Sami Caglar’s firm success in lean manufacturing is sending out the right signals, despite the recession. Paul Braithwaite talks to the managing director of SFL.
Sami Caglar didn't do accountancy and didn't do IT. He looks at me and smiles. 'I still have not done too badly,' he laughs. And I have to agree. He is managing director of SFL, the chimneys and flues company, based in Barnstable, Devon.

He has a degree in engineering from Istanbul University in his native Turkey and an MBA gained in the UK. Caglar is charismatic but it is equally obvious that he has worked hard for each of his promotions.

After leaving university, he joined a company, working on the production line for a few months until the bosses decided he was capable of moving into the purchasing department. He rose to be purchasing manager and then did national service, which is compulsory, in the Turkish army.

Today, Caglar is a lean manufacturing specialist. He was the boss who introduced lean manufacturing to Powrmatic a few years ago. He moved to SFL - then a division of Powrmatic UK and now a division of Powrmatic US - as the operations manager to introduce lean manufacturing to the chimneys and flues giant.

He made a lot of changes and the company has received two awards for its lean manufacturing. Now he is working towards a national award later in 2010.

The biggest change Caglar made at SFL was to close the warehouse which was 15 miles away towards Ilfracombe.

'We made everything here, shipped it to the warehouse, before sending it to the customer. It added two or three days to our lead times.'

The production line at Barnstable was streamlined and the storage area moved into the space saved.

'It was a four-way win. The sale of the warehouse will generate cash, the production line was streamlined, the lead times were cut and customer satisfaction was increased.'
And talking of lead times, if necessary SFL will accept an order on day one, process it and make it the same day or next to deliver it on day two. 'This shows the calibre of the staff. I do not believe there is another company in the sector which will do this.'

But while SFL will do it, it does not want to because it is more efficient to plan production.
'If it is not urgent, the lead time is three weeks but we usually have each unit ready for delivery in two weeks.' This is another change. We have become more customer-focused. 'We want happy
customers.'

Caglar has been managing director since July 2008, about the same time as SFL became a limited company. There is around 87 full and part-time staff and this is augmented in the busy season - September to February - by another 40 mostly-regular part-time staff.
The company manufactures all flues from 60mm to 1.5m which means it makes flues for everything except the biggest projects. There are some 5,000 different variations with about 2,000 to 2,500 as standard.

Specials represent some 10% of the workload and Caglar would like to expand this side of the business, especially in the commercial market.
But he wants installers to approach the company earlier. 'The plans may show a standard flue should go here or there but until the installer goes into the new plantroom and finds the electrician or plumber has used the space for their wires and pipes, they do not know what to expect.'

And while the flue specialist installers can usually give SFL seven days or more, sometimes they need that special order for the next day and this is where the production flexibility kicks in.
SFL is, claims Caglar, the market leader in residential properties but there is no data pool but 'we watch our competitors and they, no doubt, watch us'. 'Specialist installers who work with us know the quality of our products and what we are capable of in terms of flexibility of production. It is a case of extending this knowledge to all the other specialist installers who do not work with us.'

He adds that while SFL is not the cheapest manufacturer it offers the best value for money. More to the point, suggests Caglar, properly installed, it is a case of 'fit an SFL flue and
forget it'. 'Our products have been trialled and monitored by end users. When in the past, we found flaws, we engineered them out and now it is a case of adding this or that as the installer or end user suggests it to SFL,' he insists.

'The reality is that it does not go wrong which is why SFL offers a 10-year warranty. Occasionally, there is a problem with the resistance when the flues have to go around ductwork or a corner but usually nothing goes wrong.' 'Wow! Are you sure you want to make that claim?' I asked.
'We have been in the marketplace since 1935. We monitor installations, work with installers we trust and our kit works.'

Caglar says it is more a question of refining existing products, which the company does constantly. rather than introducing new ones. Take the Nova Commercial range which has been refined so that it will work with oil, gas, wood or multi-fuels.

'This flue will work with all the fuels,' he adds. Further, while competitor products are mostly open-ended, the Nova has a screw coupler. Just slot in the next section, turn and move on. It saves installation time. Nevertheless, if there is a problem there is SFL's technical helpline or someone can be on site quickly. 'Mostly, it is the specialist installer who is the expert. SFL supplies the technical help when needed. We always support our customers,' Caglar states.

Part of this support is a sizing disc for consultants and installers which explains the sizing process and helps with the calculations. And many come back to SFL when tendering for jobs. The technical department will do much, if not all, the flue design and estimation work. But 'if we design and estimate a project, we will guarantee it will work only if SFL equipment is used', Caglar states. And he adds that the technical capability of SFL is 'second to none'.

Technical sales manager is Jason Lee who, Caglar insists, is probably currently the person with the most knowledge of commercial or residential flues in the UK. Lee is backed by Peter Ryan, the research and development manager, and Jeremy Long, the production engineer.
'Between them and their teams, there are countless years of experience.'

In fact SFL, in its earlier guise of Selkirk Manufacturing, invented pre-fabricated chimneys, he claims. Repeat business is running at more than 90%, he reckons. Again, the charismatic smile, 'so we must be doing something right'.

SFL uses distributors for its route to market. Some of the equipment is sold through national distributors like Wolseley. It co-operates with contractors and installers on projects and supplies to specialist distributors/installers.

But the sales engineers would work across all levels, finding enquiries and giving support when needed. When Caglar took over the company sales improved in the first year and stabilised the year after. SFL has the potential to grow not only in the UK but in the rest of Europe and even further. If he could have one New Year's wish, what would it be?

To smooth out the peaks and troughs of the flues season. He would like to see customers buying more during the low season. Then he could employ his temporary staff all year round. Even in the recession, SLF is gearing up for the future and Caglar is obviously reaching for the high points, just like his flues.

SFL has around eight apprentices (out of 87 employees). Out of the many who apply, why does SFL choose the ones it does? Caglar is adamant. 'A-level passes and even degrees mean nothing, if the youngster has no spark', he insists.

Caglar stresses his own disciplined early life as ideal training to take the knocks of later life. And for someone who is not English by birth, he is fiercely patriotic.
'Britain has given me a good living and my Turkish background taught me to appreciate that.'
Training is one budget which he has not cut. He believes that learning is a culture which all firms and individuals ought to adopt. Some 10% of SFL's shopfloor workers are currently going through business improvement training with several staff studying for foundation degrees and others taking business degrees.

// Contact SFL on www.sfl.uk.com//