P L A NT T OU R S Y NO P SI S : M A C K A Y M A NU F A CT U R I N G “ L EA N T O U R ” 2 3 F E B 20 0 7 Society of Manufacturing Engineers Inland Northwest Chapter 248 • Spokane, Washington SME and the Inland Northwest Lean Management Consortium jointly attend a Spokane Lean Program and Plant Tour at MACKAY MANUFACTURING ————— Case History/Plant Tour – Spokane, Washington., Feb 23, 2007 by Dave Davidson. Photos by Tyha Davidson INDEX TERMS: BACKGROUND: On Jan. 25, 2007 the Society of Manufacturing Engineers was invited to attend SME Lean Enterprise a meeting of the Inland Northwest Lean Man- http://www.sme.org/cgi-bin/ agement Consortium (referred hereafter as communities.pl?/communities/techgroups/ “LMC”) held at the SIRTI (Spokane Intercolle- lean_mfg/l_m_e_o.htm&&&SME& giate Research & Technology Institute) facilities located in the Spokane Riverpoint University Lean: Wikipedia District area. http://en.wikipedia.org/wiki/ The meeting had been arranged at the sug- Lean_manufacturing gestion of SME member John Dickson, who also serves on the executive committee at LMC. The Lean Management Consortium Lean Management Consortium is an independ- http://www.inlandnwlmc.com/ ent association of companies in the Northwest Figure 1 — Mike MacKay, President, who meet regularly in Spokane to share best Lean’s American Origins: WWII and discusses the impact of his company’s practices and practical applications information the TWI story... lean journey on operational efficiency, on “Lean”. (For some basic “Lean” information, http://chapters.sme.org/204/ employee empowerment and involve- check the links shown in the column to the far TWI_Materials/TWIPage.htm ment and of course: the bottom line. left). AT the January 25 meeting a presentation was made by SME’s regional membership manager, P L A N T T O U R SY N O PSI S : Bruce MacKender about SME’s robust lean pro- MACKAY gram that includes a national based Lean inter- M A N U FA C T U R I N G “ L E A N est group that is part of SME’s technical com- munity structure, and SME’s Lean Certification TOUR” 23 FEB 200 7 program that was developed in concert with AME (The Association of Manufacturing Excel- Inland NW Chapter 248 Contacts: lence) and the Shingo Prize organization (which confers prizes to companies demonstrating Vice Chair: Tony Wisniewski “lean” excellence). Dave Davidson, current Chair-Elect: Douglas McGuire Chair of SME’s Spokane Chapter 248, also ad- Treasurer: Robert Ladd dressed the LMC group regarding the possibility of joint plant tour events with a “Lean” empha- Secretary: Dean Croskey sis. Newsletter: Dan Tabish SME then approached Mike MacKay, Presi- Webmaster: Matt Feider dent of MacKay Manufacturing located at E - 10011 Montgomery Avenue in Spokane regard- http://chapters/sme.org/248 ing a tour of the MacKay facilities that would highlight the lessons learned in putting lean into 2007 Chair: David A. Davidson practice during the company’s multi-year lean Deburring/Surface Finish journey. Figure 2 — John Dickson, currently Corpo- MacKay Manufacturing maintains a modern Specialist rate Solutions Manager for Dale Carnegie, 30,000 square foot climate controlled facility VoiceMail: (509)-230-6821 explains how both the human and technical with a staff of over 80. The company manufac- challenges of lean implementation were met (e): email@example.com tures high-end precision components for medi- at the Boeing F/A-22 program he managed cal and surgical applications, electronic shield- www.deburringsolutions.com in Seattle. SEE ALSO: Manufacturing En- ing assemblies, vacuum pumps and gineering article" Lean Fighter” appended.
P l a nt to u r sy n op s i s : M acK ay M an u f act ur i ng S M E C h a p t e r 2 48 “ L ea n T ou r” 23 Fe b 2 007 D. A. Davidson [ed.] SME Plant Tours — Collaborative opportunities for cross-pollination of ideas for manufacturing, business and lean process implementation... PAGE 2 a host of other machined components and screw machine parts. The company’s manufacturing capabilities include: CNC Machining/Milling and Turning,, Prototype Machining, Laser Welding and Engraving, with extensive deburring and finishing as well as quality assurance inspection capabili- ties. Over fifty SME and LMC members gathered at the MacKay Manufacturing lunch room to hear a presentation by Mike MacKay on the company’s lean journey, followed by John Dickson’s review of Boeing’s experiences with Lean with its F/A-22 Raptor Fighter program. Mike’s presentation charted the MacKay experi- ence from recognition that stagnating sales and declining profit margins during the early 2000’s forced the company to rethink of its operating practices and look at “lean” as a possible way of recasting itself. A lean consultant was engaged, and the first department to undergo a Lean over- haul was the packaging and shipping department.Figure 3 — Mike MacKay discusses lean implementation on the factory floor with Dubious of the potential for payback, given theJim Randall , Vice President of Kim Hotstart a Spokane manufacturer of diesel fuel consulting project costs, Mike nevertheless sawpre-heat components, and Bart Kleng, assistant Vice President at Mountain West the first project through to completion He wasBank. pleasantly surprised to find that the now lean de- partment not only met the expectations and goals the consultant set, but exceeded them. The de- partment was now shipping more items, with less error and less work in progress, with less floor space and fewer employees. Mike was impressed. Next on the agenda, was the combination de- burring and quality assurance department. This project exceeded expectations as well. The ap- proach of implementing lean by focusing attention on one plant area or department at a time was astute, and in no small measure contributed to the overall success of the company’s lean transforma- tion efforts. The approach permitted the company to “learn lean” and “see lean”; it assured manage- ment buy-in and long term commitment because of the incremental but obvious and measurable preliminary successes. These completed pilot or model projects, initially undertaken in conjunction with an outside consultant and subject matter ex- pert, also supplied the company with the neces- sary internal knowledge-base to complete a com- pany wide lean makeover with primarily internalFigure 4 — MacKay lean specialist Tom Allyn is talking to Matt Feider (a past SME resources.chapter 248 chair) and others including Mike Schneider of Washington Manufacturing As the company went through its lean “initiation”Services. Note the cart with the checkered flag which is part of MacKay’s lean visual with kaizen and 5 S application, Mike explainedaid system, parts are placed on carts with either yellow, green or checkered flags to that many previously held assumptions wereindicate their work-in-progress status.
P la n t t ou r s y n op sis : M a cK a y M a n u fa c t ur ing S M E C h ap ter 24 8 “ L ea n T ou r” 2 3 F e b 2 0 0 7 D. A. DAV IDSON (ED.) MacKay Manufacturing — Success has come from deploying the human side of lean while pursuing lean enhancing technology (i.e. hi-energy deburring) PAGE 3 challenged. Among other things, the company saw the employee tool-box as an impedi- ment to effective 5 S implemen- tation. Employees were encour- aged and even paid to take their tool boxes home and use only company tools that had been arranged in accordance with 5S principles in their specific work area. Another sacred cow that soon fell beneath the “lean” axe Figure 7 — This HZ-120 Centrifugal was the company’s practices Barrel Finishing Machine, when fully with regard to what was consid- deployed will give MacKay one of the ered operationally necessary for most sophisticated edge and surface work -in-progress inventory. As finish capabilities in the Northwest. customer pull and lean practices This type of equipment is utilized in the were adopted, the company aerospace, medical, electronics, jew- found that the money tied up in elry, bearing and high performance automotive industries to meet exacting wip inventory dropped by 50%, surface finish tolerance requirements. freeing up substantial amounts of operating cash. Taking the philosophy to the next level, manage- ment and employees, with keener lean eye-sight now iidentified other materials and equipment within the plant that were not really adding value to current operations. The result: the company spon- sored a garage sale on E-bay that not only removed the offending objects and materials, but essentially funded expenses connectedFigure 5 — MacKay’s 5S Lean specialist discusses how 5S has with the original lean consultant.impacted the company’s deburring cell, significantly reducing A Dual Track Strategy for Lean Success: “Technical/Organizationalcosts while increasing through-put simultaneously Lean” coupled with the “Human Side of Lean”. ————————— Much of lean is based on the Toyota Production System (TPS). One of its key elements is recognition that to work, the program must have not only wholehearted buy-in by management, but will- ing and enthusiastic participation by those most affected — the employees. Often referred to as the “human side of lean” this is an area where many lean implementation efforts fall short and the initiative fails to catch fire and dies a slow death. Data collected by the Society of Manufacturing Engineers suggests this is a consis- tent underlying weakness among almost all major American corpo- rations. As a generalization, while personnel and human resource related costs often represent 75% of total costs, training budget are often less than one percent. This is in stark contrast to current practice among their European and Asian counterparts, and is a major contributor to the continuing deterioration of an already blunted American competitive edge. The MacKay lean experience is an object lesson as to what can be achieved when organizations make the most of their human assets. In a lean context, this in-Figure 6— SME members Dave Davidson, Bob Ladd and Doug volves providing them with the necessary training to optimize theMcGuire discuss the company’s lean deburring efforts. A newly “human-relations skill set” critical to leading a “lean” culturalacquired centrifugal finishing machine is expected to reduce de- change witin the organization. The MacKay approach has involvedburring time on these complex components from 8-9 hours of man- sending leaders and key employees for intensiveual deburr to a few minutes and 20 minutes of machine time. SMEmember John Dickson was able to introduce SME member David-son, a deburring and finishing specialist, as a technical resource
P l a nt t our s y n op si s : M ac K a y M a n uf ac t ur i n g S M E C h ap ter 24 8 “ Le a n T our ” 23 F e b 2 00 7 D. A. DAV IDSON (ED.) MacKay Manufacturing — Implementing Lean Principles has permitted the company to grow substantially without facility or work-force expansion... training and coaching in these interpersonal and communica- tion skills. Enter John Dickson. Mike MacKay then intro- duced John as a resource the company is using in this effort. John, a long time SME member, recently moved to Spokane from Seattle where he lived an interesting double life. By day — an engineering management leader responsible for leading 600 managers and employees in a major lean effort at the Boeing’ Phantom Works facility in Seattle. This is where fuse- lage and wing assemblies for the Air Force F/A-22 Raptor are built. By night — an instructor for Dale Carnegie, imparting communication and people management skills to many of the same people he managed during the day. This two-fold approach served Boeing well, and over the course of a multi- year lean program dramatically reduced man-hours, costs, tooling and on the floor work-in-progress times while simulta- neously facilitating production levels and delivery schedules not possible under the pre-lean regime. Key to the success of this effort was the preparation and training given to keyFigure 8— Jim Whanger from Goodrich Industries and an executive individuals to overcome the resistance to change that can becommittee member of the Lean Management Consortium listens as Mac- expected in efforts of this type. MacKay Manufacturing hasKay lean specialist Don Salzman explains lean production, product flow embraced the same approach, and instead of using “lean” toand w0ork-in-progress lean practices. cut costs, has made it a cornerstone of its growth strategy. Society of Manufacturing Engineers— A Networking Resource for the techni- cal side of Lean. SME is an important resource not just for its lean information and certification programs but also for the technical knowledge in its libraries and in the heads of its members. The Society organizes its membership in two distinct ways, (1) technical communities and groups, where members network in their own field, and (2) chapters such as Spokane Chapter 248 where local members from different disciplines can meet and network. John Dickson, who was familiar with operations in the MacKay deburring department was able to enlist deburring specialist Dave Davidson from Spokane to assist in specifying methods for automating tedious and time consuming deburring procedures that were production bottlenecks.Figure 9 — MacKay Lean specialist Kelly Browning explains Figure 10 a, b, c — MacKay provides contract manufacturing services tooperation of one of the companys machining centers and a wide variety of companies in North America and Europe, shown herehow lean principles have impacted machining production to are components representative of work they do for (a) electronic shieldingtwo members of the Inland Northwest Lean Management and assemblies (b) medical, surgical components c) vacuum pumpsConsortium, based in Spokane, WA.