Cabinetmaker goes from batch flow to lean operation: with help from research group Forintek, Regina, Saskatchewan-based Cabtec Mfg. has made the successful transition to lean manufacturing.

The basic mindset of most companies is that if something works, you should stick with it.

Or should you?

Although successful, Regina, Saskatchewan-based Cabtec Mfg. was looking for a more efficient method of manufacturing frameless-style kitchen and bath cabinetry for the residential and commercial markets. While the batch method of production was effective, it did not allow the 10-year-old company to reach its full production potential.

Cabtec derives its name from a combination of the words "cabinet" and "technology." According to co-owner Ken Kowalchuk, technology--specifically, efficient operation--is important if the company is to compete in a market where competitors are often much larger and, as a result, have built-in competitive advantages. He adds that while employees become accustomed to hearing management speak about reducing costs and raising production, having someone else deliver that message often results in faster acceptance. That is why, when the company decided to switch to a lean production method, it consulted with an outside source for help with the transition, which included training the company's 50 employees.

"It's definitely important to have a Lean champion," says Kowalchuk. "Someone with the drive and motivation to communicate the concepts to employees, establish projects, and work toward a deadline to see that implementation is successful, according to management's business objectives."

When Kowalchuk decided to move to a Lean production method at the 19,000-square-foot facility, one of the first things he did was to hire a production manager with Lean manufacturing experience. According to Kowalchuk, the new production manager imbued the shop employees with the concept of "continuous improvement," representing many of the same concepts reflected in the lean manufacturing approach.

"At the end of the day, we're going to be more efficient and our productivity rates will climb," says Cabtec's production manager. "People are going to be more interested in what they are doing in a lean manufacturing environment versus what they are used to because there is more multi-tasking involved. They're no Longer going to be stagnated doing one thing over and over again."

The Lean Implementation

Cabtec manufactures custom frameless cabinetry, which it ships throughout Canada and the United States. In addition to countertop manufacturing capabilities, the company offers a wide selection of wood, melamine and MDF doors and drawer fronts, including a proprietary line of lacquered MDF doors in a variety of styles, finishes and colors.

Prior to bringing the lean manufacturing concept to the shop floor, Cabtec had three employees participate in an eight-module lean training program offered by Forintek Canada Corp., a national wood products research institute. The training by Forintek included both classroom and on-site training elements. The Forintek secondary manufacturing industry advisor working with Cabtec was David Dombowsky.

Although Cabtec is still in the early stages of lean manufacturing implementation, the company has already achieved a 50 percent increase in production, merely by following the concepts of waste reduction and one-piece continuous flow manufacturing in areas where there was an obvious need to achieve greater efficiency, Kowalchuk says. Cabtec targeted its cabinet assembly and CNC sawing area to begin the process of incorporating continuous, one-piece flow into its manufacturing process.

"An example of continuous flow at the saw would be smaller batch sizes, which are pulled from the CNC areas when needed, rather than cutting large batches and pushing them to the CNC areas, which filled up the areas with no room to move," Kowalchuk explains.

Continuous flow in the assembly area, Kowalchuk says, "[involves] starting a cabinet assembly and flowing it right through to door and drawer installation, inspection, then packaging and right into shipping. There are no stops in between each of these processes anymore."

Kowalchuk says he noticed the company now has extra available floor space and better material handling because of the concerted effort to reduce waste and maintain lower inventories.

"We're getting positive responses from our hourly employees," says Cabtec's production manager. "The response is, 'How in the heck did we ever do it the other way?'" referring to the company's prior practice of batch manufacturing.

"What lean manufacturing does is it turns all that thinking on its head, and says those large batches end up resulting in all sorts of inefficiencies and hidden costs," says Dombowsky. This could manifest itself in ways such as extended delivery times to customers, high inventory costs, and extra energy and real estate costs to pay for batches waiting to enter the production stream.

As part of the company's quest to reduce waste, the employees found ways to use waste pieces of particleboard as support pieces in cabinet construction, Kowalchuk says.

"Another example of reducing waste is our drop piece organization. We set up bins for the different material cutoff pieces and catalogued each piece, so it is easy to find and use the next time," Kowalchuk says.

Although the company considers itself still in the early stages of lean manufacturing implementation, significant progress already has been made in just the two years since the company began its transition, Kowalchuk adds. During the next year, he says, Cabtec Mfg. will continue to focus on educating its employees about lean manufacturing and the impact it will have on their work functions.

RELATED ARTICLE: The value to wood program.

In May 2002, Natural Resources Canada announced a five-year national initiative to support the Canadian value-added wood products sector. The Value to Wood program is based on both research and technology transfer and is meant to provide technological solutions directly to wood product manufacturers in all regions of Canada.

The Research component is designed to address the knowledge and technology needs of Canada's value-added wood sector. It brings together specialists from leading wood research organizations across the country: Forintek Canada Corp., the University of British Columbia, the University of Toronto, Laval University and the University of New Brunswick. A nationally coordinated research program is underway and findings are available to Canadian manufacturers.

The Technology Transfer component, under the responsibility of Forintek, provides access to key resource and market information used to accelerate the implementation of new manufacturing processes and the development of value-added wood products. Forintek Industry Advisors are located across the country to offer direct assistance to all types of value-added wood product facilities. Workshops and seminars also are held so that manufacturers can learn more about new technologies and meet top specialists in wood conversion.

Forintek Canada Corp. was established in 1979 as Canada's national wood products research institute. The institute's mission is to be the leading force in the technological advancement of the Canadian wood products industry through the creation and implementation of innovative ideas, processes and products.

Currently, Forintek has a membership base that includes more than 240 manufacturing companies and industry suppliers, equal to 69 percent of Canada's primary wood products manufacturing sector. These member companies produce lumber, plywood, oriented strandboard, particleboard, medium density fiberboard and value-added products. The Canadian Forest Service and the British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Newfoundland and Labrador provinces also are members of the Forintek partnership.