Tuesday, August 27, 2013

Material Waste Reduction - Example

From the Chapter

Operational Excellence: A Manufacturing Metamorphosis at Western Geophysical Exploration Products
by Mark F. McGovern and Brian J. Andrews
in Becoming Lean - Inside Stories of US Manufacturers by Jeffrey K. Liker
Google Book Link - http://books.google.co.in/books?id=xBHVjF8NsOMC

At each step in the cabling process, extra cable is being manufactured for uncertainty in the downstream operations, as a longer cable can be cut as required and shorter cable would become waste. But in the lean mindset this notion was challenged.

The team started collecting the data. Analysis showed that significant amount of money is wasted in creating extra long lengths. The finished cable needs to be 1250 feet. Two most expensive elements of the cable are being bought in lengths of 1450 feet. Though analysis of the data, the purchased length was adjusted. The annual savings of this one improvement saved more than $320,000 for WGEP.

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