Lean Operational Improvements


Battery Systems Manufacturing

  • In need of cash flow improvements
  • Lacking operational disciplines
  • No metrics

A manufacturer and supplier of custom batteries for medical, commercial, and military needed rapid and measurable improvements in cash flow and performance for customers. They were lacking management processes and disciplines for key operational processes, creating instability.

The company engaged The ProAction Group to develop and implement plans to sustain and continuously improve specific gains, develop an overall operational strategy to drive ongoing systemic improvements, and introduce to management best practices in Lean, supply chain, engineering, and other areas.

Actions Taken

  • Standard Work
  • 5S training
  • Re-balanced work cells

The ProAction Group worked with the client to create Leader Standard Work and Standard Work Instructions for their manufacturing lines. Employees completed 5S training and 5S was implemented in all manufacturing work cells. A process to complete Day by Hour boards was established and they measured items

that included Safety, Quality, Delivery, Cost, and Morale. Rebalancing of all the manufacturing lines was also accomplished.

Implementation Impact

  • Work cell WIP from 6hrs to 2.46hrs
  • Cycle time reduction 7-21 seconds
  • $/labor hour reduced 17%-58%

Creating stability using Lean Manufacturing processes allowed the company to reduce Work in Process (WIP) from 6 hours to 2.46 hours and improve labor hours per unit for all manufacturing work cells. Re-balancing the work stations allowed for product cycle time reductions that were between 7-21 seconds or 3%-28%. Utilizing Lean processes, Standard Work, 5S, A3 problem solving, visual factory aides, and line balancing increased units per labor hour 17%-35% and reduced labor hour per unit by 17%-58%. Work cell employees were reallocated to new lines that improved overall capacity for the facility.

About The ProAction Group

The ProAction Group helps private equity firms increase investment returns by providing variable operating resources. Pre-acquisition, we quantify risks and opportunities, helping clients refine valuations, avoid bad deals, and prepare post-deal value creation plans. For portfolio companies, we work with management to identify and implement high-impact revenue growth and profit improvement initiatives. We focus on four sectors: consumer products, manufacturing, distribution, and business services. We have experts in marketing, sales, manufacturing, supply chain, and human capital development. We were founded in 1995 and are headquartered in Chicago.

For Further Information

Timothy Van Mieghem tvm@proactiongroup.com 312.371.8323

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