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Reducing Time-Purchase Order to Shop Order Release

With the help of: Impact Washington

About

Jorgensen Forge Corporation manufacturers forge and machining products for the marine, nuclear, aerospace, O&G and commercial markets. The company is located in Tukwila, Washington, and has around 180 employees.

The Challenge

Jorgensen Forge was missing customer delivery dates. Research revealed that the company was spending an excessive amount of time ordering materials and releasing orders to the floor. Through a grant provided by the Department of Defense, Impact Washington, part of the MEP National Network™, stepped in to help find a solution for Jorgensen Forge.
Working with Impact Washington, we were able to drastically reduce the time it takes to get jobs out onto the floor. Within a short period of time we had produced noticeable results that reduced our late jobs drastically.
— Mike Jewell, President/CEO

MEP's Role

Impact Washington helped a team from Jorgensen Forge to map the process. Jorgensen Forge’s Inside Sales Manager, Denara Vetkos, led the internal team. Impact Washington consultants, Joe Heim and Sarah Stuart, led the discussion and provided Lean tools to help streamline the process. They discovered that employees were taking extensive time to quote everything that came through, handling the orders sequentially. Each quote was impacting the same resources as release to production.

To address this problem, the company established a daily quote sort meeting with all stakeholders. The daily quote sort meeting vetted quotations prior to start, weeding out a full 50 percent. Jorgensen Forge added an order review meeting to the daily meeting, virtually eliminating the time to release.

"We are really grateful to Joe and Sarah for their patience,” said Mike Jewell, Jorgensen Forge CEO. "We changed directions a couple of times, albeit unintentionally. We’d hit a wall and have to back up, have to take a few steps back. Joe and Sarah deserve a lot of the credit for their willingness to stick with it and go through the process with us."

The company reports happier customers, higher returns, and a behavior-shift in the plant. The daily meetings provide greater buy-in and ownership for Jorgensen Forge employees, and teamwork has improved.
Created July 8, 2020