Case study REF#06
The Challenge & Our Findings
implementation
results
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THE CHALLENGE

To avoid building expansion costs

A multimillion-dollar manufacturer of water meters for residential & commercial applications, supplied to major utility companies, experienced rapid business growth necessitating space for new products and increased customer volumes. The client engaged ArMur Consulting to address these needs.

 

OUR FINDINGS

Identified nine items for improvement

  1. Batch process driving sub-optimization – no linkage to assembly
  2. Daily execution problematic
  3. Production schedule not based on customer demand
  4. No root cause understanding of systemic repeating issues – poor quality results
  5. Production output inconsistent with no standard work
  6. Daily firefighting
  7. Poor linkage between leadership plans and daily results
  8. Excessive and long changeovers
  9. Poor maintenance management
  10.  
 
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IMPLEMENTATION

We focused on 2 areas of impact to optimize plant layout and processes

Redesigned plant layout to link machining with assembly (moved 60 machining centers and 4 assembly lines).

Redesigned assembly cells layout and implemented one-piece flow.

Created a pull system to assembly from machining.

Identified and triaged key bottlenecks.

Improved scheduling process and visibility to the floor.

Developed and installed a management operating system and KPI dashboard.

Created standard work and training in all areas.

Installed and trained employees in Overall Equipment Effectiveness (OEE).

Installed robust planning and reduction in changeovers.

Implemented I-Kanban with the supply base.

RESULTS

All delivered with a 4:1 Return on Investment

Annualized Savings
0 M
Increased daily throughput through debottlenecking
0 %
Floor spaced reduced (136k sqft to 69k)
0 %
Reduction in changeover times (360 to 25mins)
0 %
Increased inventory turns (5.6 to 10.5)
0 %
Capital Cost avoidance
0 M
Improvement of OTIF at the end of the project (from 75 to 95%)
0 %
Reduction in WIP
0 %
Improvement of quality (from 89 to 98%)
0 %
Reduction of inventory value
0 %

I never imagined that we would make improvements like this in a 10-month period. It proves that if leadership clearly articulates a vision with expectations, provides tools and support, our employees will deliver!

Executive Vice President

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