Northwest Pipe Reduces Lead Time from 100 Days to 20
Northwest Pipe’s Denver manufacturing facility produces large diameter steel water pipes for high pressure applications. The Denver division has been operating under the Northwest Pipe umbrella since 1995, but has a long history in Denver dating to the late 1880’s. Today, the division employs 100 workers.
Northwest Pipe has traditionally enjoyed a majority of the market share. But with increased pressure from both foreign competition and high steel prices, the company recognized the need to improve operations to maintain their competitive advantage and market share. All manufacturing divisions across the United States were advised by corporate headquarters to implement Lean Manufacturing practices, and the Denver division decided to take the lead. Kellen Squires, Process Control Manager, contacted CAMT, the local Manufacturing Extension Partnership Center, for assistance in implementing a long-term comprehensive Lean Manufacturing program.
Northwest Pipe began its indoctrination in Lean by conducting a Lean Overview for all management staff. Immediately following, the entire workforce underwent 5S training to better organize and standardize the workplace. Once the 5S program was well underway, a Value Stream Mapping Exercise was conducted to transition to a one-piece flow production model. Additionally, Northwest Pipe worked with CAMT to reduce the change over time of two machines in their facility through Set Up Reduction workshops.
Implementing Lean into Northwest Pipe operations has produced tangible and readily apparent results. With 5S improvements made throughout the entire facility, Northwest Pipe realized a 25% gain of floor space through clearing unused materials and equipment and rearranging workplaces to better fit worker needs. With streamlined workplaces and production and equipment changeover processes, the average lead time has decreased from approximately 100 days to 20. Best of all, management is committed to continuous improvement, mandating that each department conduct a minimum number of improvement projects, and supporting them with regular in-house 5S training and events, and providing new equipment to support the efforts.
“We’ve been doing things the same way for 30 years, and we still had the same type of defects and hold ups we had 30 years ago. It was time to increase our efficiency and quality, and CAMT helped us do it.” Kellen Squires, Process Control Manager
Results:
- $75,000 in new equipment investment
- $100,000 in increased employee development investment
- 15 individuals in new/retained employment
- 50% reduction of setup time on two machines
- Lead time reduction of 100 days to 20