March 10, 2015 Case Studies, Lean Manufacturing Background The client is a supplier to a large ‘off highway’ OEM. As part of a commitment to developing their supply chain, the OEM and client have embarked on a major long term strategy that aims to support research and development, skills training and capital investment. The Challenge To potentially develop and win new business, the client needs to improve quality performance and operational control. As a business that has used parts of various lean tools in the past, the company Director acknowledged the need for an improvement programme by stating: “By working on lean manufacturing techniques we can make our supply more attractive to customers.” The Objectives To educate key members of the business in the lean tools and techniques which will enable them to cascade this knowledge throughout the business. Team members must include senior managers as well as operatives. The Industry Forum Solution Industry Forum developed a 6 day up-skilling programme that was split into three sets of two day blocks to accommodate the operational challenges of the business. Phase 1 After capturing expectations, the team dived into data collection and analysis. Once the information they needed to be able to manage the business was rationalised, the team drafted a visual management board which showed how the information was to be displayed. The team then went through a structured approach to 5S Workplace Organisation in their chosen focus area. Phase 2 Lean tools covered in this phase included Waste Identification and Analysis. Once educated on what the 8 Wastes are, the team then went out into their focus area and identified the wastes they could see, and came up with solutions on how to eliminate them. Having identified, from the first phase, that there was an issue with unclear roles and responsibilities within the organisation, Industry Forum ran a micro workshop that aimed to focus the team on thinking about who is responsible and accountable for which processes within the organisation. This was then presented to the entire management team. Phase 3 Over the course of a day, the team went through the 8D approach to problem solving and used it to get to the root cause of a real problem they were experiencing in the business. To round off the programme, the team covered change management and sustainability. This section was included to give the client the best possible chance of success in the future. The Benefits All team members stated that after the training they felt comfortable in continuing the roll out of the lean tools and techniques across the business. Using the Plan-Do-Check-Act methodology, the company now hold daily reviews around the visual management board created during the programme. This enables key stakeholders to manage the business better and to react if performance falls below target levels A 5S roll out plan was devised and a 5S champion allocated. The Customer’s View Dave Sharratt, Quality Manager “The hands-on application of the continuous improvement course was delivered in a structured and professional manner. It was great to be hands-on getting dirty rather than sitting in a classroom for hours.” Reference File: Download Case Study (pdf format)
January 15, 2015 Advanced Manufacturing Supply Chain Initiative (AMSCI), Case Studies Toolspec – as the name suggests – began as a toolmaking company employing 55 toolmakers and five employees hand-bending tubular components. But it has re-invented itself over the past 25 years, to become an expert producer of not just tubular parts, but virtually any kind of hollow section ‘road to roof’ assembly for the automotive, construction and agricultural industries. In the late 1980s though, Toolspec was in trouble and needed to change; its only customer, GM Vauxhall began sourcing tooling needs on the global market rather than from local suppliers. “So the headcount is now reversed – we have 55 people making tube components and five toolmakers,” explained Toolspec CEO Mark Blythe. “But the latter are still key, because we can make the jigs, fixtures and so on that have enabled us to progress from making simple tubular products to complex ones, while boosting quality and response time, and those toolmakers are also more productive thanks to modern technology.” This ‘can do’ attitude and ambition to get better and faster is the essence of the Toolspec success story and why it sought AMSCI funding towards a £837k capital investment towards future growth. The UK engineering sector is under-valued. We are brilliant at complex engineering in this country, but the manufacturing has often ended up being done somewhere else. Now it’s coming back. At Toolspec, we are very good at the engineering ability between different processes involved in a complex fabrication, and the AMSCI funding has enhanced our strength and reliability, and speed of response – we can generate a prototype in a couple of days. We will soon compete with rivals turning over £50m+ a year, while retaining the flexibility and response-time of a smaller concern – we never want to lose our nimbleness” Mark Blythe, CEO, Toolspec Funding itself was achieved with the sponsorship of JCB, one of several blue chip Toolspec customers. Mark Blythe said: “We couldn’t have done it without JCB submitting a bid for the AMSCI funding on our behalf – as a small firm we can’t justify that expertise on the payroll. “But the 10% £87K grant aid towards our capital expenditure will create nine jobs and, by taking on the SMMT training skillset over the next few years, improving the talent in our business and boosting productivity, quality and all the other hallmarks needed in a fast-moving competitive sector. “We’ve also taken on younger people who can quickly familiarise with the Windows-based interface on our newest equipment, while experienced guys are re-deployed, speeding processes and products on other machines.” Toolspec benefits from AMSCI Maintain ability to retain and add to a roster of blue chip customers, such as JCB, Jaguar Land Rover, and CAT – sales expected to rise at least 14% over next year Landed new export order, with potential to tap into up to £2 million further business Reduced waste and production lead times Current 60-strong headcount secured and nine new jobs created Company now ‘punches above its weight’ in a competitive market Underpins recent onsite expansion, increasing space by around two-thirds to 50,000 sq feet Mark knows about bringing in new blood: a local boy from Luton, he joined Toolspec 28 years ago as an apprentice toolmaker, rising rapidly to become Manufacturing Director at 24 and CEO seven years ago. “That means there is nothing I don’t understand about what we make and do and I’m looking for more young people to build the company’s future,” he said, adding: “Part of the AMCSI investment also went towards a machining centre, which means that we can go CADCAM there. We always CAD-designed the tooling, but then had to reverse engineer that onto a drawing. “We make most of our own tooling too, rather than often having to ask a customer to fund the bending tools for a job before At a cost of £3-7,000 per set it could be a deal breaker. Now we can cut a set of tools for a new customer within two days, saving costs and a 6-8-week lead time.” The benefits of AMSCI funding and OEM support has been vital to the success of companies throughout the supply chain being able to produce high calibre components to achieve the continuing growth of the UK Automotive sector. Dr Chris Owen, CEO SMMT Industry Forum Ltd But the biggest investment unlocked by the AMSCI funding is three new machines: two hi-tech bending machines from fellow UK firm Unison and a machining centre, costing £370k in total. “The bending machines are the biggest revelation,” said Mark. “They speed up the whole process and cut out most of the waste through measurable accuracy and quality. “It allows us to make things better, quicker, faster and hunt down better contracts. We’re also more of a ‘one-stop shop’ making ever more complex components.” About Toolspec Toolspec – founded in 1961 – is a medium volume manufacturer of specialised tubular and hollow section manipulations used in complex components and welded assemblies for the automotive, construction and agricultural industries Production volume ranges from 10 to 1,500 parts per week – due to increase markedly following nearly £1m investment and two-thirds site expansion Employs 60 people at its works in Luton, Bedfordshire Annual turnover: £6.5 million (2013). Phenomenal growth since a recession ‘low’ of £3.5m turnover in 2010, and now targeting £10m by 2015-end Array of quality hallmarks includes TS16949 and accreditation from Jaguar Land Rover JLRQ and Ford Q1 About the Automotive Council The Automotive Council provides an advisory and consultative forum for government and the automotive industry in the UK, to ensure a sustained high level conversation with the industry, and to put in place a long-term strategic framework for its development Advanced Manufacturing Supply Chain Initiative (AMSCI) Secretary of State for Business, Innovation and Skills Vince Cable launched the Advanced Manufacturing Supply Chain Initiative (AMSCI) in 2011. AMSCI provides funding across manufacturing to support research and development, skills training and capital investment to improve the UK’s advanced manufacturing supply chains global competitiveness and encourage major new suppliers to locate in the UK. More Information If you would like to know how AMSCI funding could benefit your organisation please contact Mike Scull at SMMT Industry Forum on 0121 717 6600 Download Case Study
January 6, 2015 Case Studies, Value Stream Mapping A layout and line balancing improvement activity, supporting the company’s achievement of customer requirements and corporate growth plans, avoiding €2M capital expenditure Background The client company is a leading global automotive supplier supporting the sector with manufacturing plants in 29 countries. In late 2011 a plant was built in Hungary to support a major customer’s vehicle assembly operations nearby. The original product line consisted of carpet and load space systems for a vehicle in current production. The Challenge At the end of 2012, the company started to install a new line to manufacture the full set of door trim systems for a new vehicle model line. New staff were employed and the line had to ramp up to full volume with a tough target date for full run at rate sign off by the customer. At the same time, the plant had to incorporate the manufacture of 2 other model lines, in line with the corporate capacity and growth strategy. A €2M extension to the plant had been identified to fit in the new business, but the corporate budget was not available. The Objectives The plant objectives for the project were 3-fold: to achieve a timely and successful product launch, to re-layout the factory to incorporate the complete manufacturing facility for 2 additional models, without compromising the flow and efficiency of the current products, and to develop the skill level and capability of the current workforce in kaizen activities. The Industry Forum Solution A multi skilled team of engineers from the client company worked with an Industry Forum Senior Engineer to create a value stream map capturing all of the issues in the current door trim manufacturing and assembly lines. Two teams (consisting of engineers, supervisors, team leaders and operators) were formed to design a fully aligned future state for the manufacturing and assembly areas. The teams identified and carried out improvement actions to stabilise the current state before starting to implement the current state. The management team took part in a 3 day off site workshop to embed a common understanding of the lean tools and principles, in order that they could fully support the improvement teams by providing resource and removing any ‘road blocks’. Using the lean principles learned, the teams designed manufacturing systems and layouts, and identified the improvements necessary to allow them to work effectively. The layouts were shared with the project management team together with a spreadsheet modelling the linked flow from manufacturing to assembly. A project plan was devised, the workforce briefed and the new layout was implemented during the Easter shutdown. The integrated improvement activities of the lean teams and the technical engineering/project management team enabled a successful achievement of the targets during the customer ‘run at rate trial’. The initial improvement activities demonstrated the success of ‘lean’ to the workforce and these were followed up by 4 waves of team leader training to assist the CI manager raise the capability at production team level (particularly in data analysis and problem solving) and embed continuous improvement into all areas. The improvement activities implemented included layout 7 line balance, set up improvement, 5S, waste elimination, standardisation, visual management and development of team SQCDM boards. Results CapEx cost avoidance €2M Re-layout Manufacturing WIP reduction 75.3% Pull systems, scheduled changeovers Assembly WIP reduction 68.9% Single piece flow Average assy cycle time reduction 41.2% Waste elimination and standardisation Press OEE increase 30.4% Problem solving Current production space reduction 41.3% Re-layout generating 1470m² for new products The Customer’s View ‘The project has not only assisted us in a successful product launch, but enabled us to integrate 2 new production lines, without the expense of extending the factory and without compromising the flow of the existing products. In fact, the project has enabled us to introduce pull into the manufacturing stage, as well as assembly, reducing batch sizes, WIP and product movement. We have also upskilled our team leaders and spread improvement activities to all areas.’ General Manager “The Industry Forum team has integrated really well with the local workforce and management team, plus the central engineering and project management team. The team has approached the issues in different ways and allowed us to achieve things which we would not have done without help. I am sure that there is a lot more that Industry Forum can help us with in the future.” Reference File Download Case Study
December 11, 2014 Case Studies, Total Productive Maintenance TPM Applying Focussed Improvement and Autonomous Maintenance to increase yield and throughput Background The client processes fresh natural raw material to prepare for further processing at another internal business unit. The process is labour intensive, but relies on a handful of key machines to keep productivity globally competitive. The site believed they were close to achieving the theoretical maximum yield from the product although the process yield and efficiency regularly changed and was believed to be due to differences in natural raw materials. The Challenge There are many factors that affect the yield and performance of the process, not least the impact of the size and texture of the natural products arriving direct from their harvested environment. The team were aware that the raw material variation could be used as an excuse for variation in performance, and set out to prove which of their process inputs were significant to the yield and throughput. The throughput rates needed to improve to remain competitive and the standard yield target had not been altered since the era when products were processed purely by hand. The Objectives The client group have a corporate approach to continuous improvement which incorporates Lean manufacturing, six sigma and Total Productive Maintenance principles. The site team had limited experience of applying the improvement tools, so required support to implement the tools to improve the team’s understanding and control of the process. The Industry Forum Solution Recognising the size of the site and the amount of resource available for improvement activities, Industry Forum facilitated a Loss Tree Workshop to understand the current losses seen in the process. This highlighted a key machine to run a Focussed Improvement Workshop and an Autonomous Maintenance Workshop in the initial processing area of the factory. Time was spent analysing the differences between machines and raw materials to pinpoint several causes of variation in the process. The 4M (Manpower/Machine/Material/Method) inputs were considered and a matrix created to highlight what potential variations needed to be fully understood in terms of their impact on the process performance. Carefully controlled trials were designed and performed by the team to further understand the variation sources. After full analysis of the trial results, several solutions were implemented: Grading of the raw material introduced Standardisation of optimum machine settings matched to material size Introduction of Autonomous Maintenance checks to ensure optimal equipment conditions Equipment improvements through modifications to rollers and trays as well as replacing worn components Modifying the team structure to allow better process control and data analysis Specification of a raw material freezing method designed for optimal yield Improvement of data collection documentation and elimination of duplication The 18 day programme has generated savings of £175k through the combined impact of increased throughput (+2%) and yield (+2%) achieved. Based on the improvements a new standard yield target has been set at the highest ever level. Reference File: Download Case Study (pdf)
July 8, 2014 Advanced Manufacturing Supply Chain Initiative (AMSCI), Case Studies With 1.5 million vehicles and 2.5 million engines produced each year, the automotive industry is a leading sector in the UK economy, and Delphi Automotive a key member of its supply chain. The manufacturer boasts an annual turnover of £9.8 ($16.5) billion, and its subsidiary company, Delphi Diesel Systems, is a key supplier of diesel common rail systems to global vehicle and engine manufacturers. The Delphi group has played a large role in automotive’s recent success story. Delphi is also a notable employer in the UK, operating seven sites (among them two technical centres: Gillingham in Medway, Kent and Park Royal, London) and employing 3,500 employees of which 650 are engineers and technicians. Delphi sites in the UK currently employ over 80 apprentices. The Medway area ranks amongst the most deprived areas in the UK, with education and skills the most widespread factor. In an area where 13,800 are unemployed and 35,800 experience income deprivation, Delphi’s presence is strongly felt. (State of Medway Report January 2012) “The contribution of the AMSCI funding is a key investment to develop advanced Common Rail system technologies for commercial vehicle engines that will help OEMs meet evolving legislative requirements. The funding will contribute to Delphi continuing to lead development of Diesel systems for commercial vehicles” Steve Gregory, Heavy Duty product Line Executive, Delphi Diesel Systems With tighter requirements on fuel consumption and CO2 emissions brought about by legislation and industry competitiveness, OEMs have recently looked to their suppliers for solutions. In a highly competitive automotive market, it is vital for companies like Delphi to invest in developing new technologies. Delphi bid for, and won, funding from the Department of Business, Innovation and Skills’ (BIS) Advance Manufacturing Supply Chain Initiative (AMSCI) to develop new diesel technologies for commercial vehicles. The aim of AMSCI is to improve competitiveness, increase supply chain performance and create and safeguard jobs by supporting R&D, capital investment and skills development. The automotive supply chain will receive a total of £45.5 million AMSCI funding, with the programme overseen by the Automotive Council and Dr Chris Owen, Chief Executive Officer of SMMT Industry Forum. It is the largest ever automotive supply chain development programme in the UK. Delphi benefits from AMSCI £4.1 million funding to help develop new common rail technology Help maintain 25 jobs and create a further 11. The project and the product being taken to market are supported by 500 UK manufacturing jobs Global competitiveness ensured AMSCI projects will kick-start much larger private sector investment across the whole supply chain. With better supply chain competitiveness, the percentage of the parts budget spent in the UK will increase and global supply chains will become more concentrated in the UK, setting output and jobs on an upward track. Delphi Diesel Systems was awarded £4.1 million AMSCI funding to develop the next generation of its common rail technology. The project started in May 2013 and will run for three years. It will yield components that meet OEMs’ needs for commercial vehicle engines targeted for production from 2018 onwards. “By increasing supply chain international competitiveness, capacity and capability, AMSCI will increase the sourcing by OEMs and Tier-ones with UK SMEs and will also create the opportunity for suppliers to win new customers in new sectors and increase export-led growth. This economic Funding from the programme will also support SME access to finance issues and provide a combined investment in skills, R&D and CAPEX to address the identified SME market failures. Without this programme of work the essential improvements to be achieved will be lost forever for many supply chain companies.” Chris Owen, Chief Executive Officer, SMMT Industry Forum Ltd The funding will be used in the development stage of the project which will help maintain 25 jobs and create a further 11. The project and the product being taken to market are supported by 500 UK manufacturing jobs. The AMSCI funding will also support training and skills improvements. The Delphi investment in this project will exceed the awarded AMSCI funding. Delphi’s project has already received interest from several global OEMs. About Delphi Automotive Delphi Automotive PLC (NYSE: DLPH) is a leading global supplier of technologies for the automotive and commercial vehicle markets. Headquartered in Gillingham, England, Delphi operates major technical centres, manufacturing sites and customer support services in 32 countries, with regional headquarters in Bascharage, Luxembourg; Sao Paulo, Brazil; Shanghai, China and Troy; Michigan, U.S. Delphi delivers innovation for the real world with technologies that make cars and trucks safer as well as more powerful, efficient and connected. Visit www.delphi.com Employs 3,500 personnel across the UK, 870 in Gillingham, Medway Annual turnover of £9.8 ($16.5) billion in 2013 Delphi Diesel Systems, a key supplier of diesel common rail systems to global vehicle and engine manufacturers About the Automotive Council The Automotive Council provides an advisory and consultative forum for government and the automotive industry in the UK, to ensure a sustained high level conversation with the industry, and to put in place a long-term strategic framework for its development Advanced Manufacturing Supply Chain Initiative (AMSCI) Secretary of State for Business, Innovation and Skills Vince Cable launched the Advanced Manufacturing Supply Chain Initiative (AMSCI) in 2011. AMSCI provides funding across manufacturing to support research and development, skills training and capital investment to improve the UK’s advanced manufacturing supply chains global competitiveness and encourage major new suppliers to locate in the UK. More Information If you would like to know how AMSCI funding could benefit your organisation please contact Mike Scull at SMMT Industry Forum on 0121 717 6600 Download Case Study
May 16, 2014 Case Studies, Process Improvement Activity MasterClass A case study of a process improvement MasterClass in the Fresh Produce sector. The activity focussed on productivity improvement and cost reduction in a packing process and was achieved using techniques including data analysis, takt, line balance and visual management. “The Masterclass has provided us with the tools and techniques to establish and plan the optimium manning levels to meet our scheduled requirements.” Emmett C.I. Team The Customer Emmett UK is a grower and supplier of fresh vegetables and salads to Tesco and Waitrose. A privately owned company based in Lincolnshire with an industry leading packing facility. Farming is a cornerstone of the business with farms in Lincolnshire, Lancashire, Cambridgeshire, Nottinghamshire, Wales and Spain. Products supplied include leeks and spinach. The Customer’s need Following a value chain analysis by Cardiff University and cost down pressure from customers, Emmett decided to focus on the packhouse costs. Trimming leeks was particularly difficult, and resulted in variable quality from different operators. Production costs were higher than budget and required a new approach to tackle the problem. The IF Solution Members of an improvement team were invited to join a Masterclass delivered by Industry Forum engineers. The engineers utilised the “Common Approach Toolkit” to apply the building block tools of continuous improvement and introduce the team to “Learning by Doing”. The tools applied were 5c Workplace Organisation, 7 Waste observation,Standardised Work and Visual Management. The “Learning By Doing” application of building block tools Return on Stakeholder’s Investment Industry Forum’s Seven Measures of QCD Competitiveness Results Cost per pack Before: £0.22 After: £0.12 Pre Pack line – Carrera – cost per pack Before: £0.205 After: £0.084 Financial Benefits: Annual total pack cost : Before: £303,685 After: £164,158 Saving: £139,527 Sustainability of the Improvements: The company has made continuous improvement a strategic objective and appointed senior managers who have the skill and responsibility to coordinate more activities. The company will gain sustainability by continuing to organise workshops at each site in their organisation. Reference file: Download Case Study
May 16, 2014 Case Studies, Productivity and Competitiveness Framework A case study in implementing the Productivity and Competitiveness (PAC) framework in the Automotive Sector. The activity focussed on productivity and quality improvement and was underpinned by the NVQ level 2 in Business Improvement Techniques. It was achieved using techniques including effective teamwork, problem solving, 5C/5S, standard operations and visual management. “The PAC exercise enabled us to dramatically improve our QCD measures, namely Not Right First Time (NRFT), Overall Equipment Effectiveness (OEE) and Delivery Schedule Achievement (DSA) for our main product group. This product represents 65% of our turnover.” Peter Henderson, Managing Director. Valve Train Components Ltd The Customer Valve Train Components Ltd (VTC) is one of the leading suppliers of valve collets and synchromesh sliding keys to the global automotive market. A first tier supplier to many of the world’s premier automotive companies, it manufactures over 300 million valve collets per annum and exports to more than 20 countries worldwide. VTC, based in two modern manufacturing facilities in Lichfield, has some 30 employees and an annual turnover of £3 million. VTC is a member of the Society of Motor Manufacturers and Traders (SMMT). The Customer’s need VTC had identified potential for additional sales of its products, and was aware, as an accreditied TS16949 company, that it should look to increase capacity by improving its existing Quality, Cost and Delivery (QCD) performance before investing capex. Furthermore, whilst not stopping their customers’ production lines they were in delivery arrears to several companies and were under constant cost down pressures. The IF Solution SEMTA to demonstrate how a combination of a “Learning by Doing” process intervention, coupled with employees achieving a National Vocationa qualification (NVQ) in Business Improvement Techniques could yield sustainable improvements in productivity that could be measured on the bottom-line. SMMT IF convinced the company to buy a PAC activity to achieve the dual benefits of bottom-line improvement, together with the creation of upskilled employees who could use the practical skills acquired during the “Learning by Doing” activity to implement and sustain continuous improvement, and gain NVQ Level 2 qualifications. Overview of PAC Structure The “Learning By Doing” Process, (b), linked to a National Vocational Qualification (NVQ) (c) Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Reduction in build time of a high volume product Results Before After Not Right First Time 25,300 ppm Less than 1,000ppm (0 ppm for Aug 2007 Overall Equipment Effectiveness 73% 83% Financial Benefits Value of additional units and improved NRFT performance £50.4k Value of reduced downtime due to tool breakages £80.2k Total £130.6k Upskilling for Sustained Continuous Improvement Achievement of NVQ Level 2 in Business Improvement Techniques for some members of the team. Reference file: Download Case Study
May 16, 2014 Case Studies, Productivity and Competitiveness Framework A case study in implementing the Productivity and Competitiveness (PAC) framework in the Electrical Appliances sector. This activity focussed on productivity and capacity improvement and was underpinned by the NVQ level 2 in Business Improvement Techniques. It was achieved using techniques including effective teamwork, standard operations, 7 wastes, workplace organisation (5C / 5S) and organisational safety improvement. “Overall the PAC activity has had a positive effect on the business. We have adopted the continuous improvement culture, and this is being backed up by the team members. I have noticed more involvement from every member of the team, not just the ones that were working on the PAC activity. Long may it continue’ ‘Working with the individuals involved in the process was paramount. It was a learning experience by all parties. Seeing that, with a few changes, we could work smarter not harder. ” David Cole, Factory Manager The Customer TEAL make and supply a wide range of portable and mobile hot water hand wash units that need NO mains water connection and NO fixed drainage. TEAL International models feature hand washing under hot running water and comprises the CASCADE and TEALwash ranges. TEAL market reach is Global. They have a turnover of £1.4m and employs 13 people. The Customer’s need TEAL had identified potential for additional sales of its premier product the CASCADE. The volume growth was expected to be 100%. Large volume increases were especially likely due to the war in Iraq and the extensive use of these systems in field hostpitals. Current capacity was hindered by process layout and assembly methodologies. Improvements were required to increase output without the addition or more labour and the improvements were to be applied to other products. The IF Solution The PAC Framework was developed by IF for SEMTA to demonstrate how a combination of a “Learning by Doing” process intervention, coupled with employees achieving a National Vocational Qualification (NVQ) in Business Improvement Techniques could yield sustainable improvements in productivity that could be measured on the bottom-line. IF convinced the company to buy a PAC activity to achieve the dual benefits of bottom-line improvement, together with the creation of upskilled employees who could use the practical skills acquired during the “Learning by Doing” activity to implement and sustain continuous improvement, and gain NVQ Level 2 qualifications. The “Learning By Doing” Process, (b), linked to a National Vocational Qualification (NVQ) (c) Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Results People productivity Before: 0.33 parts/person/hour After: 0.66 parts/person/hour Floor Space Utilisation Before: £3,017/m2 After: £6,034/m2 Value Added Per person (per annum) Before: £75,000 After: £150,000 Financial Benefits Bottom line impact of additional units sold £160,000 per annum Upskilling for Sustained Continuous Improvement Achievement of NVQ Level 2 in Business Improvement Techniques for two members of the team Reference file: Download Case Study
May 16, 2014 Case Studies, Supply Chain Development A National Supply Chain Group case study in the Aerospace Sector. This supply chain development activity focussed on delivery improvement and lead time reduction. This was achieved using techniques including data analysis, workplace organisation, visual management, standard operations and set up improvement (SMED). The Customer The Host GKN Aerospace specialises in the design, testing, manufacture and assembly of a diverse range of aerospace composite and metallic structures, transparencies and components at their factories in Cowes, Luton, Portsmouth and Kings Norton. The Supplier Gardner Aerospace-Basildon, Ltd produces a high variety of aerospace components in its 800 m 2 production facility, 500 m2 Treatments and NDT and 400 m2 repair station. 125 employees generated £10.8m turnover for year ended August 200. The Customer’s need The Host As a key supplier Gardner was invited to join GKN’s National Supply Chain Group. GKN’s need was for Gardner to improve its on time delivery to achieve >95% Delivery Schedule Achievement to lift their Bronze performance to Gold. The Supplier Gardner identified its treatments area as the best place to start the activity with a target to improve process lead time. This was to be followed by set up improvement in the machine shop. No measures were in place. The IF Solution framework approach bringing together customers and suppliers from different tiers in the Supply Chain. Developed by Industry Forum, the 3 pronged approach enables individual businesses to see real gains in Quality, Cost, Delivery (QCD), and to improve the level of partnership between companies, alongside the development of improvement skills capability within each company. Overview of PAC Structure Description of Skills to Profitability Link Treatment Area Measure selected : Process lead time. Data was captured and Visual Management used to progress work through the area Workplace organisation used to eliminate wasted time looking for material, tools and consumables. Standardised work identified waste due to walking and anodiser idle time. New layouts reduce both. The combined effect reduced the process lead time by 35% A further benefit was that the work in progress in the treatment area was reduced by 11513 parts over a 3 month period. Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Reduction in build time of a high volume product Results Before After Not Right First Time 25,300 ppm Less than 1,000ppm (0 ppm for Aug 2007) Overall Equipment Effectiveness 73% 83% Financial Benefits Value of additional units and improved NRFT performance £50.4k Value of reduced downtime due to tool breakages £80.2k Total £130.6k Upskilling for Sustained Continuous Improvement Achievement of NVQ Level 2 in Business Improvement Techniques for some members of the team Reference file: Download Case Study
