- Increased Productivity 15%
- Reduced costs by $25,000 annually
- On-time delivery increased by 4.2%
OilAir Hydraulics, located in Northwest Houston, supplies hydraulic pressure devices and components to a regional and international market. They are a private company with 26 employees, working to distinguish themselves from the competition through premier customer service and superior quality products.
OilAir realized that in order to be more competitive and to offer premier customer service, they needed to make some changes. They were experiencing a growth in sales, but couldn’t keep up in production. Bottlenecks and production errors resulted in significant amounts of wasted time.
Some OilAir employees were familiar with the Texas Manufacturing Assistance Center, having attended workshops in the past. So OilAir contacted David Monkiewicz at TMAC, who recommended the implementation of Lean Enterprise throughout the company to create the culture for world-class performance.
To understand the concepts required for implementing Lean, first the employees attended Lean workshops. Then, the shop layout was modified to facilitate workflow. In order to achieve a Lean environment, non-manufacturing support functions were also included in the application of improvement techniques and strategies. Quality, cost, and delivery improvements and measures were established to steer company outputs towards the performance of world-class practices; established measures for overall customer satisfaction and profitability.
By changing the culture of the company, individual performance, as well as total customer satisfaction, has improved. “Personnel have taken a new sense of ownership,” says Steve Mermelstein, President of OilAir. “Productivity has improved, errors have reduced and sales and profits continue to grow.”
Better organization of tools and materials, less rework, and increased utilization of direct labor employees have made a significant impact on the company, both internally and externally.
Increased Productivity 15%
Reduced costs by $25,000 annually
On-time delivery increased by 4.2%
Industry: Machinery Manufacturing
Services Provided: Lean Enterprise