Executive Summary
*Names of companies and people have been redacted to protect their privacy*
A mid-sized manufacturing in Connecticut faced a significant bottleneck in their largest department caused by redundant inspection protocols that throttled production speeds. By utilizing Lean Six Sigma methodologies to validate process capabilities and implement automated routing, the team successfully transitioned to a “finish off the seamer” workflow. This strategic operational shift resulted in a 40% process improvement, unlocked a 2:1 labor savings, and delivered over $87,000 in annualized cost reductions.
Introduction
In the competitive world of packaging and labeling, operational efficiency is the dividing line between profitability and stagnation. Our customer operates a complex production floor, managing high-velocity orders for diverse SKUs. Within their “Wide Web Finish” department, the demand for Shrink Sleeve products was outpacing the department’s ability to clear the line, despite having high-speed equipment available.
Facing pressure to improve On-Time Delivery (OTD) and reduce labor variances, the continuous improvement leadership team initiated a Green Belt project. Their objective was clear: identify the root causes of production latency and re-engineer the value stream to maximize the potential of their existing assets.
The Problem
The Shrink Sleeve department operated with a mix of Seamers and Inspectors, supported by operators across three shifts. While the machinery was capable, the workflow was fundamentally flawed due to a specific bottleneck: the Inspection stage.
The disparity in machine speed was drastic:
- Seamer Speed: 235 meters per minute
- Inspector Speed: 100 meters per minute
Despite the Seamers’ high-speed capacity, the standard operating procedure mandated that 100% of the product flow through the slower Inspection stage before shipping. This effectively capped the department’s throughput at the speed of the slowest machine. Furthermore, the setup required for inspection added non-value-added time (waste) to every run. The reliance on downstream inspection rather than in-process quality assurance created a labor-intensive, inefficient process that stifled productivity.
The Solution
To address these challenges, the customer’s CI team, led by Green Belt Project Lead, deployed a structured PDCA (Plan-Do-Check-Act) approach. The solution focused on eliminating the inspection step for qualified products—a strategy known as “finishing off the seamer.”
The implementation followed a rigorous Lean framework:
- Data Collection & Root Cause Analysis: The team utilized 5 Whys and Fishbone diagrams to confirm that 100% inspection was a legacy protocol rather than a quality necessity for all SKUs. They gathered defect rate data to establish a baseline for risk assessment.
- Process Mapping & Automation: Working with their Label Traxx system, the team established automated routing based on order size and complexity. This ensured that only high-risk orders were routed to the Inspector, while standard orders could bypass the bottleneck.
- Standard Work & Training: To ensure quality was maintained without the safety net of 100% inspection, the team developed new Standard Work protocols. This included cross-training operators to perform QC checks directly at the Seamer and implementing “finish off the seamer” procedures.
- Risk Assessment: A thorough risk assessment was conducted to validate that bypassing the dedicated inspection stage would not compromise the defect rate delivered to the customer.
Result
The implementation of the “finish off the seamer” workflow delivered immediate and quantifiable business impact, validating the ROI of the Lean initiative.
By removing the inspection bottleneck for qualified SKUs, our customer achieved:
- 40% Improvement in Process Efficiency: The department significantly increased throughput by running product at the Seamer’s speed (235 m/min) rather than the Inspector’s speed (100 m/min).
- Financial Impact: The project saved 362.63 hours of labor Year-To-Date, translating to $29,010.40 in immediate savings and an annualized saving of $87,031.20.
- Labor Optimization: The new process realized a two-to-one labor savings, allowing the company to reallocate resources to other value streams.
- Operational Excellence: The facility saw improved On-Time Delivery (OTD) metrics and a reduction in waste associated with setting up the inspection line.
Conclusion
Our customer’s case study demonstrates that significant capacity often lies hidden within existing processes, masked by redundant workflows. By challenging the status quo of 100% inspection and leveraging data to support risk-based decision-making, the team not only removed a bottleneck but fundamentally improved the department’s profitability.
This success has set a precedent at our customer. The “finish off the seamer” methodology is now being evaluated for rollout across other customers in their value stream, as well as the Pressure Sensitive (PS) die-cut value stream.
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