May 16, 2014 Case Studies, Supply Chain Development A case study of Process Improvement in the Automotive Sector. This supply chain development activity focussed on defect reduction and productivity improvement. This was achieved using techniques including effective teamwork, 5C / 5S, flexible production systems, standard operations, single piece flow and visual management. “It is not just the achievement of the solution, which wouldn’t have been possible otherwise, but the learning of methodologies through team work that will have long lasting benefit to ourselves and our customers.” Alan Charles – Quality Manager, Renold Gears The Customer The Host Perkins Shibaura is a joint venture company supplying water-cooled compact engines for the construction, agriculture, marine, materials handling and power generation sectors in Europe and North America. The Peterborough site employs around 140 people and has a sales turnover of around $250M. The Supplier The principal activities of the Renold Group are the manufacture and sale of industrial chains and related power transmission products. The Group revenue for 06/07 was £159M and the group employs 2,500 people in 19 countries worldwide. The Customer’s need In April 07 out of a total of 2,700 Gear 10’s supplied to Perkins Shibaura they received 30 products with their vane inserts missing. This was a repeat concern. The defect rate due to this was 0.4% (4166 ppm) The Perkins Shibaura target was 0.005% (50 ppm). The IF Solution Supply Chain Groups provided a structured 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 not only to see real gains in Quality, Cost, Delivery (QCD), but also to improve the level of partnership between companies and to develop the improvement skills capability within each company. Overview of Activity Structure Description of Skills to Profitability Link Build & Spring performed as separate batch processes. Batches could be dispatched by mistake missing the 2nd operation. Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Financial Benefits For Gear 10, the People Productivity improvement will save £4,600 per annum (over 2700 parts per week, with a saving of 13.5 seconds per part). For Gear 8, currently built by hand, converting to the new method would save £20,800 per annum (over 800 parts per week, saving 204 seconds per part). Renold estimate the cost of dealing with previous Gear 10 bad quality (stock checking, warranty claims, reworking etc.) to be £3-4,000. Upskilling for Sustained Continuous Improvement The activity also supports the introduction of a Pull production system at Renold for the supply of Perkins Shibaura Gears. The change in the Build & Spring process forms part of the Future State Value Stream that has been used to design a Pull replenishment system using kanban. Reference file: Download Case Study
May 16, 2014 Case Studies, Supply Chain Development A case study in Supply Chain Improvements in the Aerospace Sector. This supply chain development activity focussed on delivery improvement and was underpinned by the NVQ level 3 in Business Improvement Techniques. It was achieved using techniques including effective teamwork, flexible production systems, 5C /5S, standard operations and visual management. “In September 2005 the Goodrich Electric Power Systems business launched a TI sponsored “Whole Supply Chain Group” programme, this was branded as “10 Suppliers, 4 Tiers, 1 Aim: Customer satisfaction throughout a world class supply chain”. Not only did this programme engage 9 suppliers & the manufacturing module at Pitstone, thus embracing 4 tiers of Supply Chain, it also engaged our customer Airbus. Our whole supply chain improvement in OTIF from 75% to 100% and delivered quality from 1500 dppm to 750 dpm, has resulted in a further DTI sponsored extension to the programme and an award recognising the professional project management applied by Goodrich Electrical Power Systems. The Goodrich Electric Power Systems business is now in year 5 of a 5 year business turnround, we are on plan to do this and Industry Forum has been a significant contributor to our success, we look forward to continuing to work with them in the future.” Emmett C.I. Team The Customer The Host Goodrich Power Systems, Pitstone. Manufacturer of generator sets for most Airbus models.Eemployees 508, turnover £140m, Material spend £50m. Participating Supplier Precision Magnetics Ltd, a UK leader in the design, manufacture and supply of rare earth permanent magnetic assemblies, with only 30 employees and around £2.5m turnover is a key supplier to all the Goodrich Airbus programmes. The Customer’s need Delivery Schedule Achievement (DSA) for all suppliers in September 2005 was 66%. The supply chain group represented 75% of Goodrich spend on Airbus programme and had a group DSA of only 60%. This endemic poor supplier delivery performance was continually affecting Goodrich’s ability to meet Airbus programme dates. Precision Magnetic’s then DSA of 7% being a significant factor. The IF Solution Supply Chain Groups provided a structured 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 not only to see real gains in QCD, but also to improve the level of partnership between companies and to develop the improvement skills capability within each company. Overview of Supply Chain Group Structure The “Learning By Doing” Process, linked to a National Vocational Qualification (NVQ) Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Results Overall Supply Chain Delivery Schedule Achievement to Goodrich (OTIF) Before: 60% After: 90% Precision Magnetics Delivery Schedule Achievement to Goodrich Before: 7% After: 100% July 07 Overall Supply Chain Not Right First Time Before: 1500 dppm After: 750 dppm Upskilling for Sustained Continuous Improvement 34 NVQ’s in Business Improvement Techniques across every supplier, (9 Change Agents & 23 Team Leaders) 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 core 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, Supply Chain Development A case study in Supply Chain Improvements in the Power Generation sector. This supply chain development activity focussed on delivery and productivity improvement and was achieved using techniques including effective teamwork, 5C / 5S, flexible production systems, visual management, standard operations and set up improvement (SMED). “Because of commitments to other programmes at the time, we had to carefully consider whether to support this initiative, but chose to go ahead because of the reputation of Industry Forum. Now that we can see the great results, we are committed to rolling out the tools and techniques across the rest of the business.” Richard Higginson – Company Spokesman The Customer The Host Perkins is a leading supplier of diesel and gas engines in the 4-2000 kW (5-2600 hp) market. Perkins diesel engine solutions are supplied to more than 1,000 leading manufacturers in industrial, construction, agricultural, materials handling, marine and electrical power generation markets. Participating Supplier Maxpower manufactures a diverse range of tube manipulations and pipe assemblies, primarily for major automotive customers. The company employs 138 people and has an annual turnover of £5.5M. The Customer’s need The Host Maxpower to improve Delivery Schedule Achievement to better than 95%, through Set Up reduction, and improvement in Overall Equipment Effectiveness and People Productivity. The Supplier Improve current throughput in the cell from 32 pipes/hour to 45 pipes/hour. To reduce the pipe bending cycle time from 80 seconds to less than 60 seconds The IF Solution Supply Chain Groups provided a structured 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 not only to see real gains in QCD, but also to improve the level of partnership between companies and to develop the improvement skills capability within each company. Overview of Activity Structure Description of skills to profitability link Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Results Delivery Schedule Achievement Before: 84.0% After: 97.1% People Productivity Before: 32 pipes per hour After: 41 pipes per hour Overall Equipment Effectiveness (DB75 Pipe Bender) Before: 52.0% After: 67.0% Financial Benefits The Productivity Improvement reduced the cost of overtime and other disruptions by over £11,000 per annum. The additional flexibility and capacity created has allowed the company to bid, successfully, for additional business. Upskilling for Sustained Continuous Improvement Following the conclusion of the Supply Chain activity, Maxpower nominated 9 internal candidates who are currently completing their NVQ Level 3 Business Improvement Techniques to sustain and spread the Lean Tools through the organisation. Reference file: Download Case Study
May 16, 2014 Case Studies, Team Leader Training A case study in Enhanced Team Leader Training incorporating NVQ Level 3 in Business Improvement techniques in the Coach Built Vehicle sector. The activity focussed on improving both productivity and quality and was achieved using techniques including standard operations and 7 wastes. “I’ve really enjoyed compiling the evidence for my Business Improvement Techniques qualification. I’m looking forward to continuing my NVQ journey.” Steve Almond, Team Leader The Customer Coleman Milne, based in Bolton, Lancashire,is one of the three trading divisions of Woodall Nicholson Ltd. It is the one of the UK’s oldest coachbuilders, now producing a range of market leading limousines and “Specialist Vehicles”. Woodall Nicholson Ltd employs over 200 people, has an annual turnover of £20 million and is a member of the Society of Motor Manufacturers and Traders (SMMT). The Customer’s need Coleman Milne is committed to building vehicles of the highest quality and had identified that, in order to maintain its market leading position, it needed to provide all employees with the opportunity to participate in the continuous improvement process. The first step was to train a number of first line supervisors and concurrently achieve and sustain a number of significant Quality Cost and Delivery (QCD) benefits for the company. The IF Solution After detailed discussion of the customer’s requirements, Industry Forum proposed delivering its enhanced Team Leader Training programme, incorporating NVQ in Business Improvement Techniques (B-IT) at Level 3. This programme would provide sustainable improvements while the employees worked on their own projects, Industry Forum offers a fully integrated package with one Engineer providing the initial training, coaching through example activities and then assessment of the NVQ projects. Overview of enhanced Team Leader Training structure Sustainable application of Improvement Tools 9 team leaders contributed to Project 1 and then each had two individual projects to complete. Examples of these projects include eliminating damage to doors Through the introduction of standard ops for the handling of completed doors, and the design and construction of a bespoke racking system for limousine doors, damage door rework levels were reduced from 40% to 0%. Ramp loading time reduction. Prior to rewiring, vehicles were pushed around the factory and had to be man handled onto a 4 post lift for ease of access. This required the efforts of 6 craftsmen and took over one man hour to achieve. Reconfiguring the bay to incorporate a winch allowed a single craftsman to safely move the vehicle into position in less than 30 minutes. Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Results Elimination of damage to doors Before After Doors requiring rework (Not Right First Time) 40% 0% Ramp loading time reduction Man hours required (People Productivity) 60mins 30mins Financial Benefits The elimination of damage to doors reduced the labour cost per vehicle by over £20 while the introduction of the winch saved a further 100 man hours. Utilizing the additional capacity generated by these activities provides the company with the opportunity to increase turnover by more than £120,000. The company is currently capacity constrained. A further 16 projects (2 per candidate) were completed by the the trainees in the following months, each contributing significantly to the company’s Return On Investment in the training programme. Seven of the nine candidates have completed their NVQ B-IT Level 3. Reference file: Download Case Study
May 16, 2014 Case Studies A case study in the approval to the global automotive specification ISO/TS16949. The activity focussed on the achievement of the global automotive specification ISO/TS16949 through the partnership of Setco, The Northwest Automotive Alliance and SMMT Industry Forum. “After a lot of hard work and excellent support from our employees, we felt confident and ready for the audit. The audit went very well, with few problems identified by the auditor. It was great to be able to demonstrate the tremendous improvements we had made through the project.” Matthew Kershaw, Project Manager, Setco Automotive UK Ltd The Customer Setco is a leading manufacturer of Medium & Heavy Duty Commercial Vehicle Clutches under the ‘LIPE’ brand. It has a 30 year established credential for building high quality, durable products at globally competitive prices. Setco’s UK operation, based in Haslingden in Lancashire, operates an in-house Research & Development department, manufacturing and warehouse facility with approximately 30 employees. The Customer’s Needs The ambition within the company is to accelerate the pace of design and development and take advantage of the brand name and reputation to further develop sales in the European Union with the Lipe Clutch products. Although the Lipe clutch brand had always had a good reputation with its customers, registration to the global automotive specification ISO/TS16949 was required to continually improve and grow business with Original Equipment Manufacturers. Setco identified that support for implementation was available through the Northwest Automotive Alliance (NAA) Network Forum. The IF Solution Setco identified that support for implementation was available through the North West Automotive Alliance (NWAA) Network Forum. Steve Haworth, Director of Setco explained: “As a small company, we were very nervous to embark on the implementation of ISO/TS16949. Our view was that this was for larger companies, and would be a massive administration for a SME. However, to help in the future growth of Setco, we decided that we had to proceed.” “We met with NWAA and their provider SMMT Industry Forum, to develop an implementation plan, and to discuss the implications of ISO/TS16949. After a detailed gap analysis we started with the implementation of improvement actions. Although we thought we ran a tight ship, it soon became apparent, through review of data, that we had many areas to improve.” “Although we were approved to ISO9001, the documented system we had did not reflect how we operated and was of little benefit. We decided to start again from scratch.” After a year of developing an effective process based system, Setco selected the global certification body, BSI to undertake the 3rd party audit. Matthew Kershaw, Project Manager for the TS16949 implementation at Setco, remarked: “After a lot of hard work, and excellent support from our employees, we felt confident and ready for the audit. The audit went very well, with few problems identified by the auditor. It was great to be able to demonstrate the tremendous improvements we had made through the project.” “Achievement of ISO/TS16949 will now allow us to tender and win new business, giving tremendous opportunities for the future. It will give us the business framework to help us manage the growth, while focusing on customer satisfaction. We now have a system that reflects our business activities and we have a clear set of key performance indicators so we can closely monitor how we are performing and take prompt action to address any shortfalls or concerns. We could not have achieved this without the help and support of SMMT Industry Forum.” Setco are one of the smallest companies in the North West to achieve ISO/TS16949 registration and one of only 650 companies in the whole of the UK to achieve the award. Reference file: Download Case Study (pdf)
May 16, 2014 Case Studies, Supply Chain Development A case study of increasing profitability through the development of a world-class supply chain. Background Perkins Engines at Stafford intended to support rapid growth in volumes and to drive an increase in profitability by developing a supply chain capable of world-class performance. The Challenge Perkins Engines at Stafford produces medium-to-large size engines for the Electrical Power Generator industry, employs 500 people and has sales of £133m. Having seen a substantial increase in volumes in Year 1 to more than 2000 engines (from 600-800 in previous years), and plans to deliver a further 30% increase in Year 2, Perkins’ supply chain was under pressure. The Objectives Key objectives for suppliers in Year 2 was to support Perkins’ intention to achieve Class A re-accreditation: 40% reduction in both customer and supplier delivered quality defects Significant improvement in supplier delivery performance – currently 66% 30% increase in capacity in Year 2 100% increase in stock turns Further development of lean manufacturing capability The Industry Forum Solution A 2 year project was delivered by SMMT Industry Forum under direction from Project Champion Paul Lloyd, one of Perkins 6 Sigma Black Belts. It built on the success of a pilot project that took place in Year 1, where Perkins worked with two key suppliers to increase their manufacturing capacity, overhaul their management control systems, deploy lean thinking and encourage a culture of continuous improvement. The programme was developed through a 6 Sigma DMAIC process (Define, Measure, Analyse, Improve & Control) A Business Improvement Review was used to analyse supplier performance in terms of quality and delivery performance, spend, growth in spend since Year 0, and strategic importance. Subsequently, a ‘supplier day’ was held to fully explain the challenges that faced Perkins and its supply chain. Key training and improvement activities: Change Agents underwent training and assessment during the lifecycle of the project Value Steam Mapping’ was used to establish the current position, assess the future position and identify opportunities for improving QCO performance A Partnership Assessment survey was used to evaluate ‘interface waste’ and identify gaps in cross-functional relationships with suppliers The ‘7 measures of QCD’ were implemented to analyse performance, identify gaps in Class A requirements and create action plans Quarterly Steering Committee Meetings reviewed progress against the activity plan and agreed KPIs The Customer’s View “Significant growth in Perkins’ business has put severe pressure on the Stafford facility and its workforce. Over the last 2-3 years we have invested several million pounds in new plant and equipment both at Stafford and within the supply chain. The issues now facing the Stafford business are the development of key processes and people to maximise the return on assets and assure future prosperity. We see the Supply Chain Group project as a cornerstone of future process development. Improved effectiveness of our suppliers will enable Perkins to operate a more lean and agile business.” Robin Mackness, General Manager, Perkins Engines Reference file: Download Case Study (pdf)
May 16, 2014 Case Studies, Value Stream Mapping A case study in value stream transformation at an automotive interior components supplier. Background The client is one of the world’s largest suppliers of automotive interior components who supply all of the major automotive OEMs. Their core product categories include door and trim systems, instrument panels, consoles, cockpits, flooring, acoustic systems, headliner and overhead systems as well as complementary exterior components. To meet all of the OEMs’ diverse needs an expansive plastic injection moulding press is used, with a clamping pressure range from 150 to 3,000 tonnes, which enables products as diverse as a coin box to a dashboard top to be produced. Parts are moulded in three main materials PP, ABS and GRP which often incorporate in-tool adhesion of cloth trim elements and rubber encapsulation. Secondary processes include laser cutting, bonding, heat staking, general assembly and painting. The Challenge A vehicle OEM was increasing volumes on the majority of its product lines whilst simultaneously conducting production readiness trials on tooling for the launch of several new models with each new model being offered with a wide range of interior trim variants. All of this additional work was to be entrusted to the same supplier who already had significant daily production commitments. Industry Forum were asked to support the client in ensuring that all of their existing processes and systems were working to optimum efficiency and that they had sufficient capacity to meet both the current and future projected demand levels from the OEM whilst achieving the expected levels of quality, cost and delivery performance. The Objectives Industry Forum holistically evaluated the client and identified opportunities for improvement. Having identified and prioritised the opportunities, Industry Forum then developed and executed an improvement plan in partnership with the supplier. The Industry Forum Solution Phase 1 Having held discussions with both the client and their customer, Industry Forum agreed a plan with all parties to satisfy the challenge whilst minimising demand on the client’s already heavily utilised workforce. The first stage was a value stream diagnostic which was conducted in three parts: A partnership assessment to achieve a full understanding of the quality of relationships and interfaces between the client and their customer. This dealt with empirical data and perceptions from both parties and covered production, finance, logistics, engineering and sales functions. Data analysis of the current product and service provided to the customer in terms of Quality, Cost and Delivery (QCD) both internally and externally. In addition to establishing the accuracy, availability and relevance of the available data. An opportunity mapping exercise (a hybrid of value stream and transactional mapping) was used to highlight the wastes, duplications, omissions and appropriateness of the suppliers existing processes. The initial map was created by Industry Forum who collected information through available data sources and this was supplemented by shadowing, direct observation and interviews. The first draft was reviewed for consistency and accuracy by process owners within the business. Following this activity a broad cross-section of the work force were invited to review the map and add their issues, comments and opportunities. This created the largest possible pool of opportunities as well as improving buy-in to the eventual actions proposed. Phase 2 The second phase involved Industry Forum independently assessing the supplier against the customer’s supplier award criteria. Where it was identified that the supplier had not yet reached the client’s required standards, a list of instances was drawn up and they were cross-referenced against the full list of opportunities identified in Phase 1. Wherever there was a match between the requirements of the award, benefit to the suppliers’ business and benefit to the customer, resolution of the particular issue was given high priority. Phase 3 Once a significant number of high priority opportunities had been identified, Industry Forum supported the client to group similar items into distinct work streams. Eventually a total of 24 work streams were identified, of which 6 were further prioritised by Industry Forum staff in conjunction with the client’s senior leadership team. These were: Zone leader training O.E.E. recording and calculation accuracy Set-up improvement Production planning Problem solving Autonomous maintenance For each of these prioritised work streams a charter was created and appropriate supplier personnel given ownership of the task, milestones and targets. Industry Forum provided practical coaching and support to the work stream owners to assist them in achieving the targets in a timely manner. In addition to supporting the implementation of work stream solutions, Industry Forum provided coaching for all those actively involved in the improvement process. Industry Forum independently tracked the progress of the client towards their goals and provided the senior leadership teams for both parties with feedback on the progress made along the glide path to success. Instances of the progress made include: 20% reduction in warehouse WIP levels 45% reduction in metal to metal set up times on critical machines 20% reduction in stock picking time 18% reduction in Mould Shop down time due to no material being available Zone leaders successfully trained to audit compliance to standard operations documentation All of these achievements were made against a backdrop of customer demand increasing by circa 45%. Reference file: Download Case Study (pdf)
May 16, 2014 Case Studies, Process Improvement Activity MasterClass Quality downtime and line balance improvements at a major salads supplier. Background A salad products supplier to the UK retail market, this client supplies direct to major supermarkets. Within this market, lead times are short with a need to react rapidly to end customer demands much of which may be weather driven. The Challenge Daily product demand has to be based on start of day short term forecasting with final order confirmations well within the preparation process lead time. The perishable nature of the products precludes smoothing customer demand by holding any significant volume of ready to ship stock. The client recognized that the efficiencies of their equipment, as measured by Overall Equipment Effectiveness (OEE) provided an area of opportunity to support improved productivity. This would enable increased responsiveness and reduce the risk of processing product that was not demanded. The Objectives The improvement objective defined by the client management team was to improve the OEE by an average 10% points on each line through: Identifying and eliminating the primary causes of equipment downtime Identifying and eliminate causes of quality loss Improving the line balance in the packing area The client wanted to use an initial activity to drive improvement on a focus line whilst developing the internal capability to deliver further improvements without external support. This pilot also needed to establish the development of a continuous improvement culture within the business. The Industry Forum Solution Industry Forum worked initially with the client management team to identify the focus area within the business that would deliver maximum business benefit whilst supporting the capability development and culture change needs. The proven MasterClass structure would best support the customer needs. At the Pre-Diagnostic event the Industry Forum engineer set up the detail of the activity programme, ensuring that client expectations were clearly defined and support requirements understood. A cross-functional team of six was chosen from across the business including line management, operatives from the focus area and support functions. A ‘Learn by Doing’ training programme was designed to guide the team to discover the opportunities in their processes and be able to identify and implement their own solutions. The programme timing was developed to ensure that resource requirements could be managed within the daily business constraints. The Diagnostic phase the team were trained to collect, collate and analyse data to provide meaningful information about their process. The analysis revealed that the largest contributor to downtime was caused by ‘short stops’ linked to operators not being able to keep pace with machine processes. This analysis contradicted preconceptions that the major down time causes were connected to break down. The main quality issues were found to be linked to the packaging equipment where heat sealing processes were leading to reject bags. During the workshop phase the team learned and implemented root cause problem solving techniques to eliminate the bagging rejects. They then used waste elimination and line balancing tools to identify an improved operating task sequence and area layout. Following initial trials to validate their improvements the team then developed the standardised work required to sustain the revised process and trained the remainder of the line team prior to a managed implementation. During each of the three follow up visits the team were supported through the implementation phase, to manage any barriers identified and ensure that the improvements were sustainable. The team developed their own role out plan for the next priority production line, using the capability gained to lead their own activities and to further cascade the know-how for continuous improvement. The pilot activity delivered an OEE increased by 19% points and a People Productivity (part per operator hour) increase of 20%. Reference file: Download Case Study (pdf)
May 16, 2014 Case Studies, Lean Manufacturing A case study in the introduction of lean training for employees. Background Formed in 1955, and privately owned since 2000, ELE Advanced Technologies (ELE) located in Lancashire, specialises in non-conventional machining for aerospace and land based industrial gas turbines. They also produce precision components for the automotive industry. Key customers include Rolls-Royce, Siemens and Alstom. UK operations currently employ 100 people on a 3.6 hectare site and their plant in Slovakia employs 50 people. The Challenge ELE wanted to engage their employees in the improvement process and to increase sustainability while at the same time giving their entire workforce an overview of the concepts and benefits of continuous improvement. Particular focus was required on one piece flow, smaller batch sizes, 5S and workplace organisation. The Objectives The aim of the Lean Awareness training was to give all employees an appreciation of the impact that lean tools and techniques have on profit and cash flow in the business. The Industry Forum Solution The Industry Forum training programme was facilitated through the use of the ‘Plug Production System’, a simulation activity designed for small teams that combines the practical application of lean tools and techniques with the theory behind it. Through ‘manufacturing trials’ within the game, teams identified wastes such as poor flow, workplace organisation, material presentation and layout. The session also highlighted the connection between the teams’ performance and that of the external supplier, illustrating the need for the whole value stream to be able to achieve the target output rate and operate at ‘Takt time’. The Customer’s View “We had a need for Lean training on waste reduction and the 7 types of waste and we approached various lean training providers for ideas on how to give a taster on lean thinking to the entire workforce. Over the course of two weeks, Industry Forum led the entire workforce through half day training sessions from which they gleaned an understanding of the 7 wastes, especially overproduction, excessive inventory, line balancing and defect reduction. To spice things up a little, a leaderboard of profits or losses incurred was collated, with the winning team receiving recognition! I have no hesitation in using Industry Forum again and cannot fault the service we have received.” Peter Calderbank, Operations Director, ELE Advanced Technologies Reference file: Download Case Study (pdf)
May 16, 2014 Case Studies, Lean Manufacturing Improving assembly processes through the application of lean manufacturing. Background Leyland Trucks manufactures the full range of DAF Trucks, from 7.5 to 44 tonnes, at its facility in Leyland. All vehicles are produced on one line at a rate of 20,000 per year. The facility operates in line with the Paccar Production System (PPS) and Leyland Trucks is one of the best performing assembly plants within the Paccar family. In addition, Leyland Trucks has a Queen’s Award for Enterprise, has won the IMechE MX award in two consecutive years, and has recently been awarded the Bronze Shingo Award. Leyland Trucks can demonstrate strong continuous improvement, grounded in Six Sigma, and the company is striving for new ways to improve its business. The Challenge Leyland Trucks wanted to target productivity and quality improvements of a minimum of 10% by implementing advanced lean manufacturing mentoring. The Objectives With the largenumber of vehicle specifications and options, maximising efficient production is a significant challenge, from both an assembly and material flow perspective. Leyland Trucks wanted to create a template for theenhanced, sustainable deployment of advanced lean techniques within the Paccar Production System. Specific assistance was sought in the facilitation and mentoring of staff in key aspects such that they could roll out the techniques across the facility. The intention was to enable a dedicated team to support this project, with specific mentoring support in work standardisation, 5S, visual team processes and lean material flow. The Industry Forum Solution The programme received funding assistance and advice from the Northwest Automotive Alliance (NAA) Business Excellence (BE) programme and was delivered by SMMT Industry Forum Ltd. The activity focused on the identification and elimination of waste from manufacturing operations in a specific cost centre with a team of 11 operators. The project was resourced by Leyland Trucks to include five permanent team members from different areas of the business to provide a broad range of knowledge and abilities. The time period for the improvement activity was set at 40 days to provide sufficient time to complete all the phases and to maximise operator involvement. Key objectives of the activity were: Improve visual management Create standardised work Have an impact on key metrics – Defects per Unit, Inventory Accuracy and Truck Hours Implement a 5S standard Sustain the changes The Customer’s View The activity successfully implemented changes within the cost centre, achieving improvements in all of the key objective areas. An important outcome of the activity was the implementation of a cost centre team board to present and record information relevant to the team. This became a focal point for the team and has been extended to other cost centres in the business. The outcomes of the project included improvements in the following areas: defects per unit for air conditioning assignment; process time for radiator assembly; inventory accuracy – by part location and by quantity. In particular, a focused improvement on the assembly process for clutch pipe assignment and the reduction of waste brought about a 25.9% decrease in the number of reported defects. John Keegan, PPS Co-ordinator, Leyland Trucks Ltd “The support from the Northwest Automotive Alliance (NAA) Business Excellence programme has enabled Industry Forum to work with and our team to implement practical, common sense solutions, which have resulted in significant outcomes in a number of areas such as a reduction in defects and improvements in productivity.” This case study has been produced with the kind permission of Leyland Trucks Ltd & The Northwest Automotive Alliance All information in this document is copyright of Industry Forum © 2013 Reference file: Download Case Study (pdf)
