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Project Area: Lean Manufacturing and E3

Situation

Since 1988, Diversified Metal Products (DMP) has been providing quality mechanical contracting and fabrication services focusing on the nuclear industry. Diversified has specialized capabilities in alloy component engineering, fabrication, integration and installation. DMP started its Lean transformation during the summer of 2007 with a basic Lean overview for leadership. A successful 5S project in Shop 2 created a desire to expand 5S practices to shops 1 and 3. DMP was also interested in improving its Embed process by focusing on manufacturing information and paperwork flow. DMP wanted to improve processes and efficiency in material handling, storage, and in the flow of the yard. Management adopted an Enterprise-­wide approach to a Lean transformation to include leadership training, Lean champion training, and kaizen implementation. DMP also agreed to participate in an E3 Pilot focused on the company’s air systems.

Solutions:

Manufacturing Specialist, Dave O’Connell of TechHelp and Idaho State University worked with the DMP team to achieve the following:

  1. Completed Lean 5S projects in the DMP’s three shops.
  2.  Used process mapping and kaizens to improve DMP’s Embed process.
  3.  Improved yard and material handling processes by establishing new procedures, developing material tracking systems, and eliminating excess handling.
  4. Used training sessions and kaizen mentoring to kick­off the Lean transformation project.
  5.   Completed an E3 (Economy, Energy, Environment) Pilot Project that included process mapping and identification of opportunities to improve the company’s air delivery system to more efficiently meet current and future needs.

Results:

DMP has become a Lean organization that is more effective, efficient and responsive to customer needs. The company’s Lean transformation helped produce the following impact:

  • Increased & Retained Sales: $5,700,000
  • Increased & Retained Jobs: 30
  • Cost Savings: $1,225,000
  •  Productive Investment : $62,000
  •  Saved Investment: $400,000

The pilot E3 Compressor Project led to the following impact:

  • Cost Savings: $50,000
  • Productive Investment: $40,000

Testimonial:

“We appreciate all that TechHelp has done for us. Dave O’Connell has been a huge help! When we get this compressor system project behind us, we’ll have a conversation about lighting.” Nathan McMasters, President, Diversified Metal Products