Manufacturing
Presspart
Pressing Matters: Presspart’s Lean Workforce Drive Bottom Line Improvements
Background
Presspart in Blackburn is a wholly owned subsidiary of Heitkamp and Thumann, a leading global supplier of precision formed metal and plastic components. The Blackburn site produces precision drawn metal components for both Industrial and Pharmaceutical uses.
The Challenge
During the economic challenges towards the end of the first decade of the Millennium a brave decision was made to move away from its less profitable markets which represented 20% of business. This resulted in a reduction in the workforce and placed a greater focus on the needs to grow the industrial side of the business. In particular Presspart won significant volume contracts with a number of companies which were high volume – low margin contracts.
Wanting to successfully meet the demands of this new volume business without inflating labour costs, Presspart realised it was essential they improved productivity and reduced operating costs in order to remain competitive and boost profits.
The Solution
An extensive programme of workforce development was required which would unlock value and increase performance in a continuous and sustainable way.
CQM Training & Consultancy Ltd, a highly respected business improvement company, designed a structured Lean Development Programme encompassing all levels of the organisation, from the Shop floor to Senior Management. The training was underpinned by a respected and recognised qualification.
Participating members of the workforce were divided into teams; the ultimate objective of each team being to influence decision making, implement change, challenge behaviours and positively affect business performance.
Shop floor workers, under the guidance of Team Leaders, drew upon their detailed knowledge of the working environment to identify key issues impacting upon the efficient flow of production. These key issues became the focus of CQM T&C’s training and development programme.
CQM T&C coached and supported team members to expertly use Lean principles to analyse the issues for themselves, and were subsequently coached to use their initiative to formulate a real improvement and cost saving. Feedback from the teams to Senior Management revealed impressive cost savings along with significantly increased output.
“CQM T&C promised us a ‘Deep and Narrow’ implementation of Lean philosophy. Apart from the results speaking for themselves, we have transformed our operational performance and culture over the last 4 years with significant input from CQM T&C. We are hugely encouraged by the levels of sustainability that have been achieved and which continue.”
Recognition of Success
- The company now manufactures 100 million additional components annually without incurring an increase in the workforce
- 2 years into this programme of development the company has enjoyed highly significant increases in net profit
- Dramatic improvements in set up and change over times whilst also increasing customer service levels
- Significant percentage increase in OEE
- Reduction in WIP and finished goods coupled with enhanced delivery schedule adherence
- Increase in both capacity and workplace utilisation due to a reduction of required storage
- Despite reductions in WIP and stock, lead times have also been reduced
- Greatly improved communication and team work with Shop floor ownership of improvement processes
- There is a visible change in culture embedded across the entire workforce as a direct result of this programme
“Our method is to undertake a detailed analysis of the company’s current performance against recognised Lean/CI standards. We would then develop a programme of intervention with our client that is designed to deliver the specific improvements sought’. Peter emphasises ‘We would engage with all levels of a clients workforce to ensure that an approach of continuous sustainable improvement becomes second nature – resulting in those essential bottom line savings – banishing fire fighting and non-value added.”
Training Solution
CQM T&C coached and supported team members to expertly use Lean principles to analyse the issues for themselves, and were subsequently coached to use their initiative to formulate a real improvement and cost saving. Feedback from the teams to Senior Management revealed impressive cost savings along with significantly increased output.