Partnering with MEP Utah Propels Smead Through Their Lean Journey

Results

Cedar City not only met 5 year startup objectives but exceeded many in several instances and achieved these targets nearly 1 year ahead of plan.  In early 2002, the Smead organization worked to develop a strategic plan for the next three years.  Adopting Lean as the method and philosophy to drive continuous improvement was a key focus of this plan.  Specific outcomes experienced at Smead and associated with the Lean Journey include:

§    Stabilized and improved operations.

§    All objectives of their five-year startup business plan were exceeded.

§    Improvements observed in all aspects of dock-to-dock value streams in eight product focused cells.

§    Over 40% reduction in manufacturing costs.

§    Significant reduction in inventories.

§    Improved inventory management practices.

§    117% increase in revenues per employee.

§    Setup reduction initiatives resulting in over 50% reduction.

§    Reduced ergonomic risks.

§    Improved throughput.

§    Improved lead time to customers.

§    Resources leveraged to obtain 37% increase in revenue.

§    Process uptime improved by 30% (on average).

§    Waste elimination resulting in 75% improvement for converted materials.

§    Improved safety performance.

§    Minimized operational variances.

Testimonial

"The timing of introducing Smead to Lean Manufacturing principles was nearly ideal.  The people at all levels were primed and ready for improvement and have responded very well to the methodology of Lean. Having prior experience with Lean principles helped opportunities be readily visible to me.  Transferring that vision in a way to fit with Smead culture and values was and is an exciting opportunity.  Helping others learn to see the opportunities is an ongoing journey.  The involvement and customized approach used with MEP helped to utilize and leverage the energy and focus of key persons in the plant.  Crossing from theory to practice takes leadership, faith, and sometimes an external stimulus.  MEP acted as a ready resource to support development of in-house knowledge and provided a 'reality check' shoulder to lean on when needed.  They were available but not invasive which allowed our culture to grow into the process. Sometimes they also offered much needed cheering."

Testimonial Name: Tyler Perkins
Testimonial Title: Manufacturing Engineer 

Products
Smead is a leading provider of efficient document management and organizational solutions.

Opportunity

As a startup plant, Cedar City had a multi-faced challenge with their five-year startup plan.  Operations being moved from California were to make an invisible impact on customer service levels already established.  Operational goals identified expectations and objectives beyond historical trends of existing operations.  Year two included a major computer system change in preparation for the year 2000.  Customers in today's market expect nothing but the best and Smead highly values providing products and services that match and exceed customer expectations.  Manufacturing processes were being brought on line and installed in a rapid manner as operations were being put in place.  This "newness" challenged operational goals with high internal material waste and low productivity.  Transferring process knowledge while altering traditional practices and norms was a sizable task.  All of this, along with the challenges of establishing and training a workforce to meet these expectations, presented strain and stretching in every direction.

Solution

To achieve such demanding objectives, Smead identified the need for a focus on continuous improvement and sought support to structure such an effort.  A Smead Manufacturing Engineer with previous knowledge and training in a continuous improvement methodology referred to as "Lean Manufacturing", was hired in early 1999 and began teaching the principles to plant leadership.  Lean was identified as the path and vehicle to pursue. By the end of 1999, Lean Manufacturing was seen as a viable method and philosophy for improvement efforts.  Examples of results and efforts outside of Smead were reviewed and considered, with thoughts toward how to create a fit into Smead culture.

Initially, efforts were focused on developing the management systems to measure key performance levers and to put in place employee participation such that valuable knowledge and insights could be harvested.  A key step was developing a process of stepping out of the day to day fires and identifying the ideal state of various business aspects.  Bridging the gap was often seen as impossible and overwhelming but the opportunities were nonetheless identified.  With opportunities catalogued, the challenge became crossing the "theory to practice" gap.

In the year 2000, theory became reality as the first formal Kaizen Event was held to create a living model of lean principles in the facility and to explore the feasibility of future efforts.  The selected team of production workers and management learned together by doing rather than just by discussion and planning.  Resources were stretched in every direction.  After the initial shock settled, background "ah ha's" could be heard in the plant as people began to see what was being said.  To some it seemed like common sense.  Other Kaizen efforts were pursued and islands of improvement began to surface and a greater sense of hope and confidence began to develop in the operation.

With the model established and people constantly evaluating results, efforts toward a whole system and enterprise approach became the focus.  Opportunities previously identified became part of strategic plans for both short and long term objectives.  Training and exposure to Lean principles for plant leadership became a driving need.  Time and dollars were limited and existing prospects in a smaller town far away from larger city resources made the gap once again look menacing.  Options for external help were seen as a must in order to move through this phase of the journey. It was at this cross roads, in early 2001, that options with MEP Utah were first discovered and explored.

Initially, a Lean Workshop was sampled off-site in St. George, Utah.  The match of MEP resources and methods seemed like a good fit into the Smead culture.  Subsequently, all of Smead's plant leadership participated in the in-house Lean training provided by the MEP.  They used a live model in the plant as a reference point where the Lean participants could tour and consider how to take these principles home to their particular areas after the seminar.  Further efforts were pursued with smaller teams in other training modules provided by the MEP, including Value Stream Mapping and a Smead hosted Setup Reduction activity. 

In the Setup Reduction activity, a six-hour module was presented with class instruction and simulation.  In this portion of Lean, the MEP Engineers taught Smead personnel how to take equipment and tools and change them out faster in the manufacturing processes.  
 

The focused and intense burst of training provided by the MEP created a common frame of reference that transmitted through the Smead facility.  In addition, each time Smead has changed their leadership, they have sought continued exposure to the MEP's Lean seminars to keep a consistent base of knowledge in the plant.  Since the Lean training and implementation provided by the MEP, there have been many positive results at the Smead facility from 2001 through 2003--and the positives keep coming as Smead moves forward on the Lean Journey.

Employees
255