Interviewees

Hirotaka Nakano: Executive Director, Haranomachi Iron Works Co., Ltd.

Rika Nakano: General Affairs Manager, Haranomachi Iron Works Co., Ltd.

Haranomachi Iron Works was founded in 1972 and has since been involved in the processing of machine parts used across various industries, including semiconductors, tire manufacturers, and food manufacturers. In 1999, the company established a second factory to produce chambers used in semiconductor manufacturing. Continuing to respond to customer demands, the company has focused on introducing new equipment and advanced processing technology for part processing. As the company marks its 48th anniversary, the factory continues to evolve, with the recent introduction of a five-axis processing machine to meet even more advanced processing requirements.

The reason Haranomachi Iron Works has been proactive in introducing new processing machines is to stay competitive in a fierce pricing environment. Hirotaka Nakano says, "The processing required for parts manufacturing hasn't changed significantly over the years, but the price competition has intensified." To win in this competition, faster processing machines are essential.

Aiming for Integrated Management from Order Intake to Process Management, Sales, and Cost Control

The goal of implementing CADDi Drawer was to achieve integrated management of order intake, process management, sales, and cost control.

"While various systems were being introduced in surrounding manufacturing industries, our company had only a hollow system that was used merely for outputting forms," says Rika Nakano. Therefore, they were considering introducing a system that could manage various operations comprehensively. In particular, there was a strong desire to introduce a system that could handle estimates and cost management. It was during this time that they received a call from CADDi, sparking their interest in CADDi Drawer.

When they consulted about drawing management, they learned that by linking the same system with the production management system, cost management could also be achieved, which piqued their interest further. They had been facing challenges such as the time it took to search for previous unit prices, previous drawings, and similar drawings when requested for a parts processing estimate.

The ultimate deciding factor for implementing CADDi Drawer was the trust in CADDi, according to Rika Nakano. While they considered systems from other companies, CADDi Drawer offered more comprehensive features, and it seemed that the system could improve overall company operations, leading to the decision to implement it.

With the introduction of CADDi Drawer, the time spent searching for drawings during estimates was reduced to about one-fifth of what it used to be. As a result, employees were able to leave work earlier, reducing overtime.

Efforts to Improve the Working Environment and Profitability Using CADDi Drawer

Currently, one of the major challenges the company faces is employee retention. Part processing is a technical job, and it takes time to train skilled workers. Therefore, employee turnover imposes a significant burden, making the improvement of retention rates a critical issue. Hirotaka Nakano expresses a desire to improve profitability through the introduction of CADDi Drawer and to pass those benefits on to the employees.

Hirotaka Nakano also reflects on the company's past:

"A few years ago, Haranomachi Iron Works had few annual holidays, which caused tough conditions for employees. Through business improvements and internal efforts, we have recently been able to increase the number of annual holidays to a level comparable to other companies. To further enhance employee treatment and increase salaries, we aim to continue improving operations and boosting profitability."

To improve profitability, it is first necessary to identify unprofitable projects within the company. For these projects, process improvements are made, or price negotiations are conducted if necessary. However, making process improvements for ongoing projects places a burden on the shop floor. Therefore, it is necessary to implement logical manufacturing from the estimation stage to determine how much processing time will actually be required, rather than relying on intuition.

For example, accurate data on the time required not only for processing but also for setup, packaging, and shipping of a processed item is collected. If this information is linked to the drawing, similar information can be referred to when a similar processing request comes in, allowing for accurate estimates. If a project is found to have too little profit, the company can decide not to accept it or consider process improvements to expand profit margins in advance. In other words, proper estimates become possible, leading to operations that avoid unprofitable projects. Using CADDi Drawer, past processing drawings and associated data can be quickly accessed. This allows for faster estimates than before, while also enabling more accurate and profitable estimates.

Estimates should have always been done this way, but until now, there was no system that could manage process management, sales, and cost control. Currently, the company is making progress in accurately understanding how much time each job takes in their processing operations. Although adjustments are still being made, including on the shop floor, with the support of CADDi, they are making steady progress, according to Hirotaka Nakano.

CADDi’s Customer Success Driving New Challenges

Hirotaka Nakano says that CADDi’s Customer Success played a significant role in the implementation process. The contributions of Customer Success were primarily twofold. First, when advancing business improvements, they were available to think through and propose solutions even in areas outside CADDi Drawer’s immediate scope. Second, they assisted in explaining the system to the shop floor during implementation.

Various problems arise when implementing a system and advancing business improvements. In some cases, the issues are clear, but in others, while there is a sense that something isn’t working, the problem’s nature or cause isn’t well understood. "In such cases, CADDi’s Customer Success helped articulate the challenges and vision," says Hirotaka Nakano.

Another advantage of business improvement support was the ability to draw from other companies' experiences. When implementing a system, it is common to refer to how other companies operate. However, finding detailed information online about similar industries or companies of similar size can be difficult. In such cases, Customer Success introduced similar cases and proposed solutions, which was very helpful, says Nakano.

At Haranomachi Iron Works, the Customer Success representative visited the company and assisted in explaining the system to the shop floor. The involvement of an outsider made it easier for the shop floor to voice concerns that might have been difficult to express directly from within the company, and it helped articulate the current challenges. As a result, coordination with the shop floor proceeded more smoothly than initially anticipated.

Rika Nakano shared her thoughts on using this initiative to improve profitability, pass on the benefits to employees, and further develop the company, while also expressing her aspirations for Japan’s manufacturing industry:

"Once we achieve our goals, I would love to compile our efforts into a book someday. Although we are a small company located in the rural area of Saga, we want to show that serious efforts can lead to significant change and inspire similar manufacturing companies across Japan to rejuvenate the industry."