The Client

The largest manufacturing site of a Global Engineered Product based in a low cost country..

The Challenge

The company had enjoyed many years of growth with strong margins. However, supplying to largely automotive customers, the achievement of meeting the demand for yearly “cost-downs” was becoming increasingly challenging. A new approach was required to achieve a step-change in manufacturing performance.

The Solution

A full review of alternative strategies was conducted and the adoption of a “Lean Manufacturing” programme was considered to be the most appropriate way forward. As a precursor to the launch of Lean, a company wide 5S programme was implemented to promote participation and ownership amongst the employees. This was followed by an education phase on the principles of Lean Thinking. The basis of the implementation strategy was to use 3 day “Kaizen Events” with the emphasis on rapid improvement, involving teams of employees at all levels.

The Results

Dramatic results were achieved within a short time. One “Kaizen Event” focused on the material preparation area, and achieved a reduction in throughput time from 24-48 hours to 30 minutes, by challenging long established procedures. A reduction in materials inventory of 85% was achieved by reducing lead-time and moving from a “Push” MRP replenishment system to a “Pull” Kanban system.