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Lean manufacturing is a well-known manufacturing process with a reputation for continual improvement, from cutting out waste in production to overall supply chain and management process improvements. The concept is hardly a new one, but with end tradeoffs like more options for customers and the creation of a stronger work culture, this practice has become widely accepted as a great way to do business. |
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Download the 2011 CSR Report
Lean Manufacturing. MCFA’s initiation of lean, known as the Velocity Program, started in 2003 with a vision to build a high-speed, low-touch supply chain that provides 100% on-time delivery of MCFA product at industry-leading availability. To date, the program has provided an 80% reduction in internal manufacturing lead time, has decreased safety incidents and has resulted in a 75% reduction in manufacturers’ warranty claims.
But MCFA’s quest to use less material in the production facility is only the start.Today, the Velocity Program at MCFA has blossomed into a full-scale initiative that has evolved into the company’s standard way of doing business.
Ready And Returnable. MCFA’s Velocity Program made even greater strides in 2010 with its returnable packaging initiative focused on the environmental impact created by the amount of waste produced at every stage of the supply chain.
The Velocity Program allows MCFA to mandate how it wants to receive parts rather than having a supplier ship parts to MCFA in bulk. Instead of spending time repackaging parts to be inventoried and used in assembly, materials are immediately stored and then pulled on a just-in-time basis. The program has improved customer product lead times and helped minimize the manufacturing impact on the environment. It has also helped reduce the company’s dependency on natural resources, minimized the cost of industrial parts and increased manufacturing efficiency.
An analysis of how we store parts, the types of containers we use, the amount of storage space needed and when to deliver parts to the assembly line has effectively led to a 1.3 million pound reduction in packaging waste. That’s the equivalent of 300 Ford F-150 pickup trucks – and a milestone for MCFA.
MCFA’s reduction in waste is attributed to four key components:
• 42% improvement in MCFA’s returnable packaging ratio.
• Decrease in shipment containers, with 400 less than MCFA’s previous year.
• MCFA’s improvement of the shipment process ensured better availability of parts.
• More efficient production led to less materials used.
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