Reducing Cost and Area, but not Demand - Case Study

To make the most of the space that a manufacturing site has is a key requirement of the most efficient factory. Space is a constraint that needs to have the most made out of it. Reducing the footprint of a manufacturing site will reduce cost, but the ultmate goal is to maximise the use of this footprint. To achieve this goal the new layout needs to follow the flow of the manufacturing process, providing a seamless flow of product through the workshop.

The following case study identifies how Succinct Solutions was able to analyse the current manufacturing process, and provide a multi-level flow process for the manufacture of multiple products on the same line. This model was used to solve the need to reduce space and movement of parts to consolidate two manufacturing sites into one. By using the lean toolbox and modeling, Succinct Solutions delivered a new layout for the shop floor and supporting documentation to meet the challenge.

The Problem
The client manufactured their complete range of products over two sites. The purchase of new manufacturing facilities provided the opportunity to consolidate the locations, and implement a lean process to meet the businesses requirements. The challenge was that the new site was 50% smaller than the combined area of the current sites, and the current layout had a large amount of waste (movement) within the process, driven from the current layout. This, combined with a limited time period (three weeks) to deliver the new layout meant that Succinct Solutions had to analyse, map, model and deliver a new layout in the tight timescale given. The new layout had to meet the current demand, as reduction in manufacturing space must not have a negative impact on production output.

The Solution
The project was planned with an agreed milestone to achieve the tight deadline. The first stages involved data collection for the current process, layout, machine sizes, bill of material, routings, health and safety, product sizes, build rates and storage. This data collection was needed to provide the framework for the modeling of the process, and to determining the interdependencies of the process. From the data, a current layout was constructed with the process flow of all the products overlaid and the product journey distance calculated. This provides the baseline from which to start the improvement activity.
The next stage was to model all the information and provide a tool for all the movements and interdependences, so that the relationships between product and machines can be fully understood. From the model and the process flow, the first draft of the layout could be produced to reduce the movement of parts and maximise the product flow. This provided some clear easy wins for machine locales and work stations, but also highlighted areas of concern and areas for improvement to the first draft.

The draft was presented to the customer, updating them on progress and allowing them to evaluate the information, while generating a focal point for comprehension and improvement. This vital process aligned any misunderstanding, and provided areas of improvements to be realised as well as a buy-in to the newly defined challenges for the layout.
From the draft stage the team revised the model with the new data and set about the task of resolving the areas of improvement, to achieve a new layout and meet the proposed goal.

The concluding stage was to present the final layout that reduced the manufacturing area and minimised the material movement. This new layout was delivered with the supporting documentation and the base data that justified the use of the new layout. The new layout not only provided a better understanding of the manufacturing process, but also gave the complete manufacturing space a natural flow to aid control and increase productivity. The layout utilised the best practices of lean and gave the customer a layout that met their demand, reduced their manufacturing costs and manufacturing area.

Bottom Line Results
Succinct Solutions through good project management delivered this tight deadline project on time, and exceeded the customers’ quality level expectations. As a result the new layout reduced the total manufacturing area from a combined manufacturing area of 1,216.7m² to 722.4m². This is over a 40% floor space reduction with no negative impact on the throughput. The use of lean techniques meant that the placing of equipment to maximise the product flow through the new layout, provided over a 50% saving in movement from 983m to 451m.
The combination of these savings not only have provided a facility that can meet the current demand for the product, but has saved £112,000 per year through better utilisation of the workforce and reduced manufacturing cost. Succinct Solutions delivered this vital project on time and to a level that the customer was able to achieve their short term business goal. The success of this project meant that Succinct Solutions was awarded a follow-on improvement contract with this client, prompting our client to state that: -
“Succinct Solutions performed excellently with our tight timescale project and delivered a quality product on time. Their strong customer focus and commitment to go above and beyond the original requirement meant that we got real value. Their analytical approach and high motivation provided the detail and energy need to be successful with this challenging project”