Lean In Value Added Distribution
33% reduction in overtime.
Case Studies
Business Issue
Metals processing and distribution company needed to improve its order turn-around in an extremely price sensitive and competitive market.
Approach Taken
Flow Consulting worked with the leadership team to organize the plant into 5 work cells. To affect substantial changes in the business unit’s standard work practices — without disrupting their high volume of product flow — we selected one work cell to showcase the Flow Consulting instituted changes. The operators in the showcase work cell received training in Lean Daily Management, Visual Management, Total Productive Maintenance (TPM), Overall Equipment Effectiveness (OEE), and Problem Solving.
Results
Flow Consulting successfully deployed a framework for TPM/6S, OEE, Visual Management, and Problem Solving in the showcase work cell over the course of 12 weeks and achieved the following results:
13% increase in average daily throughput with no added operators.
17% increase in equipment productivity without increasing overtime or shift hours.
33% reduction in overtime.
Operator ownership of the visual management cell board and hour-by-hour performance tracking. This board serves as the foundation for problem identification and resolution. Internal quality issues, minor stoppages, and machine downtime are all being tracked and charted in Pareto form.
The process created a single team atmosphere; breaking down the typical 1st shift/2nd shift animosity. Weekly cross shift problem solving discussions have already moved past the shift-to-shift squabbles and are beginning to identify system issues to attack in their continuous improvement activities.
As a result of the success of the pilot program, the plant manager is moving quickly to roll out the same practices to the other 4 work cells in his plant and has recommended the process changes to all other plant managers in the division.