The global market is no place to lag behind, and John Valek, Executive Vice President and General Manager of Fond du Lac-based RB Royal realized he needed to take action to truly compete. Their quote process was lagging anywhere from 15 to 30 days, which meant they were missing a critical component of establishing relationships to win bids: “In our business it’s not enough to get the quote in on time. You need to get it early, or even first. Then you’re the one setting the bar,” stresses Valek. The 135-person workforce supplies OEMs with engine oil, fuel and hydraulics lines, and manufactures custom hose assemblies and precision-machined products.
RB Royal linked forces with WMEP Manufacturing Specialist Tom Grohne to apply Value Stream Mapping (VSM) and Value Added Flow Analysis (VAFA) to their front office quoting processes. For Valek, the biggest surprise was the amount of non-value-added time that dragged down every quote. There was no prioritizing system, so a large portion of its total life cycle was spent in queue, waiting for the necessary attention. Now quotes are placed in a paced release system based on priority and urgency, so that the engineers and salespeople can focus on adding value for the customer rather than sorting through piles.
RB Royal can now process quotes in an average of three days, sometimes as fast as 24 hours! Valek’s current goal is to deliver every quote consistently within 24 hours. The company is also reaping benefits throughout the organization by undergoing a full Lean Transformation. From new product innovations to shop floor improvements to a permeating lean culture, Valek has not only seen bottom-line results, but is especially encouraged by the effects the transformation has had on his employees: “You can spend a lot of money on a lot of things, but you can’t buy the sense of accomplishment they feel.”