Canadian Region Multilin Workshop May 14-15: Change, Choice, and Continuous Improvement Tom Bechtel and Dan McDonnell Are you and your employees ready for change? If you're interested in hearing how an electronics company successfully implemented the change to production work cells, the Multilin workshop planned May 14-15 in Toronto, Ontario will provide a close look at positive means to prepare for - and implement significant work place organizational changes. What you'll learn: 32 Target • How to simplify processes to begin and sustain your manufacturing excellence journey • Steps to get your managers and employees ready for change • How process changes can bring improvements in cycle time, WIP reduction, on-time delivery, and other areas. Focus on World·Class Manufacturing Multilin, a division of Derlan Industries, began what they call the "path to empowerment" in its continuous improvement journey starling in early 1991. After seven years of growth, management saw few problems on the horizon, except for an outside firm's assessment that manufacturing processes didn't match world-class standards. They focused on one product (a "269 motor protection relay"), About Multilin implementing alIT work cell approach. With.Multilin designs and manufactures electronic motor and feeder riYl,YifJI,M(Ql,k in a few months, they achieved dramatic cycle i1dustrial markets in North America, England, Australia, Mexico, and Asia. The Derlan time, WIP reduction, etc. improvements (see 'industries subsidiary won an award of merit in the 1989 Canada awards, and in 19~Q, the following box "About Multilin"). '~eceived the supreme award for the best new product at the Electrex show in Englan~ What accounted for their early success? A ", After starting a pilot work cell using JIT concepts in early 1991, Multilin achie@ brief account of the path to empowerment as fast results by the end of the year: ,,,practiced at Multilin follows. Manufacturing cycle time (from receipt of kit to product ship) decreased from llill\: 1. Awareness Is the Beginning weeks to four d a y s . ' The first step in generating mterest in • Customer-quoted leadtime (from order receipt to ship date) declined from fi\l~ change is becoming aware of your current staweeks to less than one week. ,., tus and other possibilities. Awareness may be • WIP decreased 75 percent of opportunities or issues. Multilin's manageFloor space dropped 40 percent " ., ment, for example, sought higher marks in On-time deliveries, at 95 percent in early 1990 with make-to-stock production, world-class manufacturing. dropped to 55 percent when orders increased in late 1990 and early 1991; then tIlll' rate rose to 96 percent in late 1991, even with the transition to make-to-ordtf' 2. Enlighttlnmtmt production. Effectively done, a study, survey, or other ., Teamwork improved. form of documentation will help to turn the ," Multilin continually sets even higher performance targets. The scope of work cell haze of awareness into the glow of enlighten~perations continues to evolve. Come to the May 14-15 workshop to hear about ment. Multilin found that its delivery perfor.~cesses - and some the way. mance crashed when sales escalated, signaling the need for change. 3. VIsIon Multilin management had to figure out how to get through its positive crisis (coping with sales increases) to become a stronger organization. The secret was that top management accepted the challenge, with the company president, Norris Woodroff, as champion. 4. Commitment search for seriousness - that most precious trait that phil Crosby warns us is critical to success. Calion an internal or external professional resource or your customers - to confirm your vision. Multilin used the services of an outside consultant. 5. Focus With limited resources, a company's strategy must be selective. Multilin chose its top-selling product line for a lIT pilot. The only mistake: starting at the point of kit receipt for assembly. Soon after the project started, materials people were brought into the pilot team. 6. Inro/lftHlllllJI Choose team leaders and members who share your improvement dreams. Multilin selected a pilot team leader for her interpersonal skills, and 12 other team members from the shop floor assembly and test areas. Flowcharting, facilitated by an outside consultant, helped team members understand Multilin production flow and how to simplify processes. 7. Underslanding Formal training demonstrates the company's investment in the change process and builds understanding of change. During halfday training sessions on lIT, TQC, planning, and teamwork, Multilin's pilot team members shut down their production process. Senior management joined the class. 8. Planning Goals should be consensus-derived, specific, measurable, and achievable. The Multilin pilot team hammered out a new layout and process improvement goals through a series of discussions - a tough job. g. I'tIIftmnBncs Performance can only be effectively measured if fence posts have been put in the ground. 1\vo key issues: What to measure? What is good performance? Within the first two weeks, the Multilin pilot team changed its layout three times. Within four months, signifi- cant, measurable improvements were recorded (see the accompanying box). 10. Communicalion Talk and listen with respect, suggested Multilin managers; clarify, challenge, provide feedback, decide, and think with openness and fairness. Employees at Multilin work to improve communication skills every day. Registration information for tbe MIlY 14-15 Multilin lIJorllsbop (II reception lIJill be Wednesdlly evening, May 13) is IIvlIl1l1ble by CII/Ilng AIlE lit 70815203282. Tom Bechtel is president of Next Step Business Education Ltd., a Toronto area training and consulting firm focusing on DRP, MRP, ]ff!T{JC, and continuous improvement techniques. Formerly of Nortbern Telecom Canada, Mltel, GE Canada, and General Electric, he has 18 years' experience in manufaduring management and human resources development and training. He is a graduate electrical engineer and is certified by APICS (American Production and Inventory Control Society) at the fellow level. Dan McDonnell is vice president of manufaduring at Multilin. 33 March/April 1992