Terog Manufacturing is a family business that manufactures heavy-duty power transmission components under its Black Ace® brand. Black Ace products include sprockets, torque limiters, idler wheel rollers, chain tensioners, steel pillow blocks, and the Bull-Pull™ articulating implement hitch. Terog serves a number of industries worldwide, including agriculture, construction, industrial, and mining. Founded in 1971, today the company employs 30 people at its plant in Stephen, MN.
Terog was looking to earn ISO 9001: 2008 Certification as a way to further bolster its reputation for quality products. More importantly, Terog was seeking ways to improve its business processes and management systems.
Building on its long-standing successful relationship with Terog, Enterprise Minnesota presented Terog with a structured approach to attaining ISO 9001: 2008 Certification. Kent Myhrman, an Enterprise Minnesota quality management expert, developed the ISO project plan and oversaw the creation of Terog’s new quality manual. ISO quality standards dictate that a company demonstrate the effective performance of its management review process, which meant an in-depth auditing of Terog’s operations. Myhrman met with Terog’s management team every other week to review the findings of the audits and implement corrective actions.
In total, the process for achieving ISO certification lasted ten months, with the first five months dedicated to designing and implementing Terog’s ISO system, and the last five months used to actually test and run the newly installed system prior to the final registration audit.
As a direct result of attaining ISO 9001: 2008 certification, by the end of 2017 Terog expects to realize a $3.5 million increase in new and retained sales, yield a cost savings of $250,000, and invest $550,000 in new plant equipment and employee skills development.
“Enterprise Minnesota has helped us to improve several aspects of our company. Becoming ISO 9001 certified helped us fill many gaps in our quality control program, helped us land new customers, and has also helped with the teamwork aspect of our company. Probably the greatest impact on our company was the lean manufacturing program, which gave us more room, better lead times, and more cash than we could have ever imagined. In three months we dropped our inventory amounts over 40% which enabled us to make cost saving improvements to increase profitability.”