GN ReSound Installs Flow Manufacturing Process in Redwood City and Eagan Production Facilities

Minneapolis - In the summer 1999, within just a few weeks of the completion of the merger between ReSound and Danavox into GN ReSound, approval was granted to implement a dramatic change in the systems and procedures used to manufacture ReSound custom ITE products. The approved plan centered around converting key production facilities to the Flow Manufacturing system.

Flow manufacturing is a well documented and highly efficient method of producing any product. In more traditional plants, work orders are created and assembly units move either in batches or individually through specialized departments (i.e., shell lab, faceplate assembly, cut & buff, final test), where work is completed by that department before the assembly is moved to the next department. In such an operation, it is not uncommon to see boxes of work stacked up at a given station, waiting for that stations workers to get to it.

In flow manufacturing, instead of setting up a manufacturing facility as a series of specialized departments and building to a work order, the plant is set up as a flow line of very short individual assembly operations. Individual orders move through each operation one at a time, thus eliminating bottle necks and increasing production efficiency substantially. Flow manufacturing typically shrinks manufacturing lead-time by 80% or more. And, one indirect but very significant consequence of a switch to flow manufacturing is a dramatic increase in quality. Quality levels are verified at every assembly operation in flow processing instead of at the end of each batch operation, significantly improving quality results. Flow manufacturing is a proven technique, not just in the hearing aid industry, but in many industries throughout the world.

During the month of December, the ITE production plant in Redwood City California was converted to the Flow Manufacturing process.

Dispensers placing orders with GN ReSound, began to see rapid improvement in turn time and consistency. Improvements in quality were noted as well. According to Paul DiFraia, vice president of operations for GN ReSound, ITE production flow in the Redwood City plant is now consistently at 3 days in-house turn for over 95% of the product being manufactured. In addition, DiFraia notes a 45% decrease in remake and return statistics on products manufactured using the flow manufacturing process.

In March 2000, the Flow Manufacturing process has been incorporated into the Eagan Minnesota production facility, also responsible for manufacturing ReSound ITE products. Although this implementation is still relatively new, all indications are that the same achievements in turn time, quality and reliability evident in Redwood City production will be evident in Eagan production as well.

Inquiries can be directed to:

David J. Smigra
Vice-President
Industry & Public Relations
GN ReSound North America
800-432-7835
smigra@gnresound.com