Case Study Lean Production: Value Stream Mapping in a multi-variant environment

Initial situation and goals of the project

The delivery reliability of a medium-sized company (manufacturing of electrical components) was unsatisfactory. Processes were not clearly defined which lead to resentment amongst staff as numerous additional activities were necessary. All departments were to blame - sometimes planning, sometimes logistics, sometimes procurement and of course the customer. After all, the customer had wishes that were impossible to fulfil.

In order to achieve a significant improvement in terms of sustainability, lean and customer-oriented processes, the company was looking for support of Lean Consulting.

In a strategy workshop supervised by Lean Consulting, management defined the project goals: reduction of lead times and therefore an increase in delivery reliability. In a value stream workshop potential for improvements was meant to be uncovered and specific measures for their exploitation were to be worked out.

Approach

Due to the existing variant diversity, the product family providing the largest turnover and the greatest delivery difficulties was first identified. Subsequently a workshop team was formed. A training session was to sensitise the participants to mind-set of the customers. According to this, the customers distinguishes between value-adding activities (i.e. everything they are happy to pay for) and waste (i.e. everything they not want to pay for).

Looking through these "customer glasses“, the following steps were carried out and implemented together:

• Actual analysis of the value stream
• Development of target state
• Creation of an action plan
• Estimation of the potentials and expenses for the implementation

The basis for the implementation of the chosen measures was a subsequent training of the leadership in order to enhance the knowhow of all department leaders to the same level, to set and pass the procedure.

Results

Within twelve months the delivery reliability could already be significantly improved, lead times in assembly reduced and productivity increased by 30 - 50%.

The achieved results are in detail:

• Reduction of inventories: 60 - 85%
• Reduction in lead times: 65%
• Productivity: 30%
• Reduction in floor space needed: 30 - 50%