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Interview with Mark Gebbie of Excelsior Printing
A new line of greeting cards was located in their North Adams facility which came with the production system used in the past. This brought high labor and high inventory costs.
Focused on assembly process building packets for finished goods stock. We observed the current process and discussed with the operators. The operators made many suggestions and the experiments began. The result, an improved process requiring one assembler rather than two to keep up with customer demand.
The stocking program was examined next. Two packet quantities existed for all 200+ sku’s (shop keepers units), 6 per packet (95% of volume) and 12 per packet (5% of volume). We decided to make the 12 per packet units to order while maintaining stock of the 6 per packet sku’s.
As a result we reduced inventory $ by 50% and labor by 50%.
** You can see the results for yourself and speak with Mark at the next Western Massachusetts Lean Network Meeting – Thursday, August 16th, 2012 at Excelsior Printing, 60 Roberts Drive in North Adams, MA. Advanced registrations is required. Please visit our the GBMP website/events calendar to learn more and register. **