A very Lean global automotive Original Equipment Manufacturer had to very quickly increase production volumes because increased demand had created a backlog

Approach


A 3-month assignment in one of the Mexican factories of a very Lean automotive Original Equipment Manufacturer.
This company is a recognized global leader in terms of its size, the reputation of its products and its "Leanness" since it is one of the first to have been inspired by the Toyota Production System at the beginning of the 70s.

Constraints Management (Theory Of Constraints / TOC) was combined with their  Production System. The goals were:

  • To increase very significantly the production volumes to meet a big increase in demand

  • To eliminate the client delivery backlog

  • To put an end to huge Premium Freight expenses (airplane deliveries)

  • To restore the client confidence with its clients especially their biggest customer who is one of the largest car manufacturers in the world

 

 

The approach in video: How to increase productivity by 15% in 15 minutes ?

Results

  • An increase in production volumes of more than 20% without investments

  • Very rapid increases in the productivity of the Autonomous Production Units (APU); in the most spectacular case productivity increased by 17% in 15 minutes 

  • 28% increase in average O.E.E. (Overall Equipment Efficiency) of the 20 production units with >50% increases for some production units (APUs)

  • Backlog eliminated in 9 weeks

  • Premium Freight Expenses divided by 10 in 3 months

  • Improved cycle times (units per minute) of all the identified bottlenecks

  • Redesign and implementation of a new plant layout: machines, WIP, purchased parts, Finished Goods

  • Implementation of a taylored version of TOC's Drum - Buffer - Rope product flow control mechanism

  • Reinforced and improved Kanban processes

  • Significant improvement in quality: improved the PPM (Parts Per Million defects) through numerous shop floor initiatives and reinforcement of updating and using standard procedures

  • Integration of a Theory Of Constraints module in their internal university training program

  • Return On Investment of the consulting assignment in less than one month

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About Marris Consulting

Marris Consulting is an industry consulting and training company specialized in the Theory of Constraints (ToC) and Critical Chain Project Management. We focus on improving the performance of manufacturing and process industries by using Constraints Management combined with Lean and Six Sigma. To boost project performance, we also use Critical Chain Project Management (CCPM), which we sometimes combine with Lean Engineering. Our 2-day performance audits, our performance consulting services and our project management, Lean & ToC training by our industry consultants offer a wide range of solutions to help our clients around the world reach the highest possible levels of performance.

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