Company Profile: Country Valley Industries (CVI) is located in Johnson City, N.Y. It is a company run by the ARC organization of Broome County for their disabled citizens and provides packaging services for the Frito-Lay Company.

Situation: CVI received a grant from SUNY Buffalo to perform a compliance analysis to the US Department of Labor Standards. The objective of this study was to review CVI’s existing time standards/rates, methods of development, application methodology for wage payments, layout and workflow of present lines. Recommendations for changes to improve and correct these objectives were to be developed.

The operation involves a multiple of variables including machine times, belt speeds, different product configurations that add to the complexity and difficulty of developing job standards. In order to insure compliance with US Department of Labor standards, the system time studies and documentation currently in place needed to be validated by an outside source that could apply objective and professional competencies to this specific project. This contract involved 45-50 consumers and 15-20 non-disabled production workers.

Project: The Executive Director of the ARC contacted AM&T to determine if they could help. AM&T located a consultant with the required expertise, developed a proposal and presented it to ARC.

Review of the present layout of four production lines, the related material handling and workflow resulted in recommendations to redesign the workflow to correct the “bottleneck” and reduce the material handling requirements. Workflow charts were generated showing the present production lines and the recommended lines.

The time studies on some of the lines revealed that the payment methodology seemed fair and equitable. The rate that was currently in use on one line was higher than the time study indicated. The rate was determined when an auto-sealer machine was in use on the line. The wage payment technique utilizing bags was fine, however; the base throughput rate of trays was incorrect on all four lines.

Several recommendations were made:

• Operate at least two auto-sealer machines to reduce costs per tray and bags processed

• Revise the present rates for tray/bags to reflect time study findings

• Apply rates to all four lines presently used. Revise these rates when new auto-sealers are on line

• Add bays for trailers at end of each line and carton flow conveyor feed systems direct to each to improve flow of finished cartons and reduce man-hour requirements.

• Add two more box/tray former machines at the front of the lines to improve incoming carton flow to bins and to lower costs.

• Have cost-trade studies done before adding more space, buying equipment, conveyors and looking at ways to reduce material handling.

Impacts: A report was issued covering these items and was reviewed with the management team on site at CVI. The rate changes were agreed to and have been implemented on all four lines as recommended.

Everyone agreed that the report satisfied the objectives and was supportive of their concerns and views prior to this study.

A follow-on meeting was held. It was agreed that AM&T’s consultant would analyze Line 3 when it was up and running. This study was undertaken due to the change in the sealing equipment from manual to auto-feed.

As a result of the total study, material handling was reduced, workflow was improved, the rates were revised and workers gross pay received a slight increase.

Testimonial: “The AM&T team helped us realize the potential of a Lean environment. They did a thorough analysis, worked well with our people, and the results speak for themselves.”

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