Workshops, Inc. Improves Assembly Process

Company Profile

Workshops, Inc. is a non-profit training and employment center for people who experience physical or mental disabilities. Its 250 employees provide assembly, packaging, bindery, mailing, printing and food services to Birmingham area businesses and industry.

Situation

Workshops was experiencing low productivity in its nut and bolt packaging area. One of the machines on its assembly line was highly automated and efficient, while another major machine was almost completely manual. The automated machine was encountering heavy downtime due to a long replenishment process and was creating a great deal of noise. In addition, the organization was facing a number of workman’s compensation requests because of the ergonomics on the floor. The challenge was to improve the ergonomics in the material handling division, increase productivity and reduce the noise level in the operation without reducing manpower and with minimal cost.

Solution

The APC established a team to assess the organization’s operation. With the data collected from plant visits, the APC recommended several changes for the organization’s ergonomic layout. For example, the team suggested that Workshops develop both right and left hand stations for its workers. The team also recommended purchasing another automated piece of equipment that would reduce replenishment time and noise levels. Workshops, Inc. is currently implementing these recommendations.

Results

• As a result of the APC’s assistance, Workshops improved its work environment for its employees, reduced lead-time, increased throughput, and reduced the defect rate.

• The assessment helped Workshops increase its profit margin and resulted in five to nine percent higher sales per employee. The organization enjoyed a five percent sales increase of $13,000 and retained $250,000 sales that would have been lost otherwise.

• The organization’s management now has a better understanding of actual costs, and has seen cost savings that represent more than one percent of annual sales. In addition, Workshops was able to reduce unit labor costs by 10 to 20 percent.

• The new equipment that the APC recommended will reduce downtime by more than half, helping Workshops to become more competitive.

• Management also anticipates lower workman compensation costs due to the improved ergonomic conditions in the materials handling division.