Lawrence plant serves as model for efficiency

Operational changes to be expanded across company

Efficiency- and flexibility-minded operations honed at Hallmark Cards Inc.’s Lawrence production center soon will be delivered to other Hallmark plants, a company spokeswoman said.

During meetings Thursday, 800 employees at the Lawrence production center, 101 McDonald Drive, were informed about how the plant’s operational changes had been paying off, said Kristi Ernsting, a Hallmark spokeswoman.

“We’ve been testing some different production processes in Lawrence, and they’ve shown some promising results, so we’re going to be expanding those principles to some other locations,” Ernsting said. “It’s having to do with the principles of manufacturing, and focusing on being flexible, and reducing costs, and being efficient to improve our speed to market for all of our manufacturing.”

Ernsting declined to discuss specifics of the successful processes, nor where they would be implemented, because the company still had more employees to inform. Ernsting said that necessary communications should be completed by the middle of next week.

She did, however, emphasize that none of the changes would require employment reductions.

“It’s not affecting jobs,” she said. “It’s really about simplifying processes and becoming more efficient so that we can operate our business as efficiently and effectively as we can. : It has been successful, so it’s something we want to apply in other locations.”

Hallmark has about 800 employees at its Lawrence production center. In early 2006, the Kansas City, Mo.-based company transferred 125 production jobs out of Leavenworth and into Hallmark plants in Lawrence, Topeka and Toronto.

The 650,000-square-foot Lawrence center produces about 40 percent of Hallmark’s cards, including the entire Shoebox line. The plant also makes ribbons, bows, stickers, invitations and thank-you cards. Earlier this year Hallmark outsourced less than 1 percent of its ribbon production out of Lawrence, so that employees could be freed to handle other responsibilities.

The Lawrence center also handles some of Hallmark’s most intricate and otherwise demanding jobs, including the annual White House holiday card – an order that last year produced 1.5 million cards.

The Lawrence plant opened in 1958 and was expanded eight years later.

Hallmark, which reported revenues of $4.1 billion in 2006, has 16,000 employees worldwide, and sells cards and other products through 43,000 retail outlets in the United States.