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Posts Tagged ‘just in time’

The Four Day Work Week is Here to Stay

Tuesday, November 11th, 2008 by Roger

A few months ago Setpoint moved to a 4 day work week.  The plan was to run it as an experiment for 90 days and see how things worked out.  I’m pleased to report the experiment has been a rousing success and that we intend to continue on with virtually our entire workforce on a 4 day, 10 hours per day schedule, Monday through Thursday.

The feedback from our team members has been extremely positive, as everyone has settled into routines of spending most Fridays with their families or enjoying their hobbies.  There are of course exceptions to this.  We have been in a busy cycle for the last 8 weeks or so and have had many people working on Fridays in order to meet our obligations to our customers.  But even with a day of overtime on Friday’s we’ve usually been able to take off Saturdays and Sundays for two-day weekends.  Morale is up, productivity is up.

We did spend some considerable time and effort upfront to alert our customers to our plans regarding the 4-day week, and I believe that helped us to set the proper expectations early on.  There have been a few customers that have needed our assistance on Fridays and we’ve been able to fill those needs by various team members volunteering to take care of those needs.  Each of our regular customers have cell phone numbers for members of the management team, and if something unforeseen comes up on Fridays, they can call and get help most of the time.  But the calls have slowed down as customers have gotten used to us being closed on Fridays and they tend to plan accordingly whenever possible.

One unexpected benefit that came about from the schedule change was an opportunity to improve our Just-in-Time (JIT) procurement process.  In the past we have ordered all parts at the start of a project, which led to them being assembled as they trickled in.  This method caused a number of inefficiencies for us: the assembly technicians wasted significant time starting a project and then stopping when they ran out of parts, we would have to pay for parts often before we really had any use for them, and there was often chaos created by people going through parts and then putting them back when they had to stop.  Sometimes parts would get put in the wrong totes or even on the wrong project rack.  With the new system we order parts as required, we do not accept early deliveries, and we ask all of our vendors to deliver parts on Thursdays.  On Fridays we have a part-time expeditor come in and receive parts and distribute them to their proper job kits.  When the assembly crew comes in on Mondays the parts are ready and waiting for them.

Overall, we’re very pleased with our 4-day work week experience and we plan on continuing with it into the foreseeable future.  If you have any thoughts about trying a four-day week at your company, my advice would be to embrace the concept and do whatever you can to make it work for you.  I know we have been pleasantly surprised by the positives!

Going Beyond Mass Production to Lean Systems

Monday, September 8th, 2008 by Nate

How are you going to take your business into the future?  How will you compete with price-cutting competitors?  How will you reduce overhead costs and increase profits?  Every business struggles with these same questions.  The book The Toyota Way by Jeffrey Liker suggests that the answer to all of these questions is operational excellence.  What is operational excellence?  It is being the best at what you do, improving the speed of your business processes, improving the quality of your products and services, and cutting unnecessary steps and costs from your operations.

The Toyota Way lists 14 management principles that Toyota uses to achieve operational excellence.  These principles focus on eliminating waste, standardizing processes and learning from experience.  They facilitate a continuous flow of quality parts and information precisely when they are required.  By following these principles, hidden problems are brought to the surface and employees are trained to solve these problems.  The best part is the process is circular, it’s continually improving.  Kaizen!

Setpoint believes in Kaizen, which is a Japanese term that roughly means “continuous improvement.”  As part of the continuous improvement here at Setpoint, we have studied this book to identify ways to implement these 14 principles within our own company and for our customers.  One area that we are focusing on is the way we receive parts.  We are moving towards Just in Time so the parts are available to the assembly technician precisely when they are ready for them rather than having them sit for a week or two before they start working on the project.