Since 1981 Hampton Machine Shop, Inc. (HMS) has primarily been a precision machining, welding, and fabrication shop located Newport News ,VA,  a region is known as the heart of the shipbuilding and marine repair.  HMS employs approximately 25 workers and is a job shop in every sense, focused specifically on the fulfillment of  unique customer requirements in a total “make to order” environment.

Since 2003 the Virginia Applied Technology & Professional Development Center (VATPDC) has managed the integration of a Lean Supply Chain Management (LSCM)  project in the Hampton Roads region of Virginia.  This program involves working with a select group of suppliers, identified by Northrop Grumman Shipbuilding as being strategic to their on-going success, implementing Lean concepts.  Being one of these key suppliers HMS was sensing the push to embrace Lean manufacturing concepts and methods as defined by the LSCM project or risk losing Northrop Grumman Shipbuilding as a client.

The first phase of this Lean Implementation Project involved an assessment conducted by VATPDC  to determine HMS's knowledge and level of application of Lean practices. This assessment identified improvement projects to implement Lean practices so as to close the gap between current and desired performance. Next, estimated impact statements were prepared for this project. Before the implementation of Lean practices, baseline data was gathered which identified current performance levels of: On-Time Delivery of 87% and a Quote Response Time of six days.  Additionally HMS was found not to be operationally in compliance to MIL-I-45208A standards, as required by Northrop Grumman Shipbuilding.

The improvement activities for the first phase of this project were implemented under the direction and guidance of Mike Cory,  Principle Consulting Engineer for VATPDC. Mike led the Lean focused implementation phase based upon an outlined work plan for services to address gaps identified in the original assessment. Next, Mike helped identify a Lean Implementation Team that consisted of seven HMS employees including a designated HMS Lean Champion.  These initial team activities also included elements directed at conformance to MIL-I-45208A working directly with the QA department at HMS. 

As phase one work neared completion Ed Wilson, HMS President and implementation team member, began to see the benefits as outlined in the initial Impact Statement as making positive contributions to his company.  At this point the benefits of becoming a “Certified Lean Enterprise” were discussed.  This program was created by VATPDC and the level of achievement is accredited by the College of Engineering at ODU.  To this end, a second assessment was completed by VATPDC to once again identify the gaps that needed to be addressed. 

Phase two of this project was directed toward the remaining areas of the business that required application of the Lean ideology and necessary foundational business changes required to reach a level of competence required to become a Certified Lean Enterprise. These activities focused on the following areas of the overall business:  Communication Systems, Organizational Culture, Willingness to Change, Continuous Improvement, Supply Chain Management, and Sustainability.  Once again a VSM was completed with resulting action items for the Lean Implementation Team to focus upon.

With VATPDC’s  oversight and direction, HMS has not only successfully implemented Lean strategy concepts, as defined by the LSCM strategic program, but went  well beyond with the completion of phase two of the program to become a Certified Lean Enterprise.   Dramatic improvements were evident with On-time Delivery increasing from 87% to 100%, First Pass Yield rose to 99.63%, their Quote Response Time dropped from six days to two, and they reached MIL-I-45208A compliance. For the first time in company history, bonuses were issued to all employees.  This gesture was not only to show appreciation for a job well done, but to also celebrate substantial improvements in the profitability of HMS directly resulting from the implementation of sound Lean practices and ideology.  In March 2006 ODU - Frank Batten College of Engineering & Technology / VATPDC, in a formal ceremony, presented HMS with a plaque in recognition of their achievement in becoming a Certified Lean Enterprise.

“My job has totally changed since the introduction of Lean practices at HMS.  At first I could not see how Lean could apply to my job in any way.  Boy, was I ever wrong!  Was it a lot of work?  ….You bet, but I would do it again…. in a heartbeat!”  Such are the feelings of Beth Fromal, Lean Champion and Production Sequencer at HMS.

Ed Wilson, President of HMS, can routinely be heard delivering the following sentiments;  “Initially, I could not see how Lean would apply to my business in a job shop environment. My first thought was that these guys from VATPDC do not understand how HMS runs.  However, once implementation began, Lean so fundamentally changed my business, in a positive way, that I openly encourage everyone to embrace the Lean way of thinking as it REALLY WORKS !!!!”