a production run, we would schedule 20. If we thought we needed 167 pounds of material, we’d bring out 200 pounds—and run all of it just to use it up.” There were some years in which the resulting extra inventory wound up being a $200,000 write off.

To tighten the discipline in his shop, Duffey automated the flow of information by hardwiring the machines, warehouse and office into a local-area network. Then, he installed EnterpriseIQ software from IQMS, an enterprise resource planning (ERP) system provider based in Paso Robles, Calif. So, when the office releases an order for 10,000 parts to be delivered on Tuesday, the software now schedules the appropriate mold to go to, say, Press 26 at 3:15 this afternoon.

Meanwhile, it also tells the warehouse to deliver the necessary 167 pounds of material. “The material handlers scan exactly that much material from the warehouse and bring it to the press,” says Duffey. “When the machine completes the 10,000 parts on schedule at 4:30 the next day, the parts are scanned from the floor into finished goods at 4:31. And another job can be scheduled into Press 26.”

Not only does the automation instill discipline on the shop floor that keeps machine utilization high, but it also controls inventory. Management always knows exactly where the finished goods are. Because, moreover, PCI has linked itself electronically to its resin supplier, it has established a just-in-time relationship with it. “If we schedule a 10,000-piece job to start tomorrow afternoon, IQMS automatically triggers a release to our resin distributor,” says Duffey. “They put the resin on a truck and have it in our plant at eight o’clock the next morning.” Consequently, PCI is turning its inventory 24 to 26 times a year, which is three to four times faster than the industry average of seven. So, it’s no wonder that Lean is “in” there and elsewhere more than ever.

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