Optimizing processes in order to increase production capacity
Objective: Increasing production capacity and stabilizing it by optimizing production processes as well as those from support functions.
Initial situation: The client is in a difficult situation regarding deliveries, especially due to a very aggressive transfer plan and a much too slow learning curve. Despite all the large investments both in equipment and in human resources, the delivery situation shows no signs of improvement, the delay penalties exceeding a million Euros per day.
After more than 6 months in which they received constant support from the group, the client decided to turn to an external consultant (EFFECTIVE FLUX) for support in order to increase production and recover delays.
Activities carried out:
1. Analysis of the current situation, preparation of VSM Current stage.
2. Identifying the first measures, prioritizing and starting them as an emergency, the president of the corporation mentioning that we have hours, not days or weeks:
• Improving communication / covering gray areas between departments (planning, logistics, production, engineering, maintenance)
• Optimization and implementation of shop floor management on level 1 and 2 (performance measurement, personal involvement, process improvement activities, training and flexibility of direct staff)
• Reducing quality problems by expanding the traceability system (poka yoke) between different processes and manufacturing areas
• Increasing equipment effectiveness (OEE), by reducing unplanned downtime (equipment breakdowns, setup times, changeover times, material discrepancies,...) and also by optimizing planning
• Increasing the productivity of manufacturing lines by optimizing programs, standardizing process parameters and balancing the manufacturing line
• Staff training for some critical aspects (first line management, SMED, TPM, stock optimization / spare parts forecast) and coaching in application
Results: After 3 months of running the consulting project, the following was achieved:
1. Changeover time reduced by 70%
2. The backlog (equivalent to approx. 3 weeks of production) was recovered and more than that, a safety stock was built (equivalent to approx. 2 weeks of production)
3. Production doubled, OEE increased by 100%. At this moment, it is even being discussed whether to return to work in 3 shifts vs. 4 before or after stopping / conserving 20% of the production capacities.
Note: the increase in capacity did not require investments in new equipment
Initial situation: The client is in a difficult situation regarding deliveries, especially due to a very aggressive transfer plan and a much too slow learning curve. Despite all the large investments both in equipment and in human resources, the delivery situation shows no signs of improvement, the delay penalties exceeding a million Euros per day.
After more than 6 months in which they received constant support from the group, the client decided to turn to an external consultant (EFFECTIVE FLUX) for support in order to increase production and recover delays.
Activities carried out:
1. Analysis of the current situation, preparation of VSM Current stage.
2. Identifying the first measures, prioritizing and starting them as an emergency, the president of the corporation mentioning that we have hours, not days or weeks:
• Improving communication / covering gray areas between departments (planning, logistics, production, engineering, maintenance)
• Optimization and implementation of shop floor management on level 1 and 2 (performance measurement, personal involvement, process improvement activities, training and flexibility of direct staff)
• Reducing quality problems by expanding the traceability system (poka yoke) between different processes and manufacturing areas
• Increasing equipment effectiveness (OEE), by reducing unplanned downtime (equipment breakdowns, setup times, changeover times, material discrepancies,...) and also by optimizing planning
• Increasing the productivity of manufacturing lines by optimizing programs, standardizing process parameters and balancing the manufacturing line
• Staff training for some critical aspects (first line management, SMED, TPM, stock optimization / spare parts forecast) and coaching in application
Results: After 3 months of running the consulting project, the following was achieved:
1. Changeover time reduced by 70%
2. The backlog (equivalent to approx. 3 weeks of production) was recovered and more than that, a safety stock was built (equivalent to approx. 2 weeks of production)
3. Production doubled, OEE increased by 100%. At this moment, it is even being discussed whether to return to work in 3 shifts vs. 4 before or after stopping / conserving 20% of the production capacities.
Note: the increase in capacity did not require investments in new equipment
