Lean transformation at a manufacturing site
- Client sector: Manufacturing
- Client sub sector: Automotive manufacturing
- Summary results of the Lean Ireland engagement: 73% increase in manufacturing volumes. Manufacturing lead time fell from 13.5 days to 5.9 days, and plant inventory turns increased from 8 to 13 annually.
Problem statement
The Irish based automotive manufacturing organisation had downsized considerably following market challenges and migration of product lines to eastern Europe. The challenge facing the managing director and management team was to ensure plant survival in a highly competitive low-margin business.
Lean Ireland consulting/training work
The Lean Ireland consultant spent a number of days on-site each month over 18 months, working with the management team, operators, engineers and quality personnel. The lean programme derived through mutual agreement, involved defining lean thinking and outlining its principal methodologies; selecting key performance metrics and documenting performance levels for those metrics through the lean journey, with particular emphasis on supply chain metrics; training staff in elementary lean approaches, such as product flow, quick changeover and waste elimination in all facets of planning and product manufacture.
Detailed results of the client work
Early measureble results from implementation of lean principles, with the promise of more to come, were a key confidence booster that assisted management in taking bold leaps in the marketplace. The lean groundwork enabled the company to take over a competitor's business. Manufacturing volumes increased by 73%, manufacturing lead time fell from 13.5 days to 5.9 days, and plant inventory turns increased from 8 to 13 annually. In year 3, the company traded at a profit margin in the high teens, relative to their previous low single digit margin in year 1.
Consulting/training nature of engagement
Onsite consulting on a number of days per months over an 18 month period.