Business problem:
- Production Capacity utilization was poor
- Outsourcing required in peak demand period
- Overall equipment effectiveness <50%
Solution Approach:
- Process mapping and Cycle time study
- Creating and deploying customized software application for calculation of OEE factors on daily basis.
- Finding major and minor reasons of loss by one-month data analysis
- Daily Gemba meetings on shop floor to take necessary actions to reduce losses.
- SMED analysis for Setup time reduction
- Top Management proactive support for small changes and necessary investment
- Employee involvement for continuous improvements
Key Outcome and benefits:
- Potential Capacity Increase: $5.5 million
- OEE improved from <50% to 75%
- 50% additional capacity generated without any major investment in new equipment
- Capacity increase of $5.5 million on an annual basis
