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Last Update: Sunday February 25, 2018

Key Idea: Inculcate Quality

Arnold Joseff says that every person is a quality expert.  This means that any person in the manufacturing process has the power to stop work and send back a product.   More...

Key Question:

A: 

Your current customers will brag on you and refer you if you deliver to them what they ordered.

Employees at Diversified like Jimmy Cammon say,  "If the batch I am working on is not right, it doesn't go out the door." Sonny George adds, "We make sure that it meets the customer's expectations and exceeds the customer's requirements."

Q:  What is a quality conscience? Where does it come from?

A: It begins at the top. George and Arnold are quality control mavens. They know the fundamentals of chemistry and they have applied them to the fundamentals of business. Though they understand that chemistry starts as a pure science based on the periodic table, in application it requires standards, adherence to rules and procedures, and exacting measurements. Certainly the structure of chemistry has analogies to the structure of business. When you decide to grow, look for coherence and common bonds within the general structure of your business.

Q: Who is responsible for quality at Diversified Chemicals?

A: Everyone! And, when every person in the process has the power to stop work and send back a product, then everyone is one their toes. People take pride in the fact that a batch of product will not leave their hands unless it meets the high standards set by the quality experts and their demanding customers.

The entire company is infused with pride and this translates to increased productivity. Making everyone in charge of quality is also a powerful team building strategy.

Think about it

What can you do to improve the result you achieve now? How can you turn every employee into a quality control person?

Clip from: Diversified Chemical Technologies

Arnold Joseff and George Hill

Detroit, Michigan:  There is no alchemy within the deep success of Diversified Chemical and her founders, Arnold Joseff and George Hill (pictured above). Rather, it is the right mix of ingredients -- attention to details, adherence to rules and procedures and exacting standards, fiscal responsibility, personal accountability, and an investment in their people and community -- that produce results that consistently meet their customer's expectations and exceed their customer's requirements.

Arnold and George opened Diversified Chemical Technologies, Inc. in 1971 and today it is the holding company for four subsidiaries: Adhesive Systems, Coat-it; Diversified Chemical Technologies, and Paperworks. Together the companies employ over 200 people -- 50 are chemists -- and they generate over $150 million in annual sales.

In the '80s they decided to stop being sales-driven and to become innovation-driven. They reinvented the entire business. They took their lab off the back burner and turned up the heat by putting it at the very core of the company. It meant putting technology ahead of personality as a way of defining their competence within their industry.   These two broke the mold then reinvented it.

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Diversified Chemical Technologies (GH)

George Hill, CEO

15477 Woodrow Wilson
Detroit, MI 48238
313-867-5444

Visit our web site: http://www.dchem.com/

Office: 313-867-5444

Business Classification:
Chemicals

Year Founded: 1971

Inculcate Quality

ARNOLD: And what we found is that it worked. It gave us ready access to workers who could take buses to work. So we found that there was a pool of employable people. We found that we were purchasing real estate that no one else wanted. But at the same point in time, the bank wouldn't mortgage it, so we paid cash.

GEORGE: We've always been conservative. So in spite of the fact that we once lost a major customer (that scared our bank half to death), we still had a lot of cash flow. We had not done anything other than plow money back into the business and conserve our dollars. So, we were able to pay our bills. And, we learned to keep cash.

ARNOLD: It became apparent to us that if we wanted to grow the business within the larger scale customers that we had access to, we had to do more than what we were doing.

HATTIE: Okay.

ARNOLD: And we did. And we established Coat-it. And we started with one product.

HATTIE: Which was?

ARNOLD: It was an all purpose universal sealer. And since that time, we've added about 25 different products to it. And we probably have another 25 in the hopper.

GEORGE: Everything we do in all of our manufacturing areas is batch chemistry. A little bit like baking a cake. A little bit of this -- and a little bit of that -- at a certain temperature and a certain flow rate, mixed at a certain amount of time. It's like putting something in the oven.

GEORGE: Then it comes out of the batch. And when it is finally going into it's final process, which is taking the air out of it, it goes to an automotive manufacturing plant. And that's the oven, because that's where it gets cured. But it goes on the car, on the floor paint – what you call Z-part, up under - underbody coating. But it goes on the car, in the plant. It is cured through heat. That heat makes it rigid, hard, final, etc.

HATTIE: Makes the car rust-proof or whatever. GEORGE: It provides the car against leakage, provides structural support to parts of the car. Around the floor plan around the head lamps, almost any place on the car where some portion of the sub-straight, metals coming together or plastic to metals coming together or aluminum to steels coming together, all those things require closure and sealing. And that's our business, we are making sealer at this point here.

HATTIE: Jimmy Cammon watches carefully. You are the last person that sees it.

JIMMY: I am the last person that sees it before it goes out the door. And if it ain't right, it don't go out the door.
 
 

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