Dear MAAG Americas Team:
As mentioned in the recent Townhall, I want to spend some time to explain our strategic projects in more details. This month, I will try to explain why we are focusing on a concept called “Right First Time" or RFT, and how OPEX is helping us to improve it. RFT is what is implied by the name: every business output (i.e., an engineering drawing, a quotation, a weld, an assembly, etc.) should be done correctly from the start without the need to rework. This helps us not only to reduce scrap, warranty, and other direct costs, but also reduces the time required to finish a process correctly. For example, if we realize in assembly that a part had been drawn or fabricated incorrectly, it does not only cause the direct cost to rework or remake the part but also could cause the assembly process to delay thus hurting our OTD and potentially the customer’s experience (we may ship the order late which might require the customer to change installation plans, etc.). Over the recent weeks, our OPEX team has started to implement a concept called “See” which is part of 0Dover’s foundation. You may have come across Tier boards on the shopfloors both Kent and EGR, which track daily tasks, problems, and solutions. The boards are not only giving our teams an indication if they are “winning or losing (i.e. falling behind)” but also help us catch problems and mistakes earlier in the process. As a result, we can correct mistakes when they happen and reduce negative impacts on shipping dates, on-time delivery, and quality. This not only allows us to move projects faster through the facility (i.e. lower our working capital and increase turnover) but also creates a much more positive experience for our customer! Paul Merich
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