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Situation

After the successful automation and off-shoring of labour-intensive production activities from Denmark to Lithuania, Micro Matic sought to improve its internal quality and delivery performance in operations further. Although improvements had been made, an acceleration of further breakthroughs was needed to close gaps in internal First Pass Yield (FPY) and delivery performance for specific products. On a conceptual level, lean and improved robustness of certain component designs would be key levers.

Approach

Over a two-phased project, Valcon diagnosed and implemented concrete improvements and supported Micro Matic’s successful embarkment on a lean transformation.

In phase 1, Valcon conducted a 360-degree diagnostic covering end-to-end assembly processes for selected product lines, the as-is management infrastructures, quality management and new product introduction (NPI) processes. Additionally, product design issues were reviewed using Valcon’s Six Theta® methodology for design robustness. Main issues, root causes and key levers were identified based on structured problem-solving, and an improvement catalogue was developed to decide which improvements to implement based on impact potentials.

In phase 2, solutions were designed and implemented. A ‘lean lighthouse’ was established which introduced a new and significantly more efficient assembly layout based on line-balancing, standard work and optimised internal logistics and incoming goods processes. Furthermore, impacted leaders were coached in lean leadership, and performance management was implemented as a management tool for general transparency, target orientation and backbone for continuous improvement across the different levels of operations.

Results

The project resulted in significant business impacts in the selected focus areas:

  1. 4-10% FPY improvements
  2. Up to 10% better delivery performance (OTIF)
  3. Shorter lead time for deviation handling
  4. A smashing +50% productivity increase in the lighthouse assembly area

 

Additionally, the project established the future lean system and lean ambition for Micro Matic. The lean organisation has been defined, and Micro Matic is now embarking on continued roll-out and build-up of its lean culture.