Milwaukee, Wisconsin – www.phoenixproducts.com
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
Results
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
In the News
- QRM Center gives Wisconsin Company a Bright Future (UW-Madison News, June 2010)
- Also visit our publications page