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.
