Paints & Coatings Manufacturer Increases
About the opportunity
The client is a manufacturer of protective paints and coatings for home and industrial use. The client’s paint products experienced significant demand growth because of increased home repairs due to the COVID-19 pandemic lockdowns. A brand-new high-speed bottling line was being put in place as a response to significant growth.
• The equipment downtime was significantly affecting orders
• Paint batches were being scrapped or reworked. This cost hundreds of thousands of dollars.
• There were delays to orders from the warehouse.
Phase 1 – We focused on reducing changeover times. Broke down the different types of changeovers, eliminated wasted activities, documented the best sequence, methods and staffing for each piece of equipment.
Phase 2 – We tackled the quality issues and the equipment downtime in the milling department. We developed a tool for identifying the correct wash cycle for equipment to eliminate cross-contamination. In addition, we documented standard work for the paint-making process. The variability between workers caused a significant amount of rework and scrap. Concurrently, we completed an assessment of the milling equipment and identified critical and vulnerable equipment. We then proceeded to roll out a preventive maintenance program to reduce interruptions.
Phase 3 – We analyzed the order picking process at the warehouse. We identified several reasons for the delays and eliminated them by re-arranging high-demand inventory for closer access, improved visuals to facilitate location and access, eliminated wasted motion to pick materials, and identified excess and obsolete inventory and removed it to open needed space. Finally, we developed standard work for all warehouse tasks to reduce variation and errors.
• Changeover time reduction of 47% (This added US$1MM in additional bottling throughput)
• Increased first pass yield by 12%
• Reduction in scrap by 60% (savings of US$138,000)
• Increased efficiency at the milling department by 10%
We have developed and used a proven approach to ensure manufacturers achieve and sustain significant performance improvement. Our consultants have over 15 years of experience working with manufacturers and developing their capabilities.