Executive summary
Facing rising material costs, a leading high-volume manufacturer struggled with a 5.38% material spoilage rate caused by data misalignment and operational overconsumption. By partnering with Impruver to implement a rigorous PDCA (Plan-Do-Check-Act) framework and standardize consumption metrics, the company realigned its job tickets with actual production needs. The initiative not only surpassed the initial reduction goal of 4.84% but ultimately drove waste down to 3.66%, fostering a culture of accountability and precision.
Introduction
In the high-stakes world of industrial manufacturing, material efficiency is the difference between a healthy margin and a financial bleed. For our customer, a prominent player in the packaging sector, managing material consumption across multiple production lines is a complex logistical challenge.
Despite having robust production capabilities, the organization faced a disconnect between their planning data and the reality on the shop floor. The Director of Continuous Improvement identified that while throughput was high, material variance was eroding profitability. To drive operational excellence, the organization needed to move beyond simple “waste awareness” and implement a systemic, data-driven solution to root out the causes of overconsumption.
The Problem
Prior to the intervention, the client’s press department was operating with a calculated waste baseline of 5.38%, significantly higher than the industry standard for their specific output.
A deep-dive Root Cause Analysis (RCA) revealed several systemic failures contributing to this variance:
- Unjustified Overconsumption: There was a historical trend of operators on key production lines using more stock than allocated without clear justification or documentation.
- Data Disconnect: There was a critical misalignment between the job tickets and procurement data. The “Estimated Consumption,” “Set-up + Waste,” and “Over Run” calculations on tickets did not match the quantities ordered by supply chain teams.
- Inaccurate File Plans: The specific file plans generated for each form did not “true-up” to the job ticket quantities, creating confusion for operators regarding how much material they were actually allowed to use.
- Lack of Recourse: When an operator exceeded the allocated stock, there was no escalation procedure or validation sign-off required, allowing the waste to go unchecked.
Essentially, the “standard work” for material usage was ill-defined, leaving operators to guess the correct parameters.
The Solution
To address these root causes, the client utilized our structured Lean Six Sigma methodology to execute a comprehensive Lean project using Impruver. The solution focused on closing the gap between the digital plan (ERP/Job Ticket) and physical execution.
Phase 1: Planning and Containment
The team utilized a PDCA cycle to stabilize the process. Initial containment actions included:
- Establishing a firm baseline at 5.38%.
- Generating daily clocking and waste reports to visualize the data immediately.
- Implementing waste carts on the press floor to physically segregate and measure spoilage in real-time.
Phase 2: Standardization and Systems Alignment
The core of the solution involved realigning the enterprise data. The team performed a “deep dive” into the file plan material allocation versus the job ticket estimates.
- Parameter Adjustment: Setup waste allowances were systematically adjusted down for specific high-volume lines based on historical capability data rather than arbitrary buffers.
- Verification Protocols: A new verification step was introduced for order quantities determined by the Supply Chain, decreasing the opportunity for ordering errors.
Phase 3: Culture and Training
Process changes only stick if the people adopt them. The customer used Impruver Lean Management Software for:
- Operator Training: Comprehensive training on proper clocking procedures and waste tracking.
- Enterprise System Training: Specific modules on the ERP system (Label Traxx) and Print OS were introduced to ensure supervisors and operators understood how to read and input data correctly.
- Escalation Procedures: A new protocol was instituted requiring validation and sign-off for any over-consumption, ensuring accountability.
Result
The application of these countermeasures yielded immediate and sustained quantifiable impact. By shifting from reactive waste tracking to proactive data alignment, the client achieved significant operational improvements.
- Surpassed Targets: The project aimed for a monthly goal of 4.84%. Through rigorous adjustment of file plans and operator training, the team first stabilized at 5.26%, then dropped to 4.76%, and finally achieved an impressive 3.66% waste rate on optimized lines.
- Standardized Efficiency: The adjustments to setup waste parameters on key production lines resulted in consistent material savings without impacting delivery times.
- Cultural Shift: The implementation of “One Point Lessons” (OPL) on the gap between File Plans and Job Tickets empowered operators to understand the financial impact of their setup choices, bridging the gap between the shop floor and management.
As the Lead CI Manager noted during the project close-out, aligning the print file counts with job ticket counts eliminated the “gray area” that allowed waste to hide, effectively decreasing overconsumption permanently.
Conclusion
This case study demonstrates that significant ROI in Continuous Improvement often lies in the details of data alignment and standard work. By diagnosing the disconnect between planning and execution, our client not only reduced material costs but also empowered their leadership to drive operational excellence with accurate data.
Sustaining these gains requires constant vigilance and the right tools. To ensure these new standards are maintained, the next phase involves automating the reporting of these metrics to free up leadership to focus on strategy rather than administration.
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