Lean Manufacture – Six Sigma

Summary

Following the successful implementation of S&OP, this Client requested LCP to complete a rapid study and implementation of Lean Manufacturing / Six Sigma.

The project was undertaken over 6 weeks (8 weeks elapsed time) combining LCP methodologies and incorporating 3 key Client staff as an integral part of the team, with the objective of achieving knowledge and methodology transfer.

Project Background

This plant historically achieved poor customer service, having one of the highest operating costs in the company, with high inventory levels.

As a Speciality Chemicals plant it also had the unique characteristics of very wide customised product range and low volume production per batch ... as such it was seen as a real test of LCP methodologies and the application of Lean Thinking.

The challenge was to make a substantial operating cost reduction.

Approach

A rapid action improvement project deploying proven methods and techniques, with a very clear operational focus.

The essential components of the project activities were:

• Undertake a total operational Root Cause Analysis focused on Waste (multiple parallel streams); introduce Lean and Kaizen methods

• Evaluate the business impact and prioritise

• Working with each of the departmental groups (production, planning, QA/QC, warehouse and materials management), establish options for improvement

• Taking a holistic view of factory operations, combine Value Stream Mapping with Time Compression, in order to generate a compelling case for Lead Time reduction

• Pilot changes, then rollout to the rest of the plant

• Estabish direct linkage of the improvement areas to the P&L

• Undertake continuous review with the Leadership team ... they would have to endorse and sign-off the benefits

Client Testimonials

LCP deployed a small team of experts to work with the Client management at all levels.

Tight engagement of key individuals in developing the Root Cause Analysis and working with LCP to derive the right and workable solution ensured the recommendations were 'owned' by the operators who would be tasked with implementing the changes.

Success Factors

This project proved the LCP methodology and concept, enabling the Client to deploy the approach across its Global business.

The scale of improvement we identified was proven.

The challenge of incorporating Client staff into the LCP team proved rewarding for all involved and gave the Client a unique insight into the role Consultants play and the challenges we have to balance.

Results and Benefits

The major benefit was a 12% operating cost reduction identified - a 10 fold payback on the cost of the project - with a series of pragmatic and 'doable' actions that were capable of implementation within a 3 to 6 month window.

Key results arising from Lean / Six Sigma / Time Compression were:

• Removal of one manufacturing shift through better lead time management and execution efficiencies; overall increase in site capacity

• Introduction of Kanban Lineside Materials Supply

• Improved QC controls, through the introduction of a novel Kanban approach to prioritise workload, yielding further efficiencies in manufacture

• Introduction of new planning disciplines to reflect the changes above

• Creation of a Lean organisation (including consolidation of lines to drive management efficiency)

• Improved planning and execution of Maintenance activities, including massive reduction in transit and dwell times through relocation and consolidation

• Full accountability for the improvements at Departmental level

• Identification of further 'stretch' benefits