Kaizens

In mid 2002, Atlantic began studying the benefits of kaizens.

In addition to attending quality meetings and reading the classic, "Lean Thinking" by James Womack, three key managers participated in kaizens at a local manufacturer, American Saw.

Later, more than a dozen managers toured The Wiremold Company, a West Hartford Connecticut manufacturer, which has been running kaizens since 1991 and is considered a leader in the U.S.

The productivity improvements and efficiencies gained by American Saw and Wiremold provided the incentive for Atlantic to start its own program.

In the spring and fall of 2003, we hired a facilitator and ran two kaizens. Our current goal is to run at least four each year.

Here's what we’ve gained through our kaizens:

Date
Kaizen topic
Goal
Improvements made

Jan. ‘07

Order entry error reduction

Reduce order entry errors by minimum 25%

  • Added freight collect number field to main order entry screen to more easily identify discrepancies with standard instructions
  • Added warning message to order entry screen to ensure that CERTS accompany orders
  • Changed standard instructions to more clearly read "No Bulk Boxes" instead of "Box Quantity Only"
  • Retrained customer service on proper way to enter part numbers/quantities and communicate with customers

Dec. ‘06

Stock put away

Eliminate misplacement of stock. Improve put- away process. Establish standard procedure

  • Fixed license plate put-away program for everyday use
  • Replaced old scanners with new ones to minimize downtime due to malfunctions and to triple scanning speed
  • Rewrote put-away procedure to include all options within process

Sept. ‘06

E-item

Reduce “exclusive” inventory stockouts by 50% while maintaining turn rates  

Reduced E-item stockouts 80% through methods such as:
- removing Min/Max = 0 entries from stock out list 
- using “thaw” date to re-evaluate Min/Max = 0 
- applying reserve feature to secure parts for customers
- reevaluating Min/Max when re-buys occur
- using “Purchase Parameter Skipped Report” to re-evaluate Min/Max

July ‘06

Secondary operations

Automate process

  • Created computerized process to replace hand written P.O.’s  
  • Gained access to order history for quick referencing
  • Sped up payment process to secondary operation vendors
  • Simplified access to open orders for secondary operations
April '06
Imaging
Reduce scan time by 50%
  • Modified software to let multiple sales order numbers get entered against one scan. Eliminated rescanning of same document and reduced scanning time by 20%
  • Added bar code to automatic data entry forms, eliminating misreads and extra work. Cut scan time by 10%
  • Set up spare imaging workstation for 30 day trial to encourage more use and minimize disruptions to current workstation licensees
  • Trained employees on scanner use, proper orientation of documents to be scanned and staple removal
  • Purchased new scanner that's 2.5 times faster
Jan.'06
Disaster planning
Set parameters of long term plan
  • Met with electrician and emergency power vendor to determine current load and capacity of existing four cylinder natural gas backup generator
  • Analyzed feasibility of manual order processing and decided on purchase of backup computer server
  • Added and reconfigured POTS lines as backup to T1 PRI phone circuit
  • Initiated plan for home working through cable/DSL connections and VOIP technology
July '05
Warehouse space
Free up 20% more warehouse space
  • Identified 29% more potential stocking locations through: 1) accurate count of open locations. 2) by consolidating empty/partially used locations. 3) by throwing away dead stock -- items not purchased or sold in the last five years
  • Developed an annual dead inventory disposal plan with an area recycling company
  • Earmarked Accounting storage file boxes for dumping
  • Designed plan for adding storage racks to mezzanine and bins to back warehouse wall
Mar. '05
Broken (partial) box management
Determine best method to manage broken box process
  • Changed software to produce more efficient pick list sort process, storage bin sort sequence, and allocation rules
  • Established new broken box staging area
  • Formalized process to return broken boxes to proper area
  • Combined broken boxes into full boxes, where possible, to free up space
  • Created process to combine boxes daily as partials arrive at broken box area
Dec. '04
Accounts payable
Increase efficiency
Eighteen changes included:
- having Receiving sort packing slips and bills of material alphabetically for Accounting
- streamlining the check running process to reduce trips between buildings
- adding short cut commands to software
- routing Certs of Conformance directly from receiving to inspection
- providing the Warehouse with a check allotment to speed up COD processing
Sept. '04
Expediting
Streamline and increase effectiveness
  • New Vendor Delivery Date Change report produced for Customer Service so they can notify customers of changes and then record dates on orders. This allows for more accurate customer shipping performance data
  • Correct dates in system boosts the accuracy of our vendor on-time delivery reports, too
  • Original promise date added to Expedite report for more efficient expediting
  • Software altered to automatically populate the promise date on our P.O.’s
Oct. '03
Quote turnaround
Improve electronic quote turnaround time
Achieved 68% improvement, initially by:
- streamlining the use of electronic mailboxes
- creating a new electronic messaging system between sales and purchasing
- moving the fax machine so it's easier to spot incoming faxes
June '03
Warehouse
Identify and remove bottlenecks
  • Moved UPS receiving location for smoother operation and instituted new rules for limited interruption of Receiver. This allowed for receipt of a day’s worth of deliveries within a day
  • Purchased larger size carts for more efficient put away
  • Reorganized work stations for cleaner, more efficient operation

 

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