A mid-sized manufacturing company faced declining margins due to excessive material waste, long changeover times, rework, and inefficient workflow. A Lean Six Sigma improvement project was launched to identify losses, eliminate non-value-added activities, standardize processes, and improve Overall Equipment Effectiveness (OEE). Within 16 weeks, the project delivered significant improvements in productivity, quality, and profitability while requiring minimal capital investment.
Key Challenges
- High material scrap
- Long machine setup time
- Frequent rework
- Low OEE
- Excess WIP inventory
Project Results
| Metric | Before | After | Improvement |
| Material Scrap | 8.2% | 3.1% | 62% ↓ |
| Setup Time | 95 min | 48 min | 49% ↓ |
| OEE | 61% | 79% | 18 pts ↑ |
| FPY | 89% | 97% | 9% ↑ |
| Monthly Margin | 12% | 18% | 6 pts ↑ |
Before vs After Snapshot
Before: Reactive firefighting, high losses, delayed deliveries, inconsistent quality.
After: Standardized work, visual management, reduced waste, improved flow, higher customer satisfaction.
Business Impact
- Annual cost savings: ~$450,000
• Production capacity increased by 22%
• Customer complaints reduced by 55%
• Payback period: Less than 4 months