The Chamberlain Group, Inc. (Nogales, Sonora, Mexico)

The Chamberlain Group, Inc. is the world's largest manufacturer of residential garage door openers, commercial and gate operators and waxer/polishers. As a leader in its industry in product innovation and quality, Chamberlain maintains a low cost of production and continues to grow in all of its respective markets. Chamberlain’s ongoing commitment to quality and productivity has positioned the company well for sustained profitability and future success. Chamberlain is a division of Duchossois Industries, Inc., and with nearly 4,000 employees, is located in Nogales, Sonora, Mexico.

Chamberlain had a desire to improve labor utilization on their production lines in order to help offset the rapidly rising cost of labor. In June of 2000, Chamberlain engaged H.B. Maynard and Co., Inc. to perform an assessment of its operations and identify potential improvement opportunities. The productivity assessment was conducted in key areas of the plant where staffing levels were the highest. Objectives were to show how well utilized workers were, how effective work methods were, and lastly how high worker performance was. The result of the assessment indicated there was an opportunity to improve labor productivity and reduce staffing on the assembly lines. To expedite the realization of these savings, Chamberlain contracted Maynard to facilitate a four-month on-site project to optimize assembly line staffing, identify methods improvement opportunities and restructure the standard allowances accounting for personal time, rest time, and minor unavoidable delays.

METHODOLOGY

The project team consisting of Chamberlain industrial engineers and Maynard consultants used a standard methodology across all areas to complete the project. The work required to meet the objectives was broken down into four phases for each plant area. These phases were:

• Data Development and Validation
• Line Balancing with Staffing Aids
• Development of Visual Method, Quality and Maintenance Sheets
• Implementation

In order to effectively balance production lines, accurate labor standards were needed for all manual processes. Rather than directly measuring each operation on every assembly line, the standards were developed using the Top-Down Standard Data approach. This included organizing the data development effort, categorizing the work activities, and building a list of common work elements before measuring the work. A database of work elements was then developed using BasicMOST® and MiniMOST® in accordance with Chamberlain’s accuracy requirements. The data was validated throughout the facility by comparing the methods used on various jobs to the measured work. The resulting database of standard data was then used as a basis for developing labor standards and line balances.

Maynard’s Assembly Manager™ line balancing software was used to assign work for a specific product to the proper workstations at a fixed cycle time. This rate was based on customer demand for the product and can easily be modified should demand change. Once all the labor was assigned and optimized, visual staffing aids were created to assist supervisors in changing over from one model to another, assuring that the proper staffing is always used.

To reduce method variation and improve quality, a Microsoft Access Database application was developed to create visual method and quality sheets. Digital pictures focusing on key method and quality issues were taken of each operation. The pictures were coupled with quality and maintenance instructions to form a one-page visual method sheet. The Microsoft Access application pulls data from the Assembly Manager system and assigns the correct picture to the operation. The visual sheets were then printed, and will be laminated and placed at each workstation, to be used for operator training.

The engineered line balances re-distribute labor across the proper number of line personnel so that everyone is more fully utilized. The visual management tools (method sheets, quality instructions, and maintenance instructions) provide detailed training and instructions to the line personnel.

Throughout the project, a list of method improvements was developed. To ensure timely implementation, a Method Improvement log was utilized complete with responsibility and action due dates. The savings associated with each of the improvements ranged from one to twelve personnel per idea implemented. The overall savings from methods improvement were very significant, and added to the payback of the project’s costs.

The productivity assessment found that the standard allowances were not reflective of the actual personal time, rest breaks, and minor unavoidable delays. The new standards/line balances incorporated the proper allowances providing addition savings in direct labor costs.

RESULTS

Chamberlain realized significant savings in the form of methods improvement and line balancing. These Savings will increase further as new line balances are implemented. The savings result both from a reduction in labor content because of better methods, and also from improved labor utilization on the assembly lines because personnel are more fully loaded with work during the line’s cycle time. To adjust to the new staffing levels, turnover/attrition will be used to reduce staffing.

The partnership between Chamberlain and Maynard has been very positive and successful. Chamberlain was able to achieve improved utilization on assembly lines, improved methods and a new allowance structure that matches current conditions. The project team is now ready to carry the process forward into the remaining areas of the plant on their own without further outside assistance. The software and procedures used during the line-balancing project will become the infrastructure of the Chamberlain Industrial Engineering function.