Part 2 of the Series: “The re-unit Path to Sustainable Optimization”
Growing product variety, declining order volumes, and increasing cost pressure are well-known challenges that manufacturing companies will face even more in the future. The Lean methodology is an approach for optimizing the entire value stream and helps address these often contradictory pressures. It is also a core element of the Toyota Production System (TPS), probably the most famous philosophy for achieving a highly efficient and effective production system, and is primarily applied in that context.
The Toyota Production System is structured so that its goals form the roof of the “Toyota house.” The supporting pillars represent fundamental principles and concepts, while the foundation is built on a set of operational methods for implementation.
In general process improvement, one can, for example, begin with a 5S campaign. By creating order and standardizing processes, this establishes the foundation for deeper value stream optimization. Depending on the area, different conceptual approaches can be applied—for example, SMED (Single Minute Exchange of Die) or TPM (Total Productive Maintenance) in manufacturing, as well as Kanban, Milk Run, and the Pull system in logistics.
Project Example: “Automotive Supplier” – Optimizing Setup Times
Our project example shows how re-unit helped a renowned mid-sized Tier 1 automotive supplier using Lean methodology. In a short period, outstanding effects were achieved in terms of productivity improvement and the avoidance of new investments in production.
Due to a rapidly growing order intake, our client was increasingly facing delivery difficulties. The goal was to significantly increase machine utilization through more effective setup so that future output could be achieved without additional investments.
Together with setters, foremen, and supervisors, we defined and visualized a top-down target of 25% setup time reduction. In several workshops with production analysis, we implemented the setup project. Tools such as REFA time studies, the creation of spaghetti diagrams, and MUDA (waste) analyses were applied.
Through the evaluation of REFA time studies and approved video analyses, setup times were reduced by around 30% after jointly implementing 12 action plans. Using spaghetti diagrams, workflows and material flows were visualized from a bird’s-eye view, with the primary goal of identifying waste in work processes. Together with the setup team, valuable improvement ideas were derived from the analyses, reducing travel distances by approximately 30%. This optimization was reflected in a new plant layout that also delivered space savings.
MUDA (Waste Analysis)
Another essential method for achieving the goals of the Toyota Production System is MUDA analysis (Japanese for “futile activity”). These analyses help eliminate error sources, most of which are organizationally driven.
Examples of waste identified (3 of 28):
- Waiting for the crane
- Tight workspace, no room due to injection molding tool
- Searching for tools (eye bolts / buckets, etc.)
Result of the SMED Workshop
SMED stands for “Single Minute Exchange of Die” and is a popular Lean management method for optimizing setup times.
The goal of increasing efficiency by 25% in setup processes was clearly exceeded without significant technical investment. Additional capacity was even created. Delivery reliability improved, enabling the company to accept further orders.
Additional Measures: Lean Machine Layout
At the same time, a space-saving machine layout was implemented. The floor space requirement was reduced by more than 15% from 4,000 m² to 3,350 m². In addition to saving space, the internal material flow was streamlined and arranged in a straight line without crossing movements.