Transformation Project - USA
Productivity and profitability of the plant BACKGROUND: This case study was a part of a larger Lean project of transforming a plant in the USA. The value stream assigned to this team had several challenges and the same were addressed by following systematic diagnosis of the current state, design of the future state and evolving a deployment plan that was well executed.
We carried out demand analysis to establish a finished good strategy for the value stream. Product segmentation was also carried out to group parts that had similar process steps. This helped us understand key product families within the value stream. Capacity analysis helped in identifying machines with critical OEE measurements. A complete review of standard work was carried out and new standards were established to meet Takt time with minimal resources. Several Lean improvements were also carried out in the value stream.
- Improved cell design. Reduced people-travel by 100 ft. per week. It also saved floor space by 1000 sq. ft.
- Quick change over reduced time from 90 minutes to 30 minutes
- OEE and TPM led to 80% increase in productivity
- 6 shifts of packing inventory was reduced to 2 shifts
- Material variance was reduced from 15% to 2%