FoamOrder is a family-run company with its original roots in the upholstery business.
Lean & Kaizen Training Leads to
Reduction in Errors & Increased Sales
As a result of the strategies implemented by Manex, FoamOrder expects an increase in sales of at least $150,000 in the coming year and retained sales of $207,000.
Client Business Need
Due to the pandemic FoamOrder was forced to close their business in March 2020, resulting in roughly $90,000 in lost revenue for the company. Their physical retail location was closed, their primary ecommerce business was forces to stop fulfilling orders, and their wholesale business remained at a fraction of the revenue and profit level enjoyed prior to the pandemic. Fortunately, in April 2020, FoamOrder was able to pivot their business to produce foam materials for PPE production and provided foam parts for over 215,000 PPE face shield units. They were able to operate as an “essential business” and employ much of their production staff and serve their new PPE and traditional internet business orders.
Material shortages and delays related to the pandemic have had the consequences of higher errors and delayed customer deliveries in the order processes. The errors increased costs and delayed on time deliveries, as such FoamOrder engaged Manex to determine the root causes of the order processing errors and delays and to implement solution paths to reduce those errors as follows:
- Reduce cancellations and refunds amounting to about $23k per month
- Reduce rework of about $10k per month
- Reduce time to get order delivery answers: e.g., labor + materials (fabric, foam, cushions, supplies)
- Clarify roles – team builds solutions they can live with
- Establish management metrics and communications plan
Approach
Manex recommended a highly interactive Kaizen activity focused on the most complex product, covered cushions, to help improve all product delivery by reviewing processes from order entry to quality control and shipping.
Manex employed Kaizen methods to:
- Accelerate new managers learning.
- Develop Standard work for each order verification, cover production, inspection / QC, order status, production, final QC, packing, shipping, and accounting.
- Develop ways to use mistake-proofing methods for the causes of process errors.
- Develop communication feedback for the manager/team.
- Provide management capacity analytics to determine staffing levels to meet anticipated run rates.
Results Delivered
After completing Manex Lean and Kaizen training, FoamOrder has seen a significant reduction in order processing errors:
- The operations team is trained in Lean waste identification and began 5S program for orderliness.
- Cover production yield improved with solution trystorming to have seamstresses make final dimensional verification of their own work before submitting. Specifically, utilizing Manex and the SBTAEP, FoamOrder achieved over a 75% reduction in errors.
- Foam cutting errors sources mistake proofing: decompression time, operator cut verifications, and order planning verification.
- Created A3 style production communication feedback board for addressing order issues, and building team knowledge
As a result of the strategies implemented by Manex, FoamOrder expects an increase in sales of at least $150,000 in the coming year and retained sales of $207,000, due to reduced cancellations. Aligning with their goal to improve, grow, and support customers, FoamOrder continues to implement the strategies learned during this Manex and SBTAEP program.