Uncle Scrooge's Tale: The Welding Department Miracle

 It was another cosy evening in Uncle Scrooge's study, and the nephews—Huey, Dewey, and Louie—were back. Eager for more stories. This time, Uncle Scrooge had a special tale to tell them. It was about a remarkable turnaround in one of his factory departments.

"Gather 'round, lads," Uncle Scrooge began. "Let me tell ye the story of the welding department that was 94% full and yet found a way to produce much more. It's a tale of ingenuity and the power of efficiency and effectivenesss."

The Overburdened Welding Department

"Years ago," Uncle Scrooge started. "I had a factory where the welding department was always at full capacity. The machines were humming, the workers were busy, and we were using 94% of our capacity. Despite all this, we couldn’t meet the rising demand for our products. It seemed like there was no way to squeeze out more output."

The nephews listened picturing the bustling department in their minds. 

The Visit from Engineer Gyro Gearloose

"Then one day, Gyro Gearloose, our brilliant engineer, paid a visit. He took one look at the welding department and said, 'Scrooge, we need to work smarter, not harder.' I was curious what he meant, so I asked him to explain." 

Analyzing the Workflow

"Gyro started by analyzing the workflow," Uncle Scrooge said. "He noticed that while the welders were working hard, there were many inefficiencies. Parts were waiting too long in queues. There was too much movement between workstations. Sometimes welders were waiting for parts or tools."

“The most important thing Gyro noticed was that welders were the constraint. And that they were not welding all the time! They collected the parts and welded them. Then carried the heavy finished parts, often with the help of another welder, to the shipping dock.”

“What that meant, according to Gyro, was that more than 60% of our capacity was NOT doing any welding.”

“He told me the first thing I had to do was find some unskilled (cheap labour – ½ the cost of a welder). They are to do the carrying of components and finished product.”

“He said that I would see close to 100 Welders welding (we had 100 in the factory). There would be close to 100 blue lights lighting up the welding area.”

And so it turned out to be!

“Gyro then went on to list other improvements to help us get even better.”

Implementing Lean Principles

"Gyro decided we put in place some lean manufacturing principles," Uncle Scrooge explained. "First, he reorganized the workspace to reduce unnecessary movement. We placed tools and materials within easy reach of the welders. This simple change meant welders spent less time walking and more time welding."

Reducing Batch Sizes

"Next," Uncle Scrooge continued, "Gyro reduced the batch sizes. We began welding small batches of parts to prevent bottlenecks and delays. Workflow became smoother and more consistent. The time parts spent waiting ton processing became smaller."

Cross-Training Workers

"Another brilliant idea was to cross-train the workers," Uncle Scrooge said. "We taught welders to perform many tasks. We could shift them around as needed to where they were most needed. This flexibility helped keep the workflow steady and reduced downtime. We are careful never to waste welding (constraint) capacity" 

Introducing a Kanban System

"Finally Gyro introduced a Kanban system," Uncle Scrooge explained. "This is a way to control the flow of work using visual signals. When a workstation is ready for more parts, it sends a signal. It goes to the transportation workers to get the right amount of work. This kept our work balanced and reduced overproduction."

The Results

"Within a few months," Uncle Scrooge said with a smile, "results were astonishing. The welding department already running at 94% capacity, increased its output a lot, more than 60%! We were able to produce more without adding extra shifts. We did not hire more welders or buy new equipment. The factory was all about efficiency and effectiveness."

The Lesson

Uncle Scrooge leaned forward, his voice filled with pride. "So, ye see, even if ye think ye’re at full capacity, inefficiencies and ineffectiveness exist. Once addressed, it can lead to remarkable improvements. It's all about analyzing your processes and reducing constraint waste. Make sure you optimise every part of your system for the constraint"

Amazed Huey, Dewey, and Louie exclaimed. "Wow, Uncle Scrooge! That’s incredible! We never knew you could do so much more by making things more efficient and effective."

"Aye," Uncle Scrooge chuckled, "that's the magic of efficiency, lads. Remember, always look for ways to improve and never stop thinking about how to do things better. That’s the secret to staying ahead in business."

The boys nodded, their minds buzzing with the lessons learned. As they went to bed that night, they dreamed of efficient and effective factories. Efficient and effective operators (welders) at their jobs. They dreamt of endless possibilities of what factories could achieve. Achieved with a bit of ingenuity and hard work, inspired by the wisdom of their Uncle Scrooge.

The real (and true) story (it is Kevin Fox’s) was that welders are scarce and expensive. The welders not only did the welding but also moved their finished product to the shipping dock. Doing that meant they were not welding. Worse, it took 2 to carry the heavy products. (The welders were the bottleneck or constraint). The solution was to increase the cost a little bit. They transferred 2 unneeded unskilled workers to move the finished products.

They achieved 65% more capacity & production.

Would you like to share your stories - problems and solutions - with Uncle Scrooge?