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Lean Manufacturing Articles
Lean Manufacturing - Case Study
By NIST - Manufacturing Extension Partnership
Client Profile:
Mathers Controls, Inc., a private corporation founded in 1951,
manufactures electronic and pneumatic propulsion controls
and propeller shaft brakes for the marine industry. The company
primarily focuses on supplying components throughout the world
to OEMs in the boat building industry that construct vessels
larger than 40 feet. A smaller, yet significant portion of
business,
comes from sales to distributors and individual customers
in the fishing,
transportation, and pleasure craft industries. Mathers Controls'
offices and
manufacturing facility are located in Burlington, Washington,
and the company
employs 52 people.
Situation: Mathers
Controls' desire for growth and increased market share and
revenue led the company to develop a new product line aimed
at the fully electronic engine and gear control market. Aware
that there were restrictions in its existing
operations that could prevent it from meeting increased demand
for its
products, Mathers Control was on the verge of approving a
more than $1 million
plant expansion project. Prior to approving the project, Mathers
Controls
contacted Washington Manufacturing Services (WMS), a NIST
MEP network
affiliate, for assistance.
Solution: After
touring the plant and conducting a fact-finding meeting with
top
management, WMS recommended that the company implement lean
manufacturing as a means of increasing the capacity of the
plant without costly plant expansion.
The Center coordinated a lean manufacturing assessment of
the plant and
arranged for Mathers Controls' senior management to visit
another company that
had been implementing lean manufacturing over the past year.
Discussing the actual improvements and performance
enhancements gained by lean manufacturing with another company's
president provided Mathers Controls' management team with
the assurance they needed to approve WMS' proposal to provide
lean manufacturing training and implementation assistance.
By adopting lean manufacturing, Mathers
Control wanted to increase the
facility's overall capacity by at least 25 percent to avoid
the need to expand.
WMS contracted a preferred resource provider to thoroughly
educate all of
Mathers Controls' employees on lean manufacturing concepts,
principles,
guidelines, and analysis tools, and to provide the basis and
framework for
change. Then, identification and analysis of the company's
processes followed.
The employees' experience and lean manufacturing knowledge
were applied to the
layout design of the new facility.
The new layout design:
- moved the entire production area next
to the shipping and receiving area
- introduced manufacturing cells that
significantly reduced space
requirements
- promoted one piece flow to minimize
assembly costs
- reduced product lead-time and work-in-process
(WIP)
- lowered inventory levels, which minimized
carrying costs
- stored tools, information, raw materials,
and supplies at their point of use to eliminate wasteful
steps and associated costs.
With the elimination of most departmental
barriers, communication was
enhanced.
WMS successfully implemented the majority
of the lean manufacturing
processes within a six-month period and did so without the
company losing more
than eight hours of production while the plant equipment was
relocated.
As a result of WMS' assistance, Mathers
Controls reduced its production space
requirements by 36 percent, which decreased capital expansion/modification
costs by 78 percent since the company no longer needed to
enlarge the facility.
Production capacity increased by 100 percent, which allowed
employees to take
advantage of cross-training opportunities, while overall capacity
increased by
30 percent, with future improvements anticipated. There was
a 32 percent
decrease in WIP and finished goods inventory, which freed
up enough cash to pay
for the new plant layout. And, with most of its processes
simplified, Mathers
Controls decreased production lead times by 50 percent and
reduced internal
rework by 75 percent.
Results:
- Reduced capital expansion/modification
costs by 79 percent.
- Avoided a costly expansion project.
- Increased production capacity by 100
percent.
- Increased overall capacity by 30 percent.
- Decreased WIP & finished good inventory
32 percent.
- Decreased production lead times by 50
percent.
- Reduced production space by 36 percent.
- Reduced production travel distance by
88 percent.
- Reduced internal production rework by
75 percent.
- Enhanced company-wide communications.
Testimonial:
"Washington Manufacturing Services
(WMS) provided the insight, drive, and resources that helped
us learn about and implement lean manufacturing to increase
our plant's capacity and avoid our costly expansion plans.
Without
their persistence and experience, this lean voyage would have
been drawn out
and rendered ineffective. Our organization truly appreciates
WMS for their
guidance and resources. We will utilize this great service
again!" - Chris Larson, Vice President of Operations
Reprinted from the
National Institute of Standards and Testing - Manufacturing
Extension Partnership
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