Problem:
Orders were being shipped late. Lead-times were too long. The warehouse was full of finished goods. Over ten percent of the warehoused finished goods were written off each year because of obsolesce. The client would like the ability to right size their finished goods while reducing their lead-times and shipping product on time.
Mission:
• Utilize Lean / 5-S techniques to identify and quickly eliminate non-value added events to speed up lead times.
• Reduce overproduction and long lead times by implementing quick changeover techniques allowing lot sizes to be reduced.
• Create continuous flow by utilizing cellular manufacturing.
Approach:
• Map and Measure the Current State Value Stream.
• Identify and eliminate as many non-value added tasks as possible.
o Many non-value added tasks such as putting product on shelves and taking product off of shelves occurred in the warehouse.
o Non-value added handling and transportation occurred when product was moved from one plant to the other plant and back again.
o Long non-value added changeovers were causing large lot sizes causing overproduction causing the wrong products to be made first causing shortages.
• Map Future State Value Stream and Transition Plan.
o Chartered and trained three Lean Transformation Teams:
Shipping Process Improvement Team
Finishing Process Improvement Team
Printing Process Improvement Team
Lean Techniques Taught and Utilized:
• Value Stream Mapping
• 5-S Workplace Organization
• Quick Changeover
• Cellular Manufacturing
Results Realized:
• Increased On Time Delivery to > 95%
• Improved Lead Time
• Reduced obsolescence costs
• Less non-value added (“cost added”) events
• Improved employee morale