Transforming Operations for Greater Efficiency, Quality, and Growth

A manufacturing cell within an automotive tier 1 supplier was struggling to meet their delivery schedule with a major customer. The existing production batch production process with two operators working in a multi process cell, resulted in high levels of scrap, poor on-time delivery, and a significant number of past-due orders. This led to increased expedited freight charges and overall operational inefficiency.

To address these issues, a Kaizen event was launched to enhance operational efficiency through single-piece flow layout optimization, safety and ergonomic improvements, quality enhancements, and scrap reduction. The project team received specialized training in 3P layout design principles, which enabled a thorough process analysis. They identified areas for improvement, developed multiple layout options, and carefully evaluated and selected the most efficient solution. The implementation of the new layout and Standard Work optimized for a single operator led to significant improvements.

The implementation of the new Standard Work led to significant improvements in ergonomics, reducing operator fatigue, and enhancing overall operations. Scrap rates dropped dramatically from 27% to 2.6%, while efficiency rose from 18% to 55%. Productivity increased from 9 GPPLH (Good Parts Per Labor Hour) to 34 GPPLH, and OEE (Overall Equipment Effectiveness) improved from 10% to 53%. These improvements resulted in substantial financial gains, with annualized savings of $185,000.

$185,000 of annualized savings
37% reduction in manufacturing floor space for same operation
73% Increase in daily capacity
Realized 30% increase in sales