The Company
Industrial Supply Corporation (ISC), a distributor of Maintenance,
Repair and Operational (MRO) supplies, has seen steady growth since
its inception in 1933 in Richmond, Virginia. Throughout that time,
the company has opened new offices and extended its product lines
and service area by acquiring several industrial equipment and component
vendors. The Richmond headquarters employs a staff of approximately
50 people.
The Situation
In 2003, a major customer of ISC, Northrop Grumman Newport News
(NGNN), deployed a strategic, nationwide program with GENEDGE ALLIANCE
to extend the development of lean manufacturing concepts and methods
to its suppliers. NGNN uses lean tools to support process excellence.
ISC agreed to participate in the Lean Supply Chain Management Program,
which continues to generate significant improvements in quality,
delivery, and shared cost reductions for NGNN and its suppliers.
The Response
GENEDGE ALLIANCE Project Manager Mark Oakes observed a typical work
day at ISC Warehouse in Richmond and reported that immediate decreases
in wasteful processes and disruption of flow would result from greater
use of visual aids and work documentation. Oakes and GENEDGE ALLIANCE
Project Manager Denis Klisz facilitated a workshop for the staff
on 5S Visual Systems and Workplace Organization. The 5S program
is a methodology for organizing, cleaning, developing, and sustaining
a productive work environment and consists of five component parts:
Sort, Shine, Set in order, Standardize, and Sustain.
ISC took action by creating standardized labeling
– some static, others portable or erasable; and creating signage
to monitor and emphasize customer service and quality metrics, as
well as department accuracy. Methods improvements were also implemented
to improve order preparation and material sorting and storage practices.
Oakes determined that layout improvements could
reduce travel time as well as minimize or eliminate double and tripling
handling of material.
The Results
ISC’s implementation of 5S procedures and layout improvements
resulted in an increase in business of $100,000, in addition to
providing a savings in labor costs of $10,000.
ISC’s implementation of 5S procedures and
layout improvements resulted in:
- an increase in business of $100,000;
- and a savings in labor costs of $10,000.
Management's Comment
"To be honest, we were a bit skeptical in the beginning because
the program seemed designed more around manufacturing and we are
a distributor. But they made some very useful suggestions that were
relatively easy and inexpensive to implement. Some of them were
pretty simple but many times it takes an outside eye to observe
things that you can’t see internally because you are so busy
with day to day that you don’t stop to notice. Their [GENEDGE
ALLIANCE] recommendations definitely resulted in improved efficiency
in our operations." — Scott Williams, Executive Vice
President
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