Effects of Standardization in a Developing Manufacturing Environment

Abstract

Growing a small-to-medium sized company while balancing financial health and operational excellence is a topic of significant interest across industries alike. It is generally accepted that when scaling operations, the behaviors that led to the success of a small company cannot be the same practices carried forward. Both people and the environment must adapt to reach success at the next level.

This study examines the three primary challenges associated with the growth of a small, trailer chassis manufacturing company, PRATT Industries. First, the impact of culture and morale were assessed as they relate to employee retention and hiring practices. Second, statistical process control was applied to quality defect data. In conjunction with additional data analysis, this was utilized to identify the most meaningful root cause corrective actions. Lastly, inventory management was explored as it relates to ordering practices and factory floor organization. Underpinning all the above themes is the emphasis on the development of standardized, repeatable processes.