Production Line Redesign and Lean Production Processes

Client: Major Global High Technology Manufacturer

Location: Melbourne, Australia

THE CHALLENGE

Our client is the Australian division of a highly successful high technology manufacturer already recognized for its work in implementing lean manufacturing. Their products are complex assemblies of electronic, optical and mechanical components used for highly precise analysis. Global growth in our client’s business and increasing competition from low cost countries meant that it identified a need to both increase output and reduce cost in its key product line.

THE TXM RESPONSE

TXM worked with the production teams to conduct a detailed evaluation of the plant. We completed a value stream map of the key product lines, benchmarked the operation against best practice standards in plant layout and conducted a 5S audit to determine how effective space was being utilised. We then coached the team to develop a new plant layout and production concept for the product line incorporating flow production to Takt time, assurance of quality at each process step, highly efficient sub assembly cells and improved raw material supply processes. Our coaching then extended over an 18-month period to support implementation of this new production line concept and ensure knowledge was handed over to the client’s team.

THE RESULTS

Working with TXM, our client achieved a 40% improvement in labour cost per unit. This included breakthrough improvements such as reducing final inspection time from 10-15 hours to 3 hours and packaging time from 90 minutes to 10 minutes. Production lead-time and work in progress inventory were reduced by 75%.