| The Company
Since 1981 Hampton Machine Shop, Inc. (HMS) has primarily been a
precision machining, welding, and fabrication shop located in the
heart of the shipbuilding and marine repair region known as Hampton
Roads, Virginia. HMS employs approximately 25 workers and is a job
shop in every sense, focused specifically on the fulfillment of
unique customer requirements in a total "make to order"
environment.
The Situation
Since 2003 GENEDGE ALLIANCE has managed a Lean Supply Chain Management
(LSCM) project involving a select group of suppliers as identified
by Northrop Grumman Newport News Shipbuilding (NGNN). Being one
of NGNN's key suppliers, HMS was sensing the push to embrace Lean
manufacturing concepts and methods as defined by the LSCM project
or risk losing them as a client.
The Response
The first phase of this Lean Implementation Project involved an
assessment conducted by the GENEDGE ALLIANCE and their Hampton Roads
partner Old Dominion University Business Gateway (ODUBG), to determine
HMS's knowledge and level of application of Lean practices. This
assessment identified improvement projects to implement Lean practices
so as to close the gap between current and desired performance.
Next, estimated impact statements were prepared for this project.
Before the implementation of Lean practices, baseline data was gathered
which identified current performance levels of: On-Time Delivery
of 87% and a Quote Response Time of six days. Additionally HMS was
found not to be operationally in compliance to MIL-I-45208A as required
by NGNN.
The improvement activities for the first phase of this project
were implemented under the direction and guidance of GENEDGE ALLIANCE
and ODUBG. Mike Cory, a Principle Consulting Engineer from ODUBG,
led the Lean focused implementation phase based upon an outlined
work plan for services to address gaps identified in the original
assessment. Mike Cory led a Lean Implementation Team that consisted
of seven HMS employees including a designated HMS Lean Champion.
Bob Schwabik, a Project Manager for GENEDGE ALLIANCE, led the activities
directed at conformance to MIL-I-45208A working directly with the
QA department at HMS.
| Scope of Work: |
| Lean Awareness - A full
day, introduction to a Lean Principles workshop for the HMS
implementation team was completed. This workshop included both
lecture materials and an interactive simulation allowing participants
to apply lean tools and techniques.
Lean Dashboard - This element introduced
the use of Lean dashboard principles to align business strategy
with operating tactics and shop floor measures. Baseline measures
were established so that resulting improvements, as implemented
by the team, were recognized and became institutionalized
behavior.
Lean Implementation Planning - A Value Stream
Mapping (VSM) exercise was completed to identify the "gaps"
in the order fulfillment cycle of HMS. From this exercise
specific deliverables were identified for the Lean Implementation
Team to focus on.
Lean Implementation Improvement Projects -
Mike Cory led the Lean Implementation Team through this process.
Implementation focused on incremental improvement initiatives
and their subsequent solutions based on Lean principles and
application of Lean tools specifically tailored to the HMS
job shop environment. Bob Schwabik led the implementation
work specifically focused on the various changes necessary
to accomplish compliance to MIL-I-45208A. |
As phase one work neared completion Ed Wilson, HMS President and
implementation team member, began to see the benefits as outlined
in the initial Impact Statement as making positive contributions
to his company. At this point the benefits of becoming a "Certified
Lean Enterprise" were discussed. To this end, a second assessment
was completed by ODUBG to once again identify the gaps that needed
to be addressed.
Phase two of this project was directed toward the remaining areas
of the business that required application of the Lean ideology and
necessary foundational business changes required to reach a level
of competence required to become a Certified Lean Enterprise. These
activities focused on the following areas of the overall business:
Communication Systems, Organizational Culture, Willingness to Change,
Continuous Improvement, Supply Chain Management, and Sustainability.
Once again a VSM was completed with resulting action items for the
Lean Implementation Team to focus upon.
The Results
With ODUBG's / GENEDGE ALLIANCE's oversight and direction, HMS has
not only successfully implemented Lean strategy concepts, as defined
by the LSCM strategic program, but went beyond with the completion
of phase two of the program to become a Certified Lean Enterprise.
Dramatic improvements were evident with On-time Delivery increasing
from 87% to 100%, First Pass Yield rose to 99.63%, their Quote Response
Time dropped from six days to two, and they reached MIL-I-45208A
compliance. For the first time in company history, bonuses were
issued to all employees. This gesture was not only to show appreciation
for a job well done, but to also celebrate substantial improvements
in the profitability of HMS directly resulting from the implementation
of sound Lean practices and ideology. In March of 2006 ODU - Frank
Batten College of Engineering & Technology /ODUBG, in a formal
ceremony, presented HMS with a plaque in recognition of their achievement
in becoming a Certified Lean Enterprise.
Management's Comments
"My job has totally changed since the introduction of Lean
practices at HMS. At first I could not see how Lean could apply
to my job in any way. Boy, was I ever wrong! Was it a lot of work?
….You bet, but I would do it again in a heartbeat!" Such
are the feelings of Beth Fromal, Lean Champion and Production Sequencer
at HMS.
Ed Wilson, President of HMS, can routinely be heard delivering
the following sentiments, "Initially, I could not see how Lean
would apply to my business in a job shop environment. My first thought
was that these guys from GENEDGE ALLIANCE /ODUBG did not understand
how HMS ran. However, once implemented Lean has so fundamentally
changed my business, in a positive way, that I openly encourage
everyone to embrace the Lean way of thinking as it REALLY WORKS!"
View their site! http://www.hampmach.com/
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