Southeastern Business Machines

Phoenix Industries is the self-supporting business arm of the Huntsville Rehabilitation Foundation, a nonprofit organization founded in 1969 to assist persons with vocational disabilities in going to work. Phoenix provides work opportunities for their 120 employees through contracts with commercial firms and government agencies. One such contract is for the manufacture of United States flags for the Department of Veterans Affairs. This large operation occupies 10,000 of the company's 28,000 square feet of manufacturing space. In a recent evaluation, Phoenix Industries recognized 26 opportunities for improvement, and focused on 5 key areas: layout of the manufacturing line; ergonomic issues; non-productive time reduction; tracking of waste; and excessive materials on the floor. When the evaluation was complete, the company experienced a $0.30 per unit cost savings through direct labor and indirect costs.

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