Improving Efficiency at Mattel
A plastics manufacturing company was experiencing rapid sales growth, and management operated in an informal, personal, hands-on-manner. This style was successful until the company expanded from a one plant operation to a two plant operation, with plastic production and warehousing at the main plant and packaging and distribution at the new facility.
The absence of formal systems integrating the operations of both plants negatively impacted the company's productivity. The company president asked for help from Don Payne, Director of Human Resources Development at Mattel, to identify improvement opportunities and strategies.
Payne implemented a diagnostic process based on the LIFO® Method to identify management behaviors necessary to integrate the plants’ operations. A structured training program was designed for key members of the management group. LIFO developmental strategies were taught to help managers create action plans to improve personal and organizational productivity.
"The most important part of the intervention was the use of LIFO Training to get people to look at the options available to them in order to initiate needed changes and improvements," states Payne. "The opportunity for improvement was apparent—managers had to discipline themselves to apply the appropriate style in specific situations to meet their goals."
By identifying their behavioral style preferences, the team was able to spot low-strength areas and build them up. "A large part of the program design was directed at participants practicing and becoming comfortable with productive aspects of their least preferred behavioral styles," Payne adds.
Results
At the end of the six month period, the following results were reported.
- Manufacturing efficiency (man hours vs. scheduled product off the end of the production line) increased by 46% .
- Absenteeism decreased from 30 people out of 150 being absent on a daily basis, to 5 out of 150 being absent—an 85% drop.
- Per-person productivity increased by more than 210%, as material handlers were reduced from 28 to 13 yet were able to handle the same amount of work.
- Cost savings were realized by reducing shipping staff (both distribution and interplant transfer) by 10% and consolidating interplant shipments to conserve labor and fuel.
