THE CHALLENGE

Facing a tightening economy, weakened conditions within the markets it serves and growing customer demands, new leadership at Schneller, Inc. recognized that change was necessary to maintain its leadership position. Management reexamined the company's business systems and objectives with a renewed emphasis on continuous improvement initiatives. Restructuring was in order. The goal was to accomplish nothing short of a complete change in business operations and mind set.

Schneller began its Lean journey focusing on three general areas of improvement: set-up reduction, implementing a pull based system and aligning processes and costs with customer needs. These improvements would be driven throughout the entire organization from operations to the front office.

THE APPROACH

Schneller initially focused on Lean training and engaged MAGNET to conduct a Lean 101 Simulation. This hands-on training demonstrated the concept of Lean and the idea of continuous improvement. Every employee went through the training to gain a common understanding of Lean. As staff became comfortable with the concept, soon they realized performance could be substantially boosted. With MAGNET's assistance, Schneller conducted five Kaizen events in 2002. Each event resulted in a text book implementation.

Following impressive results in operations, Schneller management chose to drive Lean through the front office, beginning with Schneller's work order creation process. MAGNET consultants began with value stream mapping on the Lean Office event to understand workflow and identify the work areas and people involved in the execution of this process. The value stream mapping process also helped to identify and eliminate, or minimize, wastes in the work order creation process. Next, an action plan was created and is currently being implemented at the Kent facility.

The Lean front office and operational initiatives at Schneller have aided in an overall business transformation. Management at Schneller acknowledges these initiatives have helped to better position the company and enhance its competitiveness. Schneller intends to move forward with its continuous improvement program and plans more Lean events in the year ahead.

CUSTOMER QUOTE

"Our Lean initiatives conducted with MAGNET have resulted in an overall transformation of the company including a $2 million inventory reduction."
Richard C. Organ - President and CEO

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