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Improving Profitability in Manufacturing


Manufacturing has become even more competitive with competition offering quality products at lesser cost.  Increased cost of raw material and higher cost to retain talent has put lof pressure on margins.  In order to stay profitable, companies have look at entire value chain and use multiple improvement methodologies.  A manufacturer company was finding itself becoming unprofitable as the cost of operations continued to spiral upwards.  Since the delivery of quality part was very critical, each and every part was QC’ed. The manufacturer had to engage experts in one of its production facilities in order to help improve its profitability. The mandate given was that cost of quality be reduced to bring down pressure on margins and further reduce defects to help build client confidence and manufacturer come out as world class supplier.

We helped manufacturer implement multiple methodologies to bring improvement including 5S, SMED and Lean manufacturing.  Apart from this key members of manufacturers quality team were trained on Six Sigma concepts.  Further analysis on inputs using six sigma concepts helped reduce process variation and improve process capability and predictability.  This thus allowed to reduce the sample that needed to be audited and reduce the overall cost of quality.  Apart from this production planning tools were created and implemented to optimize the flow.

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