Lean Results...

The impact of lean is very tangible in manufacturing and services. Results that have been achieved include:

Foundry: Aerospace/Commercial

Problems: Campus layout at this successful foundry was becoming an increasingly important issue with every step made toward creating a Lean environment. Quite literally dozens of people would make a (4) to (8) block trip, depending on the location of their work centers, to a building housing the NDT (non-destructive testing) equipment several times each day. Parts were being processed in buildings several blocks away then transported via carts, trucks, or forklifts to NDT for further processing. Generally, parts would be tested in NDT, then returned to the original building for additional processing. Certain parts would repeat this cycle several times.

Lean Solutions:  Recognizing the importance of locating the NDT area near its internal feeders, we found space that would be centrally positioned and sufficient to meet the needs of the NDT area. After considerable re-layout, streamlining of equipment, and workflow improvements, the new NDT location used only about 1/3 (one third) of the space used in the earlier layout. Additionally, we incorporated a lab area that was previously located adjacent to the old NDT facility, and a shipping function for immediate packing & shipping of completed products. We redesigned the x-ray processing booth to accommodate the improved workflow, and Kanbans were established between NDT and their several "Internal Suppliers."

Impact/Results:  Dozens of lost production hours were saved on a daily basis. Time that was spent transporting products is now spent processing them. Communication and feedback between "Internal Suppliers" and "Internal Customers" was significantly improved. Defects caused through packing and transporting parts were almost completely eliminated. The unneeded and distant building that formerly housed NDT was sold to a neighboring factory. Very conservative estimates value this improvement at more than $2 million annually.

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Flexographic Label Printing

Problems: Long changeover and setup times between product runs were creating considerable downtime. Buying additional equipment was being considered to prepare for a forecasted increase in demand. Quality defects and raw material waste issues that were considered "inevitable in this business" were also of great concern.

Lean Solutions:   Using S.M.E.D. (Single Minute Exchange of Die) methods, we reinvented the entire operation and created a procedure that minimized downtime. Setups and changeovers became well orchestrated events. Due to the nature of the equipment we also relied heavily on 5S and ergonomic tools to properly stage needed items and reduce risk of injury and operator fatigue. Quality defects were addressed by implementing a series of strategies for component maintenance and machine calibration. Raw material waste was also addressed through a "go, no go" procedure and a setup innovation.

Impact/Results: Depending on the number of colors used on a job setups and or changeovers were consuming between 3 and 7 hours, (5 hours on average) of production downtime per machine. After implementing the new procedures all setups/changeovers were completed in under 30 minutes regardless of complexity. This improvement negated any need to purchase equipment to meet forecasted demand. Third shift employees were brought to second shift and throughput increased. Approximately 25% less raw material waste became standard, and quality defects were greatly reduced. These improvements were applied to six similar machines throughout the plant. Each of the seven machines experienced an increase of + or - 5 hours per shift additional uptime. The company gained shop floor production time of about 5 hours per machine per shift (accounting for the elimination of third shift), resulting in an additional 70 hours of capacity per day with third shift available in the event sales created even greater demand. These improvements resulted in more than a $3 million dollar annual windfall without adding a single piece of capital equipment or additional employees.
 

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Antenna Manufacturer

Problems: An awkward production process and workflow in the Transit Antenna build area was creating excessively long lead-times. Floor space in this small factory was being used too liberally with the owner considering purchasing a new building to meet their needs.

Lean Solutions: Shop floor layout was restructured into a single work cell for the antenna build area. The primary "bread & butter" products were streamlined using work instructions and the cell was balanced. KanBans of 5 parts between operations were instituted, later becoming 1 piece between assemblers/operators. Visuals were posted to aid in critical processes and many "rules" were challenged. Working closely with company engineers we created several fixtures to make critical dimensions and procedures mistake-proof. Many redundant tools and procedures were eliminated from the process. Testing procedures were also incorporated into the process for immediate feedback and quality verification.

Impact/Results: Initially the "visual shock" of turning 26 workbenches into only 6 workbenches was almost overwhelming. Where floor space was a highly valued premium, this was one of the great accomplishments of the effort. Soon after the re-layout and implementation of the new processes it became obvious that production was increasing to unprecedented levels on many of the programs. Teamwork became the norm, and along with a great deal of collaboration with engineering, many programs began using modified/standardized components. Since a maximum of 6 people were now needed to operate the cell (including the newly integrated testing area), the remaining 5 people were relocated to other areas needing help throughout the plant. Because this level of success was experienced in every area of the plant staff was not replaced as natural attrition occurred. Sales were in a slump for this market at last check, but should they rise again this small company will be able to nearly double their production with about 1/2 the staff they once employed. No one lost their job due to improvements.
 

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Cable Manufacturer

Problems: This global leader producing a wide variety of cables and assemblies needed to reduce setup times & WIP (work in process) inventory. They also struggled with quality consistency issues that warranted immediate attention. Long product runs were common, but did not allow sufficient flexibility to reduce lead-time to market.

Lean Solutions:  We first attended to the setup and changeover functions of essential equipment and found a number of ways to streamline the process. These methods were then applied to similar equipment. We then established KanBans between cable processing functions that required upstream processes to stop building product that could not be completed because resources/equipment were running at capacity. This of course, forced attention to the upstream (constraining) processes and equipment. We level-loaded the production via the KanBans established and the new procedures implemented. As always 5S (Visual Workplace), methods were used to clean and organize the machines and areas for maximum efficiency and very quick changes. An improved "1st article" process was created and adopted to insure that a product that would eventually be as much as 2000 feet long and consume a considerable amount of production time and materials was "near perfect." Staging procedures and preparation checklists were instituted to maintain quality and process integrity and follow-through.

Impact/Results:  Immediate gains were realized in machine setups which prior to the Blitz Event were ranging from 3 to 12 hours, 5 hours on average, (from taking off the "old job" to successfully testing the "new job" 1st article). At last check setups averaged under 35 minutes, with many below 17 minutes. This added approximately 5 hours of additional up-time per machine, per day. This number would be higher but the ease of setups/changeovers allowed for more flexibility to the product mix a very desirable result, which consequently, increased changeovers. Quality checks for 1st articles that could take an hour or more were prioritized and all staff and equipment were subordinated to their rapid completion. "Known" products were given a "conditional green light" to continue production while the 1st article check was being conducted. This added considerably to the daily up-time. "Un-known or un-proven products" were required to pass certain checks before production could continue. Current equipment was deemed sufficient to meet present demand and forecasted sales expectations for quite some time. The teamwork and contributions of those involved in these improvements were impressive by any standards. These improvements increased the capacity of this product line by approximately 35%, resulting in several million dollars of potential additional sales per year.
 

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Automotive Parts: OEM

Problems: Changing from one shift to another was creating long periods of low or no production. Since this was a three shift operation with shift changes averaging 30 minutes three times per day, this became a costly and destructive routine. Cell "purging" (consuming all WIP without leaving work "in cue" for the next shift), was also a common practice to meet or exceed each shift's specific production goals.

Lean Solutions:  Working with the teams (across all 3 shifts), we devised a changeover process that would minimize downtime and allow for adequate cleaning and maintenance of equipment in the work area. Procedures were agreed upon, posted, trained, and adopted. The new procedure required all employees to spend the first 10 minutes of his or her shift cleaning the work area they would be working in, servicing equipment (where possible), and communicating with the operator they would be replacing regarding special concerns or critical information. All of these duties were performed while the operator from the earlier shift continued to run the equipment or complete work processes assigned. "Purging" the cell was discontinued so that in-coming operators could begin at each work station with work already waiting for them. Out-going operators would finish paperwork and minor cleaning only after their replacement was in position and working. Very appropriately, we referred to this new shift change methodology as the "Tap On The Shoulder Shift Change."

Impact/Results: Adding 1 1/2 hours of production up-time to a high velocity manufacturing plant yields incredible and powerful results. Streamlining the shift change process in this one cell increased much needed capacity by more than $1 million annually. This process was adopted as the official, plant-wide, shift change protocol. We never calculated the plant-wide impact of implementing the "Tap On The Shoulder Shift Change," but experience tells us that many of the other 45 cells were enduring similar losses in production prior to its implementation. It was common speculation that this one change in procedures was worth tens of millions to the company annually.
 

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Curing Equipment

Problems: 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.

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.
 

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Integrated Steel Mill

Problems: Machine downtime and its associated costs were effecting bottom-line profitability of this well established, full-service machining operation. Concern about proper care and maintenance of equipment warranted a proactive effort. Increasing teamwork and cooperation between shifts was also at issue.

Lean Solutions:  We worked with the machine operators both highly skilled and new to machining, to begin using the tools of TPM (Total Productive Maintenance). We constructed work instructions, both visual and written, and standardized the maintenance routines of the machines in the CNC area. Some machines had hidden defects, along with grease zerks and other components needing lubrication and or maintenance that were previously unknown. We facilitated this process with members from both day and swing shifts present, and, using the talents of machinists from other areas of the plant, teamwork and cooperation became natural byproducts.

Impact/Results:  Many potentially destructive and completely debilitating defects were discovered and corrected. A comprehensive schedule was created with a check and balance system, to ensure all components were being adequately cared for and maintained. It is difficult to quantify and assign a dollar value to "what might have gone wrong," but it was obvious to the cross-shift, inter-departmental team that our proactive efforts would extend the service lives of the machines that underwent this process. Previously separated, niche operators became highly interactive and cooperative throughout this process. Many long-standing assumptions and inhibitors to communication were discarded. In another division of this company we trained TPM facilitators to help teach and implement the program throughout the remaining divisions with impressive results and many successes.
 

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Custom Machining

Problems: The maintenance department of this large union mill had an enormous amount of work to complete with a significantly reduced staff over earlier levels. The initial assignment was to help them learn how to more efficiently complete the many tasks they were required to accomplish on a regular basis. We soon discovered that the issues were more a function of conflicting protocols and competing agendas which became our approved and primary area of emphasis.

Lean Solutions:  Upon learning the true nature of the difficulties experienced in trying to meet the rigorous demands of the maintenance department and the desire held by the majority of those in the department to improve and be proactive in their efforts, we began a process of "asking why?" This tool, (Ask Why 5 Times), is a lean manufacturing method that helps facilitators find root causes of presenting problems. Soon we learned that there was no existing protocol that allowed for improvements to happen in a streamlined manner nor in a reasonable time frame. This became our task. Working with union and management leadership we created and implemented an agreed upon protocol for implementing improvements.

Impact/Results:  Collaboration between union and management leadership and maintenance staff, allowed for the creation of a system that generated new and lasting improvements throughout the company. This protocol was adopted throughout many of the facilities and incorporated into job responsibilities. Unfortunately, this once great company was in the final stages of bankruptcy when aggressive improvement efforts were made through many and various sources, and, has yet to recover. Their strong and visionary leadership will eventually win the day!
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