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WESTERN GEOPHYSICAL EXPLORATION PRODUCTS - CASE STUDY Esteban Boyer Paula Martins Josh Crawford IDM 404 - DR. BURTNER - CRAWFORD, BOYER, MARTINS FEBUARY 5TH, 2015 1 INTRODUCTION Background Overview Designing cells with product oriented flow Using Kanban Product quality/employee skills training Material Waste reduction Visual controls Performance Measurement Questions IDM 404 - DR. BURTNER - CRAWFORD, BOYER, MARTINS FEBUARY 5TH, 2015 2 DESIGNING CELLS WITH PRODUCT ORIENTED FLOW Improvement Designing cells with a product oriented flow. (pg.395) Results Increased visibility Improve communication Reduce cycle times Decreased cable movement by 50% Reduced floor space by 30% IDM 404 - DR. BURTNER - CRAWFORD, BOYER, MARTINS FEBUARY 5TH, 2015 3 USING KANBAN Improvement They started to use the Kanban methodology to make easier the communication.(pg. 396) Results Decrease WIP from 60 cables to 12 cables The lead time was reduced from over 30 days to less than 5 days And material short ages became almost nonexistent. IDM 404 - DR. BURTNER - CRAWFORD, BOYER, MARTINS FEBUARY 5TH, 2015 4 PRODUCT QUALITY/EMPLOYEE SKILLS TRAINING Improvement The bay cable cell design moved WIP next to the first step of the process(pg. 397) Results improved communication Cross training( being trained in more than one department ) Each employee learned the exact requirements for quality A collective effort to stop bad products from coming down line Group responsibility for the product IDM 404 - DR. BURTNER - CRAWFORD, BOYER, MARTINS FEBUARY 5TH, 2015 5 MATERIAL WASTE REDUCTION Improvement WGEP stopped cutting cable an extra few feet “just to be safe” and started adjusting the length appropriately. (pg. 398-399) Results 4% reduction in cable cost Decrease in wasted cable A more efficient operation Annual savings of this one process amounting to more than $320,000 IDM 404 - DR. BURTNER - CRAWFORD, BOYER, MARTINS FEBUARY 5TH, 2015 6 VISUAL CONTROLS Improvement They developed a system that allowed all employees to understanding current and future demand, quality improvements, cost reductions and others issues relating to a particular manufacturing. (pg. 399) IDM 404 - DR. BURTNER - CRAWFORD, BOYER, MARTINS FEBUARY 5TH, 2015 Results Improve the understanding of the status of the orders Easy way to take a corrective action. Visibility brings the cell together and everyone in the process can help and improve the process because now they know what was going on. 7 PERFORMANCE MEASUREMENT Improvement Little information was kept of plant production, due to a lack of communication between departments. The supervisors began playing a sort of shell game to hide costs from one job to another. Management created a new system of performance measurement, reducing the number of transactions done( pg. 402-404) IDM 404 - DR. BURTNER - CRAWFORD, BOYER, MARTINS FEBUARY 5TH, 2015 Results A reduction in the bill of materials Saw a reduction in the number of jobs Reports were written each week detailing the number of completed cables and their cost 8 QUESTIONS IDM 404 - DR. BURTNER - CRAWFORD, BOYER, MARTINS FEBUARY 5TH, 2015 9