Real-time visualization systems are are a key component of continuous improvement programs, but it's the people behind the programs that really make the difference. 

ARPAC is a packaging machinery manufacturer and service organization known for being the first to invent the shrink bundler and spiral stretch wrappers. Expertise runs deep with ARPAC’s 220 or so employees, who have installed close to 30,000 machines worldwide. Ryan King, director of information technology (IT) for ARPAC, knew he wanted IT to be a resource for the company, so he and his team led a company-wide initiative to leverage the enterprise resource planning (ERP) solution from Epicor to create what ARPAC (www.arpac.com , Schiller Park, Ill.) calls Lean Automated Processes (LAP).

By using real-time visualization systems and other technology linked to the ERP system, the company is able to utilize information technology to maximize ease of doing business, eliminate waste and decrease cost. The IT department has helped ARPAC reach new levels of Lean manufacturing efficiency through better inventory management and accuracy, and overall continuous improvement.

“I’ve been a part of companies that struggled. It requires everyone to pull together and help out,” says King, a 22-year veteran of manufacturing IT organizations. “Manufacturing IT is fast-paced. It’s not typical IT. It’s either feast or famine. You might have a year where the company is struggling, and the next, everything has to be changed or upgraded at once. Some [IT] people will say it [the shop floor] doesn’t involve me. But IT people are the one ones who might know about tools from other jobs, and other industries. If they’re not on the shop floor, they don’t know how they can help. IT should be a source of cultural and process improvement.”

ARPAC maintains stock of many standard packaging machines for quick delivery, and has one of the fastest order-to-shipment delivery times in the industry. King’s department supports the company’s vertically integrated production facility using solid Lean manufacturing principles. Epicor software modules help establish best practices for Lean manufacturing not only in customer service and purchasing areas but also on the shop floor, says King.

For example, Epicor feeds a kanban process—an inventory control system that uses visual signs and indicators—that has saved 15 hours a week in terms of work hours, amounting to a savings of approximately $225 per week or $11,700 per year.

“Our CEO wants everyone to be able to understand gross profit for each product,” explains King. “It’s hard to help shop floor employees to visualize gross profit.” King and his team developed a system that pulls budgeted hours for a process, such as welding or painting a machine, out of the ERP system and compares that to actual hours spent on the process. Results are displayed on board right next to the operator and are updated every five minutes.

“When actual exceeds budgeted, the screen goes red. An operator can visually see when he or she has exceeded the hours, and knows that he’d better go talk to someone. It allows every employee to be educated how company makes money. Everything I touch is either value-added or non-value-added,” explains King.

“A lot of people miss the boat on kaizen – they’re hung up on who’s on the improvement team and who’s not,” adds King. “But you don’t have to be part of a kaizen event to make continuous improvement. If you leave the visuals open, everyone can contribute. I don’t have to hold a big meeting to make this thing better.”

Unintended consequences
ARPAC also learned that eliminating “go-between” processes was critical to reducing waste in daily operations. For example, employees had been spending large amounts of time and resources tracking and re-ordering stocked parts. Now barcode scanning technology lets users automatically create electronic purchase orders on the shop floor. By simply scanning the part barcode, operators can replenish their supplies. The system also can trigger an automatic e-mail notification to suppliers if an order is behind schedule. “It used to take more time to do the paperwork than to create the part. Now it is instant,” says King.

ARPAC Vendor Inventory System (AVIS) was created for ARPAC suppliers to monitor and replenish their stock. This supplier “portal” automatically sends an email alert to suppliers as soon as ARPAC’s inventory levels drop. Suppliers can then log onto AVIS and see what part needs to be reordered and get the purchase order number indicating the part type, quantity and agreed on price for the product or service. Once the order is ...