There’s no denying that operational excellence and Lean are crucial to the success of any company. However, they’re often misunderstood as an endgame instead of a process. This is why we strive to weave them seamlessly into the very fabric of an organization’s culture. Here, we’ll discuss our journey in using operational excellence to boost the successful functioning of an automotive manufacturing company. Their main aim was to increase their plant’s capacity in Delhi by at least 10% within their existing resources. Here’s how we went about it:
Challenges to Operational Excellence
Our time at the automotive manufacturing company showed that their customers expected more variants at lesser costs, surpassing quality targets, and on-time shipping in the shortest lead time. These were precisely the areas in which the company lacked. Their net problem was that they weren’t making any profits.
Solutions to the OpEx Problem
A four-month-long journey and investigation about the ‘current performance measures’ of the factory in Delhi revealed 4 key areas that needed improvement to achieve the OpEx goal:
- First, they needed a six-month road map in place.
- Second, we needed to develop a current state value stream map.
- Third, we had to brainstorm ideas into designing a future state map for them.
- Lastly, solutions needed to be carried out in order to achieve this future state.
An important point to note is that the successful implementation of these improvement initiatives depended heavily on the optimal functioning of two key areas – i.e., the Total Employee Engagement and Top Management Commitment.
Results of OpEx in the Automotive Manufacturing Company
The results of addressing the company’s obstacles to OpEx success were remarkable. Here are some of the most significant outcomes:
- First, we saw a 20% increase in production (quantity) per day. This involved a one-time investment of Rs.100000 in changes to the existing layout and design of new tools, jigs, and fixtures.
- Second, the OEE (Overall Equipment Effectiveness %) improved from 65% to 85%. Moreover, this figure rose to 95% for some cells!
- Lastly, the management dropped the decision on factory expansion in order to sustain their current rate of growth with their given resources.
This is just the beginning, given the nature of the long-term benefits of optimally integrating operational excellence in your workplace!