20 Aug Manufacturing: Constrained Capacity
An overseas operation was experiencing rapid growth in sales but was constrained in terms of manufacturing capacity. Capital projects to increase capacity would require tens of millions of dollars and take years to implement.
eMRI trained and coached a wave of Lean Six Sigma Green Belts who were tasked with optimizing the existing operations. A total of five projects were identified that could improve operational efficiencies and therefore increase capacity.
Improvements realized included reduced changeover downtime, improved equipment efficiency and better management of process inputs to improve performance. Capacity was significantly increased. A second key benefit was improved product quality due to better process management.
Additional capacity which generated a $4 million in profit margin annually.