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Freudenberg-NOK is the U.S. based result of a strategic alliance between Freudenberg of Germany and NOK Corporation of Japan Freudenberg-NOK is the major automative parts supplier of Toyota The goal of GROWTTH is to eliminate all non-value-added activity. According to Sharon Wenzl, director of corporate relations for Freudenberg-NOK, A kaizen is a three-and-a half day event attended by a cross-functional group of people, who study a work problem or opportunity involving a portion of the work process. They then improve the process based on standards from the production system. The team sets aside all other work and sets of values while meeting (see Figure 5). The point is to work smart and in sync and to remove all waste from the work process, materials, and movement. Quality is assured because, using the new process, you build as you go and any defects are quickly discovered and corrected. The best ideas come from the person actually working in the production cell being studied, Wenzl said. For example, using the kaizen principle, in late 1992, the company redesigned an oil seal work cell to a one-piece flow (nonassembly line) operation. The original 670-foot travel distance for cell workers was shortened to 20 feet. Although labor hours were reduced by 30 percent, productivity increased by 60 percent, and inventory fell from 18,000 to 240 pieces. Use IT to streamline and make more efficient the PO process Use EDI to order and automatically reorder materials and supplies from preferred suppliers Implement an on-line, real-time system for monitoring and reporting supplier quality The purchasing dept. spent $450 million during 1993 Janssen turned to SCM and reduced its purchasing costs by 30 percent IT has helped reduce the time spent by the Janssen purchasing staff on administrative duties from 90% to 10% Increase internal customer satisfaction: Create a user-friendly purchasing process Provide reliable and on-time delivery Reduce the lead time from requisition
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