Lean Manufacturing Plant TransformationSurface Transport & Logistics
A Large industrial manufacturing plant was not competitive. The plant was losing millions of dollars per year and was being subsidized by the parent company. The consensus among the management team was that the plant would be closed if things were not turned around soon. “We needed a transformation, not just a few quick fixes”
challenge
The plant was losing millions of dollars per year and was being subsidized by the parent company.
The consensus among the management team was that the plant would be closed if things were not turned around. Specific actions required to avoid closing:
–Stop the bleeding
–Rationalize Product Line
–Reduce scrap
–Improve machine uptime
–Improve Productivity
solution
- Established a Tactical Implementation Plan with regular status reviews (Operation Phoenix)
- Transformed the production organization from process management to Value Stream (product) management.
- Established production Team Leaders on all shifts for all Value Streams. Team Leaders conduct daily Key Performance Indicator reviews with all operators
- Implemented a Shopfloor Management Process
- Established Fast Response Board quality improvement reviews
- Provided on-going cultural-transformation coaching to all leadership
results
- Achieved turn-around savings of over $6 million per year
- The plant reduced scrap by over 4% per year ($1 – $2 million savings)
- Improved productivity through automation and employee engagement
- Implemented Team Leader Champion Organization
- Revised Leadership Organizational Structure
- Rationalized product line
- Achieved other cost savings of over $.5 million
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