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Focus North America
SMARTER, BETTER
AND MORE EFFICIENT
Rusty Warnick, Vice President Operations & Supply, Swedish Match North America Division, says factories must constantly re-evaluate processes to find new ways to compete effectively in a powerful dynamic industry.
BY: KAROLINE HAMMAR
We must continuously search for innovative streamlined processes,” he says. “Our ultimate goal is to set customer expectations at levels that are difficult for our competitors to meet.”
Swedish Match North America has three plants: Owensboro in Kentucky, Dothan in Alabama and Santiago in the Dominican Republic. All three plants have demand driven production and are continuously working to improve flexibility.
“Each plant has tremendously dedicated workforces who take pride in the products they produce. However, the industry challenges are immense. Economic fluctuations, the possibility of the US government requiring the Food and Drug Administration to regulate tobacco, and increased competition with cigarette manufacturers entering the category are some of the challenges we face. Therefore we are constantly finding ways to improve our operations in production, product management, customer support, inventory and warehouse procedures, in order to gain a competitive edge.”
Efforts in the Owensboro plant have been made to create a demand driven manufacturing.
“By driving leaner inventory levels and adopting efficient pull manufacturing processes, we are guaranteed to have the right product at the right time,” Warnick says. Lower inventory levels also mean lower working capital.
In addition, Owensboro will also produce all the chewing tobacco for the tobacco company National Tobacco in a co-packing agreement, beginning in 2009. This will allow for increases to chewing tobacco volumes on production lines that have seen steady declines over the years.
Dothan’s strength is in its versatile workforce which is focused on innovation. A spirit of resourcefulness exists at the plant which encourages creativity. One example is the way employees reduced costs through development of special equipment from concept to implementation. In addition the Dothan plant has been successful with its work on the new Cigarillo foil pouches.
“Santiago’s highly motivated workforce focuses on becoming more efficient by learning new ways to improve work processes. We reduce waste, and at the same time we do production quickly and at a lower cost. At all of the plants there is a new mindset where we switch from being reactive to being responsive and proactive. At the end of the day the employees’ commitment to excellence is in alignment with our company values.” *
Packaging is fun when the process is smart and efficient.
“Each plant has dedicated work force who take pride in   the production”
Facts
OWENSBORO FACTORY
• The Owensboro factory was built in 1972. • The facility produces products in three major groups: chewing tobacco, snuff and pipe tobacco. • The Quality and Environmental Management Systems are ISO certified. • The factory has 222 employees. • Owensboro is located 120 miles west of Louisville, Kentucky.
DOTHAN FACTORY
• The Dothan factory was built in 1939, with additional buildings added in 1953 and 1986. • The facility produces machine made cigars. • The Quality and Environmental Management Systems are ISO certified. • The factory has 210 employees. • Dothan is located in the south east of the US state of Alabama.
SANTIAGO FACTORY
• The Santiago factory manufactures small and large natural and homogenized wrapper cigars. • The factory has 747 employees. • Santiago is located in the Dominican Republic.

Page 12


Focus North America
 
SMARTER, BETTER
AND MORE EFFICIENT
 
Rusty Warnick, Vice President Operations & Supply, Swedish Match North America Division, says factories must constantly re-evaluate processes to find new ways to compete effectively in a powerful dynamic industry.
 
BY: KAROLINE HAMMAR
 
We must continuously search for innovative streamlined processes,” he says. “Our ultimate goal is to set customer expectations at levels that are difficult for our competitors to meet.”
 
Swedish Match North America has three plants: Owensboro in Kentucky, Dothan in Alabama and Santiago in the Dominican Republic. All three plants have demand driven production and are continuously working to improve flexibility.
 
“Each plant has tremendously dedicated workforces who take pride in the products they produce. However, the industry challenges are immense. Economic fluctuations, the possibility of the US government requiring the Food and Drug Administration to regulate tobacco, and increased competition with cigarette manufacturers entering the category are some of the challenges we face. Therefore we are constantly finding ways to improve our operations in production, product management, customer support, inventory and warehouse procedures, in order to gain a competitive edge.”
Efforts in the Owensboro plant have been made to create a demand driven manufacturing.
“By driving leaner inventory levels and adopting efficient pull manufacturing processes, we are guaranteed to have the right product at the right time,” Warnick says. Lower inventory levels also mean lower working capital.
 
In addition, Owensboro will also produce all the chewing tobacco for the tobacco company National Tobacco in a co-packing agreement, beginning in 2009. This will allow for increases to chewing tobacco volumes on production lines that have seen steady declines over the years.
Dothan’s strength is in its versatile workforce which is focused on innovation. A spirit of resourcefulness exists at the plant which encourages creativity. One example is the way employees reduced costs through development of special equipment from concept to implementation. In addition the Dothan plant has been successful with its work on the new Cigarillo foil pouches.
“Santiago’s highly motivated workforce focuses on becoming more efficient by learning new ways to improve work processes. We reduce waste, and at the same time we do production quickly and at a lower cost. At all of the plants there is a new mindset where we switch from being reactive to being responsive and proactive. At the end of the day the employees’ commitment to excellence is in alignment with our company values.” *
 
Packaging is fun when the process is smart and efficient.

Page 13

 
“Each plant has dedicated work force who take pride in   the production”
 
Facts
 
OWENSBORO FACTORY
• The Owensboro factory was built in 1972. • The facility produces products in three major groups: chewing tobacco, snuff and pipe tobacco. • The Quality and Environmental Management Systems are ISO certified. • The factory has 222 employees. • Owensboro is located 120 miles west of Louisville, Kentucky.
 
DOTHAN FACTORY
• The Dothan factory was built in 1939, with additional buildings added in 1953 and 1986. • The facility produces machine made cigars. • The Quality and Environmental Management Systems are ISO certified. • The factory has 210 employees. • Dothan is located in the south east of the US state of Alabama.
 
SANTIAGO FACTORY
• The Santiago factory manufactures small and large natural and homogenized wrapper cigars. • The factory has 747 employees. • Santiago is located in the Dominican Republic.