EDSR Information 12-14-2009~~ .. ~ ~ ~
.Precision machining :company
Orluc~c-lndustfies Inc.
leans up to maximize process
efficiency as the bless
transforrx~s from'prototyping
to longer run production.
,;
~~ ~ ~~ '
In Elk River, Orhick Industries Inc. has long
provided prototypes and one-of-a-kind products to its
customers. But a 2007 ISO and AS9100 certification-
the quality management standard for the aerospace
industry-has moved the operation into longer run
production, as more aerospace customers have placed
long-term contracts. In Tanuary, Orluck Industries
also received asix-year contract to make product for
aerospace giant Boeing.
Peter Orluck, president of Orluck Industries, says
the longer runs and new contract inspired the com-
pany to take a close look at its processes. "V~jhen we
started bringing inmulti-year contracts, lean became
more valuable for us," Orluck says. `Beorgat>izing
our company around value streams as well as taking
the opportunity to streamline a project at the start, as
opposed to small improvements each time the product
was ordered, has paid dividends."
To capitalize on efficiency throughout its production
process, Orluck Industries has worked with Enterprise
Mimlesota to conduct value stream mapping and Kai-
zen events. One Kaizen event focused specifically on
the pace of machine throughput, while another honed
in on standardization of work and effective communi-
cation among employees.
The company's lean initiatives have helped to
improve traceability and lessen errors by reducing the
number of times product is handled and counted. Pro-
cess improvements have also quickened production,
helping the company to achieve a 25 percent increase
in profits on long-term projects.
Orhick says he has also witnessed a mental shift
among employees, from segmented steps to a stream-
lined process. Though he can't put a number on it,
Orhick believes the more team-oriented attitude of his
work force has benefited his company's profit margins.
"The No. 1 intangible benefit is that when employees
see a new project, they think about it from start to
finish, instead of just their little piece of it," he says.
"That thinking really helps move projects through
more efficiently and effectively." ~
To learn more about Orluck Industries Inc.,
visit www.orluckindustries.com.
ENTERPRISE MINNESOTA NOV/DEC 2009 7