The Motor Control Center product (MCC), along with the Fabrication area (Fab), were the subjects of particular focus. Here, a number of key findings highlighted the need for dramatic operational improvement. Specifically, it was uncovered Interlock Fabrics Suppliers that the two areas of focus were characterized by:-Long changeover times-Excessive WIP and Raw Material-Excessive active part numbers-Long lead times-A functional layout with poor material flow-High order variability-Inefficient labor utilization-Inefficient order entry processes-High level of overproduction and rework-High transportation costs These underlying issues hindered the company's performance at the plant level, which in turn, diminished the overall corporate operating result.

Besides diminished cash-to-cash cycle time efficiency, the plant experiencedless than optimal order fulfillment performance, low inventory and asset turns, and high overall supply chain costs.The SolutionDuring the second and third weeks of the diagnostic, Tefen defined a number of key levers to drive significant conversion cost savings. To conduct the diagnosis and quantify tangible savings, a number of tools and techniques were employed. For example, Value Stream Maps were created for both the "current state" and envisioned "future state" of the facility. Besides providing powerful visuals of the operations, these maps were used to quantify cycle times, inventory levels, number of operators, and the ratios of productive times to lead times. Another key analysis looked at the demand data to understand the volume/product/order mix.

By coming to grips with the level of variation, smarter scheduling and better flow techniques could be devised. A full listing of analyses and the associated tools used to conduct them are shown below in Figure 1.In Figure 2. the levers for savings and associated key activities are detailed. At the core of Lean is speed ? process cycle-time efficiency is the overall defining Lean metric that paints the picture of a manufacturing plant's health. By applying Lean principles, Tefen was able to identify ways to dramatically improve cycle time efficiency, which in turn, pointed the way to a 21% reduction in conversion costs.

Recommendations focused on several key areas including improved material handling through a revised layout, reduced touches and dedicated handlers, reduced changeover times through standardized work, a flexible workforce operating within a flowing cellular line, and a scheduling system based on customer "pull" rather than forecasted "push." In addition, Tefen recommended implementing a Constant Daily Output (CDO) system to produce the high volume products to a schedule. Instead of ramping production up and down in response to order volume, production of high volume material would be leveled based on order volume history.Getting ResultsHaving identified what to fix, the next step was to put together a workable roll-out plan and begin implementation.