Operational Excellence Implementation in the Forming Department
A global leader in the generic pharmaceuticals industry asked Tefen to conduct an Overall Equipment Effectiveness (OEE) project in its Forming operation. It faced a reduction in customer demand coupled with a transition towards a more complex product mix with a higher variety and lower volumes.
Approach & Methodology
Tefen conducted a two-phase, 6 month improvement project. The main improvement levers used included the re-organization of the work force into machine-type specific work teams led by a team leader, the creation of performance measurement and a reporting system and the optimization of batch-to-batch and product-to-product machine changeovers.
During the entire 5 months of the implementation stage, Tefen used various change management techniques to achieve buy-in to the project initiatives on all levels from operator to Vice-President.
OEE, which was the key success metric for the project have improved by over 50%, from a baseline of 22% to over 35%. This improvement rate was translated into direct labor savings of over $1.5M annually.