SIMONDS INTERNATIONAL: Slicing Inefficiency and Increasing On-Time Delivery
The Center has enabled us to make dramatic improvements to our production scheduling and on-time delivery to our customers. Thanks to their work, we are currently among the top 10 in supplier performance to one of our largest customers.
-- David Campbell, Plant Manager
Simonds International (www.simondsint.com) is a manufacturer of hardened tool steel knives and saw blades for a wide variety of wood cutting and processing markets. Headquartered in Fitchburg, Massachusetts, Simonds employs approximately 250 people at four North American manufacturing locations: Fitchburg, MA; Big Rapids, MI; Portland, OR; Camden, AL; and Quebec. The company employs 74 locally in Michigan. Simonds’ customers include original equipment manufacturers, equipment dealers, distributors, lumber mills and paper mills.
Challenge
The Simonds facility in Big Rapids, Michigan produces up to 2,000 cutting knives per day with approximately 40% made to order. David Campbell, Plant Manager, wanted to improve the plant’s overall production efficiency and reporting. Production reports were often inaccurate and the entire process required a herculean effort to ensure on-time delivery. Campbell discovered The Michigan Manufacturing Technology Center (The Center) and its services through Michigan Works! and the STTF training program.
Solution
The solution to Simonds production reporting and on-time delivery started with a value stream map exercise to layout current and future states. The Center was brought on to provide expert consulting and training throughout the project.
The Center’s lean expert worked with the company to create daily management boards for each department. These boards measured quality and schedule attainment among other things. The boards were also used during daily accountability meetings to focus on schedule attainment and quality.
Production flow was also changed to begin releasing work based on Takt Time. This will ensure Simonds will deliver the right product, at the right time, and in the right quantity to the customer.
Results
- On-Time Percentage (Improved Productivity): Simonds’ overall productivity increased 15% over seven months (March – October); In addition, their 1st quarterly delivery performance to major customer was the highest ever with a 99% on time delivery.
- Past Due Jobs (Time): Simonds regularly tracks jobs that are past due. Past due jobs decreased 30% in just over two months.
- Work-In-Process (Cost Savings): Simonds’ overall work-in-process (WIP) decreased 15% over eight months (March – November).