Managing internal constraints

processimprovement

Situation: A changing business climate, a series of labor problems, supply chain issues and a struggling reorganization beset a shipping container manufacturing firm. Employee turnover was high and inventory control was an issue. The firm faced a deadline requiring them to increase production by 20% within four months.

Solution: A competitiveness review and an internal workflow analysis helped the company identify the internal factors that were limiting its growth.  Once it recognized that its major problem was in welding and re-work, management changes were made to consolidate welding functions under an experienced manager. A tracking system schedule was developed and other steps to maximize operations and quality on the welding line. Quality requirements were obtained from customers and communicated companywide. Training and documentation were implemented to insure all employees understood and implemented the specified standards.

Result: Within a month of implementing the suggestions, the firm was attaining the 20% production increase that had been required. Within a year, another 20 percent increase had been attained. New contracts were obtained and quality has improved significantly resulting in an approximate 90% reduction in the need for rework.  

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