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The Factory Building Symposium on Lean Production, held on January 29, 2007, in Austin, Texas, showcased the significant impact of management commitment at Southern Energy Homes. Lamar Dickerson presented strategies focusing on material flow, workspace organization, and quality assurance—transforming production processes at their Addison, AL facility. By implementing lean principles, they reduced labor needs and improved workspace efficiency, achieving remarkable cost savings and enhanced morale among workers. This symposium emphasized the importance of leadership and collaboration in advancing lean practices throughout the organization.
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Factory Building Symposium on Lean Production January 29, 2007Austin, Texas
Management Commitment Southern Energy Homes Addison, AL Lamar Dickerson, Director of Lean Manufacturing
Interior Wall Build Now Then • Material Flow • Work Space • Conveyance • Quality • Information flow Product flow rationalized No error proofing Jigs help maintain quality Confusion leads to production of wrong parts Racks and labeling system Congestion slowed work Visibility across workstation promotes visual management Lots of toting Organization and new hoist relieve strain and speed production Material not close to point of use
Results • Production on target • Reduced from 9 to 6.5 people • Re-assigned workers to other departments • Space reduced by 12% • Wallboard damage reduced 10% • One-time cost of RPI: $25,786 • Annual labor savings of $73,200 plus the savings of not needing to hire and train 2.5 workers
Highlights • Wide range of RPI participants • All key people present • Strong support of plant management • Morale in wall department very high
Management Commitment • Dedicated director of lean • Permit teams to take time • Invest in the changes • Take workers seriously • Senior manager involvement
Going forward • Spread lean company-wide • Management workshop • Lean teams • Plants required to conduct lean activities
Factory Building Symposium on Lean Production Manufactured Housing Research Alliance Jordan Dentz (212) 496-0900 x13 jdentz@research-alliance.org www.mhrahome.org