An auto-industry supplier was faced with a sharp increase in orders for engine mount brackets when it was awarded a contract for an international market, as well as the existing domestic market. Shipments fell behind schedule. Quality complaints required 200% visual checking by the manufacturer – once at the manufacturer and again at the customer’s site – and, still, defective parts were shipped. The added costs of quality, expedited freight, and overtime pushed the production costs of these brackets into the red and to the top of the “hot list” to fix. Can production catch up? Can a complete solution be found to eliminate all defective parts?
DAY ONE ON THE SHOP FLOOR
The first press, managed by one person blanks and rolls the flat steel into 3” cylinders in two seconds. The cylinders are then loaded manually into a second press, which takes 16 seconds to form a ½ inch flange on one end of the cylinder. The second press must operate around the clock and on the weekend to keep up. Fifty-five metal containers hold engine mount brackets from the first operation waiting for the second operation and the subsequent inspection process. Some defects were attributable to the operators, some to the material, and some to the equipment. Vision sensors were added for error-proofing, and mirrors were installed for better visibility. Dedicated locations and color-coded labels for the different parts were put in place. Other tooling issues plus mechanical and electrical faults occurred randomly. Problems occur daily. The customer required that a second inspection for defects be done at the customer’s facilities because defective parts were delivered. What’s happening here?
THE FINDINGS
Discussions to automate the loading and unloading of the second press were abandoned because any automated process could not be faster than the manual process. Eliminating unneeded steps and adding the right equipment to achieve the desired cycle time could not be visualized. The manufacturer had made the mistake of trying to speed things up by adding shifts and overtime. The reasoning is this: If there’s a bottleneck on the freeway, it can be freed by opening more lanes. That makes sense on a freeway but adding lines or shifts only adds costs and inefficiencies. In this case, six operators worked round-the-clock shifts, and overtime shifts were added on the weekend! The process could neither achieve reasonable earnings nor a complete solution to making the 8,333 parts that had to be produced every 24 hours to meet the customer’s demand.
A. STOUT'S SOLUTIONS
A. Stout & Associates' solution required eliminating the entire second step by making it part of the first. The first machine operator now produces everything by initiating a process that automatically completes itself. The part is started and finished without storing or staging any half-formed parts. All second-step labor was reassigned to profitable work elsewhere. A robot loads and a pneumatic piston unloads the second operation at speeds approaching that of the first machine. The first machine rests momentarily every so often while the second machine finishes and is ready to receive more. All defects are eliminated but one that is random and cannot be re-created. The set-up of the first press that rolls the cylinder from flat stock was tested by manually cycling the press and verifying the expected action of the machine at each angle of rotation. The cause of the remaining defect was found and corrected.
THE RESULTS
A. Stout visualizes maximum solutions and makes the improvements quickly to achieve the fastest payback. Connecting the two presses with a conveyor eliminated the work-in-process inventory and many of the defects. The inspection of the parts stopped both internally and at the customer. The number of parts produced per hour increased from 216 to 1,028 pieces, meaning that in just one shift one operator produces 8,224 parts which will almost total the required 2 million annually. Revenue increased 5 times for every hour of operation and earnings increased ¾ of a million dollars annually. Installing the unload cylinder first increased production enough to be able to keep up with demand and provide time to complete the installation of the other new equipment. The installation occurred over three months. The payback for the improvements was two months after implementation. The second shift then became available to run additional products.
There may be many strategies to achieve success, but there is only one right answer to continuous improvement. And that answer is… Art Stout! I’ve spent my professional life helping business owners implement the right changes to generate cash and grow their earnings in months, not years. My mission is to do the same for you. Let’s schedule a meeting so I can learn about the challenges you are facing, and we can create a solution.
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