Oakhills Faciities

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TIMOTHY C WELLSOAK HILLS FACILITYOCTOBER 10, 2010
CASE STUDY

WHAT ARE THE SPECIFIC QUALITY PROBLEMS OAK HILLS IS FACING AND HOW WILL THEY INFLUENCE THE COMPANY'S ABILITY TO CONVERT TO A LEAN SYSTEM.

a. In there batch flow system if there is a machine or suppler failure it increases customer lead times and reduces inefficiency.

b.BlackDome, is often late on deliveries placed by E&E. This is due to rush orders being placed. There is a communication problem E&E and Oak Hills. Oak Hill has no information on new projects from E&E. They are used to an environment of lets place a rush order and this is a problem because this requires Oak Hills to have a lot of raw materials in inventory. There is no way for them to rush foreign odes due to stringent U.S. Paperwork. Also this will only work with US orders. For this to work they need better communication and need to make E&R responsible for there forecast of demand to reduce rush orders.

WHAT CHANGES IN THE MANUFACTURING ENVIRONMENT NEED TO BE UNDERTAKEN TO CONVERT THE CURRENT SYSTM TO A LEAN SYSTEM? THINK ABOUT THIS FROM BOTH A SHORT TERM AND A LONG TERM PERSPECTIVE.

a. The communications must be improved. Employees do not know what is going on and this causes them to be upset about the stability of their positions. The constant rush orders is also an issue, because of the strain it puts on the employee. b. They need to reduce the inventory to free up space. Oak Hill must also plan to change their layout of their building to implement a lean strategy.

HOW WILL THE IMPLEMENTATION OF A LEAN SYSTEM IMPACT EMPLOYEES, AND WHAT CAN BE DONE TO SMOOTH THE TRANSITION?

a. An improved lean system will allow employees to work together and get bonuses based on what the team produces. Right now employees run around like chickens with their heads cut off or are doing nothing. A lean system will improve production and allow it to flow better. Employees state of mind will also...
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