ZF Mathers
Lean Training and Implementation Saves ZF Mathers from Costly Plant Expansion
Company Profile
Mathers Controls, Inc., a private corporation founded in 1951, is a manufacturer of electronic and pneumatic propulsion controls and propeller shaft brakes for the marine industry. Their primary focus is to supply components to OEM’s in the worldwide boat building industry for vessels larger than 40 feet. A smaller, yet significant, portion of their business supplies distributors and customers in the fishing, transportation and pleasure craft industries. Their facilities are located in Burlington, Washington, and they currently employ 52 people.
Situation
Mathers’ desire for increased revenues and market share led them to develop a new product line aimed at the fully electronic engine and gear control market. Planning for this market’s potential and associated plant capacity requirements, they were on the verge of approving a plant expansion with costs exceeding $1 million. Just prior to approving the project, they contacted Impact Washington for assistance.
After a plant tour and fact-finding meeting with top management, Impact Washington suggested implementing Lean Manufacturing as a means of increasing capacity without the costly plant expansion. With Mathers’ senior management, Impact Washington coordinated an assessment of the facility and a visit to another company that had been implementing Lean over the past year. The opportunity to discuss actual improvements with the other company’s president provided Mathers’ management with the proof needed to approve the project proposed by Impact Washington.
Solution
The primary goal of the initiative was to increase the overall capacity of the facility by at least 25% to avoid the need for expansion. To accomplish this, Impact Washington brought in a resource provider to educate all Mathers’ employees on Lean Manufacturing concepts, guidelines and analysis tools. This training was designed to provide the framework for change. The training was followed by identification and analysis of the company’s processes. Utilizing the employees’ experience and rapidly developing Lean knowledge, coupled with the assistance of the resource provider, a new facility layout was designed. The new layout included:
- Elimination of most departmental barriers to enhance communication
- Movement of the entire production area next to the shipping and receiving area, which significantly reduced the travel distance of raw materials, supplies and finished goods
- Introduction of manufacturing cells to significantly reduce required manufacturing space; promote one-piece flow to minimize assembly costs, product lead-time and WIP storage space; and lower inventory levels to release cash and minimize associated inventory carrying costs and required storage space
- Introduction of point-of-use storage of tools, information, raw materials and supplies to greatly simplify the process by eliminating wasteful steps and associated costs
The majority of the implementation successfully occurred over a six-month period.
Results
- Reduced capital expansion/modification costs by 79% by avoiding the costly expansion project
- Increased production capacity by 100%, allowing for employee cross-training opportunities
- Increased overall capacity by 30%, and this continues to improve with further refinements
- Decreased WIP and finished goods inventory by 32%, freeing up enough cash to pay for the new plant layout
- Decreased production lead-times by 50%
- Reduced production space by 36%
- Reduced production travel distance by 88%
- Reduced internal production rework by 75%
- Enhanced company-wide communications
- Simplified most company processes both in the offices and in production
- Lost only 8 hours of production during the relocation of the entire production area