Lean Improves Efficiencies and Customer Satisfaction in an Automotive Plastic molding company

One of our Automotive Plastic molding customer transferred product from their US facility to support new product launch in their Toronto facility. CSQR was contacted to support the new product launch temporally to counterbalance their resource need at that point. The new product resulted in a rapid increase in product mix and acute shortage of all resources in their current facility. Faced with pressure, competition, product launch timeline and end-market environment, CSQR’s customers required rapid turnaround of their highly complex, high-quality products. Accustomed to high volume, plastic molding manufacturing, the site struggled with quick-turn style of low-volume manufacturing - the result was waste from overproduction and diminished quality. A dramatic and immediate change in operational performance was required. In order to achieve an optimum level of customer satisfaction, the site needed to eliminate waste by:

• managing frequent line change (SMED practices) -over typical of low-volume production;
• streamlining line change-over processes to reduce set-up times;
• improving production efficiency; and
• Improving output quality.

:: Eliminating the Waste

CSQR has specific industry experienced quality engineer and professionals. One of our engineers was talking to their plant manager over cup of coffee. Plant manager was amazed to hear how CSQR could help them in doing just the same- “immediate change in operational performance”. Next day CSQR project manager went over to the plant to talk over a new customized service. CSQR changed the contract from "PPAP support” to “New program Introduction, support and management”. A senior engineer (Level A) from CSQR was appointed to lead the project along with couple of intermediate engineers (Level B & C). A “Lean Team” with six core members from the client’s facility was formed (five from site and one corporate). Leveraging CSQR’s best practices in world class manufacturing (CWCM) and Six Sigma, as well as concepts from CSQR’s existing “Lean Tool Kit”, the site's “Lean Team” collaborated with corporate facilitators to formalize and optimize the site's transformation to Lean.

The team utilized a variety of tools and principles to simplify internal processes and reduce operational inefficiencies through the elimination of non-value-added activities in order to achieve a level of optimal performance while maintaining the actual program timeline.

“Kaizen blitzes” were used to uncover waste and process variation. Six Sigma methodologies were applied where necessary to eliminate the variation and implement process improvements. Simultaneously, the team focused on re-architecting the work environment. The team used value stream mapping, Takt time (the pace of production necessary to meet customer demand), and process time data to balance the flow of work, establish buffer requirements, and develop resource requirements. Knowing the process capabilities and steps required to build each product, the Lean Team and work center operators brainstormed to re-design work center layouts.

:: Setting for Lean

In Lean environments, cellular workstations have been demonstrated to reduce material handling, improve communication between operators, and facilitate single piece, continuous flow manufacturing. In Toronto, the team:

• Changed the line configuration to bring activities closer together and reduce the number of steps/distance each line member had to make/travel.
• Brought materials replenishment systems line-side and stocked/placed them according to product so that they were easily distinguished and accessible.
• Utilized the efficient cell configuration and line-side parts libraries to reduce line set-up time.

The success of Lean can also be seen in its trickle-down effects. In Toronto, the reduction in line set-up time made switching from one product to another simpler and quicker, and eliminated the “temptation” for overproduction, one of the primary sources of waste. It also supported the quick-turn efficiency required for the new High Mix Low Volume operating model.

Pull system manufacturing, a methodology that helps control materials usage by reducing overproduction, was also instituted. Pull system manufacturing ensures that nothing is done by the upstream supplier process until the downstream customer, be it internal or external, and signals the need. Signals are based on actual orders, rather than forecasts. “Kanban” process tools, a color-coded card system that signals parts or production status, support continuous flow manufacturing and product sequencing. In Toronto, it also helped balance the production load across diverse products and multiple tests sets to minimize work in process (WIP) inventory and maximize productivity.

Recognizing that Lean success is directly proportional to employee commitment and capability, the Toronto team instituted cross-training for employees. The workforce flexibility helped with production load balancing and to minimize the effects of production bottlenecks. Employees were also empowered with authorization for line stop/escalation powers to help reduce defects. Ongoing Six Sigma projects helped to decrease process variation and improve output quality.

Standardized work system & Visual management system (VMS) boards were used to standardize / display metrics and information on production and workplace organization. The easily visible VMS boards ensured all employees could see data on parts availability, product sequencing, 5S compliance rates, etc.

And finally, ownership and program support by our client’s corporate, region, and site leadership teams ensured the success of the Lean transformation. CSQR have successfully completed all PPAP submission, implemented lean team with real time results

:: Lean Results

Toronto's Lean transformation results continue to be impressive. The site continues to achieve across-the-board increases in customer satisfaction.

The following improvements were realized at the customer site:

In just 3.5 months, our clients Lean transformation in Toronto, improved efficiencies and significantly increased customer satisfaction through increased responsiveness, execution excellence, predictability and cost-efficiency. Client’s success is our success. CSQR is always available for help.