Lean Implementation in a Multinational Manufacturer

Lean Implementation in a Multinational Manufacturer

Backround

A multinational industrial tool manufacturer acquired a US manufacturer and needed assistance to rapidly diagnose critical issues and make the acquired company profitable within 4 months.


Challenge

  • Acquired company was unprofitable and had a long history of poor processes and practices
  • No plant manager or production planning
  • OEE averaged 42%
  • No managers on the plant floor.  All production employees earned minimum wage. Significant language barriers between plant operators and production employees
  • Inefficient batch-and-queue production model led to lead times three times greater than required by the market


 Approach

  • Tefen conducted a detailed diagnostic:
    • Identified lead times, WIP levels, scrap costs, OEE, non-value added activities, and labor costs
    • As derived from the dada collected, Lean implemintation is the solution for the manufactorer

  • Tefen created five work streams to Lean implementation:
    • Layout – designed and implemented a new and effective production floor layout
    • Continuous Flow – executed a continuous flow production model to reduce lead times
    • KPIs – established 4 primary KPIs and measurement processes, created KPI dashboard, and trained management on how to analyze KPI trends and define action plans
    • Management Routines – implemented production planning across entire facility, product line production pace, management checklists, visual boards, and stand-up meetings
    • 5S – carried out on production floor and in warehouse


Results

  • Increased production output by 95%
  • Reduced lead time by 67%
  • Reduced labor costs by 30%
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