Optimizing Layout and Process Redesign to maximise efficiency

Proval Consulting > Operational Consulting > Optimizing Layout and Process Redesign to maximise efficiency

Client Background

Our client, a leading manufacturer of custom-engineered components, was facing significant operational inefficiencies across their production lines. The client ran two major product lines, Product Line 1 and Product Line 2, on the same production floor. However, the layout and workflow between these lines were unbalanced, leading to major issues that were negatively impacting productivity, timelines, and costs.

Key Issues

  1. Missing Parts: The production team frequently experienced missing parts during critical stages, delaying the process and causing rework.
  2. Incorrect Part Storage: Raw materials and components were stored in disorganized locations, causing confusion and delays during production.
  3. Waiting Time for Raw Materials: Extended wait times for raw materials frequently halted production, slowing down the entire value stream.
  4. Rework: Inconsistent processes between Product Line 1 and Product Line 2 often resulted in defective products, requiring additional work to correct issues.
  5. Unbalanced People and Material Movement: Employees were forced to move back and forth between the two production lines, with no clear flow or efficient layout, resulting in wasted time and energy.

These inefficiencies created a chaotic production environment, leading to missed deadlines, higher production costs, and decreased profitability. To address these issues, we proposed a detailed analysis and restructuring of the production floor through Value Stream Mapping and Layout Planning.

The Approach: Value Stream Mapping and Spaghetti Diagram Analysis

To better understand the root cause of the inefficiencies, we conducted a Value Stream Mapping (VSM) Exercise and created a Spaghetti Diagram to map the current movement of people and materials across the shop floor.

The Value Stream Map allowed us to visualize the entire production process, identifying bottlenecks, delays, and non-value-added activities across both product lines. This provided us with a detailed view of how raw materials flowed through the production lines and helped us pinpoint where time and resources were being wasted.

The Spaghetti Diagram further highlighted the disorganized movement of people and materials between the two lines. It revealed:

  • Excessive movement of workers between areas, leading to confusion and delays.
  • Disorganized storage of raw materials, with no clear system for managing inventory.
  • Raw materials and finished goods intersecting in chaotic ways, causing additional delays and confusion.
  • Areas of the production floor that were underutilized, while others were overcrowded.

These tools helped us not only identify inefficiencies but also laid the groundwork for a structured and efficient layout redesign.

Solution: Strategic Layout Redesign and Workflow Optimization

Armed with insights from the VSM and Spaghetti Diagram, we implemented a comprehensive layout redesign aimed at streamlining the production process, reducing wasted time, and balancing the movement of people and materials.

Key Actions Taken

  1. Reorganized Raw Material Storage: We relocated the storage of raw materials closer to the point of use, ensuring that materials were readily accessible during production, reducing the time spent retrieving components.
  2. Balanced Workflow Between Product Lines: The two product lines were realigned to ensure smoother, uninterrupted workflow. Employees no longer needed to cross paths or duplicate efforts between Product Line 1 and Product Line 2.
  3. Kanban Implementation for Raw Materials: We introduced a Kanban system to ensure that key components were always in stock. The system was designed to trigger automatic replenishment of inventory before shortages could occur, eliminating waiting times for raw materials.
  4. Dedicated People Flow and Material Paths: We redesigned the pathways for both employees and materials, creating separate, clearly defined routes to minimize unnecessary movement and confusion. This helped balance the workflow and made both product lines operate independently and efficiently.
  5. Improved Communication Between Departments: To ensure that all teams were on the same page, we introduced regular daily meetings to review production schedules, identify any potential issues early, and ensure clear communication across departments.
  6. Layout Adjustments for Common Areas: Common resources such as tools and equipment were strategically positioned between the two product lines, ensuring ease of access and better utilization.

Results: Improved Efficiency and Reduced Costs

The redesigned layout and optimized workflow produced significant improvements across the production floor:

  • Reduction in Waiting Time: The time spent waiting for raw materials was reduced by threefold, thanks to the Kanban system and optimized material flow.
  • Elimination of Missing Parts: The major issue of missing parts was completely resolved, as the Kanban system ensured materials were always available when needed.

Efficiency Boost: Operational efficiency increased from 37% to 75%, dramatically improving overall productivity and reducing the need for rework

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Project Details

  • Category: Operational Consulting
  • Client: A manufacturing company with two intertwined product lines.
  • Location: U.S.A
  • Challenge: Excessive people and material movement, causing delays and confusion on the shop floor.
  • Objective: Redesign the production layout to optimize material flow and improve efficiency between product lines.