The project aimed at reinforce the client improvement programme. Together with the new foundation for continuous improvements were laid resulting in a clear company culture and a functioning Management Control System.
The Group, with close to 2,200 employees in about 30 countries, organises operations on the basis of two product divisions.
A Swedish production unit had in place a continuous improvement programme, but progress was unacceptably slow. It was in need of a new organisation to clarify roles and responsibilities, and a new management control system designed to focus on production control.
As a result of conducting an implementation project with Mantec, a number of significant changes were made to the structure, operations and culture of the unit:
Structurally, a completely revised organisation enabled
- improved emphasis on first line management, production engineering and materials management;
- new internal logistics. This included lane thinking which made possible a large reduction in transport distances;
- a new location for the main assembly material warehouse;
- new location for final assembly for smaller units;
- a new office layout which required less space; and
- job descriptions for all employees.
Operations were strengthened to include
- a redesigned management control system, from Top Management team meetings down to the production floor;
- a basic set of KPIs for productivity, quality and delivery precision;
- morning meetings based around production information boards, to facilitate daily production monitoring and corrective actions;
- production set-up changes for sheet metal and parts production; and
- insourcing some product models to enable higher volume throughput in the assembly areas.
The working culture of the unit was improved in particular by instituting Kan Ban thinking (a central element of lean manufacturing) and enhanced internal planning. As a result, and also through management training and leadership development, production management teams with supervisors, production engineers and material planners/handlers started to really work tightly together.
The main benefits to the client of the successful implementation of the project were:
- 25% personnel reduction
- productivity increase of approximately 15%
- clarified and developed company culture.