Case Study: Turning Metal into Gold
Challenge:
The client, a CNC machine shop, was under increasing pressure to improve delivery times and quality from their largest customer. The shop had grown from a single lathe operator to a 250-person organization. While the staff were skilled craftsmen, they lacked scalable processes, a system of work, and managerial training. Most managers and supervisors were expert craftsmen who commanded respect on the shop floor but lacked formal management training.
Approach:
A customized System of Work was implemented, and supervisors were trained on management practices. The System of Work included specific elements such as Gap Analysis Meetings, a Training Matrix, Planning Meetings, a 72-hour locked schedule, Kick-Off Meetings, Short Interval Control, Loss Accounting, Transition Meetings, Quality Meetings, Production Review Meetings, Weekly Plant Review Meetings, and an Escalation Process.
In addition, a total of 67 task forces, corrective teams, and quick fixes were assigned to address problems, which engaged 97% of the employee base. These included conducting 5S throughout the shop, reducing Q-Notes, reducing setup time on jobs by 30%, organizing the programming and filing system, improving the tool crib’s efficiency, optimizing the folder flow system in the front office, and implementing human proofing to reduce errors and defects.
Impact:
The strategy led to significant improvements:
A 33% improvement in productivity and quote accuracy
A 25% improvement in scrap and rework rates
A 75% improvement in On-Time Delivery
A reduction in turnover and a more engaged workforce through the corrective teams and task forces