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Added for You - Lean Principles in Action
Continuation of Six Figure Success, part one. Steps five through eight.5. Surround yourself with excellence.Find resources that empower you, including coaches and mastermind teams. Peak performers will tell you over and over again that they achieve their biggest successes with the support and encouragement of the people they're surrounding themselves with.Develop and increase your expertise in all aspects of business management including planning, financials, marketing, customer service and sales. People tend to focus on what they do best. Consultants consult. However, at some point, sustaining growth in any business will require shifting resources away from providing 100% services all of the time. You should spend 40% of your time consulting, 10% of your time on business management and 50% of your time marketing, including new product development.Consider hiring another expert to support your core business functions (bookkeeping, marketing, sales, etc.) They, too, are an investment in the future growth and prosperity of your business. Go back to your values. There are only so many hours in the day, but things still need to be accomplished and somebody has to do the work.For me, I needed support in keeping my business organized, which is growing at a healthy pace. I needed someone who could handle the administrative work that was bombarding me – and that I was avoiding. The week I hired my virtual assistant, I tripled my business. Small invest
In the wiring area of MCC electronic work instructions were employed to allow the wirers to always have the latest revision print, reducing rework as well as part shortages.
To further drive efficiency and reduce unnecessary material handling, kitting and “milk run” concepts were implemented. With these techniques, fewer operators were needed as productivity rose with more time on task.
In the Fab area, the other area of particular focus in South Carolina, additional improvements were implemented. A cellular layout based on material flow and capacity analysis was created. Changeover times were greatly reduced by division of internal and external work content to maximize operator value-add time. Further, a constant daily output (CDO) scheme was implemented to help reduce the effects of variability. Level loading of Fab production was accomplished by observing the 80/20 rule where 80% of the volume is driven by 20% of the part types. For the remaining 20% of the volume, which reflected special customer orders, lead time was greatly reduced by using a Supermarket to provide a buffer to demand variability. The Supermarket technique allowed for a lead time reduction from 6 to 2 days.
Other improvements impacted the entire plant, beyond the MCC and Fab areas. Scrap reduction of over $40K month was accomplished via coil re-banding. At the plant, raw material arrives on a coil. When a part type is finished at its CDO quantity, the coil is taken off the press and re-banded instead of becoming scrap. Previously, before the re-banding implementation, 21% of raw material became scrap. Improvements in the T
Brainstorming is a very powerful method for generating lots of ideas very quickly about almost any problem or issue that needs an innovative or creative solution. However, brainstorming is also a very fragile process. It is intended to be a very free flowing non-judgmental exchange and list generator that sparks everyone's creative fires but at times that is very difficult to achieve in an organized public meeting.There are lots of distractions in most meeting situations. What another person says more often than not funnels down everyone else's thinking rather than opening it up. There are almost always dominant and passive personalities in any given meeting situation. People who are normally afraid to speak in a meeting will often shut down completely during a brainstorming session. Only one person at a time can effectively speak in a group meeting and unfortunately that blocks other people from talking. The bigger the group, the bigger the blocking problem. Of course there is always someone in the group who will do and say whatever it takes to please the boss. Once that person speaks up others will be hard pressed to do anything but agree. We tend to think of groups as more effective than each individual but the power of social pressure and conformity is usually counter to the process of brainstorming. We may get a warm group feeling about the social exchange that goes on during a public brainstorming meeting but the reality is it usually stifles creativity.
The electrical products industry is one characterized by fierce competition, declining margins, and legislative regulations, all that have forced the majority of electrical product manufacturers to rethink their business models. This article describes a successful story from a leading electrical products manufacturer and its journey towards lean, which to date, has saved the company over $65 Million in hard –dollar savings.
Background
Tefen has worked closely with one of the world’s leaders in Power and Control products. With worldwide consolidated sales exceeding $9 Billion in 2002, the company has roughly 200 manufacturing plants worldwide, with about half of them in North America.
In North America, Tefen has specifically worked with a division known for quality switchboards, switch gear, breakers, and other electrical components used within the energy, building, industry and infrastructure markets. The company faces stiff competition from General Electric, Siemens, and Westinghouse Electric in most categories. Given the level of world-class competition, the company has continually pursued strategies to improve its cost position, quality, and overall order fulfillment processes.
In the industry, this company is renowned for its ability to tailor its products to meet the specific needs of its clients. The ability and willingness to customize has created a competitive edge for them, while at the same time created operational challenges. Engineer to Order (ETO) products with a high degree of variability can often drive long lead time from design to production, large inventories, obsolescence, design control issues, production complexity, and inefficient scheduling, among other problems.
From 1996 to 2001, the highly competitive North America market and economic downturn drove steady margin erosion. In response, the company launched an enterprise-wide initiative to reduce manufacturing costs by 20-25% within two years at select manufacturing sites. Further, it set goals to build the skills base necessary to generate lasting continuous improvement, drive consistency in production systems, and optimize key areas of the supply chain.
A major plant in South Carolina was chosen as a key ETO facility to target for manufacturing cost improvement. With its 258,000 square feet of production space, large dollar opportunity, and products of strategic significance, it was a logical target. Tefen was engaged to understand the current state operation, define improved methods by applying Lean techniques, and then drive rapid implementation. The stated goal was to reduce conversion costs by a minimum of 20%.
The Situation at South Carolina
During the first week of the 3 week long diagnostic phase, Tefen worked with plant personnel to understand the current state of the operation. The Motor Control Center product (MCC), along with the Fabrication area (Fab), were the subjects of particular focus. Here, a number of key findings highlighted the need for dramatic operational improvement. Specifically, it was uncovered that the two areas of focus were characterized by:
- Long changeover times - Excessive WIP and Raw Material - Excessive active part numbers - Long lead times - A functional layout with poor material flow - High order variability - Inefficient labor utilization - Inefficient order entry processes - High level of overproduction and rework - High transportation costs
These underlying issues hindered the company’s performance at the plant level, which in turn, diminished the overall corporate operating result. Besides diminished cash-to-cash cycle time efficiency, the plant experienced
less than optimal order fulfillment performance, low inventory and asset turns, and high overall supply chain costs.
The Solution
During the second and third weeks of the diagnostic, Tefen defined a number of key levers to drive significant conversion cost savings. To conduct the diagnosis and quantify tangible savings, a number of tools and techniques were employed. For example, Value Stream Maps were created for both the “current state” and envisioned “future state” of the facility. Besides providing powerful visuals of the operations, these maps were used to quantify cycle times, inventory levels, number of operators, and the ratios of productive times to lead times. Another key analysis looked at the demand data to understand the volume/product/order mix. By coming to grips with the level of variation, smarter scheduling and better flow techniques could be devised. A full listing of analyses and the associated tools used to conduct them are shown below in Figure 1.
In Figure 2. the levers for savings and associated key activities are detailed. At the core of Lean is speed – process cycle-time efficiency is the overall defining Lean metric that paints the picture of a manufacturing plant’s health. By applying Lean principles, Tefen was able to identify ways to dramatically improve cycle time efficiency, which in turn, pointed the way to a 21% reduction in conversion costs. Recommendations focused on several key areas including improved material handling through a revised layout, reduced touches and dedicated handlers, reduced changeover times through standardized work, a flexible workforce operating within a flowing cellular line, and a scheduling system based on customer “pull” rather than forecasted “push.” In addition, Tefen recommended implementing a Constant Daily Output (CDO) system to produce the high volume products to a schedule. Instead of ramping production up and down in response to order volume, production of high volume material would be leveled based on order volume history.
Getting Results
Having identified what to fix, the next step was to put together a workable roll-out plan and begin implementation. Prior to the diagnostic, the pervasive culture at the SC plant was a typical one. There was a lack of urgency for improving things – inefficiencies were accepted as the normal mode of operation. One of the by-products of the three week diagnostic was an awakening among plant personnel. By including plant personnel as an integral part of the diagnostic process, new possibilities became apparent to them. Word spread and when it came time for implementation, there was more of a willingness to change. Further, Tefen’s “Go-Fast” implementation approach instilled a true sense of urgency and importance throughout the plant. The “Go-Fast” approach is designed to obtain significant results within 10 weeks, achieve more than 50% of the targeted savings within 6 months, and foster a continuous change culture.
Figure 1.
Improvement Lever Key Activities Reduce Overproduction Waste - Schedule starts based on a pull system Align Lead Time Information Flow - Define lead time across all systems Improve Material Flow - Cellular layout and elimination of excess storage Reduce Order Variability - Produce 80% of volume to a daily demand Improve Labor VA Utilization - Flexible work force, 5S discipline, shorter C/O Reduce Transportation Costs - Load consolidation and lane simplification Improve Order Processing - Develop Constant Daily Output order generator Standardize Work Methods - Improve C/O, eliminate multiple handling Improve Inventory Management - Constant daily production on top 80%, use stores
At the SC plant, a number of dramatic changes were made which drove significant savings in a relatively short amount of time. Within the first 10 weeks, over 40% of the targeted 6 month goal was achieved, 30% greater than what was predicted.
Numerous changes were implemented to increase efficiency and reduce inventory. In the MCC area, a pull approach was employed to reduce WIP by employing a build trigger for the main structure. Prior to the implementation, structures and a related component were scheduled separately and were connected together at an area called plug-in. This created WIP of structures and the component waiting for their mates. By triggering the structure build when the component was done, the structure WIP at plug-in was dramatically reduced. In addition, the entire structure line was redesigned to balance the stations, shorten the cycle time, reduce space, and reduce the raw material inventory needed at the line. Production space was reduced by introducing U-shaped work cells in both the structure line and wiring areas
In the wiring area of MCC electronic work instructions were employed to allow the wirers to always have the latest revision print, reducing rework as well as part shortages.
To further drive efficiency and reduce unnecessary material handling, kitting and “milk run” concepts were implemented. With these techniques, fewer operators were needed as productivity rose with more time on task.
In the Fab area, the other area of particular focus in South Carolina, additional improvements were implemented. A cellular layout based on material flow and capacity analysis was created. Changeover times were greatly reduced by division of internal and external work content to maximize operator value-add time. Further, a constant daily output (CDO) scheme was implemented to help reduce the effects of variability. Level loading of Fab production was accomplished by observing the 80/20 rule where 80% of the volume is driven by 20% of the part types. For the remaining 20% of the volume, which reflected special customer orders, lead time was greatly reduced by using a Supermarket to provide a buffer to demand variability. The Supermarket technique allowed for a lead time reduction from 6 to 2 days.
Other improvements impacted the entire plant, beyond the MCC and Fab areas. Scrap reduction of over $40K month was accomplished via coil re-banding. At the plant, raw material arrives on a coil. When a part type is finished at its CDO quantity, the coil is taken off the press and re-banded instead of becoming scrap. Previously, before the re-banding implementation, 21% of raw material became scrap. Improvements in the To
Although daunting at first the benefits and rewards of promoting your products online can easily be distinguished.The overheads of running a business online are considerably reduced as there is no need to have premises to show your products, which in turn means no electricity, heating or general running costs. Also the staffing levels will also be greatly reduced. All you will need to get started is a computer, Internet connection and a good accountant.However you do need to be aware of the problems a traditional business does not have to face such as hackers, viruses, websites going down and data preservation.Firstly you must take into account the type of goods you wish to sell. Bear in mind certain products do not sell well over the internet. Fresh food will spoil if it has to travel half way round the world, livestock has many regulations to overcome and shipping heavy goods will put people off because off the increased shipping costs.The most important aspect of starting an online business is to generate traffic to your site. It is no good having a marvellous product if nobody knows about it. You must have a strategy in place to generate traffic to your site to realistically increase your sales.There are many ways to generate traffic to your site and one of the most effective is to have back links to your site. For example if your website has a link to it placed upon another website this will increase your page rank among the various se
A major plant in South Carolina was chosen as a key ETO facility to target for manufacturing cost improvement. With its 258,000 square feet of production space, large dollar opportunity, and products of strategic significance, it was a logical target. Tefen was engaged to understand the current state operation, define improved methods by applying Lean techniques, and then drive rapid implementation. The stated goal was to reduce conversion costs by a minimum of 20%.
The Situation at South Carolina
During the first week of the 3 week long diagnostic phase, Tefen worked with plant personnel to understand the current state of the operation. The Motor Control Center product (MCC), along with the Fabrication area (Fab), were the subjects of particular focus. Here, a number of key findings highlighted the need for dramatic operational improvement. Specifically, it was uncovered that the two areas of focus were characterized by:
- Long changeover times - Excessive WIP and Raw Material - Excessive active part numbers - Long lead times - A functional layout with poor material flow - High order variability - Inefficient labor utilization - Inefficient order entry processes - High level of overproduction and rework - High transportation costs
These underlying issues hindered the company’s performance at the plant level, which in turn, diminished the overall corporate operating result. Besides diminished cash-to-cash cycle time efficiency, the plant experienced
less than optimal order fulfillment performance, low inventory and asset turns, and high overall supply chain costs.
The Solution
During the second and third weeks of the diagnostic, Tefen defined a number of key levers to drive significant conversion cost savings. To conduct the diagnosis and quantify tangible savings, a number of tools and techniques were employed. For example, Value Stream Maps were created for both the “current state” and envisioned “future state” of the facility. Besides providing powerful visuals of the operations, these maps were used to quantify cycle times, inventory levels, number of operators, and the ratios of productive times to lead times. Another key analysis looked at the demand data to understand the volume/product/order mix. By coming to grips with the level of variation, smarter scheduling and better flow techniques could be devised. A full listing of analyses and the associated tools used to conduct them are shown below in Figure 1.
In Figure 2. the levers for savings and associated key activities are detailed. At the core of Lean is speed – process cycle-time efficiency is the overall defining Lean metric that paints the picture of a manufacturing plant’s health. By applying Lean principles, Tefen was able to identify ways to dramatically improve cycle time efficiency, which in turn, pointed the way to a 21% reduction in conversion costs. Recommendations focused on several key areas including improved material handling through a revised layout, reduced touches and dedicated handlers, reduced changeover times through standardized work, a flexible workforce operating within a flowing cellular line, and a scheduling system based on customer “pull” rather than forecasted “push.” In addition, Tefen recommended implementing a Constant Daily Output (CDO) system to produce the high volume products to a schedule. Instead of ramping production up and down in response to order volume, production of high volume material would be leveled based on order volume history.
Getting Results
Having identified what to fix, the next step was to put together a workable roll-out plan and begin implementation. Prior to the diagnostic, the pervasive culture at the SC plant was a typical one. There was a lack of urgency for improving things – inefficiencies were accepted as the normal mode of operation. One of the by-products of the three week diagnostic was an awakening among plant personnel. By including plant personnel as an integral part of the diagnostic process, new possibilities became apparent to them. Word spread and when it came time for implementation, there was more of a willingness to change. Further, Tefen’s “Go-Fast” implementation approach instilled a true sense of urgency and importance throughout the plant. The “Go-Fast” approach is designed to obtain significant results within 10 weeks, achieve more than 50% of the targeted savings within 6 months, and foster a continuous change culture.
Figure 1.
Improvement Lever Key Activities Reduce Overproduction Waste - Schedule starts based on a pull system Align Lead Time Information Flow - Define lead time across all systems Improve Material Flow - Cellular layout and elimination of excess storage Reduce Order Variability - Produce 80% of volume to a daily demand Improve Labor VA Utilization - Flexible work force, 5S discipline, shorter C/O Reduce Transportation Costs - Load consolidation and lane simplification Improve Order Processing - Develop Constant Daily Output order generator Standardize Work Methods - Improve C/O, eliminate multiple handling Improve Inventory Management - Constant daily production on top 80%, use stores
At the SC plant, a number of dramatic changes were made which drove significant savings in a relatively short amount of time. Within the first 10 weeks, over 40% of the targeted 6 month goal was achieved, 30% greater than what was predicted.
Numerous changes were implemented to increase efficiency and reduce inventory. In the MCC area, a pull approach was employed to reduce WIP by employing a build trigger for the main structure. Prior to the implementation, structures and a related component were scheduled separately and were connected together at an area called plug-in. This created WIP of structures and the component waiting for their mates. By triggering the structure build when the component was done, the structure WIP at plug-in was dramatically reduced. In addition, the entire structure line was redesigned to balance the stations, shorten the cycle time, reduce space, and reduce the raw material inventory needed at the line. Production space was reduced by introducing U-shaped work cells in both the structure line and wiring areas
In the wiring area of MCC electronic work instructions were employed to allow the wirers to always have the latest revision print, reducing rework as well as part shortages.
To further drive efficiency and reduce unnecessary material handling, kitting and “milk run” concepts were implemented. With these techniques, fewer operators were needed as productivity rose with more time on task.
In the Fab area, the other area of particular focus in South Carolina, additional improvements were implemented. A cellular layout based on material flow and capacity analysis was created. Changeover times were greatly reduced by division of internal and external work content to maximize operator value-add time. Further, a constant daily output (CDO) scheme was implemented to help reduce the effects of variability. Level loading of Fab production was accomplished by observing the 80/20 rule where 80% of the volume is driven by 20% of the part types. For the remaining 20% of the volume, which reflected special customer orders, lead time was greatly reduced by using a Supermarket to provide a buffer to demand variability. The Supermarket technique allowed for a lead time reduction from 6 to 2 days.
Other improvements impacted the entire plant, beyond the MCC and Fab areas. Scrap reduction of over $40K month was accomplished via coil re-banding. At the plant, raw material arrives on a coil. When a part type is finished at its CDO quantity, the coil is taken off the press and re-banded instead of becoming scrap. Previously, before the re-banding implementation, 21% of raw material became scrap. Improvements in the T
Very often you will find that the students from different organizations in High School such as the football team or the chess club will initiate their own High School fundraising event. This is because often such organizations do not have the financial support of the school itself or because the school is unaware of their situation with regard to the lack of funds. Or it may be that the school budget has already been allocated to other school activities or developments for that year.Many of the High School fundraising events which take are usually there in order to help enhance a particular school activity such as the Junior or Senior Prom dance, some annual out of town travel (a skiing holiday) or just to help with the schools basketball or football games. Whilst you may find that the schools, Math's, Debate or Drama club will looking at having a fundraiser in order to raise funds for uniforms, costumes or props that they need.Today there are plenty of companies who offer their products and services in order for such fundraisers to take place. There are some candy manufacturers who offer more than half of the profit from all the candy you sell at a candy bar fundraiser to the schools. In some cases these companies will also offer free shipping and free booths and banners for those schools that are specially in need. Not only is this a great way of raising funds for the High School but you will often be able to keep the profits before handing over the rest o
In Figure 2. the levers for savings and associated key activities are detailed. At the core of Lean is speed – process cycle-time efficiency is the overall defining Lean metric that paints the picture of a manufacturing plant’s health. By applying Lean principles, Tefen was able to identify ways to dramatically improve cycle time efficiency, which in turn, pointed the way to a 21% reduction in conversion costs. Recommendations focused on several key areas including improved material handling through a revised layout, reduced touches and dedicated handlers, reduced changeover times through standardized work, a flexible workforce operating within a flowing cellular line, and a scheduling system based on customer “pull” rather than forecasted “push.” In addition, Tefen recommended implementing a Constant Daily Output (CDO) system to produce the high volume products to a schedule. Instead of ramping production up and down in response to order volume, production of high volume material would be leveled based on order volume history.
Getting Results
Having identified what to fix, the next step was to put together a workable roll-out plan and begin implementation. Prior to the diagnostic, the pervasive culture at the SC plant was a typical one. There was a lack of urgency for improving things – inefficiencies were accepted as the normal mode of operation. One of the by-products of the three week diagnostic was an awakening among plant personnel. By including plant personnel as an integral part of the diagnostic process, new possibilities became apparent to them. Word spread and when it came time for implementation, there was more of a willingness to change. Further, Tefen’s “Go-Fast” implementation approach instilled a true sense of urgency and importance throughout the plant. The “Go-Fast” approach is designed to obtain significant results within 10 weeks, achieve more than 50% of the targeted savings within 6 months, and foster a continuous change culture.
Figure 1.
Improvement Lever Key Activities Reduce Overproduction Waste - Schedule starts based on a pull system Align Lead Time Information Flow - Define lead time across all systems Improve Material Flow - Cellular layout and elimination of excess storage Reduce Order Variability - Produce 80% of volume to a daily demand Improve Labor VA Utilization - Flexible work force, 5S discipline, shorter C/O Reduce Transportation Costs - Load consolidation and lane simplification Improve Order Processing - Develop Constant Daily Output order generator Standardize Work Methods - Improve C/O, eliminate multiple handling Improve Inventory Management - Constant daily production on top 80%, use stores
At the SC plant, a number of dramatic changes were made which drove significant savings in a relatively short amount of time. Within the first 10 weeks, over 40% of the targeted 6 month goal was achieved, 30% greater than what was predicted.
Numerous changes were implemented to increase efficiency and reduce inventory. In the MCC area, a pull approach was employed to reduce WIP by employing a build trigger for the main structure. Prior to the implementation, structures and a related component were scheduled separately and were connected together at an area called plug-in. This created WIP of structures and the component waiting for their mates. By triggering the structure build when the component was done, the structure WIP at plug-in was dramatically reduced. In addition, the entire structure line was redesigned to balance the stations, shorten the cycle time, reduce space, and reduce the raw material inventory needed at the line. Production space was reduced by introducing U-shaped work cells in both the structure line and wiring areas
In the wiring area of MCC electronic work instructions were employed to allow the wirers to always have the latest revision print, reducing rework as well as part shortages.
To further drive efficiency and reduce unnecessary material handling, kitting and “milk run” concepts were implemented. With these techniques, fewer operators were needed as productivity rose with more time on task.
In the Fab area, the other area of particular focus in South Carolina, additional improvements were implemented. A cellular layout based on material flow and capacity analysis was created. Changeover times were greatly reduced by division of internal and external work content to maximize operator value-add time. Further, a constant daily output (CDO) scheme was implemented to help reduce the effects of variability. Level loading of Fab production was accomplished by observing the 80/20 rule where 80% of the volume is driven by 20% of the part types. For the remaining 20% of the volume, which reflected special customer orders, lead time was greatly reduced by using a Supermarket to provide a buffer to demand variability. The Supermarket technique allowed for a lead time reduction from 6 to 2 days.
Other improvements impacted the entire plant, beyond the MCC and Fab areas. Scrap reduction of over $40K month was accomplished via coil re-banding. At the plant, raw material arrives on a coil. When a part type is finished at its CDO quantity, the coil is taken off the press and re-banded instead of becoming scrap. Previously, before the re-banding implementation, 21% of raw material became scrap. Improvements in the T
Employers these days prefer to play it safe rather than be sorry after a hiring decision. Many resumes contain falsified information and hiring such a person might put the company in jeopardy later on. Employers are hiring pre-employment screening agencies to do look into applicant's backgrounds. Though some companies have an internal department specialized in doing background checks, more and more employers prefer to provide the jobs to companies specialized in such work.These companies follow legal regulations while doing the background checks and are very through and professional in finishing the job on time. It also does not cost the companies a lot if they tend to go into a contract with a company for some specific period of time.These pre-employment screening companies can do some background checks to verify if the candidate’s application and resume are falsified or not. The screening might also reveal some interesting facts about the candidate such as the driving record, criminal record, and credit history based on how extensive the employer requires the report to be.Pre-employment screening agencies are actually investigative agencies employing people specialized in sleuthing. They also have access to records in most of the government offices and can provide the requisite details in as little as 3 to 5 days. However, if the employer requires the agency to do an extensive search, it might take as much as 15 days to one month to produce the report.eration. One of the by-products of the three week diagnostic was an awakening among plant personnel. By including plant personnel as an integral part of the diagnostic process, new possibilities became apparent to them. Word spread and when it came time for implementation, there was more of a willingness to change. Further, Tefen’s “Go-Fast” implementation approach instilled a true sense of urgency and importance throughout the plant. The “Go-Fast” approach is designed to obtain significant results within 10 weeks, achieve more than 50% of the targeted savings within 6 months, and foster a continuous change culture.
Figure 1.
Improvement Lever Key Activities Reduce Overproduction Waste - Schedule starts based on a pull system Align Lead Time Information Flow - Define lead time across all systems Improve Material Flow - Cellular layout and elimination of excess storage Reduce Order Variability - Produce 80% of volume to a daily demand Improve Labor VA Utilization - Flexible work force, 5S discipline, shorter C/O Reduce Transportation Costs - Load consolidation and lane simplification Improve Order Processing - Develop Constant Daily Output order generator Standardize Work Methods - Improve C/O, eliminate multiple handling Improve Inventory Management - Constant daily production on top 80%, use stores
At the SC plant, a number of dramatic changes were made which drove significant savings in a relatively short amount of time. Within the first 10 weeks, over 40% of the targeted 6 month goal was achieved, 30% greater than what was predicted.
Numerous changes were implemented to increase efficiency and reduce inventory. In the MCC area, a pull approach was employed to reduce WIP by employing a build trigger for the main structure. Prior to the implementation, structures and a related component were scheduled separately and were connected together at an area called plug-in. This created WIP of structures and the component waiting for their mates. By triggering the structure build when the component was done, the structure WIP at plug-in was dramatically reduced. In addition, the entire structure line was redesigned to balance the stations, shorten the cycle time, reduce space, and reduce the raw material inventory needed at the line. Production space was reduced by introducing U-shaped work cells in both the structure line and wiring areas
In the wiring area of MCC electronic work instructions were employed to allow the wirers to always have the latest revision print, reducing rework as well as part shortages.
To further drive efficiency and reduce unnecessary material handling, kitting and “milk run” concepts were implemented. With these techniques, fewer operators were needed as productivity rose with more time on task.
In the Fab area, the other area of particular focus in South Carolina, additional improvements were implemented. A cellular layout based on material flow and capacity analysis was created. Changeover times were greatly reduced by division of internal and external work content to maximize operator value-add time. Further, a constant daily output (CDO) scheme was implemented to help reduce the effects of variability. Level loading of Fab production was accomplished by observing the 80/20 rule where 80% of the volume is driven by 20% of the part types. For the remaining 20% of the volume, which reflected special customer orders, lead time was greatly reduced by using a Supermarket to provide a buffer to demand variability. The Supermarket technique allowed for a lead time reduction from 6 to 2 days.
Other improvements impacted the entire plant, beyond the MCC and Fab areas. Scrap reduction of over $40K month was accomplished via coil re-banding. At the plant, raw material arrives on a coil. When a part type is finished at its CDO quantity, the coil is taken off the press and re-banded instead of becoming scrap. Previously, before the re-banding implementation, 21% of raw material became scrap. Improvements in the T
I know what you’re thinking: why should I put my money in a place I’ve never even heard of before? Even for those who do know something about Pakistan, courtesy of CNN (and sometimes the BBC) have seen pictures of violence – people burning effigies of President George Bush, rioting, army personnel swarming over so-called terrorist camps and, of course, not to forget, a whole lot of bloodshed. No wonder it is usually confused with other places like Iraq and Afghanistan, which are actually going through very bad times.But trust me, Pakistan is different. I know this sounds clich?d – AND you’ve probably heard it all a million times before – but the media portrays a lot of the Eastern world in a very negative light, and that is why we have had to suffer both socially and economically. But, as usual there IS the other side of the coin to look at too. With all due respect, I think we all are a little too self-indulged and over-influenced with ONE perspective (usually the media) and tend to ignore the fact that all of Mother Earth is inhabited by human beings, first of all, AND then different races, religions and nations. Ok, I know, this is getting too patronising, and you’re curious to know about the business climate in Pakistan (??), so I’ll start writing about it. Just bear with me for a few more minutes - lines rather.Ok. Here’s the deal. I will try to introduce you to the concept, in my usual, offhand, irritating way – as you have probably gathered about me by know
In the wiring area of MCC electronic work instructions were employed to allow the wirers to always have the latest revision print, reducing rework as well as part shortages.
To further drive efficiency and reduce unnecessary material handling, kitting and “milk run” concepts were implemented. With these techniques, fewer operators were needed as productivity rose with more time on task.
In the Fab area, the other area of particular focus in South Carolina, additional improvements were implemented. A cellular layout based on material flow and capacity analysis was created. Changeover times were greatly reduced by division of internal and external work content to maximize operator value-add time. Further, a constant daily output (CDO) scheme was implemented to help reduce the effects of variability. Level loading of Fab production was accomplished by observing the 80/20 rule where 80% of the volume is driven by 20% of the part types. For the remaining 20% of the volume, which reflected special customer orders, lead time was greatly reduced by using a Supermarket to provide a buffer to demand variability. The Supermarket technique allowed for a lead time reduction from 6 to 2 days.
Other improvements impacted the entire plant, beyond the MCC and Fab areas. Scrap reduction of over $40K month was accomplished via coil re-banding. At the plant, raw material arrives on a coil. When a part type is finished at its CDO quantity, the coil is taken off the press and re-banded instead of becoming scrap. Previously, before the re-banding implementation, 21% of raw material became scrap. Improvements in the Tool crib added another $100K in inventory reduction.
Implementation of actionable performance metrics solidified the overall gains and instilled a culture of continuous improvement. The metrics enabled a focus on reducing waste and drove operator empowerment at the cellular level. KPI’s are now tracked at the plant level, the department level and the cell level to illuminate cost/efficiency, service level, quality, and continuous improvement. Examples of KPI’s implemented include: CDO Stability, Supermarket space requirements, Planned schedule versus actual, and the percent of good parts out.
Looking forward, the outlook for further improvement is bright. About 60% of the total identified savings will be realized according to schedule. The remaining savings are on track to be realized within a year and a half of the implementation start.
About Tefen Tefen is a publicly traded, international operations consulting firm with seven offices in United States, Europe and Israel. The firm has over twenty years of experience in improving the overall operational effectiveness of Fortune 500 clients around the world. Tefen designs and implements solutions that enhance operational performance throughout an organization. The main areas of focus include operational excellence, manufacturing, quality, customer service, research and development, and supply chain management. All of Tefen's support programs are ISO 9001 and TCS (Total Customer Satisfaction) certified. Our hands-on approach has achieved success in delivering quantifiable and value-driven results. The company has remained profitable since its inception and currently employs over 250 professionals worldwide, 40 of whom are certified Six Sigma Black Belts.
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