case studies - MANUFACTURING operations

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Lean Manufacturing Implementation in production lines, resulting in the Silver Shingo Prize awarded

Baseline: Production lines at 60% efficiency;  On Time Delivery at 73% and months of extra inventory to absorb inefficiencies. 

Improvements:  Production lines efficiency increase to 98%. On Time Delivery to customers at 99%. No more than one day of inventory. 

• Value Stream Mapping  
• Operator balance charts
• U-shape production cells redesigned.
• Timed materials and inventory delivery  
• Pull systems incorporated  
• Plan for every part established  
• Standard work revised

Corporate HQ from a manufacturing company that supplies car components to big car manufacturers prioritized to incorporate Lean Manufacturing across their sites worldwide. We supported the site in Mexico to implement Lean Manufacturing concepts into production lines. 

We analyzed the process using value stream mapping, operator balance charts, and material flow. We incorporated a Plan for Every Part (PFEP) for the parts and final inventory, designed tugger routes to efficiently deliver the parts on time to the production lines and to the car manufacturers. We incorporated pull systems that triggered when a change of model needed to be built and when material needed to be replenished. 

In less than 2.5 years, we revamped the production lines and increased efficiency from 60% to 98%.  On time delivery to customers increased to 99%. Inventory buffer reduce to a day of inventory, instead of months. Mexico plant was recognized for the Silver Shingo Prize, this became a benchmark to the rest of the plants worldwide.  

Product gross margins declining globally

Baseline: Gross margin declining from 22.5% to 16% over 18 mo period. 

Improvements:  Product gross margins increased from 16% to 25%.

• Removal or process waste such motion, inventory, and waiting time.
• Standard work created to reflect improved process flow
• Established a holistic approach to compare financial and operational cost across options. 

A fortune 500 company, was experiencing gross profit declines for one of their key products sold globally, these declines went from 22.5% to 16% over a period of 18 months. 

We used the Lean and Six Sigma frameworks to analyze manufacturing process data, process workflow, and production costs. After implementation, the product margins increased from 16% to 25%.