Lean helps justify $4 million investment for Oiles America

Oiles America, a manufacturer of maintenance-free bearing products, recently implemented a $4 million new process line as a result of ongoing lean improvements and a need to meet increased capacity. This gain from lean techniques allowed the company to reinvest in itself by adding jobs and the additional product line for the Concord facility, which is the largest manufacturing plant outside global headquarters in Japan.

Oiles began working with the North Carolina State University Industrial Extension Service (IES) in 2005. Early projects began with lean manufacturing and value stream mapping, which eliminates waste and streamlines processes.

In manufacturing, competition is fierce. Oiles is a tier one and supporter of other tier one suppliers of bearing products to the auto industry. Tier one facilities are original equipment manufacturers (OEMs), which supply directly to the automobile manufacturer.

Oiles products can be found in “the big three” Ford, General Motors and Chrysler, which dictate some of the highest standards in the industry. Oiles products are used in power steering, exhaust and hinge systems, to name a few.

As Julie Adams, human resource manager for the plant, stated, “You can’t sit back, you have to do it better, faster, cheaper, or you’ll be passed by.”

Bypassed not an option

A major contributor to the success of a manufacturing plant is mastering changeover. Changeover occurs by literally changing a machine from making one piece to another. On average Oiles manufactures 3 million pieces per week with 80-100 variations. The time it takes to complete a changeover can make or break production goals, thereby affecting profitability.

NC State facilitated a S.M.E.D. (Single Minute Exchange of Die) event, which is a lean tool used to create quick yet efficient changeovers and setups that greatly reduce machine downtime and increase throughput.

Oiles’ goal was to reduce changeover by 50 percent on its high-speed forming machines which produce up to 180 bushings per minute. The changeover began as an 8 hour set-up and was minimized to less than 4 hours by standardizing work procedures and incorporating training methods. For these efforts and sustained results, Oiles America was awarded 1st place at the annual *OTEC (Oiles Total Power Efficiency Challenge) event held in Japan on November 9th.

The new line

Oiles realized there was an opportunity for increased capacity and delivery benefits if it produced its own raw material. The $4 million dollar investment allowed Oiles to be the first subsidiary of the Oiles Corporation to manufacture its own raw materials outside of Japan.

Raw materials for Oiles consist of applying a Teflon coating to steel so bushings may be produced. These materials are now processed on the strip line which was installed last year. The oil-free bearing rides against a pin and is used in products such as door and truck hinges and head rests. Currently, Oiles is actually supplying raw materials for Japan’s manufacturing process.

The strip line has customer benefits as well, allowing Oiles to react more quickly to requests and delivery schedules. Previously, the company waited 6-8 weeks for materials to arrive by boat from Japan.

Oil-less and Oiles

The concept of oil-less bearings was developed by Sozo Kawasaki, the founder of Oiles Corporation. Kawasaki, working for a tobacco factory in the 1920s, was impressed at the mechanics of the wooden bearings used in the material feeder. Bearings used in this period contaminated the tobacco with excess oil.

After many attempts, Kawasaki was granted a patent for the manufacture of wooden oil-less bearings, the first patent in Japan of its kind. Through further development and trials, the oil-less bearing was produced.

Oiles is ISO 14001 (environmental) and TS/16949:2002 certified, an automotive industry standard. The ISO 14001, an environmental compliance certification, was obtained through IES training and support.

“NC State has been a valuable resource in our training and we hope to continue to use them in the future,” stated Adams.