New Custom Wire Line
The Latest Example of How Mercury Wire Leverages its Organizational Model to Provide Exceptional Value to its Customers.
About
Mercury Wire is a company that specializes in producing custom wire and cable solutions. The company’s industry-leading product design and manufacturing services are resulting in growing business relationships with customers. As this business growth is achieved, it provides Mercury the opportunity to leverage its Value Stream organizational model to provide levels of service not typically achieved by traditional manufacturing operations. Mercury’s new custom line provides dedicated production capacity and processes to key customers, all designed to specifically align with how those customers would like to do business. This case study examines our new approach and the resulting benefits to the company and its customers.
The Opportunity - Why The New Dedicated Line Was Created
The new wire line was an opportunity to provide an enhanced level of service to two key clients, while at the same time addressing the operational challenges faced by Mercury to meet their increasing demands. Operational similarities, whereby the cable designs for these two customers utilize similar process flows and equipment, made them ideal candidates for a dedicated shared wire line. In addition, both customers required weekly shipments throughout the calendar year to meet their customer demands. The new custom line was designed to do just that.
Targeted Improvements:
- Improved Efficiency
- Increased Capacity
- Enhanced Service Level and Communication
- Scalability and Flexibility
- Improved Quality
Overall, the creation of the new custom wire line represented a strategic move by Mercury Wire to improve their operational efficiency, better meet customer demands, and ensure high-quality production standards.
The Solution
To seize on this opportunity, Mercury implemented the Custom wire line, a dedicated cable production cell, designed to support two of its key customers. The key components of this effort included:
- Cell Design: Determination of equipment needs and the design of the physical space of the production cell.
- Process Design: Analyze customer demand patterns to design process flows and lot sizing that promote the uninterrupted flow of product to the customer.
- Setting of Value Stream Target Condition: Establish and document target conditions for revenue, material spend, headcount, and process flows.
- Facility Reconfiguration: Reconfiguration of factory to carve out the space required for the dedicated cell.
- Process Documentation: Create/edit engineering process documentation reflecting any changes in process or equipment.
- Staffing and Training: Determine dedicated staffing needs and train team members on new processes.
The Results
The implementation of the new wire line brought about significant improvements in Mercury Wire’s operations and customer satisfaction:
- Improved Efficiency: Mercury’s Value Stream model eliminates much of the variation impacting the efficiency of equipment operation. The investment in dedicated equipment results in far fewer set-ups, enables lot sizes aligned closely to customer needs, and reduced cycle times. In addition, the elimination of variation reduces the opportunity for defects that interfere with product flows.
- Increased Capacity: As demand for wire and cable products grew, it was important for Mercury to increase its production capacity. The Value Stream investment was designed to assume the demand for two major customers, and resulted in a significant 18% increase in capacity, while lowering demands on the company’s legacy operations that support new business.
- Enhanced Service Level and Communication: The Mercury Value Stream model enhances customer communication. As the Value Stream processes and dedicated team matures, the team assumes direct contact with the customer (order processing, scheduling…). This direct contact serves to bring the customer closer to where the value is created by bypassing the typical silos of traditional manufacturing organizations. The model enables the team to respond more quickly to customer needs and serves to make the Value Stream a true extension of the customer’s organization.
- Created Scalability and Flexibility: The Value Stream was designed with scalability in mind, allowing the team to easily adjust production levels based on demand. This flexibility provided the company with the ability to respond quickly to market changes and customer requirements.
- Ensured Consistent Quality: A dedicated team of five operators, working across two shifts, ensured consistent quality control throughout the production process. This focus on quality reduced the likelihood of errors and enhanced the overall quality of the final products.
Conclusion
The new custom wire line at Mercury Wire demonstrates a strategic approach to improving production efficiency and customer satisfaction. By consolidating similar product lines and dedicating resources to a streamlined process, Mercury Wire can better meet customer demands and ensure high-quality production standards. This transition has not only benefited Mercury Wire in terms of operational efficiency but also provided significant advantages to its customers, enhancing their overall experience and satisfaction.
