Client Case Study: Optimized Operational Efficiency for an Electric Motor Manufacturer

Introduction

In February, March and April of 2024, a transformation project was performed at the Island Components (IC) Facility in Hauppauge, NY. 

It is the first project Innovative Transformations, LLC. completed as a consultant for the Long Island Manufacturing Extension Partnership.

This case study presents the integration of two pivotal phases from the Zen Sales to Shipments system into our client’s business procedures, yielding a notable enhancement in operational productivity.

Tasked with elevating the daily production from 75 to 120 pieces for a key Island Components customer, our consultant conducted a thorough analysis and refinement of an existing department cell at their Hauppauge facility.

Island Components Group was formed in 1992 with the goal of becoming a premier supplier of electric motor and actuators.

Through a strong foundation in engineering the company quickly gained the reputation as a key motor design center.

With the addition of a strong manufacturing team shortly thereafter, the company transitioned into a turnkey motor producer with extensive design, manufacturing and testing capabilities supporting mainly high-end military and aerospace applications.

In 2017 they added space processes and qualifications to their capabilities and expanded into the space marketplace. 

In November of 2021, G.W. Lisk acquired Island Components Group (ICG). 

Pre-Transformation Scenario

The client's department, initially layed out in a quadrangular configuration, housed various sub-assemblies each responsible for producing 75 units daily to complete an electric motor assembly, followed by testing.

Despite meeting production targets, the Overall Equipment Effectiveness (OEE) system indicated an inflated work-in-process (WIP) inventory.  Inconsistencies in First Pass Yield (FPY) data and deferred defect reviews revealed efficiency gaps.

We were enlisted to apply Lean Principles from the Toyota Production System to enhance productivity within the constraints of the current workforce, processes, equipment, and space.

Initiating Change

Our proposal comprised a preliminary 3-day diagnostic review and a subsequent 2-day Value Stream Mapping workshop in preparation for two kaizen events aimed at reorganizing production into a unified flow cell, thereby dissolving the isolated sub-assembly zones.

A dedicated team, including our consultant, was formed to undertake the transformation of the selected production area.

Our initial analysis examined the procedures and timings for three parts within the cell.

Identifying that two products shared a substantial similarity in processing and work content, they were classified as a part family.

Conversely, a third component, part of a limited-run retrofit, did not align with this categorization and was consequently extracted from the cell.

Further scrutiny of the part family highlighted process bottlenecks and instances where the duration exceeded the targeted takt time.

Value Stream Mapping illuminated additional inefficiencies, such as layout issues contributing to WIP backlog and material delivery delays affecting output.

Lean Principles Adoption

The team received extensive training in the Toyota Production System, concentrating on Just-In-Time, Jidoka, and Standard Work principles.

The initial kaizen event, conducted from March 4-8, 2024, centered on Standard Work Analysis and Cell Design, delivering a revised layout and 3 Standard Work Sheets.

These documents delineated various takt times (12, 8, and 4 minutes), associated staffing needs, and the Standard Work In Process inventory required to maintain flow to takt time.

The subsequent kaizen event, from April 15-19, 2024, executed the cell redesign. The restructuring eradicated 8 benches, creating space for an integrated packaging area and a dedicated rework station.

Detailed time studies ensued, optimizing tool placements and material input logistics.

Kanban systems were established for feeder lines, ensuring seamless sub-assembly replenishment at workstations.

Additionally, the Materials/Purchasing manager received a Plan for Every Part template and training, essential for sustaining JIT material replenishment without disrupting the flow.

Recommended Next Steps

We advocated for the client's continued engagement with upcoming events, urging the complete adoption of the Zen Sales to Shipments system, starting with a comprehensive factory assessment and the establishment of a Sales, Inventory, and Operations Planning process (SIOP).

Suggested subsequent kaizen events include:

·      Implementing a kanban system for refined inventory control and zero stock-outs.

·      Revising the kitting process to facilitate material flow.

·      Integrating SQL programming into the Plan for Every Part to dynamically refresh inventory data, aiding swift updates for SIOP meetings.

Outstanding Outcomes

The overhaul culminated in an output surge from 75 to 120 units daily and a dramatic WIP reduction from 717 to 156 pieces, attributed to the adoption of one-piece flow and strategic bottleneck management.

Serialization at the process inception and variable takt times endowed the team with agility to match demand fluctuations, fostering strategic personnel redeployment.

Conclusion

This case study exemplifies the effectiveness of Innovative Transformation's Zen Sales to Shipments system in optimizing operational productivity.

The transformation from inefficiency to a streamlined, high-performing system serves as an illustrative guide for similar organizations aiming to refine their processes and achieve superior outcomes.

Accompanying visuals provide a comparative insight into the improvements realized from the two kaizen events.

Floor Layout and Spaghetti Chart Before:

Floor Layout and Spaghetti Chart After:

I hope you enjoyed this case study. Please post any comments or questions below.

Until next time,

Nicole.