Racing Toward Profits: Kaizen, Six Sigma, and Simple Quality Improvement Projects Leading to Dramatic Savings

摘要

The Merillat Industries plant located in Rapid City, South Dakota, is a fully integrated operation producing both particleboard and component parts for kitchen and bath cabinets. This paper will show how Merillat Industries progressed from an annual particleboard production of 85 MM 3/4-inch basis and a premium grade recovery of 95 percent for the year 1985, to 95 MM 3/4-inch basis with a premium grade recovery of 99.5 percent in 2003; and from producing component parts for 11,750 cabinets a day in 1985 to 17,000 cabinets a day in 2003. This paper will further show how the work force of 405 employees in 1985 was reduced to 280 in 2003 - a reduction of 125 employees. The increase in production of particleboard and component cabinet parts from 1985 to 2003 was ac- complished without additional or new equipment and is a direct result of positive employee involvement programs such as Quality Circles, JIT (Job Instruction Training), Standard Work, Kaizen Events, Value Stream Mapping, and Six Sigma events (to name just a few). The master program which includes all these events is what we call the Merillat Production System. The Merillat Production System is a modification of Japan's Toyota Production System, which Toyota took from the Ford Motor Company. Actual data will be provided describing the Merillat Production System concept introduced in 1996, and Lean Manufacturing and Value Stream Mapping introduced in 1998. Six Sigma was incorporated in 2002. From these programs, the scrap rates for the entire operation - both particleboard and cab- inet component parts - were reduced from 2.1 percent in 1995 to 0.5 percent in 2003, with plans for further reduction in the year 2004. In summary, these tools are available to all composite panel producers without capital investment. Upon implementation, they will show an increase in profits, improvement in quality production, and a reduction in work force. Similar results can be achieved at other operations depending upon the commitment of management.