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A Lean Manufacturing Case Study/Article

Introduction

During the past several years, Lean Manufacturing has received a great deal ofattention in its application to manufacturing companies. The results can be dramatic.The savings achieved in WIP reduction, MCT reduction and other manufacturing relatedmetrics have been unprecedented and far outeigh those achieved by !traditional"improvement methods. The Lean Manufacturing methodology is a life#changing ay ofdoing business that creates significant sustainable results. These ne ays of thin$inghave typically been so different they prevented the firm from fully implementing Lean inthe organi%ation.

&one are the days of building the perfect balance beteen all of the various points inyour manufacturing operation and building product in huge batches. &one are the days

of not noticing product problems until there is a huge amount already built. &one arethe days of lo yield. Product 'uality as measured as good, but the process has ledto the build up of analysis mills for the sa$e of output. Lean Manufacturing implementedas described in this article ill dramatically improve all of these areas and leave youror$ers as happier and more productive people. It enhances management(sunderstanding and control of operations, and improves the decision ma$ing process.

This summary describes the partnership that formed beteen the Client and theConsultant. Together, they developed Lean Manufacturing methodologies that have inone area reduced WIP by over )*++,+++,+++ over a si#month period in -++. /se ofthese methodologies caused a )-+,+++,+++ drop in WIP in one product area in -+++.

The bac$ground history of its development and a brief overvie of the process arecontained in this article. 0lthough, the actual creation and implementation of thisprocess too$ approimately one year, once developed it as fully implemented ithover ,+++ 0ssociates and in another part of the facility in only si months. 1achsubse'uent implementation as on a larger scale. This dramatic change inmanufacturing methodology is helping Client meet the difficult challenges faced by hi#tech.

Introduction to Client

The Consultant or$ed ith the Client in one facility from 223 to 224 using traditionalmethods of shop floor controls in its improvement efforts and achieved significantresults from the pro5ect. In 222, the Consultant as invited to study an area at anotherfacility. 6ased on this assessment and an agreed upon mutual approach the folloingareas ere concentrated upon to form the basis for a pro5ect7

8hop 9loor Control

0ccelerated :amp /p Mode

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&etting them !0head of the Poer Curve"

Improving utili%ation and efficiency

Development of the Lean Approach

0s the year progressed, the area agreed to a feasibility study.

In 9ebruary of 222, the Client held an off#site management meeting to determine thefuture challenges and opportunities. WIP :eduction and MCT ;Manufacturing CycleTime< ere to $ey areas.

These goals also tied into an internal report(s recommendations completed in 223.This report said that a cellular method should be the future methodology for the facility.The !old" ays ere firmly entrenched though ma$ing it etremely difficult for the facilityto implement this method using only their on personnel. This led the facility to addressthese concerns and to see$ outside specialists in implementation and training to assistith developing an improved manufacturing process.

Initial efforts received the typical !been there done that" yan from the Client personnel.0t the first to progress revie meetings, management as displeased ith the Client =Consultant coordination. They pushed for a closer or$ing relationship and more of ateam approach.

During the net si ee$s, the Client and the Consultant focused on a team approachith $ey staff in one focused area. The name given to the group as a !Tiger Team"./ltimately, this area as the first to develop the direction that the entire plant ouldsubse'uently adapt. These $ey Client members ould later in a coveted aard fortheir accomplishments on this team. They focused on an improved method to get theproduct through the process and out the door to the customer. They modeled asynchronous flo operation that indicated that a WIP reduction of approimately)>,?++,+++ ;WIP currently measured )?,+++,+++< as achievable. The catalyst to thisimproved method as this large reduction in WIP. This opportunity galvani%ed the teaminto 0CTI@AB

The Team modeled various approaches. Implementation of the model as delayed tocoincide ith the end of the 'uarter. There as an intense pressure at the time to getthe product out using the current batch methods. The changes ere made to the areaon a ee$end so that on Monday it as ready for production. ey 0ssociates and

personnel from the 9acilities &roup came in on the ee$end to help setup the area andassist in the move. ey 0ssociates came in to assist in ergonomic issues. Themodeled approach used a combination of Lean, aisen, an 6an and CellularManufacturing designs and techni'ues. Cornerstones of the approach ere thecombined elements of Deming ;uality< and &oldratt ;Theory of Constraints and The&oal

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The First Cells and Results

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Functional Test

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The first cells constructed ere modeled using the movement of product from station tostation in buffer si%es to prove that the concept or$ed and to identify potential glitches.

0 !W" shaped cell as formed to feed output before going to the test areas. Ealf of the

area as converted to this cell design. Throughput of the cell as managed by usingbuffers beteen each station. The pacing of the cell output as designed to alaysmeet the bottlenec$ capacity. The Team monitored the cells using -*#hour coverageduring the first ee$.

:esults ere phenomenalB

Within ee$s the area could produce ?++ units easily in a five#day or$ee$ herebefore the area hen pushed hard and or$ing a seven#day or$ee$ might be able tocomplete >++ units. This as a very important development and it as far better than

the ?+ units possible prior to any efforts to improve performance7

Maimum potential production before Lean7 >++ units in 3 days

Ae production easily attained ith Lean7 ?++ units in ? days

The area(s manager, or$ing ith the group, laid don a mandate to assuresustainability of the results. Controls ere prototyped to develop a visual or$placeloo$ing at output and 'uality. &reat success as achieved7

>FFG Total Improvement in Throughput

3G :eduction in Inventory

F4G Total :eduction in MCT

In December 222, 8enior Management initiated a move that pending reorgani%ation,the Consultant ould come bac$ in to continue assisting ith the implementation. In9ebruary -+++, the Consultant returned. Client and Consultant, or$ing ith the8upervisors, epanded the Tiger Team efforts to other products. Lean Manufacturingand the Hisual 9actory method ere epanded throughout the group. /ni'ue to thissi#month phase as ramp up of a ne line. Eoever, clouds ere on the hori%on in

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-+++ and the predictions for a ramp up failed to materiali%e. Lean hoever enabledcuts in resources and still ma$e production targets. 1nd 0ugust of -+++, the pro5ectended successfully ith over )-+,+++,+++ savings for 5ust that phase.

8torms appeared for the telecommunications business including WIPInventory

problems and costs. These haunted Client as pro5ected groth rates failed tomateriali%e. Changes also occurred in management at this facility. 0 9ord MotorCompany Manager, ith an etensive Lean Manufacturing bac$ground came onboardin @L8. Ee ould prove invaluable in supporting $ey managers in the engineering andmanufacturing sides of the plant. 0 management team loo$ed at a Client = Consultanteffort to maimi%e the benefits achieved to combat or$flo and inventoryWIPproblems. The Consultant as invited to the facility for an analysis and strategysession, hich resulted in a combined effort to ta$e the Lean Manufacturingmethodology to product lines in another !factory" at the location.

%&&' Lean Manufacturing (ro)ect

6y this time Client and Consultant had the Team Concepts agreed upon. 0 rapiddeployment of 4 Teams ith approimately 2+ J Team Members as developed toformat cells and defineimplement buffer strategies and WIP control throughout theseproduct lines. This pro5ect resulted in *+ cells being implemented in si months ith theaverage of - cells per ee$ being put into place and launched. To galvani%e the teamsand drive to meet this schedule, these eight teams met ee$ly ith the commitment tomeeting the target dates. 0 logistics team or$ed to assume incoming materialplanning and processes and meshed ith lean manufacturing. 0 $ey understandingthroughout this effort as that7

!Lean is a Kourney, Aot a Destination" :esults ere the $ey to success

Process had to be 8ustained

Creating an environment of Continuous Improvement

:epeatable Process that is 8ustainable and 8tandardi%ed

The @L8 group formed W>;World#Class Waste Watchers< Teams. Core membersmentoring the process ere the Consultants. Teams trained by the Client#Consultantcore group are continuing to identify ne opportunities, improvements and savings totheir organi%ation. The W>Teams have matured into a Process

1ngineer8upervisorManager group that meets once per ee$ on alternate >rd

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and-ndshifts. The accomplishments made in this time of uncertainty, declining orders,layoffs, early retirements, factory sell#offs and reorgani%ation of 1ecutive Managementis etraordinary. 0lthough Client continues to struggle its ay through the high techtelecommunications slump, it has seasoned managers ho have seen the need toestablish a climate of change focusing in on improvements and $ey metrics.

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0dditional ne areas of focus include 8upply Chain issues and Contract Manufacturing.ey 1ecutives in ey :oles are continuing to focus on all of these improvement areas.8enior Management is emphasi%ing these efforts and formali%ing the benefits of usinglean metrics such as MCT and WIP control Client#ide. Eis direction and leadershiphas added impetus to the $ey metrics, the buffer strategy, ?8 and the drive to

sustainability.

The Lean Manufacturing (rocess * An +vervie,

The primary tool for defining and analy%ing the production area in order to determine thebottlenec$ and setup of a cell is called a !90CT 8heet". Pictured belo it outlines thefolloing items7

Process Description ;each step in the processFFG

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March 1999 June 1999 Current Lean Cell

Capability

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:eductions in WIP of over )?+,+++,+++ in si months

The telecommunications industry is still struggling but these achievements are $eysteps in helping Client to ma$e it through the tough times. The methodologies outlinedabove are being used to refine and implement strategic plans to reorgani%e, out#source,sell andor relocate operations, processes and product lines. It is enabling the client to

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focus on its latest products and disengage in commodity and legacy activities. Thisrestructuring is assuring client groth and successful transition to the - stcentury.

6lane P. Karcho blane5archoOaol.com

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