A Tale of Two Companies

I had a tour of a manufacturing company with equipment organized in long rows consistent with the nature of much of its process. Soon I noted a plastic bucket on the floor at the end of each row. Most buckets held one or more tools while a few were empty. Being my usual nosey self, I asked the Plant Manager about them.

It seems this was an attempt to have a common tool set available for set-ups, adjustments to equipment and minor maintenance. Each bucket would have several screwdrivers, an adjustable wrench, pliers, a ratchet and common size sockets and so forth.

He admitted that the condition of the buckets showed the system had fallen down. As we continued the tour and met several supervisors, the plant manager did not mention the condition of the buckets to anyone, nor did he give anyone an assignment to see to it that each bucket was restored to their full compliment of tools, and that people were reminded to put the tools back in the bucket when they were finished with them.

Seems like little commitment to the potential improvement was to be found here.

Contrast that effort with another company who took a far more committed approach to having tools available. The tool requirement for each machine was determined by the machine operators. A corresponding set of tools needed for that particular machine was then purchased. A peg board was put up at each machine and a spot on the pegboard was chosen for each tool. The associated tool was outlined on the board, a visual reference showing which tools were in use. If it turned out that a tool was missing, a label on the pegboard indicated exactly which tool it was.

Now that was a commitment. And it was expensive. A set of tools for every machine? What did that cost? About $30,000. 00!

Why not just have a set of tools for every few machines? The company rejected that approach saying "if two machines are being set up at the same time with shared tools, those set up times are going to increase and set-up costs are going to go up."

The company also calculated the savings resulting from the $30,000.00 investment. Turns out the calculated savings associated with have a set of tools at each machine was over $130,000 a year!

I haven't talked with anyone from this company in quite a while. But I do know that last time I talked with them the peg boards had been in use for over two years and were still working well.

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