Success Story - Operational Excellence in Injection Mold Manufacturing

Situation: Confronting Operational Challenges in Manufacturing

Our client began the transfer of 22 additional injection molding presses from a plant in the USA to a plant in Mexico, which was staffed to operate only the 28 machines that were currently there. The 22 machines were repositioned to Mexico bringing the total operation to 50. Given a variety of system, process, and staffing issues, both quality and output suffered:

OEE% bottomed out at 57%.
FQFT% yield in the paint room plummeted to 30%.
This resulted in daily customer outages, premium freight, and other off-standard costs of approximately $5 million per month.

Approach: A Tailored Operational Excellence Program for Immediate and Sustainable Improvements

In today's competitive landscape, achieving operational excellence is more than a goal—it's a necessity. Our operational excellence consultants understand the critical interplay between production efficiency, supply chain optimization, and customer value. Through our operational excellence program, we offer immediate improvements that make a sustainable impact. This focus on continuous improvement allows manufacturing companies to stay ahead in the industry, delivering not just cost savings but also enhanced service quality.

Phase 1: Implementing 5S and Accountability for Manufacturing Operations

Within a few weeks, the CCO team arrived and immediately began the implementation of our OpEx method. This included a system-wide 5S campaign that drove discipline, ownership and helped optimize the factory footprint to allow more machines to be installed.

CCO's team swiftly implemented our tried-and-true Operational Excellence (OpEx) method, incorporating a 5S campaign that drove discipline, ownership, and optimized the factory layout.

Phase 2: Real-Time Performance Review for Efficient Operations

An "accountability room" was established where daily operational performance is reviewed. This serves as a hub for all KPIs related to safety, quality, cost, and delivery, driving team collaboration.

Various communication boards are placed around the room with process/data owners assigned. Each day assigned personnel are accountable for updating their boards with the previous day's performance and explaining any deviations.

Phase 3: Corrective Actions and Data-Driven Solutions

Action items were assigned, and corrective measures were confirmed before closing, identifying bottlenecks and leveraging digital technologies for improvement opportunities.

Action items are assigned, and corrective measures are confirmed before closing. The accountability room serves as the communication hub for all KPI's related to safety, quality, cost, and delivery.

Results: Significant Impact on Operational Excellence and Financial Metrics

Recap of Key Metrics:

26% OEE increase
30% to 80% FQFT improvement in paint shop
$0.00 in premium freight charges

Additionally, there was an 84 to 48 lift truck reduction, demonstrating increased efficiency and better safety, as well off-standard cost trend reversed in 45 days (>$30M accrued in previous 6 months).

With a collaborative, get-it-done approach, we put the plans in place to ensure a successful plant transition. While most consultants put a major focus on managing cost reduction, we pursue solutions oriented to managing profit. PACE boards were used to set the cadence or tempo of the production lines. OEE% began to improve, customer outages/backlogs started to decline. By swiftly implementing our OpEx methodology, we assisted our client in gaining command over their business operations.

CASE STUDY

Achieving Unprecedented Operational Excellence in Manufacturing with CCO

Transforming Injection Molding Manufacturing Through Continuous Improvement and an Operational Excellence Program

Key Metrics:

26%

30%-80%

$0