Lean Manufacturing Essay
Lean Manufacturing is a very popular and successful strategy, which many manufacturing companies have adopted over the past 60 years. Mone Consulting Firm has been referring this method for more than 20 years at a high success rate of 99%. If implemented effectively “going lean” for Classic Cable Company will have a positive impact throughout the entire enterprise, by introducing attainable goals. The goals of lean manufacturing will achieve: a balanced rapid flow, eliminate waste and disruptions, and maintain a flexible system.
After reviewing CCC’s case background, some overall recommendations and problem solving should be considered in the following order. I’ve noticed that no expansion can be done and reorganizing work cells would be too expensive, the “going lean” method is designed to minimize inventory storage, which will give you a little more room to work in. Also 30% of your workers were laid off due to rough times. CCC can take full advantage of this by cross-training its workers.
For instance, if a worker is absent or a bottleneck occurs you can send an employee (who is crossed-trained) over to pick up the slack which will help maintain a line-balance. For every minutes/hours/days you shave off, waste and disruptions will be eliminated and you start to see annual sales increase, an unfrozen salary, and capital expenditures inclining all because of this philosophy. I know a huge frustration is that for every 10 quote request answered you only get 3 or 4 actual orders.
This could be due to how quickly your employees respond to your customers. For instance, In Step 1: Response to quote request which the problem is intertwining with Step 2: Response to Customer Purchase order, your part-time sales administrator is obviously the disruption in processing customer orders. Her multiple tasks are slowing her down and “part time” is not enough to fulfill RFQS and processing orders created on excel documents. She should be considered an asset and be offered a full-time position so she can meet the minimum lead time of 0. day; and be able to swiftly respond and proceed with purchase orders and making sure that CCC’s customers are establishing a shipping method so CCC can eliminate problems right away from the 8th Step: Packaging and Shipping. Customers don’t like to wait, they want it now! A quick response to RFQS will satisfy the customer which in the long-run will reduce CCC’s lead time and possibly match the customers expected time. Furthermore, customers need to stop sending quotes directly to TSS.
Maybe by advertising, all RFQs must be sent to our sales administrator for processing purposes. In Step1: Response to quote request, a modular design should be used for new products. This would cut the time in designing, reducing parts and abridging assembly for CCC’s engineering team. As well as eliminating errors from 40% to 0. The TSS should also be using the ERP system to check to see if materials and shipping options are available; so that a better quote package can be determined.
Step 3: Sales order entry, it should not take the planning department within 4 hours to enter data. This step needs to be taken as soon as possible. Mistakes are costly and having 25% in errors are not acceptable so if we trim the timing of entering the data CCC still has wiggle room to produce the sales order package effectively and have material arrive on time . In Step 4: Work order Entry and Release to Stockroom, this step is perfect. It’s important to keep both ERP and MRP systems up to date so every department knows what is going on.
The Shop order package is a necessity, for preparation of CCC’s future projects. When the shop order package is carefully reviewed, time for corrections can be terminated. Step 5: Material kitting and Staging on the Production Floor, by establishing a manual system called Kanban; a steady flow of moving parts and materials that responds to signals of need, are delivered in a timely manner. For instance, if the Inventory Clerk pulled only the materials demanded at that time, production will run smoother and reduce stress for the operations team.