KM&T Brochure & Case Studies

KM&T UK The Techno Centre, Puma Way, Coventry CV1 2TT Phone: +44 (0)24 7623 6275 Email: info@kmandt.com KM&T Europe Twin Square Culliganlaan 1b, B-1831 Diegem (Brussels), Belgium Phone: +32 (0)2 403 1270 Email: info@kmandt.eu KM&T Australasia Suite 7.04, 6a Glen Street, Milsons Point NSW 2061 Phone: +61 1300 552 453 Email: info@kmandt.com.au KM&T Asia Pacific (APAC) 15 Beach Road, #03-07 Beach Centre, Singapore 189677 Phone: +65 6348 0858 Email: info@kmandt.com www.kmandt.com

An Introduction to KM&T. 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.

What our Customer say about us…

“KM&T did exactly what they said they would and it made a significant difference to our operations”

We offer professional advice in the strategic and practical deployment of Lean and SixSigma 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.

Wayne Scholz, BAE

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.

• Create Vision • Create Strategy • Communication • Organisation Structure • Risk Management

Vision & Strategy De Go plo al ym en t

Process Design

People

t licy en Po loym p De

Change Management

CI

CI Sustainability

• Defining Roles & Responsibilities • Managing Behaviour • Customer Focus • Team Work

• EZE Process • Eliminating Waste • Installing Discipline • Process Optimisation • Delivering Results

Class Le

Class Leadi ng P erfo rm an

Kn o

ce

Leadership

• E2E Process • Eliminating Waste • Installing Discipline • Process Optimisation • Delivering Results

• Create Vision • Create Strategy • Communication • Organisation Structure • Risk Management

sfer Tran ge ed wl

Governance

CI

C

The Solutions We Offer Using 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.

Sectors

Solutions

Manufacturing & MRO

Delivery

Health

Process and Performance Improvement

Public Sector

Change Programme Management Training & Knowledge Transfer

Office & Transactional

Hands On Implementation

Organisation and Leadership Development

Targeted Results Driven Outcomes

Strategy Deployment

Technical Services

• 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 You KM&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:

What our Customer say about us…

• Share industry best practice • Transfer our knowledge to enable your workforce to deliver and sustain change

“Real practical experience that has proved invaluable for our specific needs.”

• Design and deliver ‘fit for purpose’ solutions that matches your ability to change • Deliver business performance improvements that meet with your expectations

Michelle Dove Clark, Luton County Council “KM&T motivated, coached and drive our people to improve.”

• 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

Patrick McFeeny, Qantas

• 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.

KM&T UK

KM&T Europe

KM&T Australasia

KM&T ASIA PACIFIC

The Techno Centre, Puma Way, Coventry CV1 2TT Phone: +44 (0)24 7623 6275 Email: info@kmandt.com

Twin Square Culliganlaan 1b, B-1831 Diegem (Brussels), Belgium Phone: +32 (0)2 403 1270 Email: info@kmandt.eu

Suite 7.04, 6a Glen Street, Milsons Point NSW 2061 Phone: +61 1300 552 453 Email: info@kmandt.com.au

15 Beach Road, #03-07 Beach Centre, Singapore 189677 Phone: +65 63480858 Email: info@kmandt.com

www.kmandt.com

CASE STUDY

OPERATIONS

United Marine Electronics Manufacturer Company Background Our Client produces long cables that are towed behind a ship to explore for Oil & Gas seams below the ocean surface. The product is a fusion of mechanical joints and highly sophisticated electronic listening equipment covered in a waterproof outer coating.

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

Competition was high in the marketplace particularly from the US.

Initial Observations

Objectives

• Due to the high turnover of staff and language limitations the quality variation in assembly was high

• Drive leadtime down to improve sales

• 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 complex and 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 or designing new products

KM&T

SERVICES

KMT001UK c 2009 KM&T UK LTD

• 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

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

Results • 62% reduction in leadtime in 6 months

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

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

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

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

• Balanced the workload between each station

• 18% reduction in cost

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

• Top 10 most consuming tasks reduced by 45%

KM&T Action Lean 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 process to 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.

KM&T UK The Techno Centre Puma Way, Coventry. CV1 2TT Tel:+44 (0)24 7623 6275 Email: info@kmandt.com

• 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 the status of each issue directly to the team.

KM&T Europe Twin Square Culliganlaan 1b B-1831 Diegem (Brussels), Belgium Tel:+32 (0)2 403 1270 Email: info@kmandt.eu

www.kmandt.com

KM&T Australasia Suite 7.04, 6a Glen Street Milsons Point NSW 2061 Tel:+61 1300 552 453 Email: info@kmandt.com.au

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

KM&T Asia Pacific (APAC) 15 Beach Road, #03-07 Beach Centre, Singapore 189677 Phone: +65 6348 0858 Email: info@kmandt.com

CASE STUDY

OPERATIONS

Low Volume Automotive Manufacturer Company Background The company had produced transport vehicles since the 1950’s. Throughout its history the company had a reputation of failed initiatives, poor industrial relations and low productivity. However, the company was in the enviable position of being the dominant player within the market place and because of the vehicles status, had the ability to charge premium prices.

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

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 “Root cause” 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

KM&T

SERVICES

KMT007UK c 2009 KM&T UK LTD

• 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 Lean Manufacturing techniques in a designated pilot area to demonstrate the tools and provide confidence • Deploy techniques throughout organisation

CASE STUDY

Actions - Lean Deployment Blue Sky • Facilitated senior management to develop company strategy as a focus for achieving key objectives through policy deployment

5S • Programme throughout the shopfloor and offices to eliminate wasted time chasing information and equipment

VSM • Value Stream Mapped the organisation to highlight waste within the value stream

Visual Factory • Visual Andons that were directly linked to support functions was introduced on key build stages

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

Standardise Processes • Each work team developed standardised work and constructed Yamazumi boards to balance workloads and identify (NVA) Non Value Adding activities

Training • Sought outside expertise to “train the trainers”. Initially two internal staff members were 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

Kanban systems • Reduced inventory levels of supplied parts

Communication • Constructed a shopfloor communication centre to enable transparency of information regarding all facets of the Lean project

Results

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 the status of each issue directly to the team.

This resulted in improved moral, teamwork and superior “first time through”

SMED • (Single minute exchange of die’s) & Single Piece Flow reduced excessive inventory of pressed panels and painted bodies

Before

After

Dock to Dock

9 hrs

30 mins

94%

Standardised Work, Single Piece Flow, 5’s

Process Manning (Door Cell)

5

4

20%

Standard Work, Yamazumi

Typical Inventory Per Part

100

20

*0%

5’s Kanban

Standard in Process Stock

20

1

95%

5’s, Single Piece Flow, Kaizen, 5’s

Changeovers

3 mins

1 min

67%

SMED, Single Piece Flow, Kaizen, 5’s

Reaction Time to Failures

30+ mins

5 mins

83%

Andon, Problem & Countermeasure

130m 2

80m2

40%

Staggering Transport, Visual Management, Layout

Typical Floor Space

KM&T UK The Techno Centre Puma Way, Coventry. CV1 2TT Tel:+44 (0)24 7623 6275 Email: info@kmandt.com

KM&T Europe Twin Square Culliganlaan 1b B-1831 Diegem (Brussels), Belgium Tel:+32 (0)2 403 1270 Email: info@kmandt.eu

www.kmandt.com

% Improvement Lean Tools

Measurable

KM&T Australasia Suite 7.04, 6a Glen Street Milsons Point NSW 2061 Tel:+61 1300 552 453 Email: info@kmandt.com.au

KM&T Asia Pacific (APAC) 15 Beach Road, #03-07 Beach Centre, Singapore 189677 Phone: +65 6348 0858 Email: info@kmandt.com

CASE STUDY

OPERATIONS - RAIL

United Group Rail : Refurbishment & Maintenance Company Background United Group Limited (UGL) is a leading Australian listed (ASX) engineering and servic services group with global operations that generate revenues in excess of $3.5 billion.

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

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

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

Initial Observations

Objectives

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.

• Reduce TAT from 17 weeks to 8 weeks after 4 power cars

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 TTAT of 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

KM&T

SERVICES

KMT020EU c 2009 KM&T UK LTD

• Labour cost reduction required • Reduction of repeat issues by eliminating 50% of known issues on subsequent Powercars • Improve safety • Improve quality

CASE STUDY

KM&T Action • Full review of Process and Line Layout with UGL team members

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

• Introduction of Work Sequence Boards to allocate daily tasks to line team members

• TA TAT reduced from 17 weeks to a sustained 8 weeks

• Introduction of visual daily targets for all team members

• Labour cost reduction of 8%

• 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

KM&T UK KM&T U The Te Techn chno Cent entre Puma Way, ay, Coventry. CV1 2TT Tel:+44 (0)24 7623 6275 Email: info@kmandt.com

• 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.

KM&T Europe Twin Square Culliganlaan 1b B-1831 Diegem (Brussels), Belgium Tel:+32 (0)2 403 1270 Email: info@kmandt.eu

www.kmandt.com

KM&T Australasia Suite 7.04, 6a Glen Street Milsons Point NSW 2061 Tel:+61 1300 552 453 Email: info@kmandt.com.au

KM&T Asia Pacific (APAC) 15 Beach Road, #03-07 Beach Centre, Singapore 189677 Phone: +65 6348 0858 Email: info@kmandt.com

CASE STUDY

OPERATIONS : RAIL

Global Rail Organisation : Maintenance and Refurbishment Company Background The client is a market leader in passenger rail manufacture and railcar overhaul, the project site was responsible for design and assembly of new railcar sets and for the refurbi refurbishment of subway / metro transport systems. In 2004 the business saw a 25% increas increase in its overhaul 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 customer delivery schedules, the subway cars had to be completed at a rate of 6000 man hours/car to maintain a steady flow back into service. Heavy penalties would be incurred for all operational hours lost through delay back into service. The number of hours and adherence to delivery schedules had been variable and averaged well in excess of 8000 man/hours per car. This needed to be reduced and variance controlled in order to meet contractual and business financial requirements. Support was required to review the entire end to end process and improve it.

Objectives

KM&T

SERVICES

KMT040UK c 2009 KM&T UK LTD

Scope of Work

Key areas found were:

TTo undertake an order for delivery diagnostic to identify wasteful activity that increased man/hours and poor quality and to then implement solutions using Lean tools and techniques. Visual tools were then put in place so performance could be monitored more readily and help manage the overall process.

Included within the scope were key component suppliers and the project scheduling and procurement process

• 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

Diagnostic

• No visual monitor of overhaul status

A current Value Stream Map and process maps of the main operational activities were created involving teams of operational staff in the process. Areas of waste and causes of issues were highlighted and their impact quantified using data collected and the experience held in the heads of those involved in the process.

Such opportunities were prioritised and solutions built into an implementation plan.

• Material and part shortages

• No standard approach to the strip and rebuild process made planning of resource difficult • Poor layout of work stations

• Poor availability of tooling and equipment • Multiple handling of materials and equipment • Skill shortages in overhaul personnel • Poor management of engineering information

CASE STUDY

Improvement Strategy

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

Implementation

Tools Deployed

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

• Value Stream Mapping

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

• Problem Solving

• Car broken down by modules and standard work packages introduced

• Visual Management

• 20%Reduction in engineers needed per station

• SMED

• Material shortages reduced by 80%

• TPM

• Lead time of refurbished parts reduced by an average of 30%

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

• Process Mapping

• On-time delivery to customer >97% • Reduction in annualised penalties from $677,000 to $108,000 in first year

• 8-wastes • Standard work

• 5S

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

• 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

KM&T UK KM&T U The Te Techn chno Cent entre Puma Way, ay, Coventry. CV1 2TT Tel:+44 (0)24 7623 6275 Email: info@kmandt.com

KM&T Europe Twin Square Culliganlaan 1b B-1831 Diegem (Brussels), Belgium Tel:+32 (0)2 403 1270 Email: info@kmandt.eu

www.kmandt.com

KM&T Australasia Suite 7.04, 6a Glen Street Milsons Point NSW 2061 Tel:+61 1300 552 453 Email: info@kmandt.com.au

KM&T Asia Pacific (APAC) 15 Beach Road, #03-07 Beach Centre, Singapore 189677 Phone: +65 6348 0858 Email: info@kmandt.com

CASE STUDY

OPERATIONS

Warehouse & Logistics

New Facility Planning and Investment Criteria Company Background The client is a multinational company that provides third party logistics, handling many varied items from car parts to electronic items. Distributing items from their own holding facilities to their customer’s facilities as required created a very varied and hard to measure process.

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

Client Objectives The client’s objectives were to ensure that the new facility was future proof for their automotive client’s projected 5% growth per year and have the capacity to supporting this growth over a ten year period within the warehouse facility.

The client had a proposal drawing that envisaged the quantity of material that would flow through the facility over a 10 year period, KM&T were to support by demonstrating an effective warehouse layout which would give an improved delivery time to the customer and improved throughput.

Strategy Phase 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 material handling, 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 Investment Application • Ensure process, layout and technology is kept in line with building and internal infrastructure development • Assist in developing and writing the final Investment Application based on project deliverables and ROI

KM&T

SERVICES

KMT63SG c 2010 KM&T UK LTD

CASE STUDY

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 planning

by 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

KM&T UK The Techno Centre Puma Way, Coventry. CV1 2TT Tel:+44 (0)24 7623 6275 Email: info@kmandt.com

KM&T Europe Twin Square Culliganlaan 1b B-1831 Diegem (Brussels), Belgium Tel:+32 (0)2 403 1270 Email: info@kmandt.eu

www.kmandt.com

KM&T Australasia Suite 7.04, 6a Glen Street Milsons Point NSW 2061 Tel:+61 1300 552 453 Email: info@kmandt.com.au

KM&T Asia Pacific (APAC) 15 Beach Road, #03-07 Beach Centre, Singapore 189677 Phone: +65 6348 0858 Email: info@kmandt.com

CASE STUDY

OPER ATIONS

Manufacturing for on-time delivery Introduction Our 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

FINDINGS AND OBSERVATIONS

• 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 oneto-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.

KM&T

SERVICES

KMT 0 8 0 A US C 2012 K M&T LTD

RAPID IMPROVEMENT PROCESS

• Welders and boilermakers working on various

• Introduced daily process confirmation sheets

other tasks rather than the value-add production.

which gave the supervisors real-time data of shop-floor progress and issues that required attention.

• 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.

• 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.

• 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.

Daily process confirmation

CASE STUDY

OPER ATIONS

LEAN INTERVENTIONS

RESULTS AND BENEFITS DELIVERED

• Introduced Single Point Lessons(SPL) – visual

• Doubled the build output of Final Fit process

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.

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.

• Introduced SSQDR morning meeting structure

Visual Standards 5S

Standardised layout for documentation.

for the Operations Manager including all Heads of Functions to address escalated issues and problem solving.

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!”

Work package tracker Sheets

Phillip Knowles, Fabrication Supervisor.

KM&T UK The Techno Centre Puma Way, Coventry. CV1 2TT Tel:+44 (0)24 7623 6275 Email: info@kmandt.com

KM&T Europe Twin Square Culliganlaan 1b B-1831 Diegem (Brussels), Belgium Tel:+32 (0)2 403 1270 Email: info@kmandt.eu

www.kmandt.com

KM&T Australasia Suite 6.02, 6a Glen Street Milsons Point NSW 2061 Tel:+61 1300 552 453 Email: info@kmandt.com.au

KM&T WA 47 Cedric Street, Stirling, Perth, WA 6019 Phone: +61 1300 552 453 Email: info@kmandt.com.au

KM&T Asia Pacific (APAC) 15 Beach Road, #03-07 Beach Centre, Singapore 189677 Phone: +65 6348 0858 Email: info@kmandt.com

CASE STUDY

OPER ATIONS

Practical Problem Solving 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

IMPROVEMENT STRATEGY

• 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

RESULTS

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

• £1 million of potential savings over 4 years

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.

• Ongoing continuous improvement within

• Safety, Quality & Motivation improved.

• ROI of 5:1. 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.

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.

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