1. WGEP - Case Study Larissa Albuquerque Marques Silva Gabriel Luís Anibal de Oliveira Aaron Brantley 9/17/2015 Brantley | Albuquerque | Oliveira 1

2. Introduction  Western Geophysical Exploration Products (WGEP)  Seismic exploration company  Manufactures equipment for laying underwater cables  Poor reputation with customers  Marginal product quality  Poor on-time delivery  Long manufacturing lead times  Inconsistent product reliability  High product costs 9/17/2015 Brantley | Albuquerque | Oliveira 2

3. PRODUCT FLOW Process improvement stepEffect or Result Designing cells with a product- oriented flow Eliminate unnecessary movement Increase visibility Improve communication Reduce manufacturing cycle times Kanban and visual controlWIP went from 60 to 12 cables Lead time was reduced from over 30 days to less than 5 days Material shortages almost nonexistent Additional aislesImprove safety Eliminated full-time material handling labor Reduced the total time spent moving the bay cable 9/17/2015 Brantley | Albuquerque | Oliveira 3

4. Product Quality/ Employee Skills Training Process improvement stepEffect or Result Locating cells into adjacent to the previous step Allowing workers to catch immediately correct any quality problems Close proximity of the workersImproving communication Cross-training Problem solving 9/17/2015 Brantley | Albuquerque | Oliveira 4

5. Material Waste Reduction Process improvement stepEffect or Result Process improvement stepEffect or Result Minimizing excess cable productionSaving amount to a 4% reduction in the cable cost. The annual saving of this improvement amounted to more than $320,000. 9/17/2015 Brantley | Albuquerque | Oliveira 5

6. Visual Controls Process improvement stepEffect or Result Visual display system (schedule board) Allowing all employees to understand: Current and future demand Quality improvement Cost reduction Kanban CardsProviding information about the part and its location 9/17/2015 Brantley | Albuquerque | Oliveira 6

7. Materials Management Process improvement stepEffect or Result Master production scheduleEliminated incoming inspection for all materials Kanban CardsThe Kanban card contained all the information the shop need to receive, store, and use the material 9/17/2015 Brantley | Albuquerque | Oliveira 7

8. Performance Measurement Process improvement stepEffect or Result New performance measurement system in these areas: Quality On-time delivery Productivity Cost Safety Providing relevant, reliable, and timely information and to communicate this information to all employees on a regular basis 9/17/2015 Brantley | Albuquerque | Oliveira 8