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Ohio Rod Products

About Ohio Rod Products

A manufacturer slashed lead time in half, eliminated extraneous paperwork, and reduced training time from years to months.

 

Ohio Rod is the industry leader in the design and manufacture of long length and small diameter headed and threaded fasteners. They are ISO 9001-2000 certified and offer FQA (Fastener Quality Act) compliant fasteners.



Business Needs

Current lead times and growing operational expenses had been limiting Ohio Rod from hitting aggressive sales goals for 2007. Increased competition overseas gave rise to a need to pursue higher customer service levels while still maintaining a low cost. Their sales targets also exhibited needs internally to further develop leaders and improve their culture to sustain a continuous improvement model.



 
 Immediate Challenges

There was an internal impression that there was not significant room for improvement. Supervisors were fighting fires rather than trying to improve lead time and productivity, and many felt they lacked the time to dedicate to making change.



 
 Definity Partners Plan
  • Identify the key drivers in the lead time process.
  • Work on quoting and sales items to eliminate waste in the process and support the manufacturing process and new sales acquisition.
  • Develop some quick wins to gain confidence of long-term employees.
  • Determine what the key steps in training new setup people are and implement some improvements.
  • Work on support departments, such as quality and purchasing to support the lower lead time requirements.
  • Implement communication tools to gain ideas and discuss issues that prevented them from meeting their goals.


 
 Results

Energy spread quickly as results surfaced, and soon many more people were sharing ideas and assisting in the process. The results allowed Ohio Rod to better position itself in the marketplace and pursue more sales. They established a confidence level in their sales team to actively pursue new business as they can now rely on the operation to meet customer expectations.

 

Improved communication:

  • Daily huddles in the office and shop floor to keep everyone informed of changes and developments and to solicit ideas and feedback.
  • Tracked production and quality metrics daily to monitor progress and troubleshoot problems. Established paretos or quality problems to allocate resources to resolve reoccurring issues more quickly.
  • Communication boards posted in every department to ensure proper communication channels stayed open and involvement in improvements took place at all levels.
  • Incorporated direct packaging to reduce material handling and increase run time at machines leading to an estimated $70,000 in labor savings. Shifted focus of operators to quality and allowed for more thorough inspection of product and preventative maintenance of machines.
  • Implemented in-process inspection to reduce defects and proactively resolve quality issues as they happen. Converted two indirect employees to direct and setup quality processes at remote plating company to greatly reduce transportation costs and defects.
  • Reorganized “wire room” that houses raw materials allowed for the implementation of packaging kanbans to dramatically reduced inventory levels.
  • Setup ‘milk run’ for material handlers to more efficiently move product in and out of areas. Eliminated operators from having to move material thus spending more time running machines.
  • Created and introduced scheduling that gave further visibility to sales associates to proactively communicate to customers on order lead times and delivery expectations. Real time information along with a locked 5 day schedule gave management ability to monitor productivity and progress each day and better suit them to make decisions on overtime.
  • Worked in purchasing to develop tools to help them be more effective in their day-to-day activities. Supplied them with a purchase order tracking mechanism to increase communication and visibility to other employees on delivery of raw materials and other supplies. Also developed an MRP system to manage raw materials more effectively, assess usage and obsolete inventory, and monitor inventory turns. Estimated inventory savings is over $450,000 in the next year.



 
 The Figures
  • Reduced lead time 54% from 35 days down to a 15 day working average. Overall reduction of WIP and FG inventories estimated to save over $400,000 over the next year.
  • Reduced machine setup times by 25% and simplified training process for setup personnel. Overall training period reduced from 5 years to just 3-6 months.
  • Reconfigured packaging and shipping areas to increase efficiency of process and utilize floor space more effectively. Reduced headcount in department by 20%.
  • Completed a week long kaizen event in the accounting department to incorporate cost accounting and streamline processes. Reduced data entry inputs from 26 down to 5, eliminated the need for production cards, and eliminated 14 unnecessary reports.
  • Reduced order entry lead time from up to 7 days to only 1 day.
  • Streamlined the quotation process and reduced a 25 step process down to 3 to provide quicker response time to customers.

 



 
 Continuous Improvement
  • Ohio Rod was able to target key people willing to extend into other areas to continue making positive changes
  • Added 39 new customers in 2007.
  • Completely redid their floor layout that consisted of moving over 20 pieces of machinery, which will lead to better productivity for the operators and improve the quality processes.
  • Implemented new ERP using the “simplify, standardize, automate” approach to create a new system that will allow them to decrease the labor necessary to load, schedule, and track work through the plant. 
  • Coordinated activities between heat treating and shipping to eliminate redundant steps.

 



 

 

What they had to say

“Ohio Rod Products is on track to grow between 10-20% annually for the next several years due to new business and increased capabilities!”

-Jeff Liter Manufacturing Today (July/August 2007)

 

Definity was key in improving our systems and processes - getting a lot of waste out - before we could think about implementing a new ERP system. Definity and Lean had to be done first! Without this being done an ERP implementation at a company like ORP would have most likely have been one of those "disasters" we all hear about.
-Duke Hamm, CFO

 

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