Business Type

Manufacture of custom hollow metal doors for industry. Product is sold through a network of distributors in the US.

Company sales growth had averaged 15% over the previous seven years, primarily because of the company's ability to turnaround orders in six weeks. This was significantly better than the competition, however, the competitors were quickly closing the gap. In addition, the company's executives believed that quality could be improved through a more participative work culture. RDI was engaged to determine the steps necessary to get to a four-week order turnaround and improve product quality through a more participative work culture.

RDI conducted a comprehensive analysis concentrating on order entry and processing, manufacturing bottlenecks, quality practices, procedures and documentation; and plant scheduling. In addition, managing practices, communication patterns and employee involvement practices were studied. An overall action plan was then developed with the company's executive staff which focused on streamlining order processing and developing a sense of pride and ownership at all levels through increased communication and participation. RDI was retained to assist in the implementation of the plan.

• Decrease order processing and entry time from two weeks to one
• Change the company's quality practices from inspection centered to production cell responsibility
• Develop a manpower planning and scheduling system based on product work content and complexity
• Increase employee ownership

Order Processing
An analysis of all steps of order entry, order engineering and order processing was mapped out to understand the "as is" condition. A cross functional team was formed, trained in the "Team Process" and "Process Solving" methods and facilitated to focus on streamlining the entire chain of activities through various labor saving and simplification techniques.

Quality at the Source
A comprehensive analysis of Cost of Quality was made to determine the extent of waste impact on the business and the delineated cost of the current methods of inspection and rework within each production department. A "Buy / Sell" agreement was created between operating departments establishing the criteria for accepting and/or rejecting in-process work from upstream departments. Supervisors were trained in the process and, in turn, trained the workforce. In addition, the responsibility for inspection migrated to equipment operators and inspectors were reassigned as either equipment operators, planners or schedulers, or to an administrative role.

Planning and Scheduling
Created a quantifiable system for determining and assigning levels of complexity to manufactured products. This was used for planning of daily and weekly workloads, controlling bottleneck workstations and establishing lead time promises to Customer Service. Additionally was useful in forecasting future material and manning needs.

Order Processing Productivity
Through team based activity and effort the computerized order processing system was greatly enhanced with edits, verification checks and information aides to eliminate human and / or calculation errors. In addition, the Order Processing Department was completely reorganized to provide a more logical sequencing of processing tasks to both shrink the process cycle time and eliminate the occurrence of errors.

• Increased labor efficiency on door production by 7%
• Reduced order processing / entry time by 50%
• Eliminated all in-process inspection through the implementation of a buy-sell process where operators accepted quality responsibility
• Reduced rework by 43%
• Reduced order entry errors 66%

Business Type

Manufacturer of corrugated boxes and corrugated sheets used by a variety of consumer industries. Products include plain RSC'S, Lamilux coated and DuoCor boxes and sheet products for converting plants. Customer profile consists of Local Accounts (40%), National Accounts (35%), Sheet Accounts (25%).

Operation was viewed by Company Corporate as an "issue" plant primarily because it had not made money since September, 1994. Comparisons of performance with other operations within the Company revealed that waste and converting costs were substantially higher than the average and throughput, as measured by paper consumption, was low for a plant its size. Further, a new $2MM Saturn Flexo Diecutter and a completely rebuilt 50 inch Flexo Folder/Gluer were installed early 1994 with little impact on the bottom line. Corporate management felt the operation was weak in the fundamentals of manufacturing cost control and that outside help could bring a fresh perspective.

RDI conducted a comprehensive analysis concentrating on 5 Key Action Areas: Process, Equipment, Organization, People and Team Effectiveness. From these, RDI developed an implementation approach aimed at: "Operating Direction and Alignment", "Performance Optimization" and "Organizational Development". The final implementation plan consisted of six focus areas with which to leverage improvements in manufacturing fundamentals: Direction/Expectations; Waste Reduction; Downtime Reduction; Setup Reduction; Technical Training; Managing Processes.

Emphasis was placed on wide representation and participation in teams, (formed, trained and motivated) to solve operating problems. The approach was "bottom up" to generate and get ownership for solutions at the lowest level. Plant Management was formally trained in leadership skills for taking on the role of coach and team leader/facilitator. Capability training also included communications, problem solving and team building skills.

• Increase throughput as measured by tons of paper consumed.
• Reduce waste as measured by its percentage of consumption.
• Reduce unplanned equipment downtime
• Reduce setup (changeover) time.
• Reduce plant overtime.

• Throughput increased 9% over the previous 6 month period.
• Overall Plant waste was reduced 18%. Controllable Finishing waste, where the project work was concentrated, was reduced 37%.
• The workcenter which took part in the equipment care approach became the most reliable equipment (least downtime) in Finishing.
• Finishing setup times were reduced 13%. The SMED approach to setup reduction is being implemented on all equipment.
• Overtime was reduced 23%.

Business Type

Manufacturer of carbide tools for the mining and construction industry. Its market is international with the foreign distribution being its fastest growth segment. This Division is part of a large Corporation whose primary product lines serve non-mining and construction industries.

Over the preceding 3 years the Division had experienced a 114% increase in sales growth. This was in sharp contrast to the flat sales being experienced in the Corporation's main businesses and, consequently, the Division was receiving much Corporate attention. The issue was the Division's apparent inability to absorb anticipated, additional domestic and foreign business within its current capacity. Further, it was believed to be a problem of management and not one of insufficient production capacity. RDI was engaged to help develop within the organization the capability for resolving this problem.

RDI worked concurrently at the Division Executive Staff and Plant Operations levels to resolve organizational and management issues that precluded them from taking full advantage of the business opportunities at hand. Within the Plant RDI worked with department managers to tear down boundary barriers that had existed for many years and to develop cross problem solving approaches focused on issues relating to planning and scheduling, throughput constraints and product line proliferation.

• Eliminate barriers of cooperation between departments
• Develop a model of teamwork that can be applied throughout the organization
• Rationalize the product line to eliminate redundancies
• Increase inventory turns of Finished Goods

Organizational Development
Developed with the Executive Staff an organizational model that incorporated the ideals of teamwork, receptivity to new ideas, free flowing communications and shared ownership for business decisions. This model was introduced and extensively discussed at the staff, plant and shop floor levels. Attained an enterprise wide organizational consensus as to the type of company they wished to be.

Management Development
Worked closely with the entire management staff to influence and, if necessary, alter behavior patterns that were inappropriate to the new business model developed. Designed new roles and responsibilities conducive to the desired paradigm and culture shift and sharply focused on targeted production performance goals.

Managing Processes
Developed managing systems and processes that defined the critical production metrics of the business and established short and long term performance improvement goals for those measures. Created the means and methods for collecting, analyzing, reporting and reviewing those metrics for continuous improvement.

Product Rationalization
Created a cross functional team of product design engineers for the purpose of analyzing the entire product line for redundancy and obsolescence. Developed the criteria used in the evaluation, the methodology for decision making and the format for recommendations presented to Marketing and the Executive Staff.

Inventory Reduction
Facilitated an Executive Management Team toward resolving its internal communication barriers and parochialism in order to cooperatively address and problem solve the issue of excess finished goods inventory. Coached and counseled individual Team members to identify and air the misunderstandings and misjudgments that were underlying the Team's ineffectiveness. Created the format for problem discussions, organized the decision making process and developed the tracking mechanism for progress reporting.

• Working relationships between Executive Staff members improved sufficiently to create a collegial environment in which to deal with complex business problems common to the whole enterprise.
• Working relations between plant level departments improved sufficiently to permit the emergence of a cross functional, team based approach to problem solving.
• Teamwork was accepted and recognized by the entire Division as the most effective path toward overall performance improvement.
• Eliminated the equivalency of 78,000 inventoried parts from the product line and established the methods for continuing the process.
• Increased finished goods inventory turns from 3.5 to 4.2 and developed the process for continuing the improvement.

Business Type

Manufacturer of residential siding for the home building industry.

The company had made a decision to merge its steel siding and aluminum siding manufacturing facilities, located in different states, into one location. Timing of the physical move was critical to avoid prolonged disruption of product supply to customers. Additionally, an integration of business systems and managing processes was needed to support both product lines. RDI was engaged to assist in the physical move of the steel facility into the aluminum facility and to develop and implement systems to support the newly integrated facility.

RDI worked concurrently at both facilities to develop a detailed facility layout plan for integrating steel production with aluminum production and a detailed relocation plan for the move. RDI was to develop an overall plan for supervision at the newly integrated facility. RDI was to develop comprehensive Planning and Scheduling systems to support projected production levels and to ensure manufacturing reliability that will meet elevated standards of customer service.

• Physically relocate the steel production equipment to a remote facility without adversely impacting customer service levels of either steel or aluminum products.
• Integrate steel and aluminum production equipment for optimized, efficient material flow and avoid resource conflicts.
• Develop and implement data managing processes to support the newly integrated operation.
• Develop, train in and implement production planning and scheduling systems to support projected requirements and strategic objectives.
• Improve shop practices and procedures to assure equipment reliability, quality conformance and performance to schedule.

• Developed a plan for sharing critical material coating equipment consistent with projected production demand cycles.
• Developed detailed and comprehensive plans for the relocation of the steel plant and integration of steel production equipment with aluminum. Supervised the implementation of the project.
• Designed and implemented a new facility layout optimizing the available floor space while avoiding material flow, handling and storage conflicts.
• Created and implemented a flexible, PC based production planning system which provided management visibility and control of the demand flow, material consumption and projected requirements. This system was directly "live" linked to the production scheduling.
• Radically changed the manufacturing philosophy from "Make To Stock" to "Make To Order" for both steel and aluminum products.
• Redesigned the facility's production scheduling system to provide shop management "real time" visibility of production status and the ability to rapidly respond to order changes and the unexpected.
• Changed material handling processes, data reporting and accuracy, maintenance practices and shop floor policies to eliminate chronic problems with lost material, assure equipment reliability, provide proper supervision and improve interdepartmental communication.

• The steel fabricating equipment was successfully moved and integrated into the aluminum facility within the targeted time frame and with minimum disruption of service to customers.
• Planning and scheduling systems, capable of supporting the most demanding of customers while dramatically reducing production cycles times and inventory carrying costs, were in place.
• Past due backlogs shrank to its lowest level in 2 years.
• During the engagement period Incidents of lost material decreased from over 200 incidents per month to 20 incidents per month.
• During the engagement Finished Goods Inventory was reduced 38% with no adverse affect on service to customers.

Business Type

Manufacturer of building products. Product is sold world wide through a network of distributors.

Direct materials cost as a component of Cost of Goods Sold (CGS) had been on the increase in recent years despite attempts to hold them down. In addition, supplier quality and deliveries were not consistent and were effecting the companies ability to provide responsive customer service. The company had several initiatives underway to address other CGS cost components, but senior management was not sure of the companies capabilities to undertake a significant effort to improvement performance with the supplier base.

RDI was engaged in an interim management role to assess and improve the procurement segment of the supply chain. RDI's approach included commodity coding and the development of expectations of and obligations relating to the company's supplier base. This included a restatement and a more challenging quality policy as well as the development of an extensive quality survey (for this purpose delivery and lead time were part of these documents). Also included was the development and implementation of effective delivery and quality reporting systems and the establishment of a Supplier Rating System using and automated decision support system for both the selection and ongoing monitoring of Supplier Performance. Where appropriate JIT and consignment principles were applied to delivery and quality. RDI also, reengineed the procurement, quality, materials management, and financial processes relating to suppliers to a leaner more effective and efficient approach. RDI's final task was to perform an executive search for new leadership of the Procurement function and a new leader was found and oriented prior to RDI ending this engagement.

Over a 12 month period the supplier base was reduced to a manageable number of supply chain partners (40% reduction). While this included some replacement of existing suppliers, in more than 50% of the commodities the existing supplier made the commitment to improved performance and was retained. The new process includes frequent communication of measurable performance indicators such that the improvements in supplier quality and delivery performance contributed to a 50% reduction in the company's lead time (contributing to new business) and an improvement to 95% + delivery performance for standard orders, and 98% for accelerated orders which represented more than half of all orders. In addition, the requoting of all commodities and the introduction of new competition as a result of this process resulted in a $4 million + reduction in direct materials cost (10% range for commodities requoted) as well as significant future cost avoidance by virtue of some long term agreements to control cost. The company continues to use the new processes included in RDI's Supplier Management Service and has reported additional cost savings in subsequent period. The company has recently attributed RDI's Supplier Management Service as one of the key ingredients in there ability to achieve their 12 month profit plan in 9 months.