Background
The customer wanted to double production over the next 6 months. This company had never run this high of a production rate before. While the company needed to reduce touch labor time (Value Added) to make it more competitive. To address this, a Value Stream Mapping (VSM) event was conducted to assess the current state and identify opportunities for improvement through the kaizen burst on the Value Stream Map. This involved analyzing the seven types of waste and developing a future state to outline the necessary changes to meet the company’s objectives. The future state value stream identified a lead-time reduction goal from 42 days to 8 days.
Process
The kaizen burst from the VSM event led to the initiation of numerous Kaizen events aimed at optimizing the new layout and reviewing processes. Initially, the company faced capacity issues with their press, which was identified as a shared resource.
- Pressing Operation Kaizen Event
- Objective: Resolve capacity constraints and optimize the pressing operation.
- Approach: A cross-functional team including operators, engineers, and management observed the process on the shop floor, asked insightful questions, and identified key issues.
- Outcome: The team discovered that the processing method was limiting capacity. By redesigning the pressing method, relocating some processing steps off the press, and establishing standard work procedures, the team successfully met the takt time required to satisfy customer demand. Additionally, a Kanban system was implemented to manage materials more effectively.
- Press Total Productive Maintenance (TPM)
- Objective: Improve uptime, improve safety, capacity constraints and optimize the pressing operation.
- Approach: A cross-functional team including operators, engineers, and management. Clean and identify breakdown causes with current equipment and fix, 5s the area, recognize safety problems, and long led spare parts and create checklist and PM schedules.
- Outcome: The team improved up-time and created daily walk arounds and PM schedules so production available time was improved
- Metal Prepping Area Kaizen Event
- Objective: Achieve continuous flow in the metal prepping area.
- Approach: The team brainstormed and analyzed the process to identify necessary changes. The area was set up with the 5s standard, and new tooling was developed to facilitate smooth flow.
- Outcome: Continuous flow lines were set up and implemented; standard work procedures were implemented to improve efficiency.
- Assembly and Finishing Process Kaizen Event
- Objective: Streamline the assembly and finishing processes, including the oven operation. Implement a flow line.
- Approach: The team set up flow through the assembly area, created bus stops, and defined times and parts to maintain consistent flow. The oven was scheduled to operate four times per day to ensure optimal flow.
- Outcome: Continuous Flow line was set-up; standard work was established to maintained effectively throughout the process.
Results
The Kaizen activities led to significant improvements:
- Lead Time: Reduced from 42 days to 13 days. (Had to include small buffers)
- Touch Labor Time: Reduced from 213 hours to 99 hours.
- Daily Production Rate: Increased from 12 parts per day to 24 parts per day.
- Headcount: No manpower has been added to the flow line
- Work-in-Progress (WIP): Reduced by 70%.
- Cost Savings: Achieved over $1 million annually.
These changes resulted in a more efficient production process, meeting the increased demand, and achieving substantial cost savings. The customer was so happy with the achievements that they asked if they would take an additional program from another supplier.