Case Study
Continuous Improvement in MotionApplication of continuous improvement techniques to improve organizational performance.
Intro
How We Increased Heavy Equipment Manufacturing Output
- The demand for heavy equipment units has skyrocketed. Current manufacturing capacity cannot meet demand with lead times stretching out 12+ months. Current manufacturing completions suggest cycle times of 246 hrs. per unit or 13 units per year. Sales demand indicates a need to manufacture 31+ units per year. This would equal a future state takt time of 103 hrs. per unit.
- The business has identified the heavy equipment product line as a significant growth opportunity globally. The proposed takt time improvement would result in significant revenue and gross profit increases.
![Heavy Equipment](https://i0.wp.com/theleanforward.com/wp-content/uploads/2023/09/Heavy-Equipment.jpeg?resize=1080%2C720&ssl=1)
Details
Taking Industrial Heavy Equipment Manufacturing To The Next Level
Challenge
- Perform Current State Value Stream Map
- Ideation/kaizen opportunity Identification
- Perform Future State Value Stream Map
- Action List Completed with Deliverables, Action Leaders and Completion Dates Clearly Defined and Documented.
Solution
- Eliminated bottleneck in main welding by outsourcing engine enclosure. Relocated welders to bottlenecked chassis welding.
- Eliminated bottleneck in Final Assembly by relocating over-staffed 3rd shift Sub-component Assembly (4 FTEs) to Final Assemby. Balanced tasks from Final to Sub (wiring, pumps, hydraulic hoses, electrical
panel) to fill sub-assembly capacity.
Annual Revenue Increase
$13.5M
Annual GP Increase
$4.6M
On-time Delivery
95%
Initiation to Completion
8 Weeks
Testimonial
I am pleased to share my outstanding experience with Lean Forward – Continuous Improvement and its remarkable owner and operator, Wes Hehn. As the Chief Operating Officer of Pioneer Metal Finishing, I have had the privilege of working with Wes for over a decade on various operational challenges, and his expertise has consistently proven invaluable.
Recently, Pioneer Metal Finishing faced a significant operational dilemma at one of our facilities. We were grappling with the decision of whether to invest over $1M USD in expanding our building to meet growing product demands or explore alternative solutions. Aware of Wes Hehn’s exceptional track record in operational excellence, I reached out to him once again for guidance.
Wes promptly engaged with my team, assessing the situation and formulating a comprehensive charter that outlined the project’s challenges and requirements. His hands-on approach and commitment to the project set the tone for what proved to be a transformative journey. Wes didn’t just act as a consultant; he became an integral part of our team.
Visiting our facilities multiple times, Wes took on the role of coach and mentor, imparting Lean Principles to our team. His past operational experiences allowed him to seamlessly connect with our workforce, offering support and guidance when challenges arose. Wes’ unique ability to bridge the gap between theory and practical application made him more than just a consultant – he became a trusted team member.
Under Wes’ guidance, we decided to pursue a Lean approach, implementing 5S methodologies and conducting a Value Stream Map analysis. The result was a reshaped workflow that not only avoided the costly expansion but also exceeded our initial goals set forth in the project charter. Wes’ expertise and collaborative approach played a pivotal role in achieving these remarkable outcomes.
Given the success of our collaboration, I am currently engaging Wes again to drive process efficiencies at another Pioneer Metal location. I am confident that his skillset and dedication will yield similar, if not greater, results. My intention is to continue leveraging Wes Hehn’s expertise for as long as possible, knowing that his contributions will continue to positively impact our operational success. Lean Forward and Wes Hehn have proven to be an indispensable asset in our pursuit of excellence.
Kyle Uptmor
Chief Operations Officer
Pioneer Metal Finishing