Therm-o-link Inc. produces wire and cable products for the automotive, marine, construction and appliance industries. They specialize in PVC (polyvinyl chloride) and XLPE (crosslink polyethylene) insulated wire. The 104,000 Sq. foot facility in El Paso, Texas employs 69 skilled workers—all of which recently participated in the first phase of a Lean Transformation initiative.
General Manager, Alex Bustamante, had learned Lean concepts in his previous job. He had witnessed the results the improvement methodology can have in all areas of a business. When he started with Therm-o-link Inc, business was booming, but customers had started requesting frequent shipments of smaller lots which strained operation. In the past, the facility primarily dealt with longer production runs.
The change in customer behavior increased the number of machine sets ups, resulting in more downtime and reduced capacity. Overtime was required to keep up and this cut into profitability. Something needed to be done. Mr. Bustamante turned to Lean as the solution.
TMAC was contacted for their expertise in Lean solutions. After thorough discussions and a facility tour, a comprehensive implementation plan was developed by TMAC and the management team of Therm-o-link that included overview training, 5S, and TWI (Training Within Industry).
The training corresponded with the economic downturn in the Automotive industry. The decreased spending by automakers directly hit Thermo-link. The training program was nearly cancelled. But the company leadership made a commitment to go forward and hoped they would be rewarded for the decision.
To begin, all employees were trained in Lean Awareness so that they knew what to expect in the coming weeks. Managers were trained in Lean Leadership. This helped them understand their vital role in the project.
A 3 day 5S workshop followed and all the employees became involved in the process and saw firsthand the impact of Lean and became instant believers in the program. Supervisors were trained in work standardization through TWI –Job Instructions and Job Relations as well as practical problem solving. TWI improves workplace communication and creates a positive work environment. As a result of the training and staff communication, new ideas on how to improve the operations came out of the woodwork . Some were immediately implemented resulting in productivity gains.
As Therm-o-link’s employees were diligently working on implementing their ideas, the company was visited by a large supplier of electrical wire harness for the home appliance and transportation manufacturing industry. The company was so impressed with their achievements that they offered Therm-o-link a significant contract to build wire. This new contract, from a new industry, fueled even more enthusiasm to continue improving. It also filled the void left by the downturn of the automotive industry.
In a little less than a year the results achieved by the Therm-o-link company were indicative of what enlightened lean leadership can accomplish:
Therm-o-link’s commitment to excellence continues to be rewarded. Recently the company was honored with the “Top Supplier of the Year 2008” by one of their customers. Also, sales forecasts expect two new customers by the end of 2009.
“Ever since we started working with TMAC and applying lean principles, we have been able to improve our operations very quickly. The timing of these improvements is helping us to respond to our customers needs in a timely fashion than otherwise wouldn’t have been possible.”
Alex Bustamente, General Manager