Small Process Changes Can Equal Big Results
Many companies appear to run relatively smoothly under the status quo, so they may not think about organization improvement. Minor product inconsistencies or customer complaints are normal, and the owners might think that overhauling an entire system to save a little money might not be worth it. But those same business owners would be surprised to learn that a few simple process changes and a small amount of effort can save thousands of dollars through cutting waste and improving customer quality.
“After working with Bizmanualz, our consistency increased, we cut waste, and we saved money.”
Michael J. Brooks, Ardent CEO
Process Changes for Increased Production
Bizmanualz has seen positive results from many of these process change cases. Steve Mundwiller, operational improvement consultant at Bizmanualz, said he normally expects to double the level of consistency and/or organization improvement at most of the companies he helps. And he did just that last year here in Missouri.
Ardent Outdoors was successfully developing high-end spinning and casting reels and accessories built with quality and American craftsmanship.
In 2007, Ardent President and CEO Michael Brooks and his staff planned for an increase in sales, and to expand their number of products and number of employees. But they realized that any additional growth in production would require some kind of organization improvement.
Because each of the company’s reels is handmade—a value unique in the industry that Brooks did not want to compromise—rates of inconsistency among products could be high. For example, the methods used to assemble the products ranged from person to person. The engineer had one method in mind when designing them, but that was not communicated to the Plant Manager or to those actually involved with assembly. And depending on the tools and background of the employee, even those assembling the same product could do so differently.
Ardent approached Bizmanualz to help plot a strategy for product growth and increased consistency.
“For me, consistency is quality,” Brooks said.
If Brooks intended to create production growth and maintain that quality, Ardent needed to focus their efforts on quality management to increase consistency.
Steve assessed the company’s areas for organization improvement and created a game plan to address the problems. He estimated that the cumulative consistency of all production—assembly, testing, design, supplies, etc.—was only 30 percent. The goal was to increase that cumulative level to at least 50 percent.
Steve established three organization improvement areas that would dramatically increase consistency: assembly processing, document control and quality engineering.
He listed the action items in each area that would lead to overall consistency. For instance, to improve operations in assembly processing, Steve showed factory leadership how process changes—such as developing job aids, developing tooling and fixtures, improving the floor layout, labeling bins for defective parts, and relocating extra inventory –would improve Ardent’s bottom line and increase production capability.
And it did.
Quality Management for Increased Customer Quality
By merging engineering diagrams and work instructions and physically attaching them to each work station, employees knew the requirements for assembly and were able to train new hires in less time.
By giving each employee his own complete set of tools, employees spent less time looking for missing tools and assembled the products using the correct instruments.
By changing the layout of work stations, cross-traffic decreased, saving time.
By simply buying bins at a local hardware store and labeling them “Defective Materials,” employees had a process for discarding damaged supplies, and it decreased the risk that another employee would use those supplies.
By relocating excess inventory, the company had a dedicated space to test products and made room for additional work stations in the future.
All of these and several other small process changes led to big results. Steve estimated that organization improvement saved the company 30 work minutes per day, per employee, which translates to saving 130 man hours per year, per employee.
Results of Process Changes
Within three months, Steve led the team to more than double their cumulative consistency. And in 2008, Ardent’s production increased dramatically when Alton Jones used Ardent’s XS1000 bait casting reel to win the Bassmaster Classic. Even with the unexpected spike in sales, the company was able to maintain its production growth and consistency.
“With Steve’s help, we were able to handle the increase in production smoothly and effectively,” Brooks said. “After working with Bizmanualz, our consistency increased, we cut waste, and we saved money.”
Is your company’s leadership worried that taking on organization improvement projects will mean too much work and too much money? It doesn’t have to.
For more information on techniques Bizmanualz uses to improve company processes, or for details on a Gap Analysis that will assess your company’s improvement needs, call Bizmanualz at 314-863-5079 or contact us here.
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