Case Study: Improve OEE by 20% and Save $3 Million
A leading Japanese automotive manufacturer faced multiple issues with its operational efficiency and financial performance. CCO was called in to identify immediate opportunities for improvements in throughput, scrap, labor and overtime – which were all affected by multiple factors limiting overall performance. Activities that limited performance included lack of process discipline, old equipment, poor predictive and preventative maintenance, extended change-over times, low throughput velocity and high-cost of quality.
CCO’s immediately arrived at the plant to implement its Operations Excellence (OpEx) model. OpEx sets up a process where the team begins a cadence of connecting every day to identify performance standards, problems, solutions and owners.
CCO’s team first performed an assessment, which would identify, address and executive corrective actions. We created an Accountability Room on site at the plant, which served as the communications hub for all disciplines within the organization. Together, they practiced the discipline and communication needed to fix problems. We recommended the groups meet in this room once a day for roughly 30 minutes to stay on track with priorities and deadlines.
CCO’s experienced manufacturing operators worked with the plant’s leaders and workers to assemble the necessary data to understand how an operation is performing. We worked with them to define the facility’s capacity plan: based on the current assets and equipment, staff and processes, and the optimum potential throughput. Next, we set up production goals and began monitoring shift-to-shift, day-to-day and so on.
Rather than swoop in, find the high-level problems, and then leave a slick presentation and high dollar invoice, we worked with the plant management as an extension of their team on a daily basis, some nights and weekends too (we rarely upcharge for this “extra” work, because it is was we expect is needed to quickly transform your operations). We analyze the data, discuss the implications and options and develop the plan with you … and we stay there assisting you in the execution, ensuring the value of our experts is fully received and translated to value, for you.
In just four months, CCO delivered impactful results:
in savings from shift/labor productivity
in savings from operational throughput improvement
Plus, CCO built a sustainability plan that enabled the client to maintain its performance after CCO’s departure.
CCO specializes in diagnosing and solving complex operational challenges, as well as implementing the correct solutions quickly. We leverage the principles taught by Taiichi Ohno and Toyota Production System to produce high-quality results at the lowest costs – and in a short amount of time. We deliver maximum value from tools such as Kaizen, Poka-Yoke, KanBan, JIT, SMED, Gemba walks, Heijunka, Hoshin Kanri and the 3 Ms – Muri, Mura and Muda.
We do our work with a pragmatic, get-it-done philosophy that cuts through the typical consultant
BS to quickly find and fix what’s broken. Our anti-consultant approach leverages superior people, processes, speed and engagement, focusing on sustainable operational excellence for any organization.