200% Increase In Throughput

200% Increase In Throughput

Baseline Conditions:
This electrical industry client developed a new product that dramatically reduced cost to its customers. Marketing activity projected a doubling of demand in a 1 year time frame. The client was considering building an additional facility to manage the increase in demand. Process Impact Inc. was retained to review current operations and assess the capacity of the existing facility.

Actions Taken:
1. A full assessment of the facility was conducted to determine capacity of the key resources in the plant.
2. Material and process flows were identified and evaluated relative to current and forecasted demand.
3. A new layout and process flow was developed to minimize material handling and maximize the use of available space.
4. Contractor specifications were prepared for relocation of equipment and services (presses, robotic welders, test equipment, etc.)
5. Process Impact Inc. sourced and managed subcontractors over a shutdown period to implement the new layout.
6. Process Impact Inc. developed and supported implementation of a new scheduling process based on "Pull" signals and designed to increase throughput.
7. Implemented visual tools for managing plant activities such as staging areas, buffers, and hourly performance indicators.
8. Trained and supported client personnel to manage using facts and data and to maximize the potential of the facility using the new tools.

Results:
1. Dramatically improved material flow in the plant
2. Reduced material handling requirements
3. Cycle time cut by 45%

This client exceeded forecast within 6 months of implementing the new layout and was successful in processing the new demand through the existing facility with no significant increase in manpower.