Four supplier factories of a famous sports shoe brand in Dongguan and Jiangxi
Project Background
Since entering the Asian market, this brand has quickly gained popularity among Asians due to the diversity and superior performance of its products. Its product sales have grown rapidly, However, the traditional batch manufacturing method is obviously not suitable for the market demand of multiple varieties and small batches. Therefore, the group began to carry out global supply chain management optimization and implement customized lean manufacturing system in its own and ODM/OEM supplier factories.
Challenges
Although sales are growing rapidly, especially in the Chinese market. However, Taiwan's ODM/OEM supplier factories at that time followed the traditional mass production method, which was not suitable for the market demand of a wide variety of products and small batches. Most of the middle-level and above management leaders in the factory are from Taiwan, and their willingness to change is not strong. The factory in Dongguan also experienced a strike shortly after, and employee morale is very low. Quality and delivery issues frequently occur.
Consulting content
- Lean organization optimization, lean leadership training;
- Value stream mapping, study process flow, material flow, and information flow, design the lean system and improvement road map and actions plan;
- TPM, SMED, Andon system, Line balancing, Material pull and JIT;
- Visual management and multi skill training for production employees;
- Fully utilize industrial engineering tools and methods to improve production line and workplace efficiency;
- Quality improvement and problems solving group activities;
- Application of Local Automation Solutions
Effect and Benefit
- The first factory in Jiangxi, First time quality increased 7%, PPH increased 17%, Down time reduction 50% , and expected to save approximately 12 million yuan in direct costs during its first production.
- The second factory in Jiangxi, FTQ increased 3%, Efficiency increased 7%, resulting in an annual direct cost savings of 3.2 million yuan.
- The RFT of two factories in Dongguan increased by 3% and 6%, the production efficiency improved by 5%, Change over time reduced 20 minutes, the time loss caused by material shortage was reduced by 43200 person hours, and the abnormal downtime was reduced by about 2000 hours. Annual direct cost savings of 2 million yuan.
