Lean transformation project of a Taiwan Industrial Co., Ltd
Project background:
The client company is specializing in the development, design, production and sales of desktop and floor-standing power tools. It began to produce fitness equipment such as treadmills in 2018 and has become a supplier of well-known fitness equipment brand in the United States. In 2019, customer orders increased sharply. However, there are many quality and delivery issues with the treadmill products that have been put on the market. In order to solve the urgent problems and support the growth of the new business, with the strong request from the customer, the American LHC consulting Company was invited to appoint consultant Tim Zhang to lead this lean transition and quality improvement consulting project.
Challenges:
The rushed product development caused many potential problems escaped to shopfloor without robust developing process and an effective communication with customer. There was no clear standard work, data collection and tracking system in place. Production highly relied on operators’ working experience and final inspection. Quality control plan has not been developed after a detailed analysis. The production lines were unbalanced, with a large WIP and significant wastes…
Countermeasures:
- Phase 1: Rapid Hemostasis: Select the treadmill as the pilot line, initiate the series of lean Kaizen activities after the diagnostic research and team training, such as FTQ, Visual control and Error Proof workshops;
- Phase 2: System Reconstruction: Carry out standard work, Lines balancing, Lean daily management, Tiered standard-up meetings;
- Phase 3: Prevention and Maintenance: Improve the new product development process, enhance supplier quality management, and carry out improvement group activities, etc.
Effect and benefit:
- Initially established the company's lean manufacturing system, promoted 5S and visual management on the production line, standard work, and daily management; Completed the training of the management team (including front-line leaders),
- Treadmill production efficiency increased by 20%, quality improved by 80%, achieved a breakthrough improvement in quality, and subsequent customer orders doubled.
|
Indicators |
Before |
After |
Improved |
|
Operation Efficiency |
65% |
78% |
↑20% |
| First Passed Yield |
72.34% |
99.9% |
↑80% |
| W.I.P (day) |
15 |
5 |
↓67% |
| Lead time (day) |
35 |
22 |
↓37% |
