Operational Analysis and Improvement Project
Updated: Dec 3, 2019
This business is a major supplier into the global Chemical Coatings sector, responsible for the Key Value Streams within the overall Global Operation. The organisation was very poor in the Operational and Supply Chain Performance when considered to be a brand market leader of the industry.
This situation was not due to any Site-specific failures but more to the management and success of Improvement Programmes and Activities which were not generating real and meaningful Operational Gains.
Investment plans needed to be justified, submitted and delivered in-line with management and workforce engagement.
The Process An initial analysis was conducted at the site, which indicated that Improvements to Workplace Organisation would generate Operational Improvements. This was further diagnosed at both Site (Macro) and Area (Micro) levels, in addition to the general benefits that good workplace organisation could provide.
Within the Workplace Organisation, Layout Improvements and CAPEX proposals, further Lean Opportunities were identified that could be addressed through:
1. Reducing Changeover Times (SMED)Implementing.
2. Implement standard Operating Procedures.
3. Planning, prodedures, training and systems standardisation.
4. Implementing Operational and Supply Chain KPI's for the business.
5. Balancing workloads.
6. Externalising Key Change Parts in preperation prior to make ready.
These points were a key area of opportunity throughout and through an integrated programme of improvement, generated a fast and real return to the bottom line.
Medium to Long term
1. CAPEX justification and approval.
2. Shop floor workplace utilization.
3. Supply Chain ERP and planning module implementation.
4. New Area “Run Rates” and capacity utilization.
5. Portfolio margin analysis and 'bottom slice' strategy.
6. In-house logistics and warehousing opportunities.
7. Replacement filling line and automation strategy and implementation.
Standard Operating Procedures (SOP) The business did not use Standard Operating Procedures. We embarked on the introduction of SOP for every position and procedure. Implementing SOP improves and controls quality, promotes and encourages consistency and helps ensure that improvements gains are sustained in the long-term.
Training Provided for the Workforce Lean Awareness Make-Ready - Single Minute Exchange of Die Workplace Organisation (5S) Team Building and Problem Solving
The Improvement Process
1. Calculate Current Lead-Time
2. Calculate Theoretical Lead-Time
3. Take “Before” photos and / or videos of all current parts of the Process.
4. Clear out, Configure and Optimise the Layout for the current, Work in Progress Area (Workplace Organisation).
5. Design and Verify The New Layout
6. Layout New Area.
7. Determine “Run Rates” (balance if necessary).
8. Determine Storage and Production Policies for high volume runners, repeat orders and one-off products.
9. Determine minimum / max stock levels based on customer requirements. 10. Implement 5S in the area, check lighting and improve if necessary.
11. Create Audits and Standard Operating Procedures and maintain the Standard.
1. Safety standards must be adhered to as number one priority when implementing any process changes.
2. High levels of quality through minimization of waste must be implemented at all costs.
3. Output must be maximized inline with the new run rate
1. Implement Overall Equipment Effectiveness (O.E.E.) as a measure of Machine Performance.
2. Introduce the principles of Plan, Do, Check, Act, (P, D, C, A.).
3. Concern Cause Countermeasure Data Collection and Problem Solving to eliminate/reduce Waste.Implement
4. Implement Standard Operating Procedures to Maintain our Standards.
Expected Benefits: 1. A substantially reduced Working Area.
2. Improved quality internally and externally
3. All of the Activity relating to this Value Stream will be carried out within one localized Area.
4. Reduced Lead Time 5. Improved visibility and control of working capital (Inventory levels Raw Materials and Finished Goods)
6. Work place and Management accountability. 7. Pro-active pull system rather than a reactive push system (Main Production)
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