Introduction:

Are you tired of high overtime costs, quality issues, and inconsistent deliveries in your manufacturing operations? Imagine a workplace where every department is aligned, processes are streamlined, and your team is empowered to solve problems effectively. That’s exactly what we helped a leading manufacturer of custom fixtures achieve through a comprehensive Lean transformation. Their story is a powerful testament to the impact of implementing a structured, data-driven approach to continuous improvement.

The Challenge: A Manufacturing Company at a Crossroads

This manufacturer of custom fixtures faced a familiar challenge: operating in silos with no standardized problem-solving process. This resulted in:

• Staggering overtime costs: $545,000 annually!
• A concerning 11.5% defect rate.
• On-time shipping and delivery below targets.

They knew they needed a change, but where to start?

Our Strategy: Building a Lean Culture

We worked closely with the manufacturing company to implement a holistic Lean transformation, focusing on creating a learning culture and driving engagement at all levels. Our strategy included:

• Empowering the Workforce: Providing in-depth Lean fundamentals and problem-solving training, and certifying Job Instruction trainers.
• Leadership Visibility: Establishing an Obeya room and Lean boards to ensure leadership was actively involved and informed.
• Frontline Coaching: Conducting regular Gemba walks to get a firsthand look at processes and provide on-the-spot coaching.
• Structured Improvement: Implementing A3 and A6 problem-solving tools to ensure consistent tracking and follow-up.
• Strategic Alignment: Deploying Hoshin Kanri to align strategic goals company-wide.
• Creating a Governing Body: Establishing a Lean Committee to oversee continuous improvement efforts.

The Incredible Results: Numbers Speak Louder Than Words

The results of our partnership with this manufacturing company were nothing short of remarkable:

• Overtime Costs Plummeted: Reduced by 75% to just $108,000.
• Quality Skyrocketed: Defect rate dropped to 8.5%, finally meeting the target.
• On-Time Shipping and Delivery Exceeded Goals: Reaching 99% and 98%, respectively.
• Massive Cost Savings: A verified $581,654 in savings!
• Increased Capacity: 6,190 hours saved, freeing up valuable resources.
• Waste Reduction: A reduction of 367 miles in unnecessary steps!
• A Thriving Improvement Pipeline: 93 continuous improvement projects were established.

How We Did It: The Power of Lean Tools

The transformation wasn’t magic; it was the result of strategically applying powerful Lean tools:

• Lean Training & Certification: Cultivated critical thinking and capability across all departments.
• Obeya Room & Gemba Walks: Enhanced leadership engagement, transparency, and accountability.
• A3/A6 Problem Solving: Provided a standardized approach for effective and measurable improvements.
• Hoshin Kanri: Ensured strategic goals were aligned with daily work, fostering clarity and focus.
• Lean Committee: Maintained sustained improvement efforts and facilitated cross-functional collaboration.

Conclusion:

This manufacturing company’s success story demonstrates the transformative power of Lean when implemented correctly. By focusing on building a learning culture, empowering employees, and providing the right tools and framework, we helped them break down silos, eliminate waste, and achieve significant cost savings and efficiency gains.

Ready to Unlock Your Manufacturing Business’s Potential?

Is your organization facing similar challenges in manufacturing? We can help you implement a tailored Lean transformation strategy to achieve your goals. Contact us today for a free consultation and let’s discuss how we can drive breakthrough results for your business.