Project Brief
Back to listOperating Cost Improvement - Labor Productivity Increase
Systemental designed and implemented a multi-faceted performance management system to lower operating costs and improve customer responsiveness for a Fortune 500 manufacturing client. The strategy deployment project supported a transition to Lean manufacturing with objectives of increased profitability and improved competitiveness. The primary goal of the project was increased labor productivity through the elimination of waste driven by better daily planning and execution of production.
Systemental partnered with the client’s organization at division headquarters and multiple locations across the United States, to develop and implement a lean production management, planning, and execution system. The system standardizes processes used to staff, monitor, measure and improve productivity. The system drives proactive profit and cost management on a shift-by-shift, daily, weekly, and monthly basis. The solution integrates sales and operations planning, plus daily tracking and measurement, with corporate goals for profit and cost improvement. The system provides visibility into daily operations and makes connections between operational activities and financial outcomes clear to both management and front line personnel.
The system, which drives better planning, improved daily execution, and faster response to adverse conditions generated and delivered a 40% improvement in labor productivity and $5 million dollars in annual savings.
Summary
| Client | Fortune 500 Manufacturer with Division Headquarters in the Midwest and locations across the U.S. and in Mexico |
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| Problem | The company's introduction of Lean production pacing as part of its Lean manufacturing initiative got off to a rocky start. Long standing labor vs. management issues stood in the way. Ambitious goals for productivity meant something had to be done. |
| Solution | Systemental completed an assessment and then crafted a plan to launch a simplified approach.
The plan was designed to solve real problems and provide real benefits for all parties.
The kick-off gained traction. Additional system elements were developed and added in phases to now include:
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| Results | Annual savings: Adopted by all U.S. locations leading to $5 million in savings, a 40% increase in labor productivity and better predictability of operational performance. |
| Contact | Toll free 866-434-2040 |