A.J. Panneri Enterprises, Inc.

Green Assessment

> RESULTS

  • 23% improvement in Lead Time
  • 30% reduction in tonnage of waste
  • 21% cycle time reduction
  • 20.5 labor days per year gained by removal of non-value added activity

> COMPANY

A.J. Panneri Enterprises, Inc. manufactures cohesive tape and automatic tape dispensers to band medical tubing and cabling for the medical device industry.

> SITUATION

The company was contacted by one of their customers (Company B) who wanted to evaluate and improve the environmental impact of their supplier base. A.J. Panneri was eager to cooperate with Company B, viewing this as an opportunity to evaluate their own operations for production and environmental improvements. They realized that this exercise could create a competitive edge in their marketplace, while simultaneously showing Company B they were committed to continuous improvement-a win-win for each party.

> SOLUTION

The Green Supplier Network contacted A.J. Panneri on behalf of Company B in January 2008. Insyte Consulting was then contracted to assist A. J. Panneri in conducting the Green Assessment they needed to fulfill their obligation to Company B. The first step was to assemble a project team comprised of key operations personnel from A.J. Panneri, Erie County (a partner with Insyte on this project) and Insyte Consulting.

A walk through the facility and the environmental assessment were conducted on the first day. The assessment involved a review of the potential environmental impacts within the facility and manufacturing operations. Hard waste, resulting from processing at the facility, was also considered. Finally, manufacturing operations were reviewed for areas of improvement in terms of throughput, lead time reduction, and inventory reduction. After the first day, Insyte's partner, Erie County, concentrated on evaluating energy improvements while Insyte led a two-day Value Stream Mapping session for the A.J. Panneri project team members. The Value Stream Mapping differed slightly from a typical Value Stream Map-in addition to looking at lean manufacturing concerns, the map also examined waste streams that were ultimately impacting the environment.

Throughout the Value Stream Mapping exercise, the project team questioned current operational and production methods. The focus was to incorporate lean manufacturing principles and to reduce environmental waste. The Value Stream Mapping provided a clear representation of A.J. Panneri's current operations and set the desired direction for the future.

The immediate benefits for A.J. Panneri included an understanding of the direct cost of the waste that was actually being produced within their processing, as well as a team discussion of ways to improve the current operation based on data and calculated benefits. This discussion was such an eye opener for A.J. Panneri that they started implementing improvements before the assessment was completed.


"The assessment opened our eyes to the actual amount of waste generated. It also helped to identify the processes required to eliminate it." - Beth Downing, V.P,. of Operations, A.J. Panneri Enterprises, Inc.