Wire Mold

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LEAN IMPLEMENTATION ATWIREMOLD CORPORATION

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WHAT IS LEAN?

• Lean manufacturing, lean enterprise, or lean production, oftensimply, "Lean," is a production practice that considers theexpenditure of resources for any goal other than the creationof value for the end customer to be wasteful, and thus a target for

elimination.

• In other words, lean manufacturing is all about Continualidentification, reduction and if possible elimination of Wastagesfrom all the processes to improve overall effectiveness and optimizeresource efficiency.

• Lean Manufacturing focuses on Leaving OLD & BAD habits andadopting NEW & BETTER habits.

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The Lean House Diagram

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LEAN AT WIREMOLD CORP.

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• 108 years old

• Product lines: wire management systems, power & data

protection equipment and communications devices

• 12 plant locations in five countries

• Sell to electrical, electronic & telecommunicationsdistributors.

WIREMOLD BACKGROUND

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WIREMOLD STATUS IN 1990-91

• Increase in sales by 20%, yet:

o Low profit

o No Cash

o Poor customer service

o Losing market share

• Started spreading awareness about the need of change

•Started sending executives and facilitators to Japan for training inthe lean philosophy

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• The major problem was MURA

(unevenness in production), which led to alot of mura, including:

o Inventory

o

Waitingo Overproduction, etc.


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• All the current processes were built for

batch including:

o Forecasting system

o Factory layout and equipment base

o Computer programs

o Warehousing


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• Art Byrne, who had a huge experience in

the automobile industry, was appointed aspresident of Wiremold Corp. in 1991.

• He transformed the face of theorganization over a time period of 10 yearsby applying the following 3 principles:

oWork to takt time

oUse pull system

oRespect for people


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WIREMOLD PLANNING OBJECTIVES

The objectives of the Wiremold heijunka system are stated asfollows:

• Achieve a high level of customer service (100% fill rate for

warehouse items and 100% on time deliveries for Make To Order / Very Good Order, that falls outside normal demand expectations)

• Maintain On-Hand inventory levels at 70% of target inventory (5 to 7days for A-items, 18 to 24 days for C-items)

• Develop and use a procedure to analyze incoming sales versusOutgoing production so that:

Capacity can be provided to meet warehouse replenishment andmake to order demand. Orders can be more accurately scheduled

and Inventory levels can be stabilized

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• Develop and use a simple procedure to regularly and consistentlyadjust inventory, capacity and kanban levels to accommodatechanges in demand.

• Identify significant or recurring problems, investigate root causesand make specific constructive suggestions to improvement theWiremold Production System.

•Behavioural change by making each and every employee anintegral part of the implementation to encourage kaizen at eachlevel.

WIREMOLD PLANNING OBJECTIVES

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RESPECT FOR PEOPLE

• Give him or her the job as their own…givethem responsibility and challenge them

• Let them think; Let them try…don’t assume that they can’t think, don’t try tothink for them, respect their competence

• Help him or her see…give them the toolsthey need to see

• Force Reflection…help them learn fromwhat they see and what they try…let themstop and see what the lesson is

To begin with, Wiremold changed its policy about employee respect and

leadership. The new code of conduct for leaders and workers included thefollowing:

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HOW THE WIREMOLD SYSTEM

OPERATES

• The Heijunka box is in use on every cell within Wiremold. Made upof two sections the top section is used to schedule the cell output, itsuse is explained in the illustration and description that follows thebottom section is used to schedule orders from the warehouse to thecell. Used also to replenish the supermarkets.

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• The planner prints tickets. If the group leader prints tickets, they are placedin the “Tickets pending decision” section of the heijunka unless the ticketdoes not have a due date and is a standard warehouse part number. Thesetickets are placed in the black overflow area of the warehouse heijunka.

• For all other tickets, the planner then schedules work based on dailyavailable capacity in cell. Colored clips to group a certain amount of workare used. If the cell has 1 hour of capacity per day, 1 hour’s worth of work isclipped together.

• At the end of the scheduled workday, the group leader moves tomorrow’s cards from the “this week” location to the today location.

• At the end of the scheduled workweek, the group leader moves each week

of cards up in the box to the previous week and adjusts dates.

HOW THE WIREMOLD SYSTEM

OPERATES

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SCHEDULING PROCEDURE

• Based on the Capacity Available to Promise, each team decideshow much capacity can be promised on a daily basis in each cell.When an order comes in, the planner simply looks at when the nextavailable capacity occurs, and then determines how long it will taketo finish the order. If the capacity available is insufficient to meet the

customer demand, additional manpower can be added to the cell.

• If manpower is added, Wiremold calculate “conversion ratio” to helpplan capacity.

Conversion ratio = Total output / time worked

• Not all cells will operate at 100%. If a cell operates 2800 minutes perday and produces 2100 minutes worth of work, the conversion ratiois 75%. Therefore, adding an additional 420 minutes of labor to acell results in a 315-minute capacity addition.

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• Other factors that are taken into consideration when planningcapacity are:

The identification of items that have constraints or bottlenecks at the

component fabrication level.The identification of items that have constraints in raw material lead-time.

• For these items, Wiremold first establish capacities or a schedule at

these levels of the process before proceeding with the finalscheduling process itself.

SCHEDULING PROCEDURE

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WAREHOUSE SECTION OF THE

WIREMOLD HEIJUNKA

• The warehouse section of the Wiremold heijunka box used toschedule the cells is described below. When replenishment ofwarehouse supermarket inventory is required cards are received atthe cell and a card is placed into the slot for that part number tosignal that product needs to be manufactured.

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WAREHOUSE TICKET LOADING

PROCEDURE

• The first step is to separate printed tickets by cell. Then match thecatalogue part number and the warehouse number on the card withthe label on the heijunka box.

•Each card carries a reference to the warehouse to which the productbelongs as there are a number of small warehouses in use.

• Cards are placed into the heijunka box starting with the greensection and working up the heijunka box filling each slot with the

number of cards shown on the label, until all cards are gone.

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• Cards are placed into the black area signify that the warehouse maybe short or out of stock of a part. Make to order cards takeprecedence and are scheduled first; this is a direct customerdemand for an item that may not be held in the supermarket,followed by those cards in the black area.

• All cards in the black area should be manufactured first prior to anycards in the red area. Then production of items in the yellow areaand onto the green area.

• In this way, a priority is set in the cell to ensure immediate customerneeds are met followed by replenishment of product to thewarehouse.

WAREHOUSE TICKET LOADING

PROCEDURE

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PULL PROCEDURE FOR CARDS

• The group leader pulls out cards for the next job and checks to see ifall material is available.

• If all material is available, the group leader prints out labels, placestickets in the schedule box and labels on top of box.

• If material is not available, the group leader places a colored flag in

the warehouse slot.

• A red flag denotes a quality problem; a blue flag denotes an internalsupply problem, i.e. parts not available from an Upstream process, ablack flag denotes a supplier problem, a machine breakdown ortooling issue.

• The supervisor of the cell is responsible to expedite solutions for anyflags posted in a timely manner, if unable to find a quick resolutionthe issue is elevated within the organization.

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THE LEAN EFFECT

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WIREMOLD BEFORE AND AFTER

LEAN

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SET-UP TIME REDUCTION

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IMPROVED INVENTORY TURNOVER

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STRONG EMPLOYEE

PRODUCTIVITY

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GROSS MARGIN IMPROVEMENT

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CONCLUSION

• Wiremold have developed and tailored the use of their heijunka totheir specific environment, it could be said that others could usemany of the aspects of their system. The basic concepts could beapplied in a number of similar industries, in particular wherecustomer demand can suddenly increase dramatically, in Wiremold

terms a VGO (very good order)

• Moreover, the time and effort they have expended on ensuring thatall of their personnel understand very clearly their roles andresponsibilities.

• The way in which they have developed rules and check adherenceto these in order to ensure excellent customer service could be saidto be a model to be envied.

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THANKYOU

PRESENTED BY:

AKRITI DIXIT(1)

SAKSHI KHURANA(14)

SUGANDHA RATHORE(20)

Documents

Wire Mold