Lean Manufacturing: A Case Study at AOC Canada in Guelph, Ontario
A lean environment provides a manufacturing facility with value-added and waste-removed processes. All the lean initiatives working together create a visually clean, organized and flowing work environment. Lean thinking has become an important way to conduct the everyday operations of manufacturing unsaturated polyester resins and gel coats at the AOC Canada plant in Guelph, Ontario. Over the years, the plant had seen continual growth and an ever-increasing product line, contributing to an overcrowded situation. This condition made product and process flow awkward and inefficient. The manufacturing site was looking for improved ways of utilizing space in the warehousing areas. The end result was a window of opportunity to embark upon a culture change throughout the whole facility.
The AOC corporate office in Collierville, Tennessee, called upon The Access Group (TAG) in Tennessee for guidance in the effort of improving its operations. TAG provided its experience of taking lean principles, such as 5s and Kaizen, and using them to improve processes without encountering high costs, in most cases. The practice, known as lean manufacturing, is a production system built upon the principle of continually adding value to a product through its machines and processes with no wasteful steps or delays.
Gimme five
The 5s process delivers a workplace that is organized and efficient. A cleaner workspace provides a safer environment as well as a good visual picture to promote business. Implementing 5s takes commitment from senior management, effort and persistence. It is necessary to consistently follow the principles in all areas of work.
The principles of 5s are:
* Sort—Decide what is needed in the area and dispose what is unnecessary;
* Straighten—Set in order items required to perform work;
* Shine—Cleanliness of area, equipment, racks, etc.;
* Schedule—Standardize; maintaining the first three principles; and
* Sustain—Disciplined culture; the need to practice and repeat the principles until they become ways of life.
Kaizen is a deliberate application of looking at work processes with common sense thinking. Kaizen events are meant to improve a process in a short period of time with little-to-no money involved, as it makes improvements to what you already have. All initiatives require 100 percent management support and empowerment of the group to make things happen.
Lean manufacturing in action
The questions became how to identify and correct what causes interruptions, and what it takes to bring it to a smooth, value-based process flow. TAG worked with the plant personnel and taught the skill-sets of how to plan and attack problem areas in a team-oriented environment. This enabled the vehicle for positive change.
The first round of 5s and Kaizen (see Chart 1) were completed at Guelph in the warehouse area in March 2001 by a team of seven employees, all from different disciplines and management levels, including employees from the area of focus.he first step was to complete a 5s, a very disciplined process of sorting and cleaning up the area to a very high level. The idea of bringing the area up to this level of housekeeping (more or less clearing out the weeds) before attempting a Kaizen is critical. You cannot see the flow of work if the area is in disarray. This effort resulted in a place for everything and everything in its place. Purchasing can identify stock needs much easier, and operators can quickly find materials. The lean process created 1,264 square feet (79 pallets), a gain of more than 10 percent more space. Two years later, this area still continues to implement and sustain the improvements made at that first Kaizen.
In addition to hull fabrication, Hydropel® is used to “glass over” the marine grade wood used in boat construction. In the glass over procedure, a thin layer of Hydropel® resin-impregnated fiberglass encapsulates wooden beams that provide structural support for the hull. The wood used to make the deck and superstructure are also encapsulated in resin and glass.
For the second Kaizen, the inventory was reduced and moved out of the production area. The racks then were changed to accommodate storing base intermediates closer to production. This reduced/eliminated the time operators spent leaving the production area to search for drums of processed product. After assessing the relocated raw material inventory, the plant worked with suppliers to return $6,000 of unnecessary raw material stored on its shelves. The Kaizen increased focus on inventories of other raw materials as well as research of lead times to ensure that valuable rack space was not under utilized.
Go with the flow
The shop also underwent a process flow analysis, which aims to effectively utilize space and minimize waste. In August 2002, Guelph did a process flow analysis on a solid alkyd processing operation and created an efficient way to re-invent this process to use the relocation space available as sparingly as possible. The result was a new work area decreased from 1,466 square feet to only 892 square feet, with a reduction of total batch transportation travel from 51,315 feet to 20,489 feet. This not only saved the process valuable time by removing wasteful travel, it also improved the flow of work and safety dealing with the transport of molten alkyd.
Lean thinking cap
The plant continues to look at everything it does with a lean thinking cap. It has carried on using the 5s process with the implementation of 5s audits and mini-Kaizen improvements. One of the mini-Kaizens performed was re-arranging the corner of the reactor floor and giving permanent spaces to required raw materials. Operators placed drum stock on unused drum holders in the plant and labeled the spaces as permanent homes for these products. We also removed ladders that were cluttering the area and found them permanent homes. The same families of materials are parked in the same area, a safer way to dispense raw materials.
Eventually, the plant will continue the momentum by applying 5s to its labs and offices. Some of the items one can audit are the cleanliness of workstations, clutter, floor clearance, and cabinets identified.
The TAG group taught AOC to look at operations in smaller components because they have a much higher chance of resolve and success. That significant culture change benefits many plant operations, as it increases efficiency, creates more useful space, improves throughput and motivates employees. Lean and 5s must be an overall plant-wide commitment and fully supported by management. Guelph plans to continue on the lean journey as it progresses forward in the pursuit of Operational Excellence goals and service to customers.
Kathy Baker is the Quality System/Lean Manufacturing Facilitator at the AOC Canada plant in Guelph, Ontario. She can be reached at 519.821.5180 or kbaker@aoc-resins.com.
| Chart 1. Kaizen: Specialty Raw Material Rack & Storage Room | ||
| Problem | Measures Taken | Results |
| Operators required to travel to the warehouse to search for part drums of gel coat, taking them away from their work area in a time-consuming process. Numerous times, part drums were brought into the area and placed in front of the congested raw material rack, which holds pigment that sits in area for more than a month at a time. | Sorted through rack and moved all pigment to the raw materials warehouse. Set racks up to accommodate part drums of gel coat. There was a 12’ and 9’ rack that would not hold drums. Found a used 9’ rack in the warehouse and exchanged the 12’ for the 9’. Painted and labeled the racks. Created an inventory board that lists what product is on the rack as well as the control number and weight. Transformed the unused space beside the rack, which was used as an exit when there was a roll-down door in the area. This is no longer the case, and we have decided to remove the door and build three shelves for storage of color pastes in pails as well as other area materials.
|
The rack is used for part drums, and the area is no longer congested. The information tags for the inventory board went through three phases until we found a tag that provided the user with the appropriate information. The unused storage space is being used for color pastes. |
| Kaizen Team Three operators |
Maintenance Team Two maintenance members |
Paint Team Two Summer Students |