

Pump by pump, McKnight and her team create unique, custom pumps like those above for customers across the world.

The projects have had McKnight and her team customizing pieces for people across the globe.

“Muncie ships worldwide. Wherever that customer is, we build it and ship it. It could go anywhere in the world,” she said.

Working at Muncie Power Products has been an empowering experience for McKnight. “If you want to grow with this company, the opportunities present themselves. But you can’t wait for it to happen. You have to seize the moment. There are always opportunities,” she said.

McKnight has found that her division is popular with customers, especially those who visit the plant.

McKnight recently enrolled at Tulsa Community College to pursue a mechanical engineering degree.

“When we have tours, a lot of the time, people are interested in the pumps because of curiosity relating to our processes and how it all comes together. It’s what we have that is unique. It’s a selling point,” she said.

“There are those people who when they are young know exactly what they want to do. This job has put me in the right direction. I want to go into hydraulics. It has helped me figure out exactly what I want to do,” she said. n

BEST PRACTICE

HYDRAULIC RESERVOIRS CUSTOMIZED FOR YOU Being the industry leader in hydraulic tanks requires flexibility.

STEVE MCELROY District Sales Director for OE Market

Steve McElroy is District Sales Director for Muncie’s team of Market Specialists, the OEM focused sales group.

A member of the industry for 31 years, Steve has worked for the company for 11 years.

He started with Muncie Power Products as a Zone Sales Manager and was promoted to Market Specialist before becoming District Sales Director about 18 months ago. He lives outside Boston with his wife Kathy and has a son named Brendan.

Muncie Power Products reservoirs are available in a variety of styles, materials and sizes suitable for a wide-range of applications, but not every customer can use standard parts.

Steve McElroy, District Sales Director for OE Markets, has learned that customization is crucial.

“We have a catalog of general-use steel, aluminum and polyethylene tanks that come in blocks, round or upright, but we do have the resources and capabilities to make custom units,” McElroy said. “In fact, we have made more than 400 different custom designs to date.”

McElroy and his teams deal primarily with specialty applications rather than orders for standard products.

A welder uses TIG, a highly skilled and high end form of welding, above to construct a custom tank that upon completion will be tested to ensure product quality.

“When it comes to custom, generally it’s for a specific customer rather than a specialized industry or application. Often they are one-ofa-kind pieces,” he said.

tow and recovery vehicles, bulk transportation systems, aerial devices and utility equipment.

The specially designed tanks could be for any variety of hydraulic systems, including mobile equipment,

“There are endless possibilities when it comes to hydraulic systems. Every hydraulic system has some sort of

“Being the industry leader in hydraulic tanks requires flexibility.”

- Steve McElroy

DID YOU MISS A PAST ISSUE? 2015 Issue 1 reservoir – a place where it stores oil,” he said. McElroy and his team work closely with each customer on the design.

“They provide us with specifications in regard to size and volume, and we work with them to design the right size and shape to meet their requirements,” McElroy said. The team has to keep up with industry changes that could affect the design.

“Space has become more of an issue as trucks adapt to different regulations. We have to be adaptive as well. Sometimes it takes creativity to fill the requirements in the space allotted,” he said. The custom hydraulic tanks are an important part of the company’s product portfolio.

“It allows us to sell complete systems. We can go from the drawing room to a functioning piece of equipment. The reservoir is just one cog in the hydraulic system wheel,” he said.

Customization has added to the company’s reputation.

“Quality and on-time delivery standards are equally important commitments at Muncie Power,” McElroy said. “As a result, the company remains one of the most well-known and respected leaders within the industry in regards to its product lines.” n

Featuring: EX Drive Means Longer Life

2014 Issue 4 Featuring: What Can Lean Do For You?

2014 Issue 3 Featuring: Revolutionizing Hydraulic Controls

2014 Issue 2 Featuring: Elevating Efficiencies with Muncie’s Trunnion Cylinders

These and other issues are available at

www.munciepower.com/mpq

Member of the Interpump Group Š Muncie Power Products 2015 Issue 2