Lean Manufacturing Archives

The community responds to our “Occupy A Job” sign

Since putting up a yard sign which says – Occupy A Job, We’re Hiring! – we have received a significant community response to it. We’re very pleased to say that most people accepted the sign in the spirit that we intended it – that we’re growing and we have several positions available for qualified people.

Although admittedly the sign is a play on the “Occupy” movement which is spreading around the country, we didn’t intend for this sign to be interpreted as an anti-Occupy Wall Street message. In fact, we agree with some of the issues that the OWS groups have. We just happen to believe that rather than Occupy public land in protest, the best thing we can do as a small business is to work at growing our business and create new jobs.

Kevin Leininger of the Fort Wayne News Sentinel newspaper was the first to pick up on the sign. He interviewed Steve Deam Sr. and Steve Deam Jr. and wrote

[this article]].

As you can tell by some of the comments on the article, some people take exception to the message on the sign. I’m not sure how a message that we have jobs available is a bad thing, but apparently to some people it is…

The following day WANE TV contacted us for an on-camera interview and aired [this piece] on the sign.

Exactly one week later Indiana News Center requested an interview and aired [this piece] as a follow-up to the story.

As a result of the unexpected media exposure, we were flooded with résumés and applications.

Reaction to the sign was overwhelmingly positive. We received numerous emails from people, as well as had people stop in, who wanted to let us know they loved the sign. We even received emails from people in Arizona and Utah who said they saw the story on their local news.

We also received positive reaction from many of our own employees, and in fact, it was a couple of our employees that suggested we add tents to draw more attention to the sign. Our office staff told me that out of the well over 100 applicants, not one person had anything negative to say about the sign. We even had at least one person from the “Occupy Fort Wayne” movement stop in to apply!

CNC Industries would like to thank all of those people who have applied for a position. Due to the strong response, we expect to be able to quickly fill the 5-7 positions currently available and will draw upon these applicants for future positions as they become available. We are in the process of reviewing each and every application, and will be contacting people very soon for an interview.

We wish we had jobs available for every applicant who truly wants a job, but unfortunately we don’t. We’re working on it though. Going forward we anticipate creating anywhere from 10 to 30 new jobs each year.

December 19th, 2011|Tags: CNC Industries, CNC machining, Lean Manufacturing, Occupy A Job, Occupy Wall Street, OWS, Precision Machining|

Steve Deam, Jr. is speaking at the JobshopLean 2011 Conference at Ohio State University

Because of the extensive work that CNC Industries has done in the area of using technology to support lean manufacturing, Steve Deam Jr. has been invited to speak at the JobshopLean 2011 Conference hosted by Ohio State.

The purpose of this conference is to explore the many ways that implementing Lean Manufacturing in a Jobshop is different than implementing it in Toyota. The primary difference, as quoted from the “Jobshoplean” web site, is: “A typical Jobshop is a HIGH-mix and VARIABLE-volume manufacturer of a large variety of components. Whereas, Toyota is a LOW-mix HIGH-volume manufacturer of a few assembled products. Consequently, while it is easy to recognize “Value Streams” at Toyota and many of their Tier 1 suppliers, this is a challenge in the case of a Jobshop where 100’s, if not 1000’s, of different routings need to be grouped into process families.”

Steve will be speaking on September 7, 2011 from 8:00am to 9:00am. He will discuss numerous ways that using technology can cut overhead expenses as well as facilitate Lean production in the shop.

Topics will include:

• Utilizing standard software and computers to a greater extent than the typical machine shop

• Document Management

• Corrective Actions Management

• Data Collection, Data Processing into Information for Decision Support and Information Transfer across the Shop

• Data Visualization

Click

[here] to see Steve’s presentation outline in PDF format. (Depending on your connection speed it may take a few minutes to load.)

Click [here] to see the bio’s of the various speakers.

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Steve Deam Jr. is V.P. of Finance as well as V.P. of I.S. at CNC Industries.

CNC Industries is a Fort Wayne, Indiana based Job-Shop specializing in precision CNC machining, fabrication and assembly of application-critical and custom machined parts for the Aerospace, Defense, Medical, Industrial and Transportation markets. The company presently employs approximately 50 people and is adding people on a continuous basis.

September 1st, 2011|Tags: CNC Industries, CNC machining, Lean Manufacturing|

Precision Aerospace Machining and the seven wastes of lean manufacturing (part 5)

The fifth of the seven wastes is the most readily obvious waste – defects. A part or product that is not made correctly and needs to be either re-worked or discarded, is obviously a waste. The time spent on the original part is wasted, the material and other costs are wasted, the time that it takes to re-work or re-make the part is wasted. Overall defects cause considerable disruptions and waste.

Once again high volume work has an easier time of removing defects from the process. the length of the run of a part will justify creating more complex and expensive fixturing to enable quality at the course – so that the part has little or no chance of being produced improperly. Custom inspection procedures will allow quick discovery of any non-conforming parts as well.

In a low volume high mix facility – as a large portion of CNC Industries is, making custom machined parts and precision aerospace machined parts, we cannot spend an extensive amount of time on fixturing – our lead time for the entire first batch of product is sometimes shorter than production companies will spend on a single fixture for a production part. The inspection requirements and quality standards will also vary – sometimes greatly – between parts running through our shop at the same time. We have to ensure that each fixture is made quickly and still performs as it needs to.

Of course defects are caused by a myriad of issues beyond just the fixturing the part correctly. We have many more methods of preventing mistakes and defects before they occur, but I think a more telling evaluation of a companies dedication to eliminating defects is the processes taken when a defect does occur. At CNC Industries, we place great emphasis on root cause analysis and corrective / preventative actions. As we are nearing our AS9100 certification, we are more aware of this need than ever before.

Our Corrective Action System is based on the Apollo Root Cause Analysis and allows and indefinite depth of root cause analysis. We regard and defect as a serious issue and are quick to come to an understanding of the root cause that allowed the defect to occur. With our ERP system, we are able to quickly resolve any ongoing systemic issue and immediately take the necessary corrective action to prevent future occurrences of the issue. Preventative and corrective actions and their resolutions are transmitted throughout the company immediately upon completion and necessary procedural and process changes are automatically updated. All relevant documentation is kept entirely in sync with our digital paperless document system.

The ability to adjust our entire process to address a deficiency in the processes that we utilize allows us to have an extremely low defect rate – and when the very occasional defect does occur we can quickly adapt and prevent the problem in the future.

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CNC Industries is a Fort Wayne, Indiana based machine shop specializing in precision CNC machining, fabrication and assembly of application-critical and custom machined parts for the Aerospace, Defense, Medical, Industrial and Transportation markets. The company presently employs approximately 55 people.

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June 18th, 2010|Tags: Aerospace Machining, Custom Machined Parts, ERP, Job Manager, Lean Manufacturing, wastes|

Precision Aerospace Machining and the seven wastes of lean manufacturing (part 4)

The 4th waste identified in lean manufacturing is Motion. Motion concerns the ergonomics of the workers in a process and any unnecessary steps or movement that they have in the process.

To again look at the difference of a high mix / low volume precision aerospace machining facility and a high volume production we will see a difference in the ability to reduce motion. In a high volume production environment you can count on a particular workstation being focused on a single task – even if that task is performed over a variety of individual parts, the motions and the ergonomics will be similar. In a low volume precision machine shop, the task on one day may be entirely different than the task of the prior day. While they will be related still – depending on the functionality of the machine at the workstation – the individual parts may require a significant difference in motion or handling.

To compensate for this changing process, CNC industries has designed it’s facility to accommodate a high mix of precision parts easily. While the information and documentation may vary from one part to another, we have standardized the method of getting that information into electronic information stations which are uniformly located near the workstations. Each worker in our facility may count on being able to get all necessary work instructions in the same way.

We have also standardized our machine setups with the tooling being handle off of the machine to eliminate unnecessary motion in the setup process. The advantages of removing extra motion include more productivity, less stress on the people involved in the process, as well as lowered chances of errors and mistakes being made. So even with a facility dedicated to fully custom machined parts and prototypes, we can easily remove unnecessary wastes.

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CNC Industries is a Fort Wayne, Indiana based machine shop specializing in precision CNC machining, fabrication and assembly of application-critical and custom machined parts for the Aerospace, Defense, Medical, Industrial and Transportation markets. The company presently employs approximately 55 people.

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June 14th, 2010|Tags: Aerospace Machining, Document Management, Lean Manufacturing, Precision Machining, Technology|

Precision Aerospace Machining and the Seven Wastes of Lean (Part 3)

In continuing on the Lean Journey, we will talk about the third of seven wastes: Inventory. Historically, inventory was not considered a waste. Large batch manufacturing was a necessity at the beginning of modern machining and manufacturing. Inventory stocks were considered healthy as they indicated that a business could ship to their customers quickly. The story of Inventory becoming considered a waste starts in post WWII Japan. Japan underwent a transformation in their productivity and processes after WWII and began to compete well on the world market. Unfortunately Japan does not have the land area that America does, and therefore the cost of holding inventory was much greater – due to the higher property costs, etc. Toyoda quickly realized that smaller batches, when made efficiently, lead to lower overall costs than large batches do.

In a precision aerospace machining environment, a balancing act is needed. Since CNC Industries machines a large variety of precision parts we cannot afford to have a specialized machine for each part or process that we do. Small machine shops also do not have the luxury of a rolling assembly line between our machines. With these restrictions, and the large amount of processing and manufacturing time that it takes to make a single aerospace part, we are put into a more difficult position that a production facility. We cannot truly operate with no inventory as the goal would be, so we must decide on the ideal inventory to keep on hand.

Precision aerospace machining processes typically have rather long setup times relative to simpler machining processes. This causes the ideal batch size to increase in order to compensate for the lost time on the machine while it is down for setup. At CNC Industries we have worked long and hard to decrease our setup times and have successfully lowered our setup time by 75% over the last 5 years. This has enable us to lower the ideal batch size as well, which in turn allows us to hold less inventory.

In addition to the setup process improvements that we have made over the years, information management is key to efficiently running small batches. Smaller batches will mean more switchovers, more setups, and more jobs running at the same time. With all of these issues, scheduling is both critical and difficult. Job Manager II allows us to have a visual reference of the schedule at any computer throughout our facility and quickly identifies and problems or potential problems at an early stage of the process which allows us to quickly make any necessary adjustments.

June 7th, 2010|Tags: Aerospace Machining, Custom Machined Parts, inventory, Lean Manufacturing, Precision Machining, the seven wastes|

Precision Aerospace Machining and the Seven Wastes of Lean Manufacturing (Part 2)

In continuing on the topic of lean manufacturing in an aerospace machining environment today I will look at how CNC Industries handles the second waste identified in lean manufacturing. The second waste is typically identified as unnecessary transportation. At CNC Industries we look both at internal and external transportation as areas that can cause waste.

The costs of external transportation (shipping) are easy to identify. With external transportation we can easily see the cost of the transportation in dollars as we receive bills from the shipping companies. Any extra shipments obviously incur additional charges and it becomes important to keep the number of shipments required to an absolute minimum. To facilitate this we often work with our outside vendors to have our parts shipped directly from one vendor to another in the case that we have multiple outside operations back to back. As often as possible we find outside vendors that handle multiple processes to save both on the cost of production as well as the cost of transportation. In addition our AS9100 compliant procedures for selecting and purchasing from our vendors allows us confidence in the quality of the parts that we have outsourced.

Internal transportation costs are often more difficult to quantify. Many times companies will both start and stop their efforts on cycle times and overproduction as I talked about in the prior post. Transporting the parts internally more than necessary is also a form of wasted efforts. The cost of moving the parts throughout a facility may seem minor but all forms of transportation take up time and do not add anything to the value of the part. In addition every time a part is moved it is another chance for the part to become lost or damaged.

Extra transportation can occur due to a number of factors in the manufacturing process. If the parts were not scheduled correctly they may need to be moved aside to allow a different part through the machine. Poor routing of the operations that the part takes through the manufacturing process may mean that a part is scheduled through machines that are far apart in the factory. Poor engineering of the part machining process itself may mean that the part has more machining operations than necessary. Any of these items may add additional internal transportation and raise the cost and potentially lower the quality of the part.

Our ERP System – Job Manager 2 – allows us to schedule our parts with confidence that they are engineered and routed correctly. In addition to the initial engineering and routing we have a comprehensive corrective action system and Process Change Request system that allow us to continually improve our processes. Each time we manufacture a part we are able to review and adjust the process and operations as necessary to make the parts even better and more efficiently than the last time.

Aerospace machining and the high mix / low volume work that comes with it creates additional challenges in scheduling. Our engineering processes are designed to quickly work through the numerous issues with new parts and smaller batches. Our scheduling module in Job Manager 2 has a visual scheduling board that allows us to quickly determine the best routing of each part and quickly determine any problems with the processes involved. Job Manager 2 also allows us to analyze each part and quickly find any areas that have lower efficiency so that we may quickly focus our efforts in the appropriate places.

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CNC Industries is a Fort Wayne, Indiana based machine shop specializing in precision CNC machining, fabrication and assembly of application-critical and custom machined parts for the Aerospace, Defense, Medical, Industrial and Transportation markets. The company presently employs approximately 55 people.

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May 14th, 2010|Tags: Aerospace Machining, Lean Manufacturing, Precision Machining, the seven wastes, transportation|

Aerospace machining and the seven wastes of lean manufacturing pt2

Due to a few issues on renaming the old post I am repeating the original post with the original title.

In continuing on the topic of lean manufacturing in an aerospace machining environment today I will look at how CNC Industries handles the second waste identified in lean manufacturing. The second waste is typically identified as unnecessary transportation. At CNC Industries we look both at internal and external transportation as areas that can cause waste.

The costs of external transportation (shipping) are easy to identify. With external transportation we can easily see the cost of the transportation in dollars as we receive bills from the shipping companies. Any extra shipments obviously incur additional charges and it becomes important to keep the number of shipments required to an absolute minimum. To facilitate this we often work with our outside vendors to have our parts shipped directly from one vendor to another in the case that we have multiple outside operations back to back. As often as possible we find outside vendors that handle multiple processes to save both on the cost of production as well as the cost of transportation. In addition our AS9100 compliant procedures for selecting and purchasing from our vendors allows us confidence in the quality of the parts that we have outsourced.

Internal transportation costs are often more difficult to quantify. Many times companies will both start and stop their efforts on cycle times and over production as I talked about in the prior post. Transporting the parts internally more than necessary is also a form of wasted efforts. The cost of moving the parts throughout a facility may seem minor but all forms of transportation take up time and do not add anything to the value of the part. In addition every time a part is moved it is another chance for the part to become lost or damaged.

Extra transportation can occur due to a number of factors in the manufacturing process. If the parts were not scheduled correctly they may need to be moved aside to allow a different part through the machine. Poor routing of the operations that the part takes through the manufacturing process may mean that a part is scheduled through machines that are far apart in the factory. Poor engineering of the part machining process itself may mean that the part has more machining operations than necessary. Any of these items may add additional internal transportation and raise the cost and potentially lower the quality of the part.

Our ERP System – Job Manager 2 – allows us to schedule our parts with confidence that they are engineered and routed correctly. In addition to the initial engineering and routing we have a comprehensive corrective action system and Process Change Request system that allow us to continually improve our processes. Each time we manufacture a part we are able to review and adjust the process and operations as necessary to make the parts even better and more efficiently than the last time.

Aerospace machining and the high mix / low volume work that comes with it creates additional challenges in scheduling. Our engineering processes are designed to quickly work through the numerous issues with new parts and smaller batches. Our scheduling module in Job Manager 2 has a visual scheduling board that allows us to quickly determine the best routing of each part and quickly determine any problems with the processes involved. Job Manager 2 also allows us to analyze each part and quickly find any areas that have lower efficiency so that we may quickly focus our efforts in the appropriate places.

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CNC Industries is a Fort Wayne, Indiana based machine shop specializing in precision CNC machining, fabrication and assembly of application-critical and custom machined parts for the Aerospace, Defense, Medical, Industrial and Transportation markets. The company presently employs approximately 55 people.

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May 14th, 2010|Tags: Aerospace Machining, Lean Manufacturing, Precision Machining, the seven wastes, transportation|

Precision Aerospace Machining and the Seven Wastes of Lean Manufacturing (pt1)

As I talked about in the last post, I will be examining the seven wastes identified in lean manufacturing and showing how CNC Industries handles each in a high mix / low volume aerospace machining environment. The first of the seven wastes is Overproduction. Overproduction is using more resources than necessary to create and deliver a part to the customer. Overproduction can be further defined as producing more, sooner or faster than what is necessary. Elimination of overproduction is a large factor in Just-In-Time systems that many manufacturers are focusing on. Just-in-time has a goal of eliminating inventory and producing or ordering material to arrive just in time for the operation that it is needed in.

Batch size is a large factor to consider when looking at overproduction. It is important to not produce too many parts – this leads to storing the excess parts in inventory for an excessive amount of time. However, in an aerospace machining environment the complexity of the parts is prohibitive to a true just-in-time system. When a part may take 6-8 weeks to manufacture and only a small amount of the parts are needed each week to create a new batch for every shipment would necessitate setting up a new batch each week and having multiple batches open at the same time. The logistics of tracking all of these batches combined with the costs and time of setting up a machine each week for the same part would be prohibitive. In addition to the setups and the logistics, material orders would necessarily be smaller and more frequent which would eliminate cost savings in ordering and require more time in purchasing and receiving material. Of course a production facility can avoid many of these pitfalls by having specially made machines that are dedicated to a certain process or part. In a high mix environment, machines tend to be needed for many different parts and cannot be dedicated to a select group of part.

Instead for a high-mix low volume aerospace machining facility, selecting the right batch size includes factoring in the setup costs and the lead time to create a batch that is a reasonable multiple of an individual shipment. In the above example it may be seen that a batch that is the equivalent of 10 weeks of shipments is the optimum size to reduce overproduction and minimize inventory storage time as well. The key is to account for holding costs, batch setup costs, and the estimated demand on a given machined part. Our ERP system, Job Manager 2, has a module to handle these calculations and give a suggested batch size in order to lower the overproduction to the lowest feasible amount. Selecting the right batch size is of paramount importance in attempting a lean operation in an aerospace machining environment that tends to have high mix and low volume production.

CNC Industries solves the problem of overproduction waste through efficient information handling and analysis. We have strong visualizations of our production and inventory and we regularly examine our production to ensure optimum batch size. Our ERP system both handles the batch size determination and the scheduling of the new batches to ensure that parts are produced at the right time and with the right quantity. When maintaining a Kan-Ban System for our aerospace customers it is vital that we both maintain enough inventory to handle their surges in demand, as well as minimize our batch size to allow us to produce the wide variety of parts that are requested.

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CNC Industries is a Fort Wayne, Indiana based machine shop specializing in precision CNC machining, fabrication and assembly of application-critical and custom machined parts for the Aerospace, Defense, Medical, Industrial and Transportation markets. The company presently employs approximately 55 people.

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May 7th, 2010|Tags: Aerospace Machining, Lean Manufacturing, overproduction, the seven wastes|

Lean manufacturing and Aerospace Machining, Low Volume / High Mix production

Lean manufacturing is a concept that most businesses strive for and many claim. The primary concept of lean manufacturing is eliminating all unnecessary costs and time associated with production. The primary way most companies will start with Lean is to manufacture parts as fast as possible – to get as much production from each machine as possible. As the cycle time decreases wasted machine time decreases as well. This is a great start to lean manufacturing, but it is also the most common method. Many companies focus on cycle time reduction almost entirely in their lean efforts.

Cycle Time reduction works best in environments where a machine shop is producing the same part for a long duration. This is typically a full production shop and will have dedicated machinery to optimize a single process to the fullest extent possible. In the aerospace machining industry or custom machined parts production we are not producing high enough volumes of many parts to dedicate an entire machine to a single part. As such aerospace machine shops and custom manufacturing shops (or job shops) will face additional difficulties in going ‘lean’.

Adjusting the cycle time down by 10% is not as effective of a lean tool when machine time may only be 60% or less of the time spent on producing a given part. The lower the proportion of machine time to non-machine time in a job, the more important it is to go lean in additional ways. in connection to that – the more often a machine needs to be set up for a new job the more non-machine cost is in the job – for reference a single aerospace machined part may have 5 or 6 separate machining operations each requiring an additional setup on the machine. Transferring the material to different areas, setting up the machine, inspecting the part throughout production, and other items add to the non-machine time at every step.

Over the next few posts I will be looking at the 7 wastes identified in a typical lean manufacturing implementation and how CNC Industries deals with each on in relation to our low volume / high mix work. We have some production jobs as well, but those are handled in slightly different ways, and will be discussed at a later time.

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CNC Industries is a Fort Wayne, Indiana based machine shop specializing in precision CNC machining, fabrication and assembly of application-critical and custom machined parts for the Aerospace, Defense, Medical, Industrial and Transportation markets. The company presently employs approximately 55 people.

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May 5th, 2010|Tags: Aerospace Machining, Lean Manufacturing, overproduction, wastes|