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LEAN MANUFACTURING 2
BACKGROUND
- $35MM division of $450MM automotive components supplier
- Variable customer demand led to regular inability to fulfill orders; failures accepted as “the nature of our industry”
- Plant management had tweaked and refined processes and saw little room for further improvement
- Corporate management saw potential through lean techniques, but didn’t know how to get started; had provided limited training
INITIATIVES
- Implemented an applied lean manufacturing project to drive performance in key areas of operations
RESULTS
- Increased EBITDA by $750K in 5 months
- Reduced labor hours per unit from 12 to 7
- Reduced cycle time by 40% in 3 months, 60% in 5 months
- Reduced setup time on most constrained equipment by 50% in 1 month, avoiding a planned capital purchase of $200K
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