Goal: Introduction of a new quality management model.
A company manufacturing industrial installations that hires over 100 employees had over 25% of overdue orders, which resulted in clients’ dissatisfaction and a necessity to give out discounts or else run a risk losing their market share.
The first step was to conduct an audit of the processes in place and their effectiveness. Thus, we came down to the root causes of existing problems. The audit showed that some of the reasons responsible for the difficult situation included: commencing too many manufacturing lines at the same time, making mistakes during the order taking and execution, a high number of unprocessed clients’ complaints and a high volume of storage of obsolete products which were no longer manufactured.
Based on the audit’s results we set the goals for the improvement process:
1) shortening of order’s processing time by 3 days
2) decreasing the number of overdue orders by 10%
3) decreasing the number of productions in process and lowering the storage volume by 25%
We have implemented lean management techniques relating to keeping order, visualisation and workload organisation. At the end of a 3 month project we were happy to realise we overachieved our goals:
1) the order’s processing time was shortened to 4 days
2) the number of overdue orders was lowered to 8%
3) the quantity of work in progress and storage volume were lowered by 27%
Thanks to the above changes the company earned 1 225 000 within a year.