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Karl
Walinskas is vice president of the Engineered Material Handling
Solutions division at O.A. Newton, a Delaware-based firm that
specializes in delivering smarter material handling solutions
for manufacturers in the plastics, composites, rubber, food
and other powder-challenged industries. He is a former trainer
in lean manufacturing techniques.
How do you explain lean manufacturing?
Lean manufacturing is just a nice name for smart engineering
in all facets of the business. It starts with the lean philosophy
- you want every step in the process to add value to your
product, and you want to eliminate the steps that don't.
What companies are most likely to benefit from learning
lean techniques?
It can be beneficial for manufacturing businesses with $5
million to $50 million in revenues, anywhere from 20 to 500
employees. These companies are often behind the curve because
they don't have large teams of engineers to keep them ahead.
Some of these companies have been around since the days of
Henry Ford, essentially doing the same thing year after year,
then all of a sudden wondering why they're challenged and
their profit margins are eroding.
When you take a closer look, you find antiquated systems,
antiquated processes and people who basically spent their
entire life inside the same company and don't know any different.
What's the risk to companies that resist lean techniques?
They can fall behind, and start losing market share. If they
have to start laying people off, employees get confused and
angry. They might think management screwed up but they don't
see that it might have something to do with the fact that
it takes three days for them to bend a piece of metal instead
of three minutes.
Every company thinks they're different, that they have different
problems, that their process is sacred. Very little of that
is true. All companies make stuff, whether it's a product
or a service, hardware or software; you can rip out the inefficiencies,
get rid of waste, get rid of useless paperwork.
When you worked as a trainer, was it hard to convince
employers and managers to make the transition to lean?
Sometimes it takes a lot of time. It's particularly difficult
when you've got employees who've never worked anywhere else,
who haven't seen that there might be better ways to do things.
If they don't know any better, they think that everything
is working fine.
Tell me what O.A. Newton does and why it adopted the lean
philosophy.
Our business is moving stuff, large quantities of stuff. About
75 percent of our business is in bulk solids. When you see
great big silos along the side of a plastics plant, the silos
are ours, and so is the entire system that takes raw materials
out of a rail car and puts them in the silo and mixes them
and blends them inside the plant. We also have an irrigation
division that provides systems that moves large quantities
of water for farms, schools and horseracing tracks.
I brought lean from my prior life as a trainer, and we used
outside consultants to help. We had the great traditions of
a family-owned business but recognized that there were many
things we hadn't changed in years.
What were some of the changes you were able to implement?
We streamlined and simplified the way we engineer our drawings.
These improvements allow us to spend more time on engineering,
and that has cut manufacturing time by 50 percent. We also
figured out that it was more efficient to outsource our manufacturing
-to someone who leases space on our site. Even in the offices,
we've reorganized our layout, even the way we label our file
folders to make them easier to find. We also got rid of the
packrat stuff. We had records from 1955, just in case a customer
wanted an old part. It would have been a major research project
to sell a $100 item. We decided that we didn't need that business.
How are you doing so far?
We're getting there, but it's always a work in progress. You're
never all the way there, because there's always something
you can do better.
How are customers responding to the changes?
We supply a product to companies. We're trying to give them
a better experience. We're learning that customer demand for
faster, getting the same product in less time, is always there.
We're making strides in delivering more rapidly by reducing
wait time, queue time and process time.
Where can companies go for help in transforming to lean?
Most states have groups like the Delaware Manufacturing Extension
Partnership (DEMEP). There are seven in Pennsylvania, including
the Delaware Valley Industrial Resource Center (DVIRC) in
the Philadelphia area.
DEMEP tells me that every dollar spent on training brings
an average $50 return in savings. Can we believe that?
If the companies embrace and implement the concepts that training
in lean manufacturing brings, then it's believable. However,
the reality I've experienced is there's only so much you can
do as a consultant and most organizations tend to lapse back
into some of their old habits. When you go lean, you need
a manager driving the process, an internal champion who makes
sure it's going to happen.
For more information on lean manufacturing, go to www.demep.org.
To learn more about O.A. Newton, go to www.oanewton.com.
Write to Karl Walinskas at karl.walinskas@oanewton.com
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