Customer Success Story: Fortune 100 Energy Infrastructure Provider
Business Issue: Underperforming Distribution Center

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

Kyle Krug

Kyle Krug has 20 years of professional experience in marketing & strategy, technology & information management, business development, and operational support positions in B2C and B2B services industries. Kyle Krug leads Marketing & Communications for LEGACY Supply Chain Services, with past roles as the Director of Client Solutions for Griffin Global Logistics, and Marketing Manager/Data Analyst in the Hotel Casino industry.

Read More