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Lean University --
Lean Articles
Just do
it!
Ariens
Company shows that you can't be a lean manufacturer by
sitting on your hands
Nike
gave basketball phenom LeBron James $90 million last May to
endorse its athletic shoes. Perhaps it could have saved some
money and worked out an endorsement deal with the Ariens
Company.
Who
better to market the “Just Do It” tag line than a
manufacturing company that realized “doing it” was
better than simply talking about it?
Ariens,
an outdoor power equipment manufacturer based in little
Brillion, Wis., knows first-hand: If you want to be strong
and lean, you have to be active.
“We
were a company that typically talked about things for a long
time. We planned and talked too much. Ultimately, the old
way brought very little action,” says Jeff Hebbard, one of
Ariens’ three value stream vice presidents. “When we did
get something off the ground, the general attitude was,
‘Just wait and it will go away.’”
That
was apparent when the company dabbled with various
improvement initiatives (Conway quality, Costanza demand
flow, etc.) in the early 1990s.
“At
best, we were doing bits and pieces,” says VP Bob
Bradford.
But
financial and global pressures forced everyone working at
the 70-year-old producer of snowblowers and lawnmowers to
look in the mirror. They saw they were out of shape, a
corporate heart attack waiting to happen.
Ariens
made high-quality products that customers liked. However, a
glut of inventory, a batch production system and poor
process flow impacted its product prices.
“The
delta between our premium product and the lowest-cost
lawnmower was simply too high,” says company president Dan
Ariens.
It
either had to shape up or lose to companies that ship out
(export similar product to the United States from China and
other countries).
Active
pursuit and implementation of lean manufacturing principles
proved to be the difference.
Putting
the house in order
In the old batch production days, Ariens fabrication plant
workers stamped as many parts as possible. They sent
material back and forth around that plant in order to make
finished components, which were then delivered in bulk down
the road to the final assembly plant.
“We
had a week’s worth of inventory sitting at the assembly
line, if not more,” says Hebbard.
Assembly
workers stationed along one of five 150-foot conveyors tried
to keep up and crank out finished products.
“We
had finished goods inventory throughout Plant 1 (final
assembly),” says Bradford. “We had finished goods
inventory fenced in on the parking lot. We had it on
trailers and at a warehouse down the street.”
Through
education from the Wisconsin Manufacturing Extension
Partnership, training from Simpler Consulting’s George
Koenigsaecker and knowledge gained from hiring plant-floor
managers from dynamic firms like the HON Company and Stanley
Works, the Ariens Company developed a better, leaner way.
The
company now operates in build-to-order fashion by focusing
on work cells, material flow and parts presentation.
A
new spin on spindles
Spindles for large Gravely brand mowers are a great lean
improvement example. These relatively expensive components
used to traverse the fab plant.
“All
of the machines in the spindle process were in different
places around the shop,” says Hebbard. “They were shared
resources, running many different part numbers. In order to
get any one job done, you had to wait in line.”
Those
responsible for spindles had to maximize the opportunity
when it arose (save time on future orders) by requesting
more stamped parts than needed. That common practice
(everyone did it) created more scheduling problems and
excess inventory.
The
company solved the bottleneck by dedicating the equipment
and building the spindles in one U-shaped cell. The impact?
Prior to the change, the company considered outsourcing the
spindles to a Chinese company at a 45 percent cost savings.
“Our
purchasing people were excited about a big savings, but we
asked them to give us a shot at this,” says Hebbard. “In
one week, we built this cell and did a standard work event.
We’re able to build the spindles, fully burdened, at a
cost that’s 12 percent under the Chinese bid. Plus, we
build only what we need.”
Presenting
the parts
Increased flow and decreased inventory are also achieved
through parts presentation.
“If
you look at any assembly cell, most of the waste is with
people movement and material movement,” says VP Jeff
Strenger. “People walk to go get parts. They turn, twist,
bend. So, we work hard on material flow and parts
presentation. Using a surgical term, we try to keep the
operator operating.”
To
achieve this, four types of materials flow into an assembly
cell (they are no longer forced in):
1)
Hardware: A vendor stocks
these items nightly in a two-bin, point-of-use system. Every
hardware bin has a second bin behind it. When the operator
empties the first bin, it’s placed behind the full one.
The vendor refills the empties.
2)
Painted parts: The painting
area fills kits of painted parts (one orange, one black)
that will be consumed in two-hour intervals. When an
assembly cell uses up a kit, its group leader sends the kit
back to the paint line with an attached order sheet. That
signals the next kit to come down.
3)
Purchased parts:
Supplier-built parts are shipped to the plant. Receiving
moves them into “supermarkets” close to assembly areas.
A water spider (full-time material specialist) picks parts
in two-hour kits and delivers them to assembly stations. The
water spider returns empty kits for refilling.
4)
Plated parts: The fab plant
sends parts in two-hour kits to a local plating company. The
plater packs finished parts in two-hour kits and sends them
to the assembly plant, where they are delivered to the work
area by a water spider. Empty kits return to the fab plant.
Presenting
the carts
Another presentation benefit is found in cells that make
walk-behind snowblowers and lawnmowers.
In
these cells, all of the pieces to build a finished product
are housed on a multiple-shelf, four-wheel cart. As the cart
moves through the cell, the product is assembled. When the
cart reaches the end point, the product is complete and the
shelves are empty. If the shelves aren’t empty (there are
leftovers), that signals an assembly or inventory problem.
“These
carts facilitate one-piece flow,” says Bradford. “You
can’t build more product than you have carts. If you’re
out of carts, you’re done.”
A
side note about the cells: While three, 10 or more people
may work in a cell, every cell is designed so it could be
run by one person. Such a setup allows for flexibility in
manpower and demand (the seasonal nature of snowblowers and
lawnmowers) while keeping the same cell footprint.
Think
small, homemade
To further lean out production areas, Ariens recently began
using right-sizing and moonshining. These lean concepts
(used so effectively in large companies such as Boeing; read
“Boeing
knows lean”) force you to think twice about your
capital equipment needs.
What’s
right-sizing? Many companies (yours included?) purchase
machines to handle any part order, no matter the part size
— large or minute. Usually, machines are sized to the
largest part you’ll ever have, even though 80 percent of
the parts are small in nature. It’s total overkill.
Ariens’
answer is its 80-20 cell (named after the Pareto principle
for separating the “vital few” from the “trivial
many”).
“We
did about 5,000 part numbers in the fab plant last year.
About 800 of them are 90 percent of the work,” says
Hebbard. “What we are doing is routing more and more parts
to this cell. We gave them a tiny laser, a brake press, a
200-ton press, some lathes, some mills and drills, and a
welding booth. They are capable of building most
anything.”
Moonshining
is a Japanese term used to describe low-cost, right-size,
build-it-yourself projects.
This
is found in Ariens’ fab plant, where a cell was built to
make under-the-deck lawnmower baffles.
“Before,
each baffle was independently made. It went from station to
station. Tabs were made on an automatic press and then
welded on,” he says. “During a kaizen event, team
members thought of cutting these out on a CNC press. Then
they built their own equipment and tables for the baffle
rolling and forming. The machine operator, maintenance guys,
and tool and die makers also built their own tooling. Now,
the baffles are done within this one cell.”
Crazy
about kaizen
Through lean principles, Ariens is taking a closer look at
how it does business. Kaizen, as seen in the baffles
project, is an important part of the examination process.
At
any one time, Ariens probably has a kaizen event exploring
ways to remove waste and inefficiencies.
It’s
impossible not to notice kaizen’s presence.
Clipboard-toting teams surround a machine or cell. The
company newsletter includes a two-page centerspread
chronicling team progress and performance. Scores of workers
wear orange “Kaiz-animal” T-shirts.
Last
year, 380 out of Ariens’ 750 employees served on at least
one kaizen team, including 75 who served on six or more
teams.
“People
see being on a kaizen team as part of what they do as an
Ariens employee,” says Strenger. “That shows you how our
culture has changed. It used to be a wait-and-see
environment. Now, it’s a go-and-do-it environment. It’s
the way things get done.”
Hebbard
echoes his co-worker’s assessment.
“Our
first kaizen event came in September 2000. By late 2001, we
had about 150 kaizens under our belt,” he says. “At that
point, people came up to (the plant managers) and said,
‘This isn’t going away, is it?’
The people on the shop floor saw that this wasn’t
the Conway improvement method we had in the early ’90s or
the theory of constraints software we installed back then.
This was different.”
Employees
realized that lean manufacturing was lively and energetic.
Improvement and involvement were apparent.
“When
senior employees with 20-30 years experience tell us that
‘this lean stuff really works,’ we know we are making a
difference,” says Dan Ariens.
When
the company looks in the mirror, it no longer sees an
out-of-shape, on-the-brink, small-town equipment maker. What
does it see?
“It’s
very simple,” says Ariens. “We see that lean and the
Ariens Production System will allow us to continue to
manufacture product here in the United States.”
Learn
more about Ariens
President Dan Ariens will speak about his company's
transformation at "Lean Manufacturing University."
Click here for more information.
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Ariens
employees’ secrets to achieving lean success
How do you increase your odds of achieving success
with your lean initiative? Learn from Ariens.
VP
Jeff Strenger:
“Three things are critical. Bring in experienced
lean practitioners (hire people who have
successfully done it before), have a good advisor
(consultant, sister plant, etc.) and have the
commitment from top management.”
Group
leader Ricky Krueger:
“The (hourly worker’s) buy-in is key. They work
with the product. They know how to make things
better.”
VP
Bob Bradford:
“Have employees visit/benchmark other companies
having lean success. We’ve sent people to HON,
Stanley, Harley-Davidson and others.”
Supervisor
Russ Boldt: “Seek
out (hourly workers) who are progressive, who can
think out of the box and learn new things. Put lean
projects in their hands.”
VP
Jeff Hebbard:
“Put your managers out on the plant floor. The
more time you spend there, the more opportunities
you see.”
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This
article appeared in the October/November 2003 issue of MRO
Today magazine. Copyright, 2003.
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