Pacific Sign and Graphics Process and Operations Strategy | EGR 482, Study Guides, Projects, Research of Engineering

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Pacific Sign & Graphics Process and Operations Strategy

Daniel Nitahara EGR 482 – Dr. Lulay April 26, 2007

Table of Contents

• Executive Summary............................................................................................................
  • Purpose............................................................................................................................
  • Background
  • Strategic Planning Management
  • Innovative Planning Management
  • Brand Promise.................................................................................................................
  • Results and Discussion
• Introduction.........................................................................................................................
  • Fall Project Summary
  • Spring Project Preview
• Background
• Strategic Planning Management
• Innovative Planning Management
• Brand Promise...................................................................................................................
• Results and Discussion
• Conclusion
• References.........................................................................................................................
• Acknowledgements...........................................................................................................
• Appendix........................................................................................................................... - Table 1.0 – Takt Time Calculations..........................................................................

Figure 0.1. Employee Lead Time (Non-Value Added)

Using the concept of lean manufacturing used by Leatherman Tool Group, Inc.^1 , the takt time was calculated to determine how much time was needed to complete a single process during fabrication, indicated in Figure 0.2.

Takt time = Available time per day ÷ Demand of process per day

Takt Time Days/Process Router 7. Silk Screen 9. Spray 13. Digital Print/Plotter 6.

Figure 0.2. Takt Time

Through interpolating the takt time, the need for each process per week at Pacific Sign & Graphics is determined. As indicated in Figure 0.3, a process schedule can be planned to minimize employee lead-time.

Monday Tuesday Wednesday Thursday Friday Digital Print Digital Print Digital Print Silk Screen Silk Screen Router Router Spray

Figure 0.3. Process Activity Schedule

(^1) Jack Nichol and Rakesh Sridharan, Lean Transformation Immersion Overview, April 16, 2007.

Job Ordering Fabrication Assembly

Value Added Non-Value Added

Days of Job Duration

Employee Lead Time

Place Order

Deliver Order

Brand Promise

Plan for today, work for yesterday.

This describes the chaos that running a small company entails. Basically, there are never enough hours in a day. By utilizing the concept of takt time and creating a process activity schedule, management would be able to allocate time to spend on strategic planning and improve process and operation by allocating employee to process activities on scheduled days. The brand promise for Pacific Sign & Graphics should be:

Work for today, Plan for tomorrow

Having a guideline to work by and remind management of the vision of the company, it helps the entire company be on the same page. The attitude and behavior of management will trickle down to employees and the results will show in the products and services.

Results and Discussion

The results of the reorganization of the process and operations principles for Pacific Sign & Graphics have yet to be determined. Implementation has not started because of the timing between this project and the company’s project schedule. However, these suggestions to the company are feasible and do not require the company to risk any profit or sales. The monetary value of the company will come with time, but without the brand foundation of the company and process and operations principles the company has no monetary growth potential.

Pacific Sign & Graphics encountered the same problem. The problem was not with the job process, but with management. The reorganization of process and operational principles starts with management.

Background

Richard Yoshizawa started Pacific Sign & Graphics 46 years ago, after returning to Honolulu from New York. Richard started Pacific Sign & Graphics silk screening logos on vehicles. Today, the second generation business is operated by Nathan and Lynn Nitahara and Craig and Cheryl Sumida. From its humble beginnings, Pacific Signs has grown to become one of Hawaii’s leading sign manufacturers. Some past notable clients of Pacific Sign & Graphics are:

• Sony Open Golf Tournament (1998-present)
• Tripler Medical Center (2004-present)
• Kaiser Permanente Medical Center (1985-present)
• Hawaiian Open Golf Tournament (1965-1998)
• Honolulu International Airport (1962)

The family owned/operated company is located in Honolulu, Hawaii. Pacific Signs employs 12 full-time and 2-3 half-time persons. Pacific Signs offers full service signage services from design to installation, specializing in commercial, hospitality, corporate, and custom signs. Pacific Sign’s services include:

Fabrication
ADA Signs
Screen Printing
Vinyl Graphics
Graphic Design
Digital Printing
Installation

As the sign industry has evolved from craftsmanship driven industry to a technological driven industry, Pacific Sign & Graphics has had to adapt to the changing environment. The transition has allowed Pacific Sign & Graphics to reduce turnover time and improve quality in their process. However, management has not made to transition along with the operations.

Strategic Planning Management

Pacific Sign & Graphics is a small business. Unlike large corporations, Pacific Sign & Graphics does not have the capability of hiring managers to oversee day-to-day operations. Everyone involved with the company wears many caps to successfully accomplish day-to-day tasks. However, management is still responsible for the strategic planning of the company. Accomplishing both daily tasks and strategic planning can be done through three actions:

• Separate daily task vs. strategic planning

• Monthly strategic planning meetings
• Delegate day-to-day tasks

Separating daily tasks vs. strategic planning is a small, but necessary action. This involves allocating a portion of time per day to strategic planning. For Pacific Sign & Graphics, each member of management should allocate 25 – 30% of each workday to strategic planning. Shown in Figure 2.

75% Daily Tasks 25% Strategic Planning

Figure 2. Daily Tasks vs. Strategic Planning

Monthly Strategic planning meetings are designed to keep all management on the same page of the direction of the company. Within management, every person has a different view of how operations should be run. Although each member of management is responsible for a different department of the company, all departments are involved in each job process. The differences between departments and management causes miscommunication and disorganization within the company. Identifying and defining “vital” elements of the company will keep management on the same page. The vital elements are based upon the decisions that will be guiding elements for the company in the future.

In order to start strategically planning management cannot be caught up with day-to-day tasks. Delegation of day-to-day tasks by management will allow time for management to use for strategic planning, as well as, instill greater responsibility to employees. If employees are able to manage themselves, then the entire company benefits. Empowering the employees will encourage them to be more productive.

Innovative Planning Management

One of the “vital” elements for Pacific Sign & Graphics is the process and operation efficiency. Currently, Pacific Signs has the technology to be productive and operate successfully, but is not efficient. Non-Value Added time is the amount of lead time between job process operations. Because the majority of time is spent performing non- value added processes, indicated in Figure 3, allocating value added time efficiently could minimize the impact of non-value added time.

After determining the demand for each process during the last three months, the demand per work day was calculated. Indicated in Figure 5, the demand for each process per day will be used to calculate the takt time for each process.

Process Demand/Day Router 0. Silk Screen 0. Spray 0. Digital Print/Plotter 1.

Figure 5. Process Demand per Day

Using 7.5 hours of work time available per day the takt time was calculated. As indicated in Figure 6, the takt time for each process is the amount of days needed to complete one job in order to meet the demand.

Takt Time Days/Process Router 7. Silk Screen 9. Spray 13. Digital Print/Plotter 6.

Figure 6. Takt Time per Process

Through interpolation of the takt time and need for each process per week at Pacific Sign & Graphics. The amount of days per week each process needs to be in activity can be determined, as seen in Figure 7. As indicated in Figure 8, a process schedule can be planned to minimize employee lead time.

Process Activity Per Week Router 2 Silk Screen 2 Spray 1 Digital Print/Plotter 3

Figure 7. Process Activity per Week

Monday Tuesday Wednesday Thursday Friday Digital Print Digital Print Digital Print Silk Screen Silk Screen Router Router Spray

Figure 8. Process Activity Schedule

Establishing a process activity schedule will provide Pacific Sign & Graphics the ability to increase the employees without adding employees. Instead of the current style of operations, where each process activity runs every day on a job demand basis, creating a process activity schedule will allow for additional employee to work in other departments. Implementing a process activity schedule will allow management to plan job schedules in a better organized structure.

Brand Promise

The final part of reorganizing the process and operational principles of Pacific Sign & Graphics is recreating the brand promise. The brand promise can be described as the values and principles that guide the company. This is an important part the present and future success of the company. The differences within management are both, good and bad for the company. The differences provide balance to company. All the members of management have different strengths and weaknesses. The all members are able to make up for the weaknesses of the other members, creating a balanced management. The bad is the operations and strategic planning of the company. Although each member is strong in a different area of the business, the lack of communication about job production leads to miscommunication between employees and inefficiency in operations. The strategic planning for the future of the company is currently non-existent because of the requirements of attending to day-to-day tasks. If there was a brand promise for Pacific Sign & Graphics at this moment, it would be:

Plan for today, work for yesterday.

This describes the chaos that running a small company entails. Basically, there are never enough hours in a day. By utilizing the concept of takt time and creating a process activity schedule, management would be able to allocate time to spend on strategic planning and improve process and operation by allocating employee to process activities on scheduled days. The brand promise for Pacific Sign & Graphics should be:

Work for today, Plan for tomorrow

Having a guideline to work by and remind management of the vision of the company, it helps the entire company be on the same page. The attitude and behavior of management will trickle down to employees and the results will show in the products and services.

Results and Discussion

The results for reorganizing the process and operation principles for Pacific Sign & Graphics have yet to be determined. Implementation has not started because of the timing between this project and the company’s project schedule. However, these suggestions to the company are feasible and do not require the company to risk any profit or sales. The monetary value of the company will come with time, but without the brand foundation of the company and process and operations principles the company has no monetary growth potential.

References

Jack Nichol and Rakesh Sridharan, Lean Transformation Immersion Overview , April 16, 2007.

Leondes, Cornelius T., Computer Aided and Integrated Manufacturing System: Intelligent Systems Technologies. World Scientific Publishing Company; 2003.

Acknowledgements

I would like to thank everyone who has helped me throughout my project. Anytime I needed help each one of you were always there with open arms, taking me under your wings and guiding me towards me goal. I would not be able to do this project without all of your hard work and support. Thank you very much.

• Bob McCarthy
• Burt Perry
• Dr. Khalid Khan
• Dr. Ken Lulay
• Dr. Robin Anderson
• Don Draper
• Eric Pozzo
• John Friess
• Robin Gomes
• Lynn Nitahara
• Matt Chapman
• Pacific Sign & Graphics
• Richard Yoshizawa
• University of Portland
• University of Portland, Center of Entrepreneurship
• University of Portland, School of Engineering
• University of Portland, School of Business