Case Study: Reducing Material Over Usage with a Methodology-Based Approach

A case study on how a company achieved 96% of its savings target in 8 weeks by reducing material over usage with a simple, no-capital-investment methodology.
What they say
Cristyn Narciso
Cristyn Narciso
I found this course very informative and easy to understand. I am just getting started in working with supply chains/manufacturing and enjoyed this free course.
Ankit Kumar
Ankit Kumar
Very basic but yet an effective course. An easy explanation of different processes of a Supply Chain. The mentor has explained everything through pictures and flow charts which made it easy to understand. He has also provided the slides used in the course for later reference. Good for anyone who is new to the Supply Cain. I really wish him to create a more detailed and advanced course.
Laverne Angela Gadiah
Laverne Angela Gadiah
Thank you for a very clear, easy to follow and concise course. It was informative and definitely on point.
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The Client

A leading industrial company in its segment that sought to improve the efficiency of one of its main production lines.

The Challenge

The company’s production line was facing a significant issue: a 23% Wall Thickness Excess, which resulted in 19% material over usage. This waste was a major source of hidden costs, draining the company’s profitability and leading to a potencial pérdida anual significativa. The lack of a clear, standardized procedure for setting the wall thickness was causing a high degree of process variability, and the company needed a solution that required no capital investment.

If you want to learn more about these problems, read our article on ‘5 Common Bottlenecks in Manufacturing and How to Spot Them‘.

The UpKaizen Solution

UpKaizen implemented a comprehensive, no-capital-investment methodology to solve the problem. The project, based on Lean Manufacturing and problem-solving tools, focused on Man, Method, and Measurement.

  • Process Standardization: We defined clear and written SOPs (Standard Operating Procedures) for tool selection, machine settings, and measurement methodology.
  • Root Cause Analysis: Using tools like 5 Whys and Ishikawa, we identified that the main problem was not the machinery but the lack of a standardized method.
  • Training and Teamwork: We trained the operators on the new SOPs, focusing on the importance of standardization and process variability.

The Outcomes

The project delivered rapid and measurable results that far exceeded the client’s expectations:

  • Significant Savings: The company achieved significant savings in just 8 weeks, reaching 96% of its savings target for the year.
  • No Capital Investment: The entire project was implemented without a single euro of capital investment. The savings were achieved purely through methodology and process improvement.
  • Improved Efficiency: The implementation of standardized procedures reduced process variability and improved the overall efficiency of the production line.
  • Scaling the Solution: The methodology was so successful that the company planned to expand the system to its other production lines.

Do you identify with this case?

If your company suffers from high operational costs and a lack of process standardization, our Production Efficiency Micro-Diagnostic can help you find the solutions.


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