Top Shops Executive Summary

2012

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Executive Summary TOP SHOPFLOOR PRACTICES & PERFORMANCES S pindle utilization is one way to gage how effectively shops are using their machine tools. This performance metric is higher at the Top Shops than other shops, although it's clear that both have worked to improve it. The Top Shops have in- creased their spindle utilization from a median value of 70 percent in 2008 to 81 percent in 2011, while the other shops have im- proved from 60 percent to 70 percent over that same time span. The Top Shops have faster setup times than other shops. (Using lean's definition, setup time is the time between the completion of the last good piece of the current run and the first good piece of the next run.) In this year's survey, the Top Shops reported a median setup time of 2 hours versus 3 hours for the other shops. SHOPS OTHER SHOPS ALL SHOPS A greater percentage of the Top Shops implement improvement strategies to become more effective. Most notably, 80 percent of them are pursuing some sort of continuous improvement program. Compared to the other shops, the Top Shops are also more likely to implement lean manufacturing concepts, including 5S, value stream mapping, kanban systems, kaizen events, total productive maintenance and cellular manufacturing. All shops have improved their finished-product first-pass quality yield and reduced their percentage of scrap and rework, although the Top Shops perform better than the other shops in both cat- egories. The Top Shops also have a better on-time delivery rate than the other shops (95 percent versus 90 percent). 2011 On-time delivery rate (percentage of goods delivered on time) 0 10 Median Average 80th Percentile 20th Percentile 0 10 20 30 40 50 60 70 20 30 40 50 60 70 80 90 90.0% 92.0% 92.3% 88.0% 88.7% 98.0% 98.0% 98.0% 87.8% 80.0% 80.0% 80 90 Top Shops Other Shops All Shops 2008 On-time delivery rate (percentage of goods delivered on time) 0 10 Median Average 80th Percentile 20th Percentile 0 10 20 30 40 50 60 70 20 30 40 50 60 70 80 90 90.0% 90.0% 90.0% 87.7% 84.3% 84.9% 95.0% 97.0% 97.0% 80.0% 75.0% 75.0% 80 90 100 100 100 100 95.0% 14 2012 TOP SHOPS EXECUTIVE SUMMARY mmsonline.com/topshops

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