ABSTRACT

The team built by Joseph collected several pieces of data and discussed improvement opportunities with several different stakeholders. The data analysis focused on three main areas namely Finished Goods Inventory (FGI), fabrication cell, and raw material supply. The team observed that frequent changes in design and the company’s policy of running large batches to minimize setups had resulted in a high level of FGI. In the manufacturing area, punching and welding equipment were located far from the rest of the fabrication equipment resulting in a significant level of material handling. In addition, due to long lead time of 4 weeks associated with the raw material procurement, material was ordered in quantities of 5000–10,000 lbs. The raw material then waited until the previous batch was used up. Based on their observations and analysis, the team proposed several recommendations for change. In addition, a 2-month implementation plan was developed which included shop floor rearrangement, raw material supply management, and operator training. The support of the management for the program and training of employees on the benefits of proposed changes also helped create the momentum for change.