By Diane Prokop

Times Staff Writer

These days, many American manufacturers are taking their cues from Toyota.

"It's one of the most talked about concepts in business circles today . . . harnessing the Toyota Production System to reduce waste and increase employee morale and productivity," said Tony DeFazio, a spokesman for the Delaware Valley Industrial Resource Center (DVIRC).

Located at 2905 Southampton Road, the agency helps local manufacturers incorporate those so-called Lean practices - a uniform system designed to promote efficiency within the business while delivering more value for customers - to grow sales and improve their operations.

Jeff Kopenitz, who studied under three pupils of the Toyota Production System creator, Taiichi Ohno, directs DVIRC's Advanced Manufacturing and Institute for World-Class Manufacturing.

Established in 1988 by Gov. Robert Casey, DVIRC is one of seven economic-development corporations with the mission of supporting small and mid-size manufacturers in Pennsylvania. DVIRC handles the five counties in Southeastern Pennsylvania, with support from the state Department of Economic Development and the U.S. Department of Commerce.

Of the 344,000 manufacturers in the country, 98 percent are small firms employing under 500 people. Southeastern Pennsylvania is home to 150,000 of the state's 685,000 manufacturing employees.

According to Mark Basla, DVIRC vice president of marketing and business development, the region also boasts 5,000 manufacturers with a diverse background.

Unlike Michigan, which was focused mostly on the auto industry, Southeastern Pennsylvania's manufacturers include the aerospace, medical device, food, defense and renewable-energy sectors, Basla said.

Since 1988, DVIRC has worked with more than 1,500 firms and completed more than 6,000 projects. Its value-added impact on area businesses during the 2007-08 fiscal year included more than $80 million in new and retained sales, 356 new and retained jobs, and a cost savings of more than $21 million.

The Ehmke Manufacturing Co. Inc., in Juniata, is one of DVIRC's Lean success stories.

The technical fabric manufacturer, in business for 80 years, is known for designing and fabricating the first covers to protect major-league baseball fields. Today its products range from the needs of military aircraft interiors to tactical gear.

Incorporating Lean methodologies, Ehmke increased its revenue by 42 percent last year and improved its cash flow by 30 percent to 40 percent.

Though Ehmke CEO Bob Rosania knows some of that improvement is linked to the company's work with the military and defense marketplace, he said the vast majority of the growth came from being more productive and efficient and initiating Lean techniques.

Those practices also resulted in increased productivity without increasing labor overhead, as well as reduced shipping times while still meeting rigorous quality-control benchmarks.

As an example, Rosania said, much waste is encountered - and revenue lost - if thousands of pieces of an ordered product make their way along the production line, only to have a mistake or deficiency discovered a couple of weeks later.

"One of the tenets of Lean is (employing a) one-piece flow through the whole production line," Rosania said. "It cut down on any defects and greatly reduced waste."

While the practices ultimately were successful, getting the 80-year-old company's employees on board with the program took some time.

"That was the big part, to change the culture with our people and employ Lean as a growth strategy," Rosania said. "Lean is designed to grow your company; it's not a process to cut costs or lay people off and be automated. It's being much more productive so you can (do) additional work in the same space.

"In our type of industry, we have to do something different to survive," he added. "Once the culture changed, it's a part of life now for us."

Another firm, Warren Industries, which has been in business for more than 100 years and manufactures precision measurement instruments and optical equipment in Northeast Philadelphia, similarly has taken advantage of DVIRC's services.

While the company, located at 2045 Bennett Road, hasn't used DVIRC's assessment services, it has called on the agency for input, attended its seminars and participated in forums for CEOs.

"I was always very positive about them. All the talent there - they have somebody that's probably worked for a corporation in that expertise for a number of years," said Warren operations director Frank Baldwin. "They're the kind of people you can call on the phone."

The industrial resource center also referred Warren Industries to a consultant for ISO 9000 certification. A program of the International Organization for Standardization, a global, non-governmental group that helps establish uniform business practices and standards, the yearlong ISO 9000 process certifies quality-control standards designed to enhance efficiency and productivity.

The certification is valuable, according to Baldwin.

"Especially in the business we're in. Building an instrument for an aerospace company - to get the contract you may need to be ISO-certified or ISO-compliant," he said.

DVIRC's role extends beyond assisting established manufacturers. It has an ongoing relationship with the University of Pennsylvania's Wharton School of Business, helping to educate students about innovation in the business community. The agency recently sponsored a workshop for the future business leaders to gain an understanding of Lean methodologies and how they promote smoother business operations and a better bottom line.

According to Basla, the DVIRC vice president, getting young people into engineering and manufacturing is critical. Each manufacturing job also creates a minimum of four service jobs, he said.

"It's critical to our economy and manufacturing," Basla said, noting that manufacturing isn't the same dirty assembly line that once was common.

In the past, manufacturing often was the source of pollution. Manufacturing in the 21st century is geared toward more environmental sensitivity, according to one study.

Between 1998 and 2007, clean-energy jobs grew by 9.1 percent, including both white- and blue-collar jobs, according to the Pew Charitable Trusts' Clean Energy Economy Report.

"Growing attention and financial support from both the private and public sectors indicate that the clean-energy economy is poised to expand significantly," the report states.

In 2007, Pennsylvania was ranked third in the nation for green jobs, and fifth for green businesses, the report said.

For more information on DVIRC resources and workshops, such as "How to Do Business With the Government," "Procurement Opportunities," "Web Site Optimization" and "Level One Lean Certification," call 215-464-8550 or visit the Web site at www.dvirc.org

Reporter Diane Prokop can be reached at 215-354-3036 or dprokop@phillynews.com