Three M Tool & Machine is a family-owned contract machining and work holding company that has been serving multiple industries such as automotive, energy, agriculture, and defense for over 50 years. Three-M was started by three gentlemen but became solely owned by Mike Medwid. The company has experienced ups and downs and was near closure when Sharon Medwid, Mike’s wife, stepped in and breathed new life into the company, taking it to its height in both sales and profit in 2015. Tragically, Sharon passed away in 2015 and the business began to decline steadily.

Challenges

In March 2020, Sam Medwid, Mike and Sharon’s son, took control of the business just as COVID hit. Three M made many changes to turn the business around, such as Sam’s implementation of EOS (Entrepreneurial Operating System) to establish a vision and drive results. However, the company was still losing money, had a significant backlog of late orders, and the retirement of the long-term COO/EOS
integrator was impending. While the challenges facing Three M were not unique, they were significant. The leadership team was not fully unified, there was difficulty in breaking a long-term mindset of “this is how we have always done it”, and a disconnect between engineering and production. These challenges greatly affected the success and day-to-day operations of Three M.

Solutions

The plan centered on restructuring leadership, optimizing processes, and enhancing employee engagement. Key actions included refining the quote process to bring in the right business for Three M, implementing a new ERP system, tracking downtime, and aligning roles for their optimal fits. Quarterly feedback sessions, town halls, and regular customer visits were implemented to promote communication. Operational improvements like machine maintenance, burden rate reviews, and office updates, combined with safety initiatives and efficiency metrics, were made to support productivity. Lastly, budgeting for capital expenditures and integrating sister-company UGI as a product line within Three M strengthened their overall growth and cohesion

Results

With the assistance of STC, Three M achieved a profitable second quarter, exceeding their goals. They experienced improved teamwork, communication and culture, as well as decreased lead times and improved customer relationships. On-time delivery showed significant improvement, there was reduced downtime associated with tooling, and an overall increase in quotes for existing and new business.