Process Improvement? First, Walk the Line
Frontline
To streamline business processes, an auto parts manufacturer started by timing actual process walkthroughs.
Dec 1, 2004
By: Joseph Burke
Diemolding Corp. in Syracuse, N.Y., was growing, and at the same time, it was taking on a lean manufacturing initiative. The company develops and manufactures thermoset phenolic components, which include brake pistons and pulleys, for the automotive industry. Diemolding is a leading supplier for some of the largest names in its market, including Ford, General Motors, and Chrysler.
In an industry where customers set strict guidelines for the production and delivery of goods, Diemolding's ability to efficiently and seamlessly manage its manufacturing and business processes is critical to both productivity and profitability. Its lean manufacturing initiative also demands a high degree of efficiency.
Deciding Where to Start
Diemolding's path to IT revitalization began with the reassessment of antiquated, homegrown applications and systems. In 1998, after a period of organizational growth, Diemolding executives determined that these homegrown systems were hampering the company's efforts to comply with evolving industry guidelines requiring accountability and specific metrics of efficiencies.
But where to begin? In attempting to streamline existing processes, many organizations struggle through talk sessions in which they try to describe how they do what they do. Diemolding, however, realized that talking about the steps that make up a process would be insufficient. Instead, director of IT Paul Orr and his staff actually walked through each process, step by step, and they used a stopwatch to determine the time required. It was a system Orr referred to as value-stream mapping.
"For employees to understand how a process can be improved, you have to be able to demonstrate where the inefficiencies and bottlenecks are," said Orr. "Once we understood how much time and effort was involved with each process, we were in a better position to evaluate different ERP [enterprise resource planning] solutions."
Choosing an ERP Solution
Diemolding ultimately selected Macola Progression from Exact Software. In making that decision, Diemolding looked for functionality, ease of use, and cost effectiveness. Working with Exact business partner Xonitek, a value-added reseller, Diemolding began to implement its lean philosophy. With the company producing approximately 40 million brake pistons per year, it was important to improve efficiencies and enhance production by streamlining such manufacturing processes as pick ticketing, traceables, and bills of materials.
Reaping the Rewards
Cutting down on machining time while meeting customer goals for delivery has helped Diemolding realize its just-in-time initiative. For example, the company logs into Ford's inventory control system four times per day to check the levels of its parts in Ford plants. The company has reduced its number of days of inventory and order-cycle time. It is better able to manage and reduce work-in-progress (WIP) inventory.
Diemolding is hitting the same order fulfillment numbers, but with smaller levels of WIP inventory. Inventory turns have dropped to 18 from 22, with an 18% reduction in inventory. In addition, the company has reduced order cycle time by as much as 25% as a result of keeping WIP smaller.
"In our business, every second counts. We are in constant contact with our customers to make sure that inventory levels are stable and deliveries are on time. As an organization, we needed to increase the accountability and visibility in our business processes," added Orr.
Reaching for Even More Efficiency
Empowered by Progression ERP software and a streamlined back-office operation, Diemolding recognized an opportunity to further expand its process efficiencies. The company implemented Exact's e-Synergy to integrate with Progression, centralize document management capabilities, and improve communication with core internal and external processes. Diemolding has created search filters, customized views, and workflows to transfer all documents (for example, legal documentation, quotations, and prototyping) into the system.
Diemolding has also been able to improve the way in which it manages business relationships. For example, Diemolding uses the e-Synergy supplier portal to give suppliers access to account information and reference resources.
"We have been able to create a real-time environment in which our core constituencies, such as employees and suppliers, have access to information across the enterprise that they need to complete a task or work with us in a more efficient manner," said Orr.
