VISUALize the Rebound – Graphicast’s Path Through the Dark Recession Forest

Graphicast, Inc. Founded in 1978 Located in Jaffrey, NH Contract manufacturer of machined, zinc alloy castings In-house design, mold making, casting, machining capabilities Proprietary, graphite mold casting process creates high density castings with exceptional surface finish Most applications are high valued added machine components

Founded in 1978

Located in Jaffrey, NH

Contract manufacturer of machined, zinc alloy castings

In-house design, mold making, casting, machining capabilities

Proprietary, graphite mold casting process creates high density castings with exceptional surface finish

Most applications are high valued added machine components

A Long Time VISUAL User Implemented VISUAL in July 1999 The impetus for selecting VISUAL was the scheduling capability VISUAL consolidated all operational and financial activity We developed numerous Crystal reports running off the VISUAL database Provide detailed analysis of sales, financial, and operational information for fine tuning the business

Implemented VISUAL in July 1999

The impetus for selecting VISUAL was the scheduling capability

VISUAL consolidated all operational and financial activity

We developed numerous Crystal reports running off the VISUAL database

Provide detailed analysis of sales, financial, and operational information for fine tuning the business

Some Scheduling Problems Persisted The machine shop was booked solid 8 weeks in advance Normal shop floor issues wreaked havoc with the schedule The schedule wasn’t pulling jobs in if previous jobs finished early Rush orders were very disruptive to the schedule and caused late shipments The schedule tried to break into jobs to improve lead times Ultimately, the schedule was not able to efficiently reflect the nature of our business. We needed a different scheduling solution. Fortunately, we found the solution just before the economy collapsed.

The machine shop was booked solid 8 weeks in advance

Normal shop floor issues wreaked havoc with the schedule

The schedule wasn’t pulling jobs in if previous jobs finished early

Rush orders were very disruptive to the schedule and caused late shipments

The schedule tried to break into jobs to improve lead times

Ultimately, the schedule was not able to efficiently reflect the nature of our business. We needed a different scheduling solution. Fortunately, we found the solution just before the economy collapsed.

What’s behind Lean Scheduling Lean scheduling is based on Goldratt’s Theory of Constraints (TOC) introduced in the business novel, “The Goal” Utilizing TOC in production Identify the constraint that limits the throughput of the system Relieve or eliminate the constraint to free the system to operate at its peak level If you have a production constraint, add extra shifts, add a second machine or use unconstrained machines to produce the same part If you have a “between the ears” constraint, change restrictive policies and procedures If you have a market constraint, increase throughput (sales revenue)

Lean scheduling is based on Goldratt’s Theory of Constraints (TOC) introduced in the business novel, “The Goal”

Utilizing TOC in production

Identify the constraint that limits the throughput of the system

Relieve or eliminate the constraint to free the system to operate at its peak level

If you have a production constraint, add extra shifts, add a second machine or use unconstrained machines to produce the same part

If you have a “between the ears” constraint, change restrictive policies and procedures

If you have a market constraint, increase throughput (sales revenue)

What’s behind Lean Scheduling - continued TOC scheduling relies on three components “ Drum” – The pace of the “constraint” “ Buffer” – Some amount of WIP or time that protects the constrained component “ Rope” – A signal to upstream operations to release work into the system TOC thinking is consistent with Lean and Six Sigma Use TOC to focus on constraints Use Lean or Six Sigma techniques to improve and stabilize operations

TOC scheduling relies on three components

“ Drum” – The pace of the “constraint”

“ Buffer” – Some amount of WIP or time that protects the constrained component

“ Rope” – A signal to upstream operations to release work into the system

TOC thinking is consistent with Lean and Six Sigma

Use TOC to focus on constraints

Use Lean or Six Sigma techniques to improve and stabilize operations

System With an External Constraint Market too small for your capacity – the constraint DRUM ROPE Work Order Release SHIPPING BUFFER - TIME

The Impact of Lean Scheduling Lead times dropped to four weeks from sixteen weeks Practically eliminated overtime Savings of about $100,000 per year Went to four day work week Bonus to employees for losing overtime Reduced electric bill by 15%

Lead times dropped to four weeks from sixteen weeks

Practically eliminated overtime

Savings of about $100,000 per year

Went to four day work week

Bonus to employees for losing overtime

Reduced electric bill by 15%

The Impact of Lean Scheduling - continued Reduced Inventory by 30% Freed up about $100,000 of cash Effectively doubled plant capacity Overall plant utilization is about 50% Plenty of capacity to handle rush orders without impacting on-time deliveries No increase in equipment or employees needed to grow Major issue is now increasing throughput

Reduced Inventory by 30%

Freed up about $100,000 of cash

Effectively doubled plant capacity

Overall plant utilization is about 50%

Plenty of capacity to handle rush orders without impacting on-time deliveries

No increase in equipment or employees needed to grow

Major issue is now increasing throughput

A minimal amount of oversight day to day Simple reports VISUAL Planned Load VISUAL Resource Operations Buffer Status Plant Wide Buffer Status - Crystal Simple scheduling Floor supervisors decide where to run jobs Minimal management involvement

Simple reports

VISUAL Planned Load

VISUAL Resource Operations Buffer Status

Plant Wide Buffer Status - Crystal

Simple scheduling

Floor supervisors decide where to run jobs

Minimal management involvement

A minimal amount of oversight day to day - continued Lean Scheduling efficiently reflects our day to day operations Rapid changes Rush orders Capacity planning Very quick “what-if” analysis Increasing or decreasing bookings Impact of overtime, personnel levels, vacations or absences We do not have a scheduling person

Lean Scheduling efficiently reflects our day to day operations

Rapid changes

Rush orders

Capacity planning

Very quick “what-if” analysis

Increasing or decreasing bookings

Impact of overtime, personnel levels, vacations or absences

We do not have a scheduling person

“ Driving Business Innovation to Improve Business Performance” Savings From day one of the Lean Scheduling transformation Payback 2 ½ months for the entire investment in Lean Scheduling Fingertip Information Lean Scheduling gave us a rapid and efficient response tool to the current economic crisis Recognition Graphicast received a 2009 PM100 award from Managing Automation Media for the Lean Scheduling project “ Progressive Manufacturing” awards were bestowed on the 100 companies deemed to have most effectively used innovative methods to improve business performance.

Savings

From day one of the Lean Scheduling transformation

Payback

2 ½ months for the entire investment in Lean Scheduling

Fingertip Information

Lean Scheduling gave us a rapid and efficient response tool to the current economic crisis

Recognition

Graphicast received a 2009 PM100 award from Managing Automation Media for the Lean Scheduling project

“ Progressive Manufacturing” awards were bestowed on the 100 companies deemed to have most effectively used innovative methods to improve business performance.