The primary "bread & butter" product for this
company was being produced at a rate that would not meet a sales
forecast double the current rate of demand. Senior management was
considering adding an additional 20 to 25 production workers to
meet this demand. Quality defects plagued approximately 99% of
every product made, most of which were discovered internally then
corrected. Finished goods, and WIP (work in process) inventory levels were also elevated
beyond desired levels.
Lean Solutions:
The "Blitz Team" worked very hard to create a set of
standardized work instructions that would guarantee quality and
increase productivity. Independent workers were asked to form
NWT's (natural work teams), and work together in a new
cellular layout designed during the Blitz process. 5S, 2-bin, and one piece KanBans were used
to reduce WIP (work in process) inventory, and allow for
uninterrupted parts replenishment. Many recommendations were made
to streamline the assembly of this and other mainstay products.
Some innovative solutions and standardization of components and
hardware were suggested and implemented. Common tools that were
needed but in short supply were purchased and placed in specific,
convenient locations. A special turntable was constructed to
allow for easier lifting of heavy parts. Many procedural and
disciplinary adjustments were made to ensure a constant flow of
products through the newly formed cell.
Lean Impact/Results:
Prior to the Improvement Blitz individuals were expected to
produce 1.8 of the primary unit each day. After the Blitz the new
cell using only 4 assemblers was capable of producing one unit
every 15 minutes, 4 per hour, or 32 units per day with 99%
perfect quality! This was a productivity improvement of more than
4 x. It is only fair to note that due to some long-standing
cultural and training issues this cell did not always perform at
this level. This company showed exemplary compassion for its
workforce and invested in the development of their people and
their skill-sets. WIP and finished goods inventories were brought
under control, and no additional production staff were hired.
Currently the company is feeling the effects of a recession as
are most manufacturers. When demand once again increases this
high-quality supplier will be capable of meeting it easily with
the resources they already have. In full operating mode under
peak demand conditions, this new cell will generate additional
revenues in the tens of millions of dollars.
