Case Study: “Buckeye Technologies”

Lean production is based on elimination of all waste from the production process. For
Sabina to start implementing lean techniques at Buckeye, she must first conduct a value stream
analysis to identify all the steps that do not add value. These include storage, rework, queues, and
approval activities that do not define value from the customer’s perspective. To address the
sourcing issue from Xiang, Sabina needs to adopt a continuous-flow production technique that is
synonymous with small-batch production. A continuous-flow production means that the
production line is always balanced across the different production steps. To effectively
implement this technique, Sabina will also need to use the concept of Just-in-Time (JIT)
inventory system. In JIT, inventory is always scheduled to arrive when needed. JIT uses a pull
scheduling concept whereby an order is not available for production until all the steps in the
production line are ready for it. This means that Buckeye will only produce a semiconductor
when a customer places an order. With this technique, the company will receive raw materials
from Xiang in small batches.
Question 2
To achieve maximum efficiency in the facility, Sabina needs to install U-shaped
production cells that have small, multipurpose machines. Large machines that are single purpose
and placed at different sections of the facility translate to extensive changeover time.
Reorganization of the work environment will also need adoption of the Single-Minute Exchange
of Dies technique that enables workers to quickly changeover tasks and machines to suit the
demand of the production process.

Case Study: “Buckeye Technologies” 3
Question 3
A lean factory creates a seamless flow of materials, people, and information. Equipment
set up at the facility should resemble U-shaped production cells. After conducting value analysis,
Sabina should ensure that all the important equipment can operate on low cost, accommodate
new products, produce varied products without the need to overhaul the system, and produce
high quality products that meet the customer’s expectations. After taking these key
manufacturing tasks into consideration, equipment organization should be re-designed to reflect
product-focused work cells that have reduced storage and handling space. In these cells, it should
be clear that the cell team is responsible and accountable for product quality, cost, and delivery.
In a nutshell, equipment within a cell should be sufficient, flexible, and effective to match the
given expectations.
Question 4
Sabina could also use a takt time concept to meet the needs of the marketplace through
effectively projected customer demand. Takt time helps production stability by capping
overproduction and prevents accumulation of inventory. This technique also helps design work
cells to ensure that tasks are balanced. The increased awareness of output rates is a powerful
motivator since it is possible to identify potential problems and make corrections in time.
Question 5
A lean culture means that a company is committed to eliminating waste in all areas of
production. Both management and employees must be constantly aware of waste within the
organization and be prepared to eliminate it. Sabina could undertake several strategies to build a
lean culture at Buckeye. For instance, she could make all other employees aware that the
customer is the biggest concern for the company, hence the need for everyone to make the

Case Study: “Buckeye Technologies” 4
customer’s needs their business. In addition, Sabina could also start a daily accountability
meeting that is focused on active improvement. Many companies have also adopted an Outside-
In perspective for lean management, which means that all employees should look at the
organization through the customer’s eyes. This makes sure all organizational functions are
aligned with customers’ needs and demand.