Department Updates: Cold Heading Initiatives

In 2023, Cold Heading has been working on several initiatives. For this reason we have developed an “SQDC” board in every bay. SQDC stands for: Safety, Quality, Delivery, and Cost.

Safety, Quality Delivery, and Cost

First and foremost is Safety. Working safely every day is and always will be our department’s top priority. No other initiative is as important, since nothing can ever replace lost lives or limbs.

Quality of product is our second focus. Making lots of parts and hitting our delivery or production targets are meaningless if the product is not useable.

Next is Delivery. As part of this focus, we use “heat maps,” which tell us what parts are due and how many are due each week. Being in tune with what is needed to help the downstream operations (thread roll, outside processing, sort) and to keep the customer supplied is critical.

Last, but certainly not least, is Cost. To this point, the primary way that cold heading helps contribute to the success and profitability of the company is to generate as little scrap as possible. This year, we continue to reduce the amount of scrap we generate compared to previous years. This is a never ending battle with the ultimate goal always being zero scrap.

For each of these categories, we have simple reporting systems. Because the process is new, we continue to learn how to use these boards in the best and most efficient ways possible.

Open Book Management Initiative in Cold Heading

These boards help support Fastco’s philosophy on open book management. Open book management has been a real eye opener for many reasons in Cold Heading.

For one, we now better understand the impact of raw material expenditures, the number one cost for our product. In addition, we also have a better understanding of how more we have to sell to make up for the losses associated with a quality issue. Finally, we have a better understanding of what our true profits are after expenses.

For me, it has been humbling to realize how long I worked in manufacturing without truly understanding how the business worked. The only comfort is to know I was not alone. It is a privilege to work for a company that educates us and involves us in strategic decisions.

by Jim Wolters, Cold Heading Team Leader