Transformation through Operational Excellence - Leaner, Stronger and Improved Site

Transformation through Operational Excellence - Leaner, Stronger and Improved Site

Improve operation performance by increasing shop floor productivity, shortening manufacturing lead times, reducing costs, increasing quality, and improving service levels - all by transforming the site through operational excellence.

Background and Challenges 

A multi-national water treatment group asked Tefen to transform one of its newly acquired manufacturers, which was facing challenges from physical layout, material movement, production processes, inventory & procurement, and forecasting & scheduling.

The facility layout had grown organically and was thereby very inefficient and disorganized. Production processes were non-standard and very inefficient, no visual mgmt., no mgmt. routines, no incentives or training programs. Lack of timely and correct movement of raw material form warehouse to production lines (3-7 hours per day spent on waiting for material while 1 hour per day spent on fixing missing parts/wrong parts).

The facility layout had grown organically and was thereby very inefficient and disorganized. Production processes were non-standard and very inefficient, no visual mgmt., no mgmt. routines, no incentives or training programs. Lack of timely and correct movement of raw material form warehouse to production lines (3-7 hours per day spent on waiting for material while 1 hour per day spent on fixing missing parts/wrong parts).

Two people on high rocks

Lack of timely and correct movement of raw material form warehouse to production lines (3-7 hours per day spent on waiting for material while 1 hour per day spent on fixing missing parts/wrong parts). High percentage of non value added activities on production line (35 percent observed during MOS, higher than industry benchmarks). Limited synchronization of sub-assembly lines and units production lines Forecasting, planning, and scheduling were very weak and inaccurate or untimely, resulting in many production schedule changes, and

Limited synchronization of sub-assembly lines and units production lines Forecasting, planning, and scheduling were very weak and inaccurate or untimely, resulting in many production schedule changes, and high inventory of raw materials and finished goods.

What has been done?

  • Conducted in-depth interviews with key stakeholders across the company (operations, sales, marketing, R&D etc.)
  • Performed time studies and MOS (Multi-observational study) on shop floor
  • Analyzed 3 years’ data of sales, production, forecasting, inventory control, quality, and other related field
  • Designed and implemented new layouts, processes, and flow (material, people, signals, and documents) for 6 production areas and 2 warehouses
  • Implemented standard work, Lean champions, management routines (Kaizen meetings, gemba walks, 5S audits, trainings, etc.), incentive programs, and continuous improvement culture.

Example:

operation performance before

operational excellence after

Outcomes/Results
The site was completely transformed into a leaner manufacturing site with a Continuous Improvement culture to drive daily improvements into the future. the main outputs were:

  • Re-designed production floor that is efficient and effective,
  • Strong training and empowerment of shop floor employees on CI & Lean culture and tools
  • Established processes, visual mgmt., and mgmt. routines to drive efficiency and quality
  • Lean operations handbook, which documents all processes and lean infrastructure
  • Continuous improvement culture on site

For a Case Study on Measurement & Control in the Production Floor - click here.
 

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