MAGNETIC PRODUCTS INC.: Targeting Throughput and Costs With Lean Principles
Our instructor did a great job with the training. I could tell by the level of engagement that people within the class will adopt the Lean principles.
-- Matt Wiggins, Operations Manager
For nearly four decades, Magnetic Products Inc. (MPI) (mpimagnet.com) has worked to design, manufacture and service magnets, material handling and electronic inspection systems. MPI leads the industry by continuously engineering inventive magnetic equipment and expanding offerings to meet the changes of a dynamic marketplace. MPI combines technologically superior equipment with industry-leading customer service to provide both magnetic and non-magnetic material handling solutions worldwide. MPI employs 50 at their Highland, Mich., facility.
Challenge
MPI wanted to improve their processes by identifying and eliminating non-value-added activity, with the overall goal of improving throughput and lowering costs. To support these strategic goals, MPI sought to train designated workers in Lean principles to equip them with the tools necessary to contribute to improvements.
Solution
To gain a deeper understanding of useful Lean principles, nearly a dozen MPI employees engaged in the Michigan Manufacturing Technology Center’s (The Center) TimeWise simulation. This course effectively demonstrates how Lean methods and techniques can be applied to maximize customer value, minimize waste and reduce cost. Emphasis was placed on aspects including workplace organization, visual controls, standard work and line balancing, with all efforts supported by establishing a strong Lean culture throughout the organization. The team also set up a pilot program to apply their skills using a specific department with a modular product line. As a result, the team was able to lower costs and improve processes as intended, creating a more Lean department and a model for the rest of the facility.
Results
- New Investment: $3,000
- Jobs Created: 1
- Cost Savings: $15,000
- One-Time Inventory Reduction: $10,000