VISUAL User Conference 2009VISUAL User Conference 2009

October 25 – 28, 2009Marriott Downtown Providence, RI

VISUALize the Rebound – Graphicast’s Path Through the Dark Recession Forest

Graphicast, Inc.

• Founded in 1978• Located in Jaffrey, NH• Contract manufacturer of machined, zinc alloy

castings In-house design, mold making, casting, machining

capabilitiesProprietary, graphite mold casting process creates high

density castings with exceptional surface finish Most applications are high valued added machine

components

A Long Time VISUAL User

• Implemented VISUAL in July 1999• The impetus for selecting VISUAL was the scheduling

capability• VISUAL consolidated all operational and financial

activity• We developed numerous Crystal reports running off

the VISUAL database Provide detailed analysis of sales, financial, and

operational information for fine tuning the business

Some Scheduling Problems Persisted

• The machine shop was booked solid 8 weeks in advance• Normal shop floor issues wreaked havoc with the schedule• The schedule wasn’t pulling jobs in if previous jobs finished

early• Rush orders were very disruptive to the schedule and caused

late shipments • The schedule tried to break into jobs to improve lead times • Ultimately, the schedule was not able to efficiently reflect the

nature of our business. We needed a different scheduling solution. Fortunately, we found the solution just before the economy collapsed.

What’s behind Lean Scheduling

• Lean scheduling is based on Goldratt’s Theory of Constraints (TOC) introduced in the business novel, “The Goal”

• Utilizing TOC in production Identify the constraint that limits the throughput of the

systemRelieve or eliminate the constraint to free the system to

operate at its peak level• If you have a production constraint, add extra shifts, add a second

machine or use unconstrained machines to produce the same part• If you have a “between the ears” constraint, change restrictive

policies and procedures • If you have a market constraint, increase throughput (sales

revenue)

What’s behind Lean Scheduling - continued

• TOC scheduling relies on three components “Drum” – The pace of the “constraint” “Buffer” – Some amount of WIP or time that protects the

constrained component “Rope” – A signal to upstream operations to release work

into the system

• TOC thinking is consistent with Lean and Six SigmaUse TOC to focus on constraintsUse Lean or Six Sigma techniques to improve and stabilize

operations

System With an External Constraint

Market too small for your capacity – the constraint

DRUM

ROPE

Work Order Release

SHIPPING BUFFER - TIME

The Impact of Lean Scheduling

• Lead times dropped to four weeks from sixteen weeks

• Practically eliminated overtimeSavings of about $100,000 per year

• Went to four day work weekBonus to employees for losing overtimeReduced electric bill by 15%

The Impact of Lean Scheduling - continued

• Reduced Inventory by 30%Freed up about $100,000 of cash

• Effectively doubled plant capacityOverall plant utilization is about 50%Plenty of capacity to handle rush orders without

impacting on-time deliveriesNo increase in equipment or employees needed to

grow• Major issue is now increasing throughput

A minimal amount of oversight day to day

• Simple reportsVISUAL Planned LoadVISUAL Resource Operations Buffer StatusPlant Wide Buffer Status - Crystal

• Simple schedulingFloor supervisors decide where to run jobsMinimal management involvement

A minimal amount of oversight day to day - continued

• Lean Scheduling efficiently reflects our day to day operationsRapid changesRush ordersCapacity planning

• Very quick “what-if” analysis Increasing or decreasing bookings Impact of overtime, personnel levels, vacations or

absences• We do not have a scheduling person

“Driving Business Innovation to Improve Business Performance”

• Savings From day one of the Lean Scheduling transformation

• Payback 2 ½ months for the entire investment in Lean Scheduling

• Fingertip Information Lean Scheduling gave us a rapid and efficient response tool to the

current economic crisis• Recognition

Graphicast received a 2009 PM100 award from Managing Automation Media for the Lean Scheduling project

• “Progressive Manufacturing” awards were bestowed on the 100 companies deemed to have most effectively used innovative methods to improve business performance.