Situation / Scenario –
A highly successful and well-respected company lacked capital to fund expansion which was jeopardizing their overall market position. The team was unsure of how to grow sales and meet customer need without significant capital resources. Both the sales team and production teams were frustrated, as were current customers.
Opportunities / Problems Identified –
Two areas on the production line were identified as “bottlenecks” to increased production. The team then set to work brainstorming potential fixes for these production limiting components of the equipment. The Team also brought in equipment OEM’s to generate additional ideas and options for consideration.
Action Development –
The first area that required attention was a drive limitation from the original equipment installation. A drive upgrade would allow a 12% in overall line speed. The expenditure could be funded even within the current CAPEX constraints of the organization. The second bottleneck required additional heat in order to improve overall line speed. Spare equipment at a sister plant was identified as a potential remedy for this situation. Both projects were greenlighted and were expected to be complete within 12 weeks.
Work was also initiated to make the existing gainshare program for hourly employees more aligned with overall plant goals of increasing production and reducing waste. The existing program contained high level goals that few operators could relate to and could not directly tie to the operating decisions made during a shift that drove bottom line results. A program was developed that rewarded performance by machine center instead of overall plant performance. Daily production statistics were posted by the crews with “left on table” details for all to see. Ownership and pride in operational excellence by machine centers followed.
Results Generated –
Both CAPEX projects were completed on-time and within budget. Within 4 weeks of project completion, the crews realized an overall gain of approximately 10% in daily production.
Bottom Line –
The facility grew their sales by 9.5% over the next year with the changes implemented. The plant set a profitability record the following year. The plant also positioned itself for a major capital project the following year when funds became available at corporate, ultimately making it the largest producer in the company and the entire geographic region.