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Lean Manufacturing Implementation Engagement

Client — $45 million Commodity Supplier to Durable Goods Industry

Improvement Opportunity

Customer survey revealed significant and immediate improvements needed in quality and costs in the following areas:

  • Custom color rejects
  • Formula success rate
  • Material loss
  • Change-over rate
  • Lead time
  • On-time delivery performance

Approach

  • Developed and implemented lean manufacturing
  • Transferred knowledge and expertise of lean manufacturing to ensure sustainability for continued growth and improvement of their manufacturing process

Results

  • Total savings of $950,000 in a five-month period
  • 60% reduction in custom color rejects
  • 17% improvement in first-pass formula success rate
  • $250,000 annual savings in raw materials
  • 45% reduction in change-over time
  • Reduction in lead-time from 12 to 5 days
  • Improved on-time delivery from 87% to 98.5%