More than a fine tuning.

Having learned that lower wage rates alone are not enough to succeed in today's fiercely competitive global television market, Zenith has launched a corporate-wide restructuring program, including automating panel processing operations at its Mexican cabinet plant.

Say what you will about the state of television programming. There is no quibbling that today's TVs are bigger, look and sound better, and are more versatile than those of the past. And like many major consumer electronics, today's TVs are also less expensive.

Manufacturing a better product to sell for a lower price in the face of inflation and fierce international competition is a challenge that Zenith Electronics Corp., the last U.S.-owned manufacturer of TVs, has wrestled with for many years. Beginning in the early 1970s, the Glenview, Ill.-based consumer electronics giant began shifting some of its electronics manufacturing operations south of the border to lower labor content costs. In 1985, Zenith moved its wood console television manufacturing division from Evansville, Ind., to Juarez, Mexico.

Recently, Zenith officials determined that the substantial gap in wages paid to workers in Mexico compared to those in the United States is not enough in itself to profitably compete in the worldwide television market. As a result, Zenith has embarked on a sweeping restructuring and reengineering program to boost its competitiveness, including updating manufacturing operations at its Juarez cabinet plant.

Inside the cabinet plant

Zenith's Juarez plant, about a 20-minute drive from El Paso, Texas, is part of Mexico's Maquiladora program, which offers economic incentives to attract foreign investment. At nearly 1 million square feet, the cabinet plant, which also houses Zenith's TV assembly operations, is the largest production facility under one roof in Mexico. The 8-year-old manufacturing complex operates on a two-shift day and provides air-conditioned comfort and a clean work environment for its 900 production woodworkers.

The woodworking plant manufactures some 50-plus different products divided into five families, including: electronic furniture; transitional/traditional TV cabinets; wood-front cabinets for 25- to 35-inch console TVs; cabinets for 46-, 52- and 60-inch rear projection TVs, and; TV stands, both assembled and RTA versions.

All TV cabinets feature particleboard sides and MDF tops. Hardwood frame components of poplar and ornamental parts mainly of ash and some cherry, are imported from the United States. With lumber prices rising, Zenith is beginning to use more high-pressure laminated wrapped and foiled parts in its products. Each model requires a unique fixturing and most of the construction boring and drilling of each workpiece is performed on up to three machine setups on the 20 multi-spindle boring machines, most of which are 30 years old or more. Additionally, assembly is a labor-intensive and involved process incorporating fixtures, screws, cleats and tenon-and-groove construction methods.

But not for much longer.

As part of its restructuring plans, Zenith is investing several million dollars to overhaul the cabinet plant's panel processing operations. When completed this summer, the modernization program will have a profound impact on how Zenith designs, manufactures and assembles its TV cabinets and related wood products. The drive to automate

According to John Raney, who was promoted to director of manufacturing operations at the Juarez facility in November, one of the main thrusts behind the modernization program is replacing antiquated multi-spindle boring equipment with two automated CNC drilling and dowel insertion lines on order from Biesse America. By converting to a standardized 32mm system approach to manufacturing, Raney said Zenith will streamline its panel processing operations and dramatically reduce machine setup, material handling and assembly requirements. "Two years ago we began a benchmarking program to identify what the best in the industry were doing," Raney said. "I must have visited more than 25 case goods and panel processing plants throughout the world, in the U.S., Germany, France, Italy, Canada and Austria. It gave me insight into new manufacturing philosophies and machinery capabilities that will enable us to replace decades-old processes with a standardized progressive-build, fixtureless cabinet assembly. Essentially we will be using the same type of technology as major ready-to-assemble case goods manufacturers."

The two independent feed-through drilling lines will run side by side. Each will feature RBO double-sided panel loaders, automated conveyors and a single-sided panel unloader. Each line will also incorporate two Torwegge double-end tenoners from European Woodworking Machinery, with an RBO panel turner device positioned between each pair so that all four sides of each panel can be profiled in a continuous manner. From the tenoners, panels will be conveyed to Biesse Techno Logic 32mm through-feed boring machines with vertical and horizontal drilling capabilities. Before exiting either line, panels will pass through Biesse Techno SUBL/J dowel insertion machines.

"One of our goals is to reduce our work-in-process inventory from about three weeks to two to three days by switching to continuous flow panel processing and fixtureless assembly," Raney said. "Frankly, we were short-sighted in that when we initially moved the cabinet plant here, our focus was on labor savings. There was little thought to the equipment that is used." As a consequence, Raney said that while some of the woodworking machinery that was moved from Evansville "has been functional," it is also reflective of the "outdated methods we are phasing out which also will free up about 200,000 square feet of manufacturing space." The phase-out began in October with the arrival of three Biesse Rover CNC machining centers. Each of the machining centers features two 9-horsepower routers, vertical and horizontal boring, an X-Y axis groove saw and an automatic tool changer and crib capable of holding up to 10 tools. The Rovers are used to machine speaker baffles and panel parts for TV stands, which Raney said, "typically have a lot of radii and require both horizontal and vertical boring." The brain for the brawn 

Another important element of Zenith's drive to automate and reduce production turn-around times involves improving its order scheduling and tracking inventory systems. Raney said this will be achieved by implementing a computerized production and inventory control system developed by Integrated Solutions. "It is a real-time scheduling and machine control software package involving bar codes that should help facilitate cabinet production by tracking work in progress and identifying any problem spots including high reject areas," Raney said. "It will give us better inventory control and help us schedule work better to attain greater efficiency of manpower and machine utilization. It will be the brain that ties the entire manufacturing process together.

"In past years we had to prebuild thousands of cabinets in preparation for peak periods," Raney added. "Now we will have the technology to build to order." Foundation for change

The first foreshadowing of the major changes to come occurred in 1989 when a Harlan double-sided laminator was installed in a pressurized room to keep it free from dust. "The Harlan represents our first leap in technology in years," Raney said. "It allowed us to eliminate a wet print process which not only has saved us money but reduced solvent-based materials used in an edge-fill process for MDF tops."

The Harlan, which operates at up to 100 feet per minute, laminates 30- and 60-gram papers purchased from Toppan and Dai Nippon, as well as 6- and 8-mil vinyls supplied by Reneer Films. Most of the decorative laminates are woodgrain prints. Some black and white overlays are also applied.

Installing the laminator paved the way for bringing panel sizing operations in-house. "We used to buy cut-to-size panels, but the fact that the Harlan works with full sheets of particleboard and MDF, predicated that we have a panel saw. "To fill this void, Zenith purchased two Giben panel saws and uses Giben's Optisave optimizing software to maximize material yield. "Right now we are generating our cutlists on a disk and then downloading the information on the shop floor. We have plans to install a cable link to directly connect the programming room and the panel saws," Raney said.

Also on the horizon, Raney said a turnkey automated wood waste collection and utilization system from Advanced Air Technologies will be installed in March. The system will feature vibrating conveyors to move offal from the panel saws to Macoser wood grinders which in turn will deposit refined wood waste into a storage silo. The silo will feed sawdust into a boiler that Raney said will be used as an alternative energy source to heat the plant during the winter and fuel steam ovens for finishing operations. "It should save us hundreds of thousands of dollars in natural gas consumption and waste removal costs annually," he said.

Back to the beginning

Raney, a 17-year veteran of Zenith, was one of about 60 employees who moved down from Evansville to work in the Juarez plant and now speaks fluent Spanish. "When we first started production here, it was very difficult finding people who had ever set foot in a high-production woodworking plant, let alone possessed any woodworking skills." Raney added that initial employee turnover averaged 20 percent a month before an employee orientation program was established to help ease new workers into the factory environment by giving them an explanatory overview of the entire manufacturing process and information on what is expected of them in their jobs.

"Another factor helping us reduce turnover is that area vocational skill centers have sprung up," Raney said. "They provide us with people who are sharp and eager to learn." On-the-job training is supported by a full-time instructor, who not only provides educational seminars on work-related fundamentals like measuring and quality control, but has also helped more than 100 employees receive an education equivalent of the GED program.

"We've gone through a lot of changes over the last eight years, but the biggest and best ones are still to come," Raney said.

ZENITH PRO NAFTA 

Passage of the North American Free Trade Agreement was warmly welcomed by Zenith Electronics Corp. Immediately after Congress ratified NAFTA, Zenith announced that it planned to add several hundred jobs at its picture tube manufacturing plant in Melrose Park, Ill.

Most of Zenith's more than $1 billion in annual sales is generated in the United States and Canada but the company eyes Mexico as a land of opportunity." The main benefits that our company will immediately realize from NAFTA is a reduction of duties on our products brought back into the United States from Mexico," said John Raney, director of manufacturing operations at Zenith's cabinet and television assembly plant in Juarez, Mexico. "An added benefit will be the elimination of duties we pay to import our raw materials and wood components made in the U.S."

"We're in a fiercely competitive industry where small savings add up. NAFTA will help lower some of our costs. And ultimately, the Mexican market will be a good one for us."