1/11/07

Developing a New Program - the Quick Ship Program

Note: This event and team have contributed to an increase in sales among the VCM type of pumps. It was a huge mentality shift, as well as huge undertaking, but Team Hotaru kept going until it was complete. Recently, the Quick Ship program began its life at our plant - we look forward to better serving our customers with the adition of this program.

WHY IT WAS DONE
  • To create a quick response team and process dedicated to the engineering and purchasing of parts for small (simple) pumps – VCM, VLK
  • To create takt, flow and pull in the team and in the area
  • To determine the items that need to be stocked in inventory to assist the program

WHAT WAS DONE

  • Training in Takt, Flow and Pull
  • Created a team dedicated to the quick response ideal
  • Process flow chart (current and future state) documented
  • Brainstormed ideas as to how to implement the new program
  • Created a VCM “Quick Ship” program
  • Developed relationship with motor vendor
  • Created 3 layouts, with pros and cons, to help determine new layout for engineering and the co-location of instrumental departments (purchasing and documentation – within engineering – see layout design below)

LESSONS LEARNED

  • Customers do not like long lead times; and would be willing to pay for a product that is quicker and of superior quality
  • Even engineering needs to adopt the lean ideals of takt, flow and pull

AND THE RESULTS...

  • A documented and executed reduction in lead time from 17 weeks to 6-8 weeks.
  • Process improvement times:
  • 44% time savings
  • 65% reduction in throughput in engineering
  • Average savings per VCM order: $$$$
  • Approximate increased sales earnings: BIG BUCKS!!

VISUAL CONTROLS AND METRICS

  • Created a standard data package for quick ship pumps
  • Created criteria for the VCM quick ship program (which includes size, material type, paint, testing, motor, seal, etc.)

TEAM THOUGHTS

  • We need to shorten our lead times in order to be competitive in the market
  • You may need to burn a few boats to get where you need to be – create a sense of urgency
  • Never say impossible
  • Learning from a sensei was a great experience!

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