December 12, 2001
HON INDUSTRIES Inc. (NYSE:HNI) announced today that it has enhanced customer service, shortened lead times in the manufacturing process and reduced operating costs by using managed wireless terminals by Intermec Technologies Corporation. By using these terminals, HON INDUSTRIES has made the strategic shift to a manufacturing model based on wireless technology that has given HON INDUSTRIES more control over its production process.
"With 18 production facilities and six distribution centers throughout North America, it is always important for us to look at the most optimal way to supply each individual order and provide quality services and cost savings to our customers," said HON INDUSTRIES Chief Information Officer (CIO) Malcolm Fields, Ph.D. "We look for technology solutions to help us not only shorten delivery lead-times, but to ensure on-time delivery to our customers while still adhering to our lean manufacturing principles."
HON INDUSTRIES is in the process of rolling out the new Intermec(R) 5055 stationary, wireless, and touch screen PCs, used for its "pack out" and quality verification functions. This system will soon be in place in 18 of HON INDUSTRIES' production locations throughout the U.S. and in Mexico.
HON INDUSTRIES had been using a "wired" data capture system. The system functioned well, but was wire-intensive in an environment where flexibility and portability are key.
"Our company is big on continuous improvement, so flexibility on the factory floor is important," said Fields. "We've been doing Rapid Continuous Improvement (RCI) for quite some time, and it's not uncommon for us to move production lines. Intermec's stationary computer with wireless LAN connectivity provided us with the best value because of its rugged design, trouble-free operation, and interoperability with open systems. Plus, Intermec brought a high level of support and service."
The implementation also includes Intermec's ScanPlus(TM) 1800 Vista wireless handheld bar code scanners, which are gradually replacing tethered bar code wands, along with peripherals that include Intermec 4400 bar code printers and label media.
The furniture manufacturer has implemented the wireless bar code devices to most sites with all sites expected to be ready by the end of year 2001. A parallel implementation program means no disruption to business operations during rollout.
"It is very costly to move workstations. If for some reason the wire or the labor wasn't available, we would be in trouble," Fields said. "Today, we're savings thousands of dollars in labor and material on each move by simply having the wireless system in place."
Data verification is now available throughout the manufacturing process. On completion of each order, an array of data is transferred by radio wave to the database. The data is then used to generate a unique bar code label, which is affixed to the product as it is boxed to track its journey from the manufacturing line to the customer.
The wireless system tracks each product's custom details, whereabouts and delivery status all the way through the supply chain -to dealers, stores, and eventually to the customer - and makes this information visible company wide.
"There are so many potential points of failure in a wired network," Fields added. "Using wireless technology has reduced this risk. The benefit of instant, accessible data is simple: the ability to produce exactly what the customer wants exactly when needed, and to track the entire process."
Adding greatly to the flexibility of HON INDUSTRIES wireless infrastructure was its adoption of software that would allow it to exploit the capabilities of Linux without sacrificing centralized data control. HON INDUSTRIES uses the Caldera Systems, Inc.'s Volution(TM) software, a complete Linux management tool that essentially acts as a central maintenance facility for the Linux stations, enabling remote management of its computers as a discrete unit for such functions as managing software and monitoring system health.
"HON INDUSTRIES' overall solution really gave them the best of both worlds," comments Intermec's Dan Kigin. "System administrators can manage the network with profiles and policies, but without having to individually manage each station."
Fields believes that major long-term savings lie in reduced down time for hardware and software and for workstation changes. The updated technology also sets the stage for future projects, like use of serial devices such as counters and Program Logic Control, in which a serial interface to the computer is used to open and close gates on a conveyor belt based on bar code data.
Probably the most significant impact, however, is that it gives the members (employees) involved in HON INDUSTRIES' processes more control over their own work.
"Today, we can move production lines without moving cables, which you have to be able to do if you're serious about continuous improvement. It allows us to be more nimble in our manufacturing capabilities," said Fields.
HON INDUSTRIES Inc. is the nation's largest producer of mid-market office furniture and the third largest office furniture manufacturer in the United States. HON INDUSTRIES is also the nation's leading manufacturer and marketer of gas- and wood-burning fireplaces. HON INDUSTRIES is well positioned, with strong brand names, in fast growing segments of the core businesses in which it competes. The company provides its customers a broad selection of quality products, with quick delivery, at attractive prices. HON INDUSTRIES has a strong commitment to customer satisfaction and to enhancing shareholder value. HON INDUSTRIES was named one of the 400 Best Big Companies in America by Forbes' Magazine in 2001, and one of the World's Top 100 Best-Managed Companies by IndustryWeek for 2000. More information can be found on the company's website at www.honi.com.
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