Throughput Improvement at Henkel Surface Technologies

Overview:

Henkel Surface Technologies has significantly increased plant throughput and capacity utilization - resulting in substantial savings in terms of infrastructure investment and cost per pound produced. The program, TIP (throughput improvement program), is an employee-driven integrated cost management effort that has had corporate-wide impact in operations, finance and marketing/sales. In manufacturing operations, the systemized daily report of operations (DRO) provides floor communications between employees and management to drive improvement. Captured metrics include attainment to schedule, attainment to standard, operator noted opportunities, and others. Reporting from the DRO identifies and prioritizes improvement opportunities. In finance, the captured information forms the foundation for benchmark reporting that tracks improvements by trending selected process metrics. This in turn is used to develop detail product-byproduct costs for more than 6,000 individual sku's. Database reporting allows the information to be analyzed in a variety of formats with an emphasis on product complexity and its impact on operations. The cost information is then communicated corporate-wide through the product cost and financial reporting systems. In marketing and sales, cost information, accessed through margin reports and profit and loss statements impacts business area decisions, while also influencing product rationalization decisions. Rationalization decisions, formerly primarily volume-based, now incorporate complexity factors that directly impact operations.

Author: Rick Luedecke, Mfg Development Mgr, Henkel SurfaceTechnologies; Doug Sanders, Mfg Development Spvsr, Henkel SurfaceTechnologies; Dean D. Baker,  | File Type: PDF

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