Actual Lean Results

Amazing results of an actual 3 year Lean transformation from traditional batch & queue to Lean single piece flow in a manufacturing/assembly plant with 200+ employees when Mack was the onsite, full-time Lean Manager.

  • >50 kaizen events conducted
  • Before: all 150,000 ft2was utilized
  • After: >70,000 ft2was freed up for growth
  • Eliminated the need for a 30,000 ft2off-site FG warehouse
  • ~30% of employees were freed up to fill new jobs
  • Over 10,000 ft2was left open for future business
  • 4 new departments were added ~50 new jobs
  • 85% reduction in employee turnover
  • >90% reduction in WIP in production lines
  • 40% increase in sales- from $55 million to $77 million
  • 200% increase in annual cost reductions- from $1 million annually to $3 million
  • Gross Profit Margin improved from -3% to +35%

What are KaizenOps’ capabilities?

These are actual results from real events that Mack facilitated!

5-day Standard Work kaizen event-fabrication/assembly department

  • 40% reduction in labor- 15 operators to 9
  • 43% reduction in floor space- 3,862 ft2to 2,188 ft2
  • 81% reduction in total operator travel- 502′ to 96′
  • 99% reduction in WIP- 948 pcs to 6 pcs
  • $342,000 annualized cost reduction

5-day Standard Work kaizen event-fabrication/assembly department

  • 14% reduction in labor- 14 operators to 12
  • 17% reduction in floor space- 5,902 ft2to 4,908 ft2
  • 28% reduction in total operator travel- 586′ to 423′
  • 6% reduction in part travel- 271′ to 256′
  • 79% reduction in WIP- 76 pcs to 16 pcs
  • $$annualized cost reduction TBD

2-day 3P (Production Preparation Process) kaizen event for a proposed new model- fabrication/assembly plant

  • 27% reduction capital expense- $858,817 to $623,830
  • 83% reduction in labor- 12 operators to 2
  • 75% reduction in floor space- 3,600 ft2 to 900 ft2
  • 46% reduction in standard cost per unit- $113 to $52

3-day Quick Changeover event- tube bending machine

  • 66% reduction in changeover time- 109 min. to 37 min.
  • 20% reduction in floor space- 971 ft2to 778 ft2
  • 86% reduction in operator travel- 3,396′ to 472′
  • $4,300 annualized cost reduction

3-day Quick Changeover event- automatic shear

  • 56% reduction in changeover time- 48 min. to 21 min.
  • 10% increase in productivity
  • 100% increase in capacity- BEFORE: 1 operator per shift on 3 shifts (full capacity); AFTER: 2 operators per shift to share setup which allowed two working together to produce 10% more than 2 working separately (resulted in 1 1/2 shifts of new capacity if potentially working 3 shifts with 2 operators per shift)
  • $64,000 annualized cost reduction

5-day Standard Work kaizen event- fabrication/assembly department

  • 30% reduction in labor- 30 operators to 21
  • 52% reduction in floor space- 4,834 ft2to 2,300 ft2
  • 42% increase in total operator travel- 130′ to 184′ (prior to event no work was shared… 1 person per machine)
  • 14% increase in productivity per person per hour
  • 75% reduction in WIP- 161 pcs to 40 pcs
  • 52% lead-time reduction -30 min to 14 min
  • $51,000 annual scrap reduction
  • $750,000 annualized cost reduction

5-day Standard Work kaizen event- fabrication/assembly department

  • 20% reduction in labor- 5 operators to 4
  • 73% reduction in total operator travel- 385′ to 104′
  • 56% reduction in part travel- 180′ to 80
  • 73% reduction in WIP- 26 pcs to 7 pcs
  • 85% reduction in lead-time- 79 min. to 12 min.
  • $$annualized cost reduction TBD

5-day Standard Work kaizen event- paint department

  • 38% reduction in labor- 6.5 operators to 4
  • 49% reduction in floor space- 9,982 ft2to 5,088 ft2
  • 80% reduction in total operator travel- 243′ to 48′
  • 175% increase in output- 400 pcs to 1,100 pcs per shift
  • $207,000 annualized cost reduction

5-day Standard Work kaizen event- fabrication department

  • 27% reduction in labor- 11 operators to 8
  • 54% reduction in floor space- 5,237 ft2to 2,409 ft2
  • 91% reduction total operator travel- 837′ to 75′
  • 99% reduction in WIP- 2,710 pcs to 10 pcs
  • 72% reduction in overtime
  • $366,000 annualized cost reduction

 

DRAMATIC RESULTS SIMILAR TO THESE EXAMPLES CAN BE REALIZED DURING THE CONVERSION FROM TRADITIONAL MFG TO LEAN MFG!

VERY IMPORTANT NOTE:

Although the above examples are real, results are not guaranteed. However, when applying Lean concepts in a traditional environment, it is common to see 10%-30% reduction in labor requirements, >50% reduction in changeover time, 30%-50% reduction in floor space, production improvement from 15-300%, and 70%-90% reduction in WIP.

If you are managing a traditional manufacturing process, I strongly recommend you start down the Lean path now. Obviously, I hope you choose KaizenOps to help you get started. If not, find another Lean resource and get going ASAP!!

A traditional manufacturing company cannot compete with a Lean manufacturing company that is producing the same product! However, you can choose to be the Lean company that others can’t compete with!

“Leaders are more powerful role models when they learn than when they teach.” ~ Rosabeth Moss Kanter, Harvard Business School