November 7, 2009
Mahopac, NY: Improvements and Renovation at the St. Zosima Candle Factory

During the past 17 months (June 2008 - October 2009), the Synod’s Saint Zosima Church Supply Company has seen major changes in three areas: Production, Material Management, and Marketing/Sales. The brief write-up below highlights the major developments in these three areas.

The intent of these activities is to streamline the operation in terms of cost reduction, customer service improvement, and increasing the profitability of the enterprise. The end result benefits the Synod of the Russian Orthodox Church Outside of Russia.

Production:

1. The plant’s major electrical system rewired by a licensed electrical contractor in compliance to code.

2. Obsolete and malfunctioning equipment removed from the production floor to make room for new equipment and workers.

3. Air conditioning systems installed for better summer working conditions.

4. Factory floor retiled.

5. Factory ceiling tiles replaced.

6. Automated wax transfer systems installed.

7. Malfunctioning wax vat thermostats replaced.

8. Vat temperature gauges installed.

9. Candle process standardized

10. Wax melt vats insulated.

11. Factory roof repaired.

12. Air vents installed.

13. Water chiller tower cleaned, repaired and upgraded.

14. Water circulating pumps replaced.

15. Water cooling/heating relay pumps replaced.

16. Boiler controls replaced.

17. Heating/cooling solenoid valves replaced and rewired according to code.

18. Built apartment for factory workers with new kitchen, bathroom, electrical, plumbing, and septic system.

19. Heating control systems are being rewired in accordance with National Electrical code.

20. Periodic maintenance program implemented.

21. Production areas cleaned and painted.

Material Management:

1. Updated product cost sheet with latest raw material prices, utility costs, capital improvement budget, and labor.

2. Updated product pricing to cover latest costs and required margin.

3. Candle quality inferior. Wax, wick, and process changes implemented. Quality improved. Quality tests ongoing. Quality level to increase further in the near future.

4. Raw material alternate sources identified. Better quality at lower prices and improved profit margin realized.

5. Purchasing process implemented with issuance of Purchase Orders to seller with copies to Accounts Payable and Receiving for financial and quantity matchup.

6. Plant personnel work time log sheet system implemented to ensure correct pay for normal and overtime work.

7. Transportation issues reviewed with current carriers with intent of reducing cost to clients and increase sales territory.

Marketing/Sales:

1. Sale promotions and advertising ongoing – post card mailings, sales calls to new parishes to increase customer base.

2. Saint Zosima is present at all Orthodox Conferences (ROCOR, OCA, Antiochan) promoting its products.

3. New products are developed and brought to market: 100% beeswax, 15 hour votives, and lighting tapers.

4. New products are currently being developed: deacon candles, wedding candles, and pillar candles (commercial market).

5. Upgraded website is being designed both for Church and commercial markets.

6. Implemented a formal net payment term policy with existing clients.

7. Distributor program being developed.

Media Office of the Eastern American Diocese