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Waiteco Machine Company Located in Massachusetts, this client machines and assemblies metal components for telecommunications, semiconductor, aerospace and other industries. Situation Waiteco was experiencing a significant increase in business and was beginning to have trouble handling the growth. Delivery performance was declining even as quoted leadtimes grew, quality was slipping, overtime expenses were out of control and cash flow issues were creating supplier problems. The company was barely making a profit. Intent on regaining control and becoming a larger, leaner company, the owner called Sterling. Actions We began by engaging in a number of 'stop the bleeding' activities. Starting in finance and accounting, we worked with customers and suppliers to improve cash flow and reestablish smooth material deliveries. Using Lean tools, we established Takt times for repetitive products and began releasing material to the floor to support flow. We applied SMED techniques to reduce setups, allowing smaller batch sizes. Batches were sized to customer delivery requirements. Value stream mapping allowed us to focus precious quality resources where they would have the greatest impact. Employees were trained in Lean Techniques and incentive systems were established to support activities that helped move the company towards it's goal. Once internal systems were in place and functioning, we worked with Waiteco's purchasing and sales personal to extend Lean thinking to customers and key suppliers. Vendor pull systems and customer pull systems were established for stable products. Results In less that one year,
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