Introduction and Problem Definition
Custom Molds, Inc. was founded by a father and son team in 1987 to provide high quality, custom-designed molds for manufacturers of electronic connectors, but later expanded into the production of plastic parts for the industry. In recent years, the changing environment of the electronics industry had a profound impact on the way Custom Molds conducts its business and manufacturing processes. The changing sales mix, coupled with delivery and quality problems, prompted the company to revise its business strategies to address to following issues:
1) Changing trends in the electronics manufacturing industry that caused changes in clients' order needs
2) Unpredictable bottlenecks in the production environment
3) Quality issues resulting in defective parts
4) Delivery times promised to clients were not met
Analysis
1) Process Inefficiencies
Some of the issues presented above resulted from inefficiencies in the two distinct processes taking place in the same production facility at Custom Molds, namely the Molds Fabrication process and the Parts Production process (Exhibit 1a and b). The two processes serve different customer needs. Mold fabrication, a skill oriented and craftsman-driven process, requires flexibility and quality. Parts manufacturing, on the other hand, involves a more standardized process that competes on delivery and low cost. The margin for parts is also much smaller.
In the mold fabrication process, the time needed to receive the ordered materials for each fabrication is usually 3-4 weeks. Only after the materials are received does the plant master scheduler review the workload of the assigned master machinist and schedule the mold for fabrication. The idle time betwe ...