La-Z-Boy changing production lines to compete with China
By Buzz Ball / Daily News Editor
Published: Tuesday, February 21, 2006 3:42 PM CST
John Tanner of La-Z-Boy Midwest in Neosho explains the new concept of Lean Cellular Manufacturing this morning to members of the Neosho community and La-Z-Boy officials. The three people on the left are Neosho Plant Manager Renzo Bulgarelli, Don Mather and former Neosho Plant Manager Dave Layman. DAILY NEWS / BUZZ BALL
Competition with manufacturing overseas - namely China - has led to a bold and innovative concept at La-Z-Boy Midwest and it is already starting to reap benefits.
Since it came to Neosho in 1970, La-Z-Boy Midwest, one of the leading recliner manufacturers in the world, has been assembling chairs using the traditional batch-and-queue method, an assembly line process with each component of the chair manufactured in its own department.
But in an attempt to better compete with the overseas market, the Neosho plant, along with six others in its division, is transitioning to the Lean Cellular Manufacturing method. In the new concept, the chair or sofa is manufactured by a team within a cell, thus eliminating separate departments. No jobs will be lost in the transition from batch-and-queue to lean cellular.
“Basically, we will have teams building the chairs from start to finish,” said La-Z-Boy Midwest Human Relations Manager Billy Meyer. “Right now, we have three cells up and running, but by the end of the transition, we will have 37 cells.”
Eventually, the cells will manufacture the chairs starting with sewing all the way to completion: all within a 50x48 foot area. Currently, the sewing, poly, metal, wood and cutting departments are separate. But the eventual goal is to include everything within the cells with the exception of cutting, wood, poly and metal. Those components will continue to be manufactured separately and shipped to the individual cells.
The primary purpose of the new concept is to increase product numbers. The cells have become so efficient that it has cut the manufacturing time of a chair down from two and one-half days to just three hours.
“This is now a three-hour process from start to finish in the cell,” said La-Z-Boy Midwest production manager Bill Snow. “The process ends with a 12-point inspection. The cell members will not get paid for the piece until it is taken to where it will boxed. But eventually, boxing will take place in the cell as well.”
Another benefit of the cell concept is that no component of the chair or sofa will ever touch the floor. All manufacturing takes place on carts or tables. Thus eliminating excess dirt and grime on the material. The entire plant is being renovated making each cell brighter and cleaner.
One of the innovators of the new concept is Dave Layman, former Neosho plant manager. He is now the senior vice president of operations in residential upholstery. He, along with Don Mather, vice president of manufacturing, were in Neosho this morning to see how the transition is progressing.
“I am very, very pleased with what I have seen,” said Layman. “From the enthusiasm I have seen, I think our expectations will be exceeded.”
Renzo Bulgarelli, vice president and plant manager in Neosho, honored Layman and Mather.
“The news is full of articles these days on companies like GM and Ford and their inabilities to compete in today's global economy,” said Bulgarelli. “La-Z-Boy could have been one of those headlines had it not been for the vision and leadership shown by Don Mather and Dave Layman. These two fellows learned how to see and recognized that our company could not go forward without a new plan.
“Their leadership took them to the board of directors to seek approval on a multimillion dollar plan to convert our residential plants to start-of-the-art Lean Cellular production units,” he continued.
Meyer said that all employees will receive training in team work, conflict resolution, lean manufacturing and continuous improvement.
“We are totally changing the plant,” said Meyer. “This is a very exciting time.”
