Digital Designs in Oklahoma City produces hi-fidelity audio products for high-end sound systems. Their products are used in competitions around the world. Since their establishment in 1986, their designers have developed and manufactured speakers and audio systems for customers around the world.
During the fact finding meeting it was determined they had several problems:
Transition of leadership
Long lead time causing
Crowded working conditions
Sales were increasing faster than production
No finished product for immediate shipping
No established Vision, Mission, and Values
It was determined that they should develop their Vision, Mission and Values. The next step in the cultural change was training every employee in the Lean concepts followed by a small group being trained in value stream mapping, and then project implementation. All training was conducted in Nov & Dec. ’06 and implementation started in late Dec.
The following improvements had been put in place by mid-April:
Increase in production from 125 speakers/week to 225-250 speakers/week (80%-100% increase)
Reduced batch size from 24 to 6 (75% reduction, shortened lead time and increased on time shipments)
Reduced coil production space by 30%
17% increase in number of employees with a plan to increase by 55%
Reduced hard parts production area by 50%
Implemented color-coded tool carts for each production line
Relocated one magnetizer to reduce product travel
General cleaning and painting of everything
Started selling scrap metal and allocating money for employee picnics
Were looking to relocate into a larger building 15-20,000 sq ft and now looking at buildings in the range of 10,000 sq ft (much smaller investment)
Turned assembly line 90 degrees to improve product flow
Moved packing/shipping area to improve flow
Removed cement block (junk) room to better utilize space
Implemented Point Of Use Storage of raw material in all production areas
Implemented a Kanban system in assembly line raw materials, packaging/shipping, coil production, hard parts production, production scheduling
Finished good supermarkets with visual controls so sales can determine if product is ready to ship
Established holding areas for each overseas customer and large domestic customers
Purchased new inventory software. This will give real time data on finished goods, raw material scheduled for production, raw material unallocated, and a control for reorder.
ROI was determined to be two months
Established staging area for UPS pickup and separate area for delivery
Currently studying individual steps in speaker production to determine most effective/efficient in order to standardize the process
"Today was some of the best training I have been through." - Duwayne Barnett
Thermal Engineering International
“I feel the buy-in of the group is very strong. I liked all of the notes we took and kept visible all week. I have a clear vision of what was accomplished, how we got here and where we need to go. This has been the most positive/fun event we have had so far, so it is hard to be critical. Look forward to working with you in the future.” - Dave Smith, Jr., Vice President,
Midwest Trophy Mfg.
"I have enjoyed each session we have had. I feel like every session has been a great learning tool for me. The discussions that we have and listening to Jack really makes me think and see other people’s point of view. I can see a greatly improved relationship with the employees I am responsible for. Also I have had more self-confidence in my job and myself through the training." - Janet Cantrell,
Aearo Technologies
"I was very pleased with the intensity of the level of participation by all. It appears we have made considerable progress in addressing some vital systems and procedures that will in fact result in significant payback. The improvements in throughput and reduced effort and paperwork will go a long way toward achieving one of my primary goals which is to get my management staff back to practicing the skills of managing our business and looking toward the future rather than managing crisis." - Jory Gromer, General Manager, Green Bay Packaging
“I’m learning how to deal with people in different situations. I think more about what I can do to improve things.” - Randy Guinn,
Badgett Corporation
"Opened my eyes to a lot of areas of humanity. Looking at others in mental ways, this has even helped with discussions at home. My mental awareness is higher. Great class." - David Howard,
Aearo Technologies
