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THE COMPANY

An electronic imaging business, a wholly owned Subsidiary of a major Japanese corporation. The UK operation employs some 400 people in total, 200 centered on the manufacturing facility.

THE CHALLENGE

The Company's Colour Scanner range was fundamentally important in generating revenue for the business at a time when other product lines were being replaced with the new products, not yet contributing to the revenue stream.

For some years the only way that demand had been satisfied was by staff working very high levels of overtime. Also for reasons that were not immediately apparent, the majority of product was not available for shipment until late in the month, leading to poor "On Time Delivery" performance.

THE STRATEGY

Our strategy was to introduce a "single product flow" system of work, supported by simple material logistics based on pull mechanisms and facilitated by a good measure of resolve by management to implement change and manage to standards.

THE BENEFITS

Within three months of implementation

Output rose to 2 Units / day - every day.
On Time Delivery rose from 58% to 97%.
Overtime, down by 50%.
Material shortages reduced by 90%.
Material locations reduced from 2500 to 19.
Stock-turns increased from 5 to 10.
4 of the original 16 staff re-deployed.

QUOTES FROM THE MANAGEMENT

"The effect on the people is amazing, they now focus on the task, their working environment is maintained to a much higher standard and they are beginning to accept responsibility for their actions. Perhaps the most significant benefit has been that we are now achieving on time delivery every month, with a positive labour variance".

Line Manager

"Without a system of work, ‘Empowerment’ is meaningless and confusing. It’s worse, it’s actually destabilising".

Operations Manager

 

 

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Last modified: October 16, 2000