EFFECTIVE, NOT JUST EFFICIENT FACTORIES

 

Developing or revamping a plant layout needs to be be done with a microscope because it’s the details that maximize performance, reduce manpower, improve product quality and comply with environmental and safety regulations. At the same time, don’t forget to look through the other end of the scope to make sure  you are not losing sight of the big picture. 

 

 

Focus first on the big picture

Many years ago I built my first produc­tion line - for the machining and assembly of low-cost, vinyl wrapped, speaker boxes. It was a great success, doubling productivity ... until product de­mand died. From that I learned the hard way that the biggest mis­take in plant layout only addressing short-term production needs. Hundreds of woodworking factory layouts later, I know not to assume anything, and, before get­ting into project details, I ask clients:

q       To define your company's long-term goals and the project's mission state­ment.

q       How much growth do you want, and how fast can you as­similate it?

q       What is the potential of your product line? What is the total market? What are your competitors do­ing that could erode your market share?

q        How much risk can you stand?

 

You must evaluate your prod­ucts' evolution in the next few years, starting with the availability and relative cost of raw materials. As many traditional solid wood furniture makers found out when they switched to a veneered product, the rough mill  remained important because of the increased cost of trim lumber. If your present product surface is plastic laminate and you go to natural wood veneers not only may you need a mechanized finishing line, but you will need to take into consideration all the secondary items to ensure that you have a cost effective finish in compliance with gov­ernmental regulations.

 

 

Your business is unique

You cannot just do a "me too" layout. Your cost factors and needs differ from those of your competitors. A good example is lumber yield. Investment in sophisticated equipment can improve yield but which way do you go, and how much should you invest? Fingerjointing is one way to increase yield; optimizing saws and edge gluing are others. Which equipment should you buy? (Don’t forget to check with marketing to determine what your customers will accept.) And, if you cannot afford to invest now, have you left room in your layout to install these processes in the future?

 

Should you tie rough mill operations togeth­er to maximize throughput and total pro­ductivity, thereby saving labor, but with some possible loss in yield? In many mills this may be a great idea: in others the yield loss is unacceptable. (What if you were in a country with very low labor costs and relatively high material costs?)

 

Pay attention to the smallest details

 Product quality and output require more than equipment and motivated employees. The il­lustration of a fin­ishing line in the accompanying article GORILLAS IN THE MIST shows how small details can define the shape of a line. Scissor lifts in the rough mill and panel machining departments are the first signs of a work environment that favors think­ing humans over gorillas. They reduce physical labor, but alone only marginally increase through­put. Infeed pack­age chains, singulators and automatic stack­ers will all increase production rates. (See MEAN MACHINES).

 

Control non-production time

 Do not forget the effect of down­time on productiv­ity. The clock does not stop during machine setup times, while the operators wait for a forklift or for in­structions on how to run the next job. The flashing light to call the forklift when the last package is started and the computer terminal at the machine are all part of the layout.

 

Do not rush to judgment

Do not allow last minute panic to force "executive" edicts. Budget before bulldozing so you do not have to shrink buildings or leave out equipment. When you do budget -- avoid judgments based only on cash flow analyses. These tend to look for a much greater return on new investments than on current operations and favor existing rather than new technology. The result will be the continuation of the status quo, deferring the investment necessary for re­maining a viable competitor.

 

Create a workable environment

In an ideal world, factory workers would work in as pleasant an environment as of­fice employees. Okay, maybe it’s not possible, but there is no reason for them to be treated like animals in a stable. They are adding value to your product and if they freeze in winter, they cannot do their best work. Try to keep operations away from doors that are constantly opened in the winter and, conversely, away from noise and heat. Do not put workers either next to the dust collection system or finishing oven.

 

Are you politically correct? The most obvious example is to avoid raised supervisory offices which can be likened to prison watchtowers. Forgetting the image, the reality is that the steps to raised offices inhibit communi­cation from the factory floor. Your worst nightmare should  be a supervisor hol­lering down instructions on what to do next. (If this is your style, I cry for your compa­ny because you are substituting reaction for employee training and production plan­ning. Don't you have systems that tell em­ployees how, what, and when to do it?)

 

Visual cues and feedback is important. Today, employees tend to work in teams that interact with one another. They need to be close enough and visible to one another for this to take place. "U" shaped lines are great for quality feed­back- operators can monitor both the in­put and output.

 

Employee safety must  always be the top layout priority; start by analyzing the distance and path to each emergency exit. The nearest way out should never require that a work­er climb over a conveyor or machine! Be careful of adjacent operations: Is a worker exposed to kickbacks from a saw or to piles of lumber tipping over?

 

Flexibility

Will you really be manufacturing today's product line 10 years from now? With the same raw materials and methods? Plan for both long-term change and flexibility in day-to-day operations! As a worst case scenario, consider alternate future uses of the building. Will a machining area that only needs a 12-foot high ceiling eventually be moved elsewhere and will you then be stuck with an inefficient building for warehousing? The cost of increasing the ceiling height and floor loadcapacity may be minor compared to the cost of being stuck with an unusable building.

 

Finally, flow

Manufacturing flexibility -- customized products in a mass-production environment-- and prod­uct quality are often higher priorities than improved flow and throughput. However, I cannot overstate the importance of flow in a production environment. The universal rule (that I keep repeating in this series of articles) is to pick up a board only once and never stack it again until the product is packed. Manual material handing is costly, increases process time, creates quality problems, and results in inventory costs (space and time). But be careful, it is too easy to draw conveyors connecting ma­chines on a layout and very difficult to cir­cumvent them when technology or product-mix changes production requirements. Your flow plan must include provisions for additional operations and new technolo­gies as well as provide the flexibility to ac­commodate new products.

 

Remember, classical conveyorized as­sembly lines which led to the development of the automotive and appliance industries are not the only games in town. (Lucille Ball in the candy factory and Charlie Chaplin in Modern Times  demonstrated their limitations.) Product size and run quan­tities often dictate better approaches to gain efficiency. The bottom line in flow is, simply, the bottom line! What is the pay-back and the risks of mechanization and physical consolidation of production? Be careful not to blindly duplicate your competitor’s layout (or clone successful European production lines). The equip­ment and manufacturing concepts may be great, but were the layouts planned with different investment parameters?  Do they use different raw materials, and/or are they run by a workforce different from yours?

 

Good plant layout requires more than a sketch on the back of a placemat or ap­plication of the principles of Manufacturing Management 101. The re­alization of a successful project is much more. It requires team members with knowledge of your product line, production processes, budget lim­itations, management structure and workforce. To this add the objectivity and industry  knowledge of a consulting engineer.   Working together they will be an effective project team that comprehends all these aspects and is capable of success without disrupting current operations.

 

The above was adapted from an article of the same title that first  appeared in Wood & Wood Products.

 

 

Effective, Not Just Efficient Factories is an overview.  For detailed information please read these article in our P’s and Q’s series:

 

q       Mean Machines: Combining operations - Lumber handling illustrations.

 

q       No Naked Machines: Fine tuning and accessories -  Panel saw example and illustrations.

 

q       Gorillas in the Mist: Layout details for effective finishing lines.