Hansens Engineering combines quality with service excellence to supply precision-machined aluminium components to the automotive pipe and hose industry. Geared to the future, its expertise can develop manufacturing solutions for a wide range of applications.
Hansens Engineering is a family owned business founded in 1956 by Viggo and Birthe Hagedorn-Hansens. Their son Glenn took over the reins in 1984 and a third generation, Erik, joined the business in 1996. Initially, Hansens operated both a jobbing shop and a production shop. In 2001, a strategic decision was taken to concentrate solely on high volume production manufacturing and the company moved to its new 3500 m2 premises in 2002. It currently exports to six countries.

CHALLENGE/S
Hansens Engineering has always been keen to implement continuous improvement concepts in its quest to be a world class competitor. The challenge was to enforce Lean Manufacturing principles and make them an integral part of the company culture. Hansens chose to participate in the AIDC’s Tirisano Programme, partly as a result of its ability to connect with employees on the shopfloor and the Boardroom, and for the learning gained through the experiences of the other companies.

The company initially had an understanding of lean concepts, but operators and management were uncertain of their respective roles in the process and how to implement them in an effective manner.

Hansens Engineering also had limited staff resources and could not appoint a dedicated individual or team to manage this lean initiative.

THE SOLUTION
An initial lean analysis was conducted to identify the shortcomings and strengths of the organisation with regard to six crucial elements (Organisation, Human Resources, Quality, Logistics Production Systems and Standardisation). This was done in conjunction with the Value-Stream Mapping and Process Flow Map of key processes. MD Eric Hangedorn-Hansens, as Project Sponsor, handpicked the project team comprising highly skilled and trusted staff to assist with the implementation of the Tirisano cluster programme.
Two trainee Industrial Engineering students were placed at the company by the AIDC to implement and monitor progress and process improvements.

Phase 1 – Awareness/Change Management
The purpose of the awareness sessions with management, supervisory teams and the union was to brief them on the Tirisano Cluster Programme and their associated roles and responsibilities. Ensuring a paradigm shift towards lean thinking and the implementation of best practices in the workplace was essential and this began with management buy-in at the highest level.

Phase 2 – Management Training
Management staff were trained on the Value-Stream Mapping, 7 Wastes, Visual Management and  5S Workplace Organisation, with emphasis placed on making management decisions for long-term sustainability and the alignment of the organisation towards a common purpose.

Phase 3 – Model Area Training and Implementation
The machine turning area was identified by the project team as the model area. Individual training was done on 5S Workplace organization, Visual Management and also on process improvements. Each operator was assessed in order to identify their skill level before training, understanding that the correct process will produce the desired results. New visual instructions and work stations were introduced to improve the ergonomics of the operator. The implementation of cellular manufacturing in the model area has reduced transportation time, increased operator ownership and ensured higher quality levels with less handling.

Phase 4 – Company-wide implementation
The assessment and training were horizontally deployed to all departments.  The use of a “pull” system in the form of  Kanban, supplemented with the “supermarket” concept was implemented to avoid overproduction and workload levelling. Moreover, standardization of visual work instructions assisted with improvements in safety, quality and delivery of parts.

Phase 5 – Sustainability and way forward
Monthly Review Meetings (MRMs) were held with all companies in the Tirisano cluster programme in the form of information sharing workshops. The MRMs were important forums for companies to provide constructive feedback and creative ideas based on the collective experience of the cluster participants. Given the successes, management at Hansens Engineering has demonstrated newfound enthusiasm for the implementation of Lean philosophies, and has subsequently employed an Industrial Engineer to boost efforts in this area. The company continues with the implementation of 5S Workplace organization, Total Productive Maintenance (TPM) and Quick Changeover modules.

THE RESULTS AND BENEFITS
Hansens Engineering noted a whopping 65% improvement in Overall Equipment Efficiency (OEE), a 50% improvement in production of defected parts per million (PPM) and an average increase in attendance of 21%.

A significant cost saving of R1.1 million was realised through the implementation of cellular manufacturing throughout the production facility, which assisted management to make an additional investment in the new warehouse facility.

Improvements were tracked with the OEE toolkit and this was monitored on a daily basis by management. 213 employees were trained during the process.

The appointment of an Industrial Engineer and acknowledgment of the success of the Tirisano Cluster Programme implemented through the AIDC has entrenched an ongoing commitment to the principles of lean manufacturing at Hansens Engineering.