Case Studies

Industrial transformation - Manufacturing - Team Innovation and Team Performance

Functions : Operations, Maintenance, Sales, Logistics, Shipping

The situation from executives and directors standpoint:

• The sales are going down in the aftermath of financial crisis. There is over capacity of production in the market, plants are closing throughout North America.
• Customers are more demanding and will take away business quickly when quality does not meet their expectations.
• Customers taste for color variation in product got beyond normal process capabilities.
• Customers expect quick delivery on all orders placed.
• Inventories must be kept in check to minimize capital frozen in inventories and inventory carrying costs.
• Changes had been made to improve situation without real results.
• The plants are already high performers by North American Standards.

The challenge :

• There was inadequate coordination between all departments involved – Sales – Shipping – Purchasing/Suppliers – Manufacturing – Maintenance
• There was an insufficient amount of teamwork between employees executing the different phases of the business process.
• There was a lack of flexibility in the manufacturing process – high costs of switching product.
• There was inadequate definition of product quality requirements from customers - Lack of focus and tool to control product quality through the process.
• Details of each other roles, needs, work requirements, quality requirements, safety requirements were not clear.
• A missing management system for daily feedback and weekly performance reviews to identify issues, gain support to resolve causes of variances as well as a mean to feedback key information to employees and supervisors.
• Roles, responsibilities and expectations needed to be reviewed to make best use of all resources, to mobilize all resources toward new goals (safety, quality, performance).

The Solution:

• A performance centered diagnostic was conducted, highlighting the wasted resources and the possible gains from systemic management of the operation • A plan was prepared, with initial implementation schedule and completion dates established • Resources were mobilized – to get employees involved and to communicate the challenges. • A Gardner Associates Team coaching approach and process was implemented:

• All teamwork execution was reviewed.
• All roles & responsibilities were reviewed.
• A new Information feedback loop was created and enhanced to share key information with all team members.
• Accelerated learning feedback loop brought information to share with all team members. It allowed adjustments by team all members to improve performance.
• Individual and team training took place with all team members.
• Individual and team coaching took place with all team members.
• A structured coordination between sales, manufacturing and logistics was established
• Customers’ expectations were clarified.
• The manufacturing process was streamlined to overachieve customers’ expectations without capital investment.
• The manufacturing operations were streamlined to maximize performance and reduce costs.

Huge results :

• Week average production increased to reach upward of 92% of theoretical manufacturing capacity; which is manufacturer rated capacity X 24 hours/day.
• The value of products manufactured (due to quality increase) climbed 8% from same raw material.
• The yield on raw material arose to new heights.
• The increased team cohesion allowed for a reduction of turnover costs, quality issues and discipline issues.
• Sales grew as products met and exceeded customer expectations. Orders that previously would have gone to competitors came back to our facility.
• On visit and plant tour, a competitor’s distribution arm purchased our manufactured products to add to theirs: Their own manufacturing could not match quality & prices.
• “LEAN” was implemented: We reduced raw material inventory by 70%,; reduced product change over costs and time by more than 80%. Freeing up cash flow & plant capacity.
• There was an improvement in employees satisfaction and union relations improved due to business stability and advance planning that kept them informed of any coming changes.
• The focus on safety awareness and the LTA prevention showed strong improvement.
• The reduced costs allowed the company to source new markets for lower grade products manufactured.
• Similar training was successfully copied in other divisions with similar .

Business impacts:

• The plant had to add production shifts to cope with demand as competitors were closing more plants.
• The increased product value, yield and performance represented an additional $ 2.3M annually to the bottom line for the division.
• The operating costs were reduced – inventories of raw and finished goods. The labor costs per unit were reduced by 12%.
• The profitability of the operation helped support the entire group, and allowed successful emergence of the group from the financial crisis that affected their clients from 2008 to 2013.