The U.S. Army Tank and Automotive Research, Development and Engineering Center, upon identifying several types of waste recently, began restructuring the Design, Advanced Materials and Rapid Prototyping Center via a massive Lean Six Sigma project. The results are expected to save TARDEC approximately $500K a year, according to RDECOM Magazine.

The U.S. Army Tank and Automotive Research, Development and Engineering Center (TARDEC) Lean Six Sigma Material Identification and Control Process Team began restructuring the Design, Advanced Materials and Rapid Prototyping Center in July 2006 after identifying several types of waste: delay of locating materials, duplication and re-orders due to disorganization and ruined materials, errors in unidentified material, lost opportunity due to lack of space and incorrect inventory. To quickly correct this problem the team developed and implemented an identification system and material handling procedure that would significantly reduce waste and cost to TARDEC.

Prior to the Lean Six Sigma clean-up, steel and pallet storage racks were set-up in U-shapes around the shop to allow forklifts to maneuver parts on and off the racks. Without a systematic process in place for storage, add-on-armor parts for various tactical and construction vehicles started to fill the steel and pallet racks, and overflow grew into the aisle way making access to the storage units nearly impossible.

“Boxes with parts and metal sheets would sit on shelves and lay on the floor without labels,” stated Midge Krueger, TARDEC Team Leader for the Lean Six Sigma effort. “Before the new process improvement was put into place, armor pieces were hard to find and often got misplaced in that storage area.”

Not only did the prior storage system make finding armor parts difficult, it was also wasteful. The palate and steel racks were too small for some of the sheets of metal which forced large portions of the metal to hang over the edge of the racks. This caused the metal to bend rendering the entire sheet unusable.

“The new storage process will save TARDEC approximately $500,000 dollars every year” stated Al Marciniok, TARDEC Lean Six Sigma Team Facilitator. Larger racks that fit each piece of steel were purchased to allow each sheet to properly fit – eliminating bent, unusable material. The existing and new racks were arranged into a fashion that allowed more racks to fit in the storage area. Not only did this increase the use of space in the shop, but it allowed forklifts to maneuver and operate easier and more efficiently.

The new process ensures that when planners order raw materials they record and reserve a designated storage area in the computer system. When the shipment arrives any of the shop employees can check the computer to find out how to store the delivery so that everyone in the shop can find that part. Every employee who works in the shop has been designated specific shelving units, labeled with their names on them, to store parts that they order. Lightweight packaging is stored on the lightweight shelving units, and heavier armor parts are stored on the stronger units.

One of Krueger’s assignments during the new process integration was to develop a material handling and storage process that identifies raw materials and parts from arrival through shipping.

“It only takes a moment to label parts, but easy identification at every station saves valuable time and money,” stated Krueger. “Labeling tags must be placed on all parts at all times so that identifying parts is simple.”

“The process takes time and dedication,” commented Marciniok. “Although we are still in the improvement stage of the Lean Six Sigma process, there has already been a 100 percent turn around increase in the shop.”

While the floors have been cleared and material is labeled, improvements are still being done in the shop. There has already been a remarkable difference in the storage area – material is no longer stored for long periods of time because it is misplaced or not labeled. When a shipment comes in, it is easy to find.

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This article was written by Emma Fulgenzi, a student employee at the U.S. Army Tank Automotive Research, Development and Engineering Center (TARDEC), and originally appeared in the February 2007 issue of the U.S. Army Research, Development and Engineering Command’s RDECOM Magazine. Republished here with permission