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<Table name="Customized Lean Case Studies">
    <Row>
        <Author>Manouk Nijhof</Author>
        <Abstract>The reduction of lead time by making use of a QROC light. A temporary cell which is similar to a lean production line, in which a small batch of quotes moves between different departments with a takt time of one hour.</Abstract>
        <Keywords>Quick Response Office Cells – “QROC light”</Keywords>
        <Anonym>Nein</Anonym>
        <Companyname>SPX Flow Technology</Companyname>
        <Companyaddress>Assen</Companyaddress>
        <Companycountry>The Netherlands</Companycountry>
        <Lineofbusiness>Miscellaneous Manufacturing Industries</Lineofbusiness>
        <(Approx.)yearlyturnover>> 1.000.000.000€</(Approx.)yearlyturnover>
        <Numberofemployees>50 - 100</Numberofemployees>
        <Percentagetemporaryworkers>0% - 5%</Percentagetemporaryworkers>
        <Principalrangeofproducts>Product types plus customer-specific variants</Principalrangeofproducts>
        <Majorproductquantities>Make-to-order (one-of-a-kind)</Majorproductquantities>
        <Principaltypeofproductionorganisation>Line production</Principaltypeofproductionorganisation>
        <Whowasthetrigger/customeroftheproject?>Managing Director</Whowasthetrigger/customeroftheproject?>
        <ProjectType>Customized lean in office operations</ProjectType>
        <Leanisalreadyfullyestablished>Not really true</Leanisalreadyfullyestablished>
        <WhatwasoristhemaintriggertoimplementLean?>Reduction in lead time</WhatwasoristhemaintriggertoimplementLean?>
        <CaseStudy><p><span style="margin: 0px; line-height: 115%; font-family: " calibri",sans-serif;="" font-size:="" 11pt;"="" lang="EN-US">

</span></p><p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">The case
study was a longitudinal study, which started in 2010<span style="margin: 0px; color: red;"> </span>and
is not finished yet, since projects are distributed among the entire
organization. The first solution found was to recall the production of standard
parts to Assen, to reduce the overall lead time. However, the managers decided
to stick to the original production division. They argued good inventory
management was enough to realize short lead times for the customer.</span></p>

<p></p><p><span style="margin: 0px; line-height: 115%; font-family: " calibri",sans-serif;="" font-size:="" 11pt;"="" lang="EN-US"><font color="#000000">

</font></span></p><p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">The
organization started to focus on the administrative processes first. Several
MCT maps showed long and varying waiting times in these processes. They started
to concentrate on type A and B, to get successful results more easily, to
create enthusiasm and support among the employees.</span></p><font color="#000000">

</font><p></p><p><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del><del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></del></p><p><span style="margin: 0px; line-height: 115%; font-family: " calibri",sans-serif;="" font-size:="" 11pt;"="" lang="EN-US"><font color="#000000">

</font></span></p><p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">The
processes contained four steps, performed in different departments:</span></p><font color="#000000">

</font><p></p>

<p style="margin: 0px 0px 0px 48px; text-indent: -18pt;"><span style="margin: 0px;" lang="EN-US"><span style="margin: 0px;">1.<span style="font: 7pt " times="" new="" roman";="" margin:="" 0px;="" font-size-adjust:="" none;="" font-stretch:="" normal;"="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><span style="margin: 0px;" lang="EN-US">Sales and customer service</span></p>

<p style="margin: 0px 0px 0px 48px; text-indent: -18pt;"><span style="margin: 0px;" lang="EN-US"><span style="margin: 0px;">2.<span style="font: 7pt " times="" new="" roman";="" margin:="" 0px;="" font-size-adjust:="" none;="" font-stretch:="" normal;"="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><span style="margin: 0px;" lang="EN-US">Finance</span></p>

<p style="margin: 0px 0px 0px 48px; text-indent: -18pt;"><span style="margin: 0px;" lang="EN-US"><span style="margin: 0px;">3.<span style="font: 7pt " times="" new="" roman";="" margin:="" 0px;="" font-size-adjust:="" none;="" font-stretch:="" normal;"="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><span style="margin: 0px;" lang="EN-US">Planning</span></p>

<p style="margin: 0px 0px 13.33px 48px; text-indent: -18pt;"><span style="margin: 0px;" lang="EN-US"><span style="margin: 0px;">4.<span style="font: 7pt " times="" new="" roman";="" margin:="" 0px;="" font-size-adjust:="" none;="" font-stretch:="" normal;"="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><span style="margin: 0px;" lang="EN-US">Purchasing</span></p>

<p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">The process
(1-2-3-4-1) took at least three days, due to several waiting times between the
process steps. According to Quick Response Manufacturing, a common solution for
this is to organize a Quick Response Office Cell (QROC) for a specific market
segment. A QROC is a dedicated, multifunctional team, in which members are
closely located to each other. However, the capacity requirements were too low
to create a separate QROC for these Type A and B pumps. Therefore they found
their own new solution: the QROC <em>light</em>.</span></p>

<p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">A QROC <em>light</em> is similar to a lean production
line, in which a small batch of quotes moves between the different departments
with a takt time of one hour. The next morning, there is a team meeting,
consisting of two people from each department. They discuss divergent topics,
such as the priority of orders, a change within the safety stocks or the need
for an increase in production capacity. Directly after this meeting, all quotes
could be send to the customers.</span></p>




</CaseStudy>
        <Top1waste>Waiting</Top1waste>
        <Top2waste>Inventory</Top2waste>
        <Top3waste>Transport</Top3waste>
        <StartingSituation><span style="margin: 0px; line-height: 115%; font-family: " calibri",sans-serif;="" font-size:="" 11pt;"="" lang="EN-US"><font color="#000000">

</font></span><p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">SPX
experimented with several process improvement tools for ten years. The
implementation of Lean manufacturing gained considerable attention after the
take-over by SPX Process Equipment (USA) in 2007. The organization started to
implement Kanban to reduce lead time and inventory. Due to the high-mix, low
volume environment in which the organization operates, the implementation
resulted in a disappointing outcome. All pumps, approximately 15000 each year,
are produced based on a customer order. Due to the endless variation, the
managers of location Assen were challenged to find an appropriate solution for
the logistic situation.</span></p><p><font color="#000000">

</font></p>

<p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">All
products can be divided into different categories, type A, B, C and D. Type A
en B are relatively simple pumps, which are produced based on assemble-to-order.
The lead time of these types is approximately two to three weeks. Type C and D
are pumps with specific requirements, around 40% of the orders. These pumps are
produced based on design-to-order. Type C pumps only have some customization
(30%). Type D pumps have multiple customer dependent requirements (10%). These
projects could last for months.</span></p>

<p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">Customer
specific parts are produced in Assen. Approximately 100 employees work at this
location. The focus within this location is on speed and flexibility. Generally,
all standard and simple parts are ordered and produced in India. In India their
focus is mainly on efficiency.</span></p><span style="margin: 0px; line-height: 115%; font-family: " calibri",sans-serif;="" font-size:="" 11pt;"="" lang="EN-US">

</span><p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">Consequently,
SPX FT has to deal with a high mix, low volume production and a long lead time
for standard parts produced in India. The goal was to organize an organization
which has <em>reliable</em> and <em>repetitive</em> lead times.</span><br></p>




</StartingSituation>
        <Evaluation><p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">The QROC <em>light</em> resulted in a lead time of only
one day. The overall MCT changed from 18 to 16 days (a difference of two days
in the administrative processes). The companies delivery reliability increased
from 76% to 93%.</span></p><p><span style="margin: 0px; line-height: 115%; font-family: " calibri",sans-serif;="" font-size:="" 11pt;"="" lang="EN-US">

</span></p><p style="margin: 0px 0px 13.33px;"><span style="margin: 0px;" lang="EN-US">After this
first project, the organization started to focus on Type C and D pumps. There
is enough capacity available for these types to create a real QROC, in which
people from different disciplines work closely together.</span></p>

<p></p><span style="margin: 0px;" lang="EN-US"><font face="Calibri" color="#000000"><br></font></span>






</Evaluation>
    </Row>
</Table>