KM&T Brochure & Case Studies

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Manufacturing Case Studies

Transcript of KM&T Brochure & Case Studies

Page 1: KM&T Brochure & Case Studies

KM&T UK

The Techno Centre,

Puma Way, Coventry CV1 2TT

Phone: +44 (0)24 7623 6275

Email: [email protected]

KM&T EUropE

Twin Square Culliganlaan 1b,

B-1831 Diegem (Brussels), Belgium

Phone: +32 (0)2 403 1270

Email: [email protected]

KM&T AUsTrAlAsiA

Suite 7.04, 6a Glen Street,

Milsons Point NSW 2061

Phone: +61 1300 552 453

Email: [email protected]

KM&T AsiA pAcific (ApAc)

15 Beach Road,

#03-07 Beach Centre,

Singapore 189677

Phone: +65 6348 0858

Email: [email protected]

www.kmandt.com

Page 2: KM&T Brochure & Case Studies

An Introduction to KM&T.

Cla s

sLe

adin

gPe

rform

an

ceKnowledge Transfer

CI

CI

CI

Sustainability

This model is a reflection of the KM&T approach to both our clients and our own business. Our approach works within all sectorsand cultures and differentiates usfrom our competitors, highlighting areas to improve, addressing allelements, whilst maintaining a balanced approach.

our approach

CI - Continuous Improvement

• Create Vision

• Create Strategy

• Communication

• Organisation Structure

• Risk Management

• EZE Process

• Eliminating Waste

• Installing Discipline

• Process Optimisation

• Delivering Results

Cla s

sLe

adin

gPe

rform

an

ceKnowledge Transfer

CI

CI CI

Vision & Strategy

ProcessDesign

ChangeManagement

Leadership

Sustainability

People

Policy Deployment

Goal Deployment

• Defining Roles & Responsibilities

• Managing Behaviour

• Customer Focus

• Team Work

Flexibility & Versatility Governance

Results

GovernanceFlexibility & Versatility

Results

Vision & Strategy

ProcessDesign

ChangeManagement

PeopleDeploym

entPolicy

Goal Deployment

Leadership

• Create Vision• Create Strategy• Communication• Organisation

Structure• Risk Management

• E2E Process• Eliminating Waste• Installing Discipline

Process Optimisation• Delivering Results

Defining Roles & ResponsibilitiesManaging Behaviour

• Customer Focus• Team Work

Who We Are KM&T are a worldwide business improvement consultancy that provides ‘best practice’ business performance solutions. We have established offices in the UK, Europe, Asia, Australasia and the USA. Our global presence combined with our strategic and associate partnerships provides the ability to offer local support to small enterprises through to international businesses operating in multi territory site operations.

We offer professional advice in the strategic and practical deployment of Lean and Six-Sigma methodologies. Our mission is to transfer knowledge to enable your organisation to produce cost effective and efficient ways in which to generate savings, increase profitability and return on business investments in a reduced timescale. KM&T expert practitioners have taken their knowledge of the Toyota improvement methodology and successfully deployed it in a wide range of industries to provide competitive advantage and ability to deliver sustainable continuous improvement.

What We Do We use an integrated approach that focuses on employing a clear deployment strategy that enables and empowers your organisation to bring about accelerated performance improvement. Working closely with you, we help you visualise fresh ways of working, then facilitate, coach and mentor your team to implement the tools and techniques to bring about real demonstrable benefits.

KM&T work with your people from boardroom to shopfloor to inspire, motivate and install discipline to release a sense of belief that sustainable results can be delivered. Combining a clearly communicated vision and strategy with the appropriate change management techniques we are able to guide teams to re-design processes that provide enhanced value for the customer.

What our Customer say about us…“KM&T did exactly what they said they would and it made a significant difference to our operations”

Wayne Scholz, BAE

Page 3: KM&T Brochure & Case Studies

KM&T UK

The Techno Centre,

Puma Way, Coventry CV1 2TT

Phone: +44 (0)24 7623 6275

Email: [email protected]

www.kmandt.com

KM&T EUrOpE

Twin Square Culliganlaan 1b,

B-1831 Diegem (Brussels),

Belgium

Phone: +32 (0)2 403 1270

Email: [email protected]

KM&T AUSTrAlASiA

Suite 7.04, 6a Glen Street,

Milsons Point NSW 2061

Phone: +61 1300 552 453

Email: [email protected]

KM&T ASiA pACiFiC

15 Beach Road,

#03-07 Beach Centre,

Singapore 189677

Phone: +65 63480858

Email: [email protected]

Strategy Deployment

Organisation and Leadership Development

Process and Performance Improvement

Change Programme Management

Training & Knowledge Transfer

Technical Services Targ

eted

Res

ults

Driv

en O

utco

mes

Hand

s On

Impl

emen

tatio

n

Manufacturing& MRO

Health

Sectors DeliverySolutions

Public Sector

Office & Transactional

The Solutions We OfferUsing the proven principles of lean and Six-Sigma, KM&T develop and translate strategic intent into the right actions, in the right place, at the right time and at a pace that meets with your expectations. We recognise that each and every client is different and hence develop sector specific solutions based upon what best suits our clients.

We understand that our clients require quick wins and we aim to release these rapidly, whilst ensuring the investment has been made wisely. Our cross sector experience in Manufacturing and Maintenance Operations, Health and Public Sector, Office and Transactional services provides a strong foundation to share best practice and fresh ideas with our clients that would otherwise not be readily available.

What our Customer say about us…“Real practical experience that has proved invaluable for our specific needs.”

Michelle Dove Clark, luton County Council

“KM&T motivated, coached and drive our people to improve.”

Patrick McFeeny, Qantas

• Enhanced business performance at all levels

• Reduced operating costs and lead times

• Improved product and service quality

• Improved safety and risk management

• Increased employee engagement and satisfaction

• Increased shareholder value and profitability

• Industry best practice and expertise

• Sustainable continuous improvement

Our Commitment To YouKM&T, through our own experiences, understand the challenges organisations face as they aspire to be efficient and profitable at a national as well as international level. Our aim with each and every client is to create value that you recognise will bring benefit to your organisation.

Hence, our commitment to you is to:

• Share industry best practice

• Transfer our knowledge to enable your workforce to deliver and sustain change

• Design and deliver ‘fit for purpose’ solutions that matches your ability to change

• Deliver business performance improvements that meet with your expectations

• Offer flexibility to meet the needs of your organisation

• Deliver what we promise in a confidential and professional way

• Improve performance and drive out cost

• Be prepared to share the risk and the rewards

We are always happy to offer advice and guidance in resolving your business challenges.if you wish to know more on how we may help, call us at one of the addresses below.We look forward to hearing from you.

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Initial Observations• Due to the high turnover of staff and

language limitations the quality variation in assembly was high

• Poor housekeeping

• Reaction time to problems was slow and a high reliance on engineering support

• Anecdotal evidence that test equipment differed from unit to unit even when measuring the same product.

• Poor visibility of stock levels and a complexand long procurement process leading to regular stock outs. No inventory management system leading to poor job costing

• Rework was common with disastrous effects on leadtime

• Lack of visibility of progress and issues,management were only aware of these issues after a deadline had been missed

• The engineering department were torn between supporting the production team ordesigning new products

Objectives• Drive leadtime down to improve sales

• Standardise and document the process

• Improve quality, coat and efficency

• Define roles and responsbilities

• Implement the correct support for engineering, prioritize workload

• Reduce rework

• Encourage a team culture, rather than isolated teams throughout the organisation

• Create new methods and processes for the New Product Introduction / Design

CASE STUDY

United Marine Electronics ManufacturerCompany BackgroundOur Client produces long cables that are towed behind a ship to explore for Oil & Gasseams below the ocean surface. The product is a fusion of mechanical joints and highlysophisticated electronic listening equipment covered in a waterproof outer coating.

The company mainly employed contractors for its assembly staff, many had limitedEnglish skills and operated on a contract by contract basis which created a problem ofhigh staff turnover.

Competition was high in the marketplace particularly from the US.

KM&T SERVICES

KMT001UK c 2009 KM&T UK LTD

OPERATIONS

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CASE STUDY

www.kmandt.com

KM&T UKThe Techno CentrePuma Way,Coventry. CV1 2TTTel:+44 (0)24 7623 6275Email: [email protected]

KM&T EuropeTwin SquareCulliganlaan 1bB-1831 Diegem (Brussels), BelgiumTel:+32 (0)2 403 1270Email: [email protected]

KM&T AustralasiaSuite 7.04, 6a Glen StreetMilsons PointNSW 2061Tel:+61 1300 552 453Email: [email protected]

KM&T Asia Pacific (APAC)15 Beach Road,#03-07 Beach Centre,Singapore 189677Phone: +65 6348 0858Email: [email protected]

KM&T ActionLean Deployment• Developed a vision for what improvements

would make the company successful and set out a timeframe and process for improvement. Communicated results to whole business including contractors

• Value Stream Mapped the assembly processto identify opportunities for improvement

• Programme applied to shop floor. Key KPIs were displayed to show overall performance and issues

• Visual Andons were put in place to signify quality problems and request engineering support

• Identified a core team to develop skills in Lean principles and become champions for the organisation. Established Team Leaders and trained in LEAN techniques as well as Core team

• Coaching and mentorship for the Champions, Team Leaders and Support staff

Standardise Processes• Identified the stock out problems and

implemented consignment stocking to simplify the procurement process, reduce inventory holding cost and get predictability in the process.

• Implemented a Kanban system between shop floor stock locations and suppliers

• Supported team leaders to develop a standard process for each assembly action

• Technical drawings produced for all processes, to aid further training, and elimination of mistakes

• Balanced the workload between each station

• Set up Sub Assembly processes as self contained cells to feed the main assembly line using a Kanban process

• Total Productive Maintenance Program set up on all test equipment to ensure consistency between units

• Engage and encourage all units and teams to communicate and work together

Weekly Problem & Countermeasure• Meetings were set-up between work teams

and support functions to address outstanding build and quality issues. Each week the support functions would report thestatus of each issue directly to the team.

Results• 62% reduction in leadtime in 6

months

• 80% reduction in the amount of rework and quality problems

• 92% reduction in the number of stock outs and line delays

• 18% reduction in cost

• Top 10 most consuming tasks reduced by 45%

• Cultural change within the business from a loose disorganised culture to a customer driven focused team

• Improved morale and teamwork

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Initial Observations• As with traditional batch build operations,

all areas held excessive inventory to compensate for late deliveries,changeovers, breakdowns, rework and quality defects

• Poor housekeeping

• Reaction time to breakdowns exceeded vehicle Takt time

• Production operatives had no clearly defined build sequence, build instructions or tooling. Additionally, operators would deviate from using specified fasteners,clips etc. The process variables coupled with the deviations on specified fixings resulted in the inability to identify the “Rootcause” of quality issues

• Over 90% failure rate on “first time through”

• No system to warn variance from build schedule

• Poor management control with regards to visual controls and KPI’s

• There was no common goal between supporting functions and production, which resulted in outstanding build and quality issues

• Management relied upon operator ingenuity to overcome quality issues and poor vehicle development

• The numerous failed initiatives, which were disguised as headcount reduction exercises,had created a militant and sceptical workforce

• NO internal expertise of Lean Manufacturing

Objectives• Improve quality, cost and delivery

• Change the culture

• Create a “Showcase” by implementing LeanManufacturing techniques in a designated pilot area to demonstrate the tools and provide confidence

• Deploy techniques throughout organisation

CASE STUDY

Low Volume Automotive ManufacturerCompany BackgroundThe company had produced transport vehicles since the 1950’s. Throughout its historythe company had a reputation of failed initiatives, poor industrial relations and lowproductivity. However, the company was in the enviable position of being the dominantplayer within the market place and because of the vehicles status, had the ability tocharge premium prices.

During the late 90’s pressure groups for the drivers successfully lobbied the localcouncils to change licensing legislation, to allow cheaper MPV conversions into themarket. This had a dramatic effect on sales and with a falling market share theorganisation quickly realised that without a rapid improvement to quality, cost anddelivery, future profitability would be in jeopardy.

KM&T SERVICES

KMT007UK c 2009 KM&T UK LTD

OPERATIONS

Page 7: KM&T Brochure & Case Studies

CASE STUDY

www.kmandt.com

KM&T UKThe Techno CentrePuma Way,Coventry. CV1 2TTTel:+44 (0)24 7623 6275Email: [email protected]

KM&T EuropeTwin SquareCulliganlaan 1bB-1831 Diegem (Brussels), BelgiumTel:+32 (0)2 403 1270Email: [email protected]

KM&T AustralasiaSuite 7.04, 6a Glen StreetMilsons PointNSW 2061Tel:+61 1300 552 453Email: [email protected]

KM&T Asia Pacific (APAC)15 Beach Road,#03-07 Beach Centre,Singapore 189677Phone: +65 6348 0858Email: [email protected]

Actions - Lean DeploymentBlue Sky• Facilitated senior management to develop

company strategy as a focus for achieving key objectives through policy deployment

VSM• Value Stream Mapped the organisation to

highlight waste within the value stream

One to One Training• Coaching and mentorship to the pilot area

team

Training• Sought outside expertise to “train the

trainers”. Initially two internal staff memberswere trained as facilitators followed by a cross-functional team (i.e. ME’s, T/L’s,Operators, Cell Mgrs) To overcome misconceptions and provide one clear message, everyone within the organisation was given “Lean Overview” sessions

Communication• Constructed a shopfloor communication

centre to enable transparency of informationregarding all facets of the Lean project

Weekly Problem & Countermeasure• Meetings were set-up between work teams

and support functions to address outstanding build and quality issues. Each week the support functions would report thestatus of each issue directly to the team.This resulted in improved moral, teamwork and superior “first time through”

5S• Programme throughout the shopfloor and

offices to eliminate wasted time chasing information and equipment

Visual Factory• Visual Andons that were directly linked to

support functions was introduced on key build stages

Standardise Processes• Each work team developed standardised

work and constructed Yamazumi boards to balance workloads and identify (NVA) Non Value Adding activities

SMED• (Single minute exchange of die’s) & Single

Piece Flow reduced excessive inventory of pressed panels and painted bodies

Kanban systems• Reduced inventory levels of supplied parts

Measurable

Dock to Dock 9 hrs 30 minsStandardisedWork, SinglePiece Flow, 5’s

StandardWork,Yamazumi

Andon,Problem &Countermeasure

StaggeringTransport, VisualManagement,Layout

5’s Kanban

5’s, SinglePiece Flow,Kaizen, 5’s

SMED, SinglePiece Flow,Kaizen, 5’s

5 4

94%

20%

*0%

95%

67%

100 20

20 1

3 mins 1 min

83%

40%

30+ mins 5 mins

130m2 80m2

ProcessManning(Door Cell)

TypicalInventoryPer Part

Standard inProcess Stock

Reaction Timeto Failures

Changeovers

Typical FloorSpace

Before After Lean Tools%

Improvement

Results

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Initial Observations

KM&T were asked to support the Powercar

refurbishment line which had a 3 year order

book to refurbish 19 Powercars. UGL

achieved a Turn-Around-Time (TAT) for the

first Powercar of 17 weeks.

UGL’s customer placed challenging delivery

targets on them which resulted in the need

for the UGL refurbishment line to significantly

improve productivity to achieve a new TAT ofTT

8 weeks. This improvement was to be

achieved over the next 3 Powercars.

During the first Powercar, KM&T identified:

• Wastes in the process design and area

layout

• A lack of visual management

• Limited pre-planning of parts and

materials

• No labour planning

• No method to understand the actual daily

progress to plan and report the status of

the project to the customer

• No system for capturing identified

problems, resolving issues and using

these lessons learned on subsequent

Powercar refurbishments

Objectives

• Reduce TAT from 17 weeks to 8 weeks

after 4 power cars

• Labour cost reduction required

• Reduction of repeat issues by eliminating

50% of known issues on subsequent

Powercars

• Improve safety

• Improve quality

CASE STUDY

United Group Rail : Refurbishment & Maintenance

Company BackgroundUnited Group Limited (UGL) is a leading Australian listed (ASX) engineering and United Group Limited (UGL) is a leading Australian listed (ASX) engineering and servica leading Australian listed (ASX) engineering and servicesgroup with global operations that generate revenues in excess of $3.5 billion.

UGL employs 30,000 people serving customers through its four divisions, namnamely Rail,Infrastructure, Resources and Service.

KM&T provided support within the Rail division which has a national presence inAustralia and New Zealand and growing operations in Hong Kong and other parts ofAsia. With a workforce of more than 3,000 people operating in 20 locations, our clienthas emerged as the region’s leading Rail provider.

KM&T were approached by UGL Rail to help train, coach and mentor staff to implementthe key principles of the Toyota Production System (TPS) and appropriate Lean tools toimprove productivity within the “Powercar” refurbishment line.

KM&T SERVICES

KMT020EU c 2009 KM&T UK LTD

OPERATIONS - RAIL

Page 9: KM&T Brochure & Case Studies

CASE STUDY

www.kmandt.com

KM&KM&T UT UKTheThe Te Technchno Cententre

Puma Way,ay,

Coventry. CV1 2TT

Tel:+44 (0)24 7623 6275

Email: [email protected]

KM&T EuropeTwin Square

Culliganlaan 1b

B-1831 Diegem (Brussels), Belgium

Tel:+32 (0)2 403 1270

Email: [email protected]

KM&T AustralasiaSuite 7.04, 6a Glen Street

Milsons Point

NSW 2061

Tel:+61 1300 552 453

Email: [email protected]

KM&T Asia Pacific (APAC)15 Beach Road,

#03-07 Beach Centre,

Singapore 189677

Phone: +65 6348 0858

Email: [email protected]

KM&T Action

• Full review of Process and Line Layout

with UGL team members

• Introduction of Work Sequence Boards to

allocate daily tasks to line team members

• Introduction of visual daily targets for all

team members

• Introduction of daily end of shift meetings

to review daily progress and resolve issues

• Introduction of Problem and

Countermeasure (PCM) process to introduce

a problem raising and solving culture

• The PCM process allowed team members to

visibly display their concerns and track

solutions through a disciplined weekly

review meeting

• A 5S culture has been implemented to

remove waste from the work area and put in

place the items that are required for the

daily tasks

Results

• Powercar Turnaround TT Time (TAT) reduction achieved)ime (Time (T

• TATT TAA reduced from 17 weeks to a sustained 8 weeks

• Labour cost reduction of 8%

• 100% of issues identified were resolved

• Zero defects achieved

• Zero injuries achieved

• Knowledge transferred to UGL Staff. Client employees

trained ‘hands-on’ in key Lean principles. This allowed

them to be capable of sustaining improvements and then

to further improve their local area and also to transfer their

new knowledge into other parts of the business asking for

support following their successes.

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Objectives

Scope of Work

ToTT undertake an order for delivery diagnostic toidentify wasteful activity that increasedman/hours and poor quality and to thenimplement solutions using Lean tools andtechniques. Visual tools were then put in placeso performance could be monitored morereadily and help manage the overall process.Included within the scope were key componentsuppliers and the project scheduling andprocurement process

Diagnostic

A current Value Stream Map and process mapsof the main operational activities were createdinvolving teams of operational staff in theprocess. Areas of waste and causes of issueswere highlighted and their impact quantifiedusing data collected and the experience held inthe heads of those involved in the process.Such opportunities were prioritised andsolutions built into an implementation plan.

CASE STUDY

Global Rail Organisation : Maintenance and

Refurbishment

Company BackgroundThe client is a market leader in passenger rail manufacture and railcar overhaul, thea market leader in passenger rail manufacture and railcar overhaul, the projectsite was responsible for design and assembly of new railcar sets and for the refurbiwas responsible for design and assembly of new railcar sets and for the refurbishmentof subway / metro transport systems. In 2004 the business saw a 25% increas/ metro transport systems. In 2004 the business saw a 25% increase in itsoverhaul business with the signing of two new contracts alongside its largest ever order ofoverhaul business with the signing of two new contracts alongside its largest ever order of$1.6billion for a new high speed passenger train. In order to achieve overhaul customerdelivery schedules, the subway cars had to be completed at a rate of 6000 man hours/carto maintain a steady flow back into service. Heavy penalties would be incurred for alloperational hours lost through delay back into service. The number of hours and adherenceto delivery schedules had been variable and averaged well in excess of 8000 man/hoursper car. This needed to be reduced and variance controlled in order to meet contractual andbusiness financial requirements. Support was required to review the entire end to endprocess and improve it.

KM&T SERVICES

KMT040UK c 2009 KM&T UK LTD

Key areas found were:

• Insufficient analysis of each car prior to entering overhaul process leading to excessive time in work station due to unknown faults and delays in obtaining parts needed

• No standard approach to the strip and rebuild process made planning of resourcedifficult

• Poor layout of work stations

• No visual monitor of overhaul status

• Material and part shortages

• Poor availability of tooling and equipment

• Multiple handling of materials and equipment

• Skill shortages in overhaul personnel

• Poor management of engineering information

OPERATIONS : RAIL

Page 11: KM&T Brochure & Case Studies

CASE STUDY

www.kmandt.com

KM&KM&T UT UKTheThe Te Technchno CententrePuma Way,ay,Coventry. CV1 2TTTel:+44 (0)24 7623 6275Email: [email protected]

KM&T EuropeTwin SquareCulliganlaan 1bB-1831 Diegem (Brussels), BelgiumTel:+32 (0)2 403 1270Email: [email protected]

KM&T AustralasiaSuite 7.04, 6a Glen StreetMilsons PointNSW 2061Tel:+61 1300 552 453Email: [email protected]

KM&T Asia Pacific (APAC)15 Beach Road,#03-07 Beach Centre,Singapore 189677Phone: +65 6348 0858Email: [email protected]

Improvement Strategy

Implementation

• End to end process redefined and takt time introduced with stage visual management

• Strip down and rebuild process analysed using SMED techniques to identify optimum sequences and activity that could be done pre-entry to work station

• Car broken down by modules and standard work packages introduced

• Standard operating procedures and training designed and implemented for each work station

• Electronic Engineering and Production records introduced for each car via data loggers

• Layout of work stations redesigned and standardised across business

• Supplied part process development

• Implemented andons and team boards to track progress by dedicated teams

Tools Deployed

• Value Stream Mapping

• Process Mapping

• Problem Solving

• 8-wastes

• Standard work

• Visual Management

• SMED

• TPM

• 5S

Results

• Reduction in average hours taken per car from 8000 to 5760 measured over first 15 cars

• On-time delivery to customer >97%

• Reduction in annualised penalties from $677,000 to $108,000 in first year

• 20%Reduction in engineers needed per station

• Material shortages reduced by 80%

• Lead time of refurbished parts reduced byan average of 30%

• No accidents or near misses reported in work stations in 6 months

Page 12: KM&T Brochure & Case Studies

Client ObjectivesThe client’s objectives were to ensure that thenew facility was future proof for theirautomotive client’s projected 5% growth peryear and have the capacity to supporting thisgrowth over a ten year period within thewarehouse facility.

The client had a proposal drawing thatenvisaged the quantity of material that wouldflow through the facility over a 10 year period,KM&T were to support by demonstrating aneffective warehouse layout which would givean improved delivery time to the customer andimproved throughput.

StrategyPhase 1: Confirmation of Requirements &Planning Assumptions• Review all base planning assumptions

including a review of inbound, outbound and cross docking data, this data was based on the clients and the automotive manufacturer’s future forecasts. Once this data had been analysed it would allow development of top level conceptual plans for the facility

• To review the current manning and technology levels within the existing facilities, including the key performance indicators and performance

Phase 2: Future Process Development • Development of future process workflows and

base level standard work for inbound materialhandling, outbound material and cross docking process

• Further refinement of planning volumes and right sizing of storage locations, taking into consideration the new process workflows that had been developed

Phase 3: Detailed Layout Development• Develop Return On Investment (ROI) criteria

and assessment criteria for automation concept and investment

• Review options for material handling and storage automation, assess and make recommendations based on value and effectiveness and recommended technology

• Develop detailed facility layout based on new process workflows and types of technology selected

Phase 4: Productivity and ROI Assessment• Develop ROI criteria, efficiency and

effectiveness gains for the entire project

Phase 5: Development of Final InvestmentApplication• Ensure process, layout and technology is kept

in line with building and internal infrastructuredevelopment

• Assist in developing and writing the final Investment Application based on project deliverables and ROI

CASE STUDY

Warehouse & LogisticsNew Facility Planning and Investment Criteria

Company Background

The client is a multinational company that provides third party logistics, handling manyvaried items from car parts to electronic items. Distributing items from their own holdingfacilities to their customer’s facilities as required created a very varied and hard tomeasure process.

KM&T were engaged to assist in preparing the investment criteria, facility planning andprocess flow for the establishment of a new Asia Pacific spare parts distribution centre inSingapore. The purpose of the new facility is to replace the existing two facilities inSingapore and stock the parts for a large automotive manufacturer, one of the clientslargest customers. The facility would be distributing the parts within Asia and Australia.

KM&T SERVICES

KMT63SG c 2010 KM&T UK LTD

OPERATIONS

Page 13: KM&T Brochure & Case Studies

CASE STUDY

www.kmandt.com

KM&T UKThe Techno CentrePuma Way,Coventry. CV1 2TTTel:+44 (0)24 7623 6275Email: [email protected]

KM&T EuropeTwin SquareCulliganlaan 1bB-1831 Diegem (Brussels), BelgiumTel:+32 (0)2 403 1270Email: [email protected]

KM&T AustralasiaSuite 7.04, 6a Glen StreetMilsons PointNSW 2061Tel:+61 1300 552 453Email: [email protected]

KM&T Asia Pacific (APAC)15 Beach Road,#03-07 Beach Centre,Singapore 189677Phone: +65 6348 0858Email: [email protected]

Predicted Results• The predicted 10 year savings on the entire project were 19 Million Singapore dollars on the building and

development and 5 million Singapore dollars on the labour savings /productivity

• Initial data / plans showed a requirement of 88,775 cubic metres was needed for the facility, after the planningby KM&T was complete only 66,471 cubic metres was required

• Current staff required over the existing two sites is 87 operational staff including 7 leaders. With a ten year projection of 50% growth, 120 staff and no extra leaders would be required. The new facility would require 46 operational staff including 6 leaders at current operational level, a saving of 53% over current business. In ten years the operational staff required will be 68 including 8 leaders, a saving of 56%

• Inbound process method is to receive material. Average total time is 16 minutes per pallet, with the new method that KM&T have recommended the average total time would be 10 minutes per pallet a saving of 62.5%

• 800 incoming parts per day could currently be processed to the correct destination. The new method would allow 1200 line items per day depending on the container mix, which would be a 50% improvement

• The above improvements would allow the potential removal of night shift working with the obvious saving in shift allowance

Page 14: KM&T Brochure & Case Studies

C A S E S T U D Y

K M & T S E R V I C E S

KMT080AUS C 2012 KM&T LTD

O P E R A T I O N S

IntroductionOur client is a leading manufacturer of rail freight wagons for Australian Rail operators and large resource companies operating their own rail fleets.

Faced with increasing competition in the industry, the challenge for our client was to reduce cycle time, generate on-time delivery, improve productivity and ultimately reduce build costs.

KM&T were engaged in the final stages of a large wagon build project to stabilise the process, mitigate the risk of late delivery and eliminate the need for extra jigs, extra shifts and overtime costs.

APPROACH

Detailed observations and analysis of bottleneck processes previously identified by client.

Stood at line side and observed – identified additional bottleneck (final fit) and convinced management not to allocate extra labour to the constraint, in the first instance.

Engaged closely with key managers and informed

them of our plans to apply Lean Manufacturing

dicipines.

Evaluated management supervisor behaviours and the structure of daily activities.

Maintained open communication and explained to shop floor staff the purpose of the work. Engaged daily with shop floor staff on a one-to-one basis.

Progressively attacked problems affecting the bottleneck processes caused by upstream supply issues and delays to flow. Demonstrated to staff that problem solving does help to fix daily frustrations and delays.

FINDINGS AND OBSERVATIONS

Welders and boilermakers working on various

other tasks rather than the value-add production.

Quality checks not being done or signed off at hold points by leading hands.

Upstream quality issues causing delays and rework at bottleneck stations. E.g. pre-weld planned for previous stages not done on time due to no control.

No framework or system for fixing problems or escalating issues causing delays – no visibility of issues.

Parts shortages – bottleneck process not given sufficient priority contributing to unacceptable delays.

No structured method to measure work progress versus plan.

No strategic buffers of previously completed assemblies to protect bottleneck process from stop and start inefficiences.

RAPID IMPROVEMENT PROCESS

Introduced daily process confirmation sheets which gave the supervisors real-time data of shop-floor progress and issues that required attention.

Introduced work-package tracker sheets which the operators sign off at various intervals and leading hands during the shift to validate the status of the build and the quality of the product.

Manufacturing for on-time delivery

• • •

Daily process confirmation

Page 15: KM&T Brochure & Case Studies

C A S E S T U D Y

O P E R A T I O N S

www.kmandt.com

KM&T UKThe Techno CentrePuma Way,Coventry. CV1 2TTTel:+44 (0)24 7623 6275Email: [email protected]

KM&T EuropeTwin SquareCulliganlaan 1bB-1831 Diegem (Brussels), BelgiumTel:+32 (0)2 403 1270Email: [email protected]

KM&T AustralasiaSuite 6.02, 6a Glen StreetMilsons PointNSW 2061Tel:+61 1300 552 453Email: [email protected]

KM&T Asia Pacific (APAC)15 Beach Road,#03-07 Beach Centre,Singapore 189677Phone: +65 6348 0858Email: [email protected]

RESULTS AND BENEFITS DELIVERED

Doubled the build output of Final Fit process within 15 days.

Guaranteed on-time delivery to the customer.

Initiated a culture of “ we can do change “

Knowledge transfer:-

Structure to supervisions daily activities.

Standardised layout for documentation.

Standardised work areas with footprinting and visual aids.

New layout proposal – set the standards from day one.

ROI of 2-1 in 6 weeks.

Provided ongoing structure to management problem solving and communication

CLIENT ENDORSEMENT

“My initial reaction was scepticism however within a week we saw results. Making the time to develop lean tools pays off because it gave me structure and creates time to manage. Knowing we are all on the same page and working with the senior management team is great, I’m enjoying it!”

Phillip Knowles, Fabrication Supervisor.

LEAN INTERVENTIONS

Introduced Single Point Lessons(SPL) – visual standards for quality and workplace organisation.

Introduced Safety, Supply, Quality, Delivery & Resource (SSQDR) team boards. The supervisor has a daily meeting with all the leading hands and support functions to address current issues and highlight upcoming issues.

Introduced SSQDR morning meeting structure for the Operations Manager including all Heads of Functions to address escalated issues and problem solving.

Visual Standards 5S

Work package tracker Sheets

KM&T WA47 Cedric Street,Stirling, Perth,WA 6019Phone: +61 1300 552 453Email: [email protected]

Page 16: KM&T Brochure & Case Studies

C A S E S T U D Y

O P E R A T I O N S

Introduction

This UK based niche sports car manufacturer has a global reputation for producing some of the world’s most desirable cars. Following a successful new model launch, strong demand required new steps to be taken to ensure production issues were now dealt with quickly and more effectively, whilst focusing on improving product quality and safety in all aspects.

It was recognised that critical to the successful launch of the model would be the ability to quickly solve issues surrounding the increased model volume requirements.

KM&T’s Practical Problem Solving training became key to ensuring the production requirements were met ahead of schedule.

OBJECTIVES

Ensure a successful transition from prototype to mass production

Stimulate a positive working practice change throughout the business to allow problems to be solved in less time and with a more robust

outcome, reducing problem reoccurrence

Transform internal and external capabilities

Train engineers and specialists in Practical Problem Solving (PPS)

Use of PPS in ‘On Job Development’

Link PPS at production level into training with

Senior Management & Executives

IMPROVEMENT STRATEGY

With a challenging order book already in place, this manufacturer recognised the importance of a successful transition from prototype to mass production.

Building on successful PPS training already carried out within the company, KM&T worked closely with engineers, specialists, managers and senior executives to ensure a practical problem solving approach was taken towards a number of key production issues.

Providing hands on support, KM&T helped the manufacturer to begin a positive culture change within the company, allowing problems and issues to be resolved both more quickly and more robustly to avoid problem reoccurrence. Transforming the company’s internal and external capabilities and passing a PPS methodology through to prevent supplier issues would create increased production capacity to match consumer demand for the vehicle.

RESULTS

£1 million of potential savings over 4 years

Safety, Quality & Motivation improved.

ROI of 5:1.

Ongoing continuous improvement within the business as a result of the use of PPS methodology.

Culture change to allow problems to be resolved faster and with an improved outcome.

• •

K M & T S E R V I C E S - K M T 0 8 1 U K C 2012 KM&T LTDwww.kmandt.com

KM&T UKThe Techno CentrePuma Way,Coventry. CV1 2TTTel:+44 (0)24 7623 6275Email: [email protected]

KM&T EuropeTwin SquareCulliganlaan 1bB-1831 Diegem (Brussels), BelgiumTel:+32 (0)2 403 1270Email: [email protected]

KM&T AustralasiaSuite 6.02, 6a Glen StreetMilsons PointNSW 2061Tel:+61 1300 552 453Email: [email protected]

KM&T Asia Pacific (APAC)15 Beach Road,#03-07 Beach Centre,Singapore 189677Phone: +65 6348 0858Email: [email protected]

Practical Problem Solving