Press Releases

BLUE RIDGE NAMED NAM FINALIST FOR WORKFORCE EXCELLENCE
Ellijay, Georgia - Blue Ridge Commercial Carpet was selected as a finalist in the 1999 National Association of Manufacturers' (NAM) Awards for Workforce Excellence. The NAM Awards for Workforce Excellence, co-sponsored by Arthur Andersen and the NAM's Center for Workforce Success, celebrates the best manufacturing teams in the nation. The third annual awards honored three company teams in small, medium and large categories that have supported or initiated superior team efforts in manufacturing. Blue Ridge Commercial Carpet's team was selected as a finalist in the category for small manufacturers for their outstanding contributions in innovative production and process improvements. This national honor was especially meaningful to Blue Ridge since the company was only recently purchased by three long term friends and carpet industry veterans. Upon acquiring Blue Ridge Commercial Carpet in September 1998, the company's new management team discovered inventory raw materials, finished goods, aged finished goods, greige goods (work in progress inventory), and aged greige goods were much too high. The new management formed a "think tank" team from all areas of the company to analyze the situation and develop a strategic plan to rectify the situation. Three critical business needs were addressed by the so-called "New Blue" team: generation of cash flow, reduction of debt, and better utilization of plant equipment and warehouse space.

The NAM competition recognized the Blue Ridge team for its amazing accomplishments. As of July 1999, the project generated a tremendous increase in cash flow. The first eleven months of the program are also credited with the following reductions: total plant inventory reduced by 36%, raw materials inventory reduced by 38%, actual yarn inventory reduced by 50%, greige goods reduced by 73%, aged greige goods reduced by 89%, total finished inventory reduced by 41% and aged finished goods reduced by 97%.
In addition, Blue Ridge's inventory turns increased 3.6 at closing in September 1998 to 6.65 in July 1999 for total increase of almost 85%.

In the quality arena, Blue Ridge has also excelled. In 1998, Blue Ridge's total off quality was only 1.67% as compared to the industry average of 3.5%. The New Blue team instituted a "zero defects" goal with improved cash flow, improved on-time deliveries and customer loyalty. An even more impressive off quality goal of 1.4% was set for 1999, a goal that has been exceeded to date with a 1.03% rate.

In the area of waste reduction, Blue Ridge has also made significant progress. As of September 1998, the company only recycled approximately 10% of plant generated waste. The success of Blue Ridge's team increased total recycling at Blue Ridge to an impressive 98%. All quality checks, both hardback and softback, yarn, yarn cones and tubes, plastic wrap, cardboard, carpet tubes, and even shearing waste are now recycled. Cash has been generated from the sale of waste and from the associated reduced transportation costs, but Blue Ridge believes the greatest benefit of waste reduction has been the contributions to the environment.

According to Blue Ridge's Executive Vice President, Operations, Steve Sarratt: "We are honored to receive this prestigious recognition from the National Association of Manufacturers, especially in our first year of efforts to evaluate and improve all areas of the manufacturing process. All of the credit goes to our dedicated employees who show up every day with great enthusiasm and a strong commitment to making Blue Ridge Commercial Carpet the best mill in the industry. This exercise has created real culture change with a belief that, through teamwork, anything is possible."