Company Overview
This case study outlines LEGACY’s work with a Fortune 100 energy infrastructure provider. This company has global teams designing technology solutions for the transmission, distribution, management, conversion and optimization of electrical power across multiple energy-intensive industries. They bring in over a billion dollars in revenue in over 20+ countries each year.
The Challenge:
Issues with safety, quality and efficiency within pick and consolidation processes.
Specific Challenges:
- Significant safety issues within the facility due to layout, flow of work and PIT travel paths
- Expanding consolidation footprint to handle batch and queue pick work
- Excessive time spent matching product within orders due to significant travel waste
- Unbalanced work levels between pick and consolidation processes
The Solution:
LEGACY conducted Kaizen Blitz as part of a Lean Action Workout, which was two weeks of intense focus on safety, quality, delivery, and cost for pick and consolidation processes corporate, regional, operational, associate and partner representation.
- Surfaced and eliminated traffic and back safety issues with workstation redesign, re-layout and visual management and 5S techniques
- Error-proofed overflow locations to remove risk of lost material
- Improved prioritization of critical work through redesign of dispatch work
- Improved efficiency by reducing travel waste and installing visual levers for correctly flexing resources
- Improved space utilization by creating a crisis – removing 70% of existing staging area
- Developed and implemented continued learning program to ensure adoption of programs- including clear SOP documentation, individual scorecard tracking and performance management to designated productivity, safety and efficiency KPIs
The Results:
As a result of this Kaizen Blitz, efficiency was drastically improved.
- Zero reported OSHA recordable incidents since Kaizen Blitz
- Reduced PPM below target of 450
- Sustained Rate of 363.73 through 16 weeks post-Kaizen Blitz
- Established and met target of 1300 lines processed per day
- Efficiency gains resulting in savings of $83,654 per annum for the operation
- Reclaimed 5,292 square feet of space in the consolidation processing area
“The LEGACY team conducted Kaizen Blitz as part of a Lean Action Workout and we were proud to see efficiency gains in productivity and safety resulting in significant annual savings.”
-LEGACY Lean and Quality Team
