1. ) To what extent could Dean expect to apply the philosophies and techniques of JIT described in this chapter to the running of a staircase cell. Dean Hammond can implement JIT techniques that seek to eliminate the significant amount of waste that exists in his current operational processes. Basically, there are seven wastes to be considered as obstacles in the lean system. It consists of over production, wasting time, transportation, process, inventory, motion, and defectives.
As a result of implementing this concept, it will arrange a better-valued chain and create a solid base of production. While the customized nature of B&B’s products isn’t conducive to the type of streamlining seen in volume manufacturing applications, they can still aim to streamline and reorganize their staircase setup, in attempt to save time and reduce transport within their facility. We are told that joiners walk a daily average of 5km as they move between stations, and this loss of time results in orders exceeding standard time estimates.
Conversely, B&B stationed one joiner on doors only and he was consistent within time estimates. B&B should seek to reorganize their setup with more defined stations that will allow for a better flow of products through each process. Steps in the process such as cutting, sanding, and machining are fairly universal for each staircase, and B&B could easily create stations with one or two joiners working at each stage of the process. There is existing space in their factory for such a setup and this would allow them to handle more volume, as anticipated in the growing market segment.
Additionally, factory space can be utilized for a finishing station, allowing them to stain and varnish items during the day, rather than at night. Since there are also some standard parts used in many of the products they produce, they should assign one or two individuals to produce those inputs alone. This would eliminate the need for joiners both inside and outside of the staircase cell to create those parts themselves, eliminating one step from their work and saving valuable time. These same individuals could also be responsible for delivering these pieces to various stations, eliminating the need for the station workers to do so.
By creating a staircase cell in their factory, B&B can realize efficiencies that would allow them to eliminate waste and be more competitive in the areas of price and lead time. This would eventually reduce their order backlog, making their production more in line with estimates. 2. ) What are likely to be the main categories of costs and benefits in establishing the cell? Are there any non-financial benefits which should be taken into account? B&B may face some initial outlay costs in creating specific staircase stations.
Additionally, there may be costs associated with training, as they ensure that their joiners can function as experts in their respective areas. This might even require a short period of inactivity or even a halt in production as they seek to get workers up to speed. However, the benefits seem to outweigh these initial costs. B&B would be in a position to handle more volume and could make far better use of their existing resources. Orders would have a better chance of being completed on time and the elimination of waste would allow for more competitive quotes.
Ultimately, this would put B&B in a more competitive position to win business and become more profitable. 3. ) At what stage, and how, should Dean sell his idea to the Joinery Manager and the workers? Mr. Hammond should sell this idea to the Joinery Manager at the second stage, the point at which orders are scheduled and allocated to workers. This is where the biggest impact can be made in terms of production time, and once a solid ‘ rhythm’ is found after implementation, the gains will naturally flow back to the first stage of estimation and quoting.
Mr. Hammond can sell this idea to internal stakeholders such as the Joinery Manager and the production workers by emphasizing the benefits of efficiency. Each worker would be more productive and better able to produce work within estimated lead times. There would also be less time and effort spent shuffling large and cumbersome pieces of wood throughout the warehouse, making the job easier for each individual joiner. Through the combination of these benefits, Mr.
Hammond has a strong case that B&B can become a more resilient and profitable company, providing a more financially sound place for internal stakeholders to call home. 4. ) How different would the cell work be to that in the main Joinery Department? This proposed cell would be for staircases alone. Work outside of the cell would require separate joiners with the ability to complete other products such as doors and windows. Since demand for these products is not as great as that for staircases, existing methods could continue for now.
However, if the cell model works well for staircases, it could later be applied to the production of other items. 5. ) Should Dean differentiate the working environment by providing distinctive work-wear such as T-shirts and distinctively painted machines, in order to reinforce a cultural change? Differentiating items such as uniforms and painted machines indeed could be an effective way to identify separate departments and processes. This could eliminate confusion and encourage joiners to stay within their respective areas. However, Mr.
Hammond would have to be careful for employees both within and outside of the cell to not feel marginalized in any way. Many of the joiners enjoy the variety of different product types and he would have to convey the need for joiners to be team players, emphasizing on the personal rewards that will go along with greater financial health for B&B. 6. ) What risks are associated with Dean’s proposal? Creating a staircase cell and additional training to inexperienced cell workers will cause initial outlay costs for B&B. Capital outlays always carry some risk, but in this sense, it can be seen as a very sound investment.
Internally, the company also faces a risk that a switch to a cell system will not be well received by workers. Experienced workers could react negatively and resign, leaving a knowledge gap that would be difficult to replace. This can be navigated by allowing the workers the option to participate, and if necessary, using a modest monetary incentive. Finally, B&B faces the external risk that the staircase market decelerates. If this were to happen, B&B’s investment could struggle to see a return at the same rate as it would in a growing market.
