Lean Techniques

$23,000,000 total annual production savings

Case Studies

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Business Issue

Our client’s very low production volume failed to meet the needs of its customers to provide laser engraving on a variety of drink ware products. Production volume was running at 66,000 units per month against a target of 500,000 units per month. Other key metrics included the following:

• Drying time of the paint-like product exceeded the 2.5 hours promised but instead averaged 8 hours

• Quoted volume of the paint-like product was 0.6 grams per unit but instead was 2.2 grams per unit

• 43% re-spraying of all painted products

• 3.2% scrap

• $245,000 average monthly business loss

Approach Taken

Lean Techniques

Flow Consulting did an initial assessment of the facility, production capabilities and employee skills. Flow Consulting then provided a full-time consultant that applied Lean Manufacturing principles to support the following process improvements:

• Eliminated over-spray issues (re-spray reduction)

• Drying time reduced from 8 hours to 15 minutes using a drying tunnel

• Reduced airborne contamination to decrease defects using a filtration solution

• Implemented lean training for all factory processes

• Eliminated a pre-washer on each shift

• Improved order consolidation and packing processes to eliminate mixed orders, product damage and improper handling

• Defects reduced by identifying methods to “mistake proof” the final inspection process

• Implemented new factory layout to improve flow and increase velocity

• Developed a flexible workforce through cross training

Results

After 6 Months

Cost per unit reduced from $14.07 to $4.11

• Increased capacity from 66,000 units per month to 493,714 units per month

• Reduced material cost per unit from $1.63 to $0.55 per unit

• Reduced labor costs from $8.17 per unit to $2.11 per unit

• Reduced scrap rate from 3.2% to 1.5%

• $2,592,000 material annual cost savings

• $23,000,000 total annual production savings