Operational Excellence
Case Studies
Topic: Lean Implementation in a Non-Manufacturing Environment
Reduce Document Cost, Throughput Time, and Improve Accuracy
Company Profile:
- Technical publishing company
- Supplier to a major OEM
- Customizes output for each customer
- Nearly 800 employees
Topic: Lean Model Line Implementation
Company Profile:
- Avionics Systems Provider to large OEM
- $800 million in revenues
- 2,900 associates, multiple sites
Topic: Benchmarking of Processing and Maintenance Best Practices
Company Profile:
- International postal authority
- New location serving domestic and international shippers and receivers
- Intense competition in an era of progressive deregulation of the industry
Topic: Lean Model Line Implementation
Company Profile:
- Aerospace Fastener Provider
- $800 million in revenues
- 3,000 employees, multiple sites in the United States and Europe
Topic: Lean Implementation in a Non-Manufacturing Environment
Reduce Document Cost, Throughput Time, and Improve Accuracy
Company Profile:
- Technical publishing company
- Supplier to a major OEM
- Customizes output for each customer
- Nearly 800 employees
This company was faced with a substantial upswing in business and a resulting increase in lead-time. The opportunity presented was to apply lean manufacturing principles to the production of unique products that are processed and stored electronically.
GP's Operational Excellence Practice used the Rapid Service Improvement® methodology. A key feature of the methodology is the Rapid Improvement Workshop (RIW), a five-day event focused on a particular process and involving people who work in the process. The methodology consisted of the following program:
- Executive engagement and education
- RIW #1—introduces the company to the workshops and quickly achieves dramatic improvement for one process flow
- Lean Assessment and Implementation Planning
- RIW #2 through #4—refinement of and further transformation of processes
RIW #1 focused on the flow of work through the parts compiling, quality control and illustration processes. The workshop team established a "work cell" with dramatic results.
Results from RIW #1
| Before | After | Improvement | |
|---|---|---|---|
| Throughput time | 110 days | 20 days | -82% |
| Work-in-process | 16 units/employee | 5 units/employee | -69% |
| Travel distance | 3,542 feet | 139 feet | -96% |
| Number of process steps | 78 | 27 | -65% |
| Number of handoffs | 21 | 4 | -81% |
The second RIW refined the improvements developed in the first workshop and achieved an additional 25% reduction in throughput time.
Given the success of the work cell concept, management decided to reorganize the entire company into work cells. Additional workshops established and implemented a rollout plan. Over one weekend, 600 employees in two of three buildings were rearranged into work cells. Two weeks later, a smaller group of people was also rearranged. Overall throughput time was reduced from 110 days to 8 days.
Topic: Lean Model Line Implementation
Company Profile:
- Avionics Systems Provider to large OEM
- $800 million in revenues
- 2,900 associates, multiple sites
The purpose of the Model Line activity was to demonstrate the power and potential of lean manufacturing within a large system change effort and to provide the learning and understanding needed in making the transformation. The focus was on a small, yet meaningful, product line within the enterprise. This approach emphasized the following:
- The development of an internal example of the principles of lean manufacturing
- The stressing of the system to surface and prioritize issues
- The construction of a test bed for further improvements
- The collection of empirical data needed for large system transformation
- The estimation of the benefits of the change
Model Line Implementation occurs through project teams and Rapid Improvement® Workshops. The process begins with the project management team alignment and education, team formation, education of the overall business needs and goals and the principles of a world class system. Baseline metrics are established to guide continuous improvement and set end state targets. The team performs analysis of the current situation and designs an end state system focusing on Process Design, Quality System, Logistics/Materials, Continuous Flow of Product, Service, Daily Management (New Metrics/Behaviors), Supplier Management, and Support Function Integration, (Q.A., Engineering, Materiel).
A series of model lines as well as focused projects to address cross-organizational systems issues was implemented over the course of two years. These efforts produced a net operating savings of $13.25M.
Results of One Model Line Implementation After 90 Days
| Before | After | Improvement | |
|---|---|---|---|
| Flowtime | 21 Days | 8 Days | 62% |
| Inventory Reduction | $1,849,866 | $528,533 | 71.4% |
| Holding Cost | $ 763,449 | $189,022 | 75.2% |
| Space Reduction | 5,180 sq. ft. | 2,112 sq. ft. | 52.9% |
Results included a $1.2M cash flow contribution.
Topic: Benchmarking of Processing and Maintenance Best Practices
Company Profile:
- International postal authority
- New location serving domestic and international shippers and receivers
- Intense competition in an era of progressive deregulation of the industry
A postal authority faced a future of increased competition from a variety of non-traditional sources such as email and also from deregulated postal authorities worldwide. It became critical to improve the supply chain for both incoming and outgoing mails. In this unique situation, customers are suppliers for packages traveling in opposite directions on a daily basis. Internal friction was high, with multiple departments measuring performance in contradictory ways.
Using methods built up over 20 years of successful benchmarking in Asia, the US and Europe, GP's Operational Excellence Practice provided benchmarking services to determine best practices during the concept and design phase for a new international mail handling distribution center, ranging from production control to organizational structure to employee engagement. GP gathered information in nine critical business areas and facilitated visits from a selection of world class companies in manufacturing and service industries that included Honda, Federal Express and the US Postal Service. Intensive surveys of the benchmark organizations were coupled with site visits and facilitated workshops to determine the most appropriate application of the gathered information. GP engaged management and union leaders in a process of determining what to benchmark, how to measure the performance of industry benchmarks.
The results of this engagement were a set of measures and comparable actions to be taken as the new facility was launched. Management and union incorporated their findings into the organizational and operational plans for the new distribution center. These measures and benchmark levels were designed to avoid the errors made in past efforts and build on the best practices of organizations worldwide.
Topic: Lean Model Line Implementation
Company Profile:
- Aerospace Fastener Provider
- $800 million in revenues
- 3,000 employees, multiple sites in the United States and Europe
The purpose of this Model Line was to focus lean implementation efforts on a major product stream, collars, to meet dramatic customer growth in this product line, and to achieve dramatic improvements in quality, cost, and delivery within a 6-12 month time period. This was then quickly replicated for the remaining eight product lines within this facility, and a Model Line was created at each of the other sites within months of the original Model Line.
This major aerospace provider asked GP's Operational Excellence Practice to assist them in the creation of a Lean Promotion Office. This would consist of 11 trained and GP certified Rapid Improvement Workshop (RIW) leaders who would conduct RIW's to facilitate the creation of the model line. Senior management education was conducted by GP to ensure that management was leading the lean initiative internally. A cross-functional team consisting of 40 individuals were trained in lean practices and participated in the creation of a model line design and implementation plan. A dedicated cross-functional team remained the project for one year to lead the implementation. The organization was realigned to support this initiative, and all employees were trained in lean by the team.
Baseline metrics were established through daily management measures. The team focused on the creation of five product cells within the collar product line comprised of 75 major pieces of equipment. They addressed process time reduction through the reduction of waste and set up, cross training of operators enabling them to run multiple machines, and inventory reduction utilizing kanbans. They addressed Supply Chain Management by reducing their supply base and having the supplier deliver directly to the line to the machines without receiving inspection. A Design of Experiments was conducted on critical processes which exhibited process/quality variation thereby improving quality and first pass yield.
At GP's suggestion, they received State funding for the training of their US employees in lean practices.
Results
| Measure | Improvement after 1 year |
|---|---|
| Quality | 51% |
| Shipments ($) | 82% |
| $/Day/Person | 69% |
| On Time Delivery | 123% |
| Flow Time | 65% |
| Inventory Turns | 33% |
| Gross Margin | 116% |
|
For more information about
GP's Operational Excellence Practice, e-mail us at or call 888-335-8276 |
