Lebanon Gasket Company | October 24
2012
| | Creating a Lean Enterprise |

CREATING A LEAN ENTERPRISE:
THE CASE OF THE LEBANON GASKET COMPANY
I. Summary of facts * Lebanon Gasket Company’s Topeka, Kansas Facility began operation in 1979. * The company had operated in using mass production. * In January of 2004 LGC had about 109 employees. * The LGC Topeka plant relies on two main manufacturing processes – injection molding and extrusion molding. * The injection molding process has three main product families- OS1, TX4 and KC13, more than 100 product models are produced across these three product families. * The extrusion molding process has two main product
Realizations came about regarding the 109 employees at Gasket and about “injection molding and extrusion molding”, the two main manufacturing processes that produce a variety of rubber sealing systems for automotive, healthcare, plumbing, and telecommunications applications. Walsh retained all employees when transitioning to lean production with the belief that layoffs would lower employee morale and decrease the likelihood of a successful lean implementation. Implementing the lean approach dramatically changed the goal of the Topeka plant’s manufacturing processes as previously, the goals was to achieve the lowest possible cost per unit by maximizing employee and equipment productivity. The goal of the plant’s cellular-oriented lean approach is to deliver customer-driven value.
Dwyer identified three inefficiencies that dealt with cost inputs of raw materials, direct labor, and overhead. Walsh was confused by the language and terms of accounting and it was difficult for him to understand. Dwyer suggested lying off employees, but Walsh did not like the idea. Dwyer was disinterested in the lean concept as he has had more than 30 years of experience with standard costing. Dwyer was planning to retire in the near future and didn’t have an interest in critically reviewing his