Phoenix Products Company Inc.

Milwaukee, Wisconsin –

Founded in 1892, Phoenix Products is a leading manufacturer of exterior lighting for the mining industry as well as marine, industrial and material-handling applications.

Results presented by Scott Fredrick (CEO) and Lynn Benishek (Materials Manager) at the QRM 2009 Conference.

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QRM Background

  • June 2004 – Attended four-hour QRM seminar (Half-Day Introduction to QRM)
  • Sent core operations employee to QRM implementation seminars
  • 2005 – First QRM project: fabrication
  • 2006 – Second project: assembly
  • 2007 – Third project: material handling and storage
  • 2008 – Continue implementation of projects


General Observations:
  • Companywide shift in focus from efficiency and utilization to lead time reduction
  • Reduced batch size and backlog
  • Inventory initiatives
  • Supply chain management
Quantified Results:
  • Reduced plant overtime$ from more than $10000 in 2004 to virtually nothing in 2009
  • Increased revenue/labor hour from less than $150/hour to close to $200/hour
  • Reduced late orders due to inventory accuracy from 25-30% in 2006 to about 5% in 2008
  • Increased on-time shipments from 80-85% in 2005 to more than 90% in 2009
  • Increased inventory turns from less than 2.50 in December 2002 to more than 3.50 in March 2009
  • Reduced supplier lead time from 48-63 days to 25 days and supplier inventory cost from $11000 to $5000
Assembly cells:
  • Increased inventory visibility and accessibility: reduced material handling by 50%
  • Reduced setup time by 25%
  • Increased floor space: 1 cell to 3 cells in the same amount of space

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