Case Study: Pneumatic & Hydraulic Fitting Distributor

Case Studies

Pneumatic & Hydraulic Fitting Distributor

Project	Development of a Lean Process Management System for a Multi-Site Distributor of Fittings for Pneumatics & Hydraulics Equipment and Support for Registration to the ISO 9001:2008 Standard
Objectives	Objectives for this engagement were threefold: Establish and implement a lean management system compliant with and in support of the facility’s successful registration to the ISO 9001:2008 Standard. Improve overall performance of the operation in terms of productivity, cost and profits through defining, managing and improving end to end processes designed for operating the entire business. Extend these initiatives to four additional facilities and operations that make up the Client’s operation.
Unique Issues	Client is a small business with a lack of formal processes in place to manage and sustain growth in sales and revenues.
Results	Developed & implemented the Lean Management System and registration is planned when the economy improves. Thirteen major processes were diagramed 60 procedures developed & trained along with installation and training of all employees on a document control system (Insight 1’s OneWindow®). Thirteen process owners and their associated process participates were trained as well as 10 internal auditors. Additionally Insight 1, Inc. has facilitated the client to make improvements in its software control system that is increasing inventory accuracy, providing increased visibility of inventory transfers between facilities and reducing labor. As a result of the implementation of the process based management system the Client has retained a minimal profit even though sales are 35% below the previous year because of the current deep national recession. Insight 1, Inc. facilitated the establishment of a formal sales planning and management process and a formal business planning and review process which have increased the company’s ability to manage its operation in the currently difficult economic environment. Utilized Insight 1, Inc.’s expertise and knowledge of best practices & lean methodologies to facilitate, document and implement a formal sales planning and management process. Additionally, we did the same in developing a formal business planning and review process for better managing the overall business performance. This has become more important in the current economic environment of a deep national recession.
Description of Services	Defined and facilitated the development of a new Lean Operational Management System based on Lean Process Management methodologies leading to compliance and registration to ISO 9001:2008 while improving overall business performance. The tasks included the following: Facilitated definition of a hierarchical set of process diagrams for the Product and Service Life cycle for the business Facilitated definition of a hierarchical set of process diagrams for the management infrastructure. Defined Standard Operating Procedures for lower level processes making up the major processes. Facilitated the assignment of process owners for all processes. Trained Process Owners and authors in methodology for writing Standard Operating Procedures using the Insight 1, Inc. provided template. Facilitated and assisted the staff in developing, reviewing, approving and releasing 60 Standard Operating Procedures. Provided and installed the Insight 1, Inc. OneWindow® System for providing instant access of process management system documents. Provided additional training for the Process Owners in Process Owner Responsibilities, corrective Action and Continual Improvement, Problem Solving, and Understanding the ISO 9001:2008 Standard. Trained an Internal Audit Team for conducting periodic audits of the process management system for verification of practice vs. documentation. Identified, managed and implemented a number of separate improvement projects. Some of these included: Development and Implementation of a Corrective Action Database for tracking process Corrective Action Requests (CARs) Development and Implementation of a Training Data Base to assist in managing training of all personnel and maintaining their current training status Recommended modifications to the erp system leading to much improved control of status and disposition of incoming products and their introduction into the inventory control system. This resulted in a reduction of inventory errors. Introduced new processes for Sales and Marketing improving the flow and accuracy of orders into the system and providing improvements in sales management, forecasting and reviews. Development and implementation of a formal business, sales and marketing planning process.
Methodologies	Utilized Insight 1, Inc.’s unique lean methodologies for facilitation and documentation of hierarchical business processes that lead to development of a quality management system that is compliant with the ISO 9001:2008 standard.