Going with the Flow
Synchronous flow manufacturing means more production with fewer workers for Avicenna Technology, Inc.
In November 2006, Avicenna Technology Inc. reached its breaking point. To meet surging demand for its products, the Montevideo-based laser welding and manufacturing company thought about a costly decision to expand its work force and move to a larger building. “They were out of capacity and couldn’t get enough product out the door,” says Enterprise Minnesota field specialist Rick Kvasager.
Kvasager and Synchronous Flow Manufacturing (SFM) experts Bill Martinson and Al Podzunas analyzed Avicenna’s challenge and concluded that hiring was not the solution. Martinson and Podzunas realized that inventory was piling up at the inspection process. There was so much inventory waiting to be inspected, other steps in the process had slowed to half their capable speeds just to accommodate it.
With a grant from the Southwest Initiative Foundation in Hutchinson, Avicenna was able to work with Enterprise Minnesota to implement SFM into its production system. SFM is a management technique that helps companies develop metrics for each step of production. These metrics help gauge quotas and identify which areas need improvement. The method also uses lean manufacturing to minimize inventory and production time and increase cash.
SFM’s metrics helped everyone get on the same page. “With synchronous flow, if we had a bad day, it was a unifying thing,” says Avicenna general manager Chad Carson. “We were not pointing fingers at anyone, but instead came together to discuss what went wrong and how to fix it.”
As required by SFM, Avicenna posts all information on a whiteboard in a common area of the factory. “We’re still trying to prove to the rank and file that this program isn’t about personal blame, it’s about our systems,” says Carson.
Not only did the training save Avicenna from a costly expansion, it improved the company’s revenue by 45 percent. “Synchronous flow has been the single most important change in our company,” says Carson.