Case Study - Lean Production System in China

The Challenge

Our project was to assist our client to outsource their production to a new supplier-owned factory in China. As the project progressed it became clear that the supplier lacked the planning and shop floor control processes to manage an operation of the size that they were building. The project team therefore agreed with the supplier that TXM would assist them to build a Lean Production System in the new plant.

The TXM Response

TXM worked with our client’s project team and the supplier to build a value stream map for the new plant from raw material suppliers in China through to end users of our client’s products in Australia and Europe. We worked with the China supplier to establish flow and production to takt time in his new facility. We met with his suppliers and set up kanban supply of raw materials into the new plant. Most importantly we worked with our client’s project team to ensure consistent and regular processes for ordering and supply from the new plant.

The Results

Supply lead time was reduced by half from the raw materials supplier through the supplier to our clients end customers. The new plant started up smoothly and enabled a smooth on-time transition from the client’s in-house production. Finally the China supplier has adopted many of our ideas and extended them into other parts of his business.

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