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Performance turnaround through lean

The context

  • Electrical accessories company witnessing 50% drop in Sales, high quality complaints with market returns at 14% of Sales                                                                                      

  • Production planning focused on capacity utilization and batch processing, with more than half of customer orders not being fulfilled                                             

  • Low employee morale, high inventory of 8 months and cash losses 

THE SOLUTION

  • Lean Manufacturing initiative with multiple process streamlining and team performance optimization waves deployed                                                   

  • Manufacturing and Sales teams trained on Waste identification and elimination                                                          

  • SKU changeover times shortened, and assembly cycle times reduced through single piece flow

THE IMPACT

  • SKU changeover times shortened, and assembly cycle times reduced through single piece flow  thereby improving productivity and reducing standard costs                                                   

  • Market returns reduced to 3% with delivery performance at 92%, and finished goods inventory of only 3 weeks                                                                   

  • Attrition rates radically brought down from 70% to 20%