Operational Diagnostic and Lean Six Sigma Recommendations Project Cash Savings and Increased On Time Deliveries

Leveraging TriVista’s Lean Six Sigma and operations experience, the client was able to increase On-time deliveries, decrease outsourcing, and stabilize production scheduling at its facility in China.

The Challenge

A $25 million, privately owned, U.S.-based cosmetics packaging manufacturer was facing production management issues at one of its manufacturing facilities in China.  While aggressive marketing and successful product line expansion had generated a large increase in sales, its existing production management systems could not cope with the increased capacity, resulting in delayed orders and dissatisfied customers. Without an ERP System and robust standard operating procedures, the company spent the majority of its daily efforts putting out fires and expediting orders. This led to increased overtime for direct labor and decreased margins on staple product lines. Rapidly approaching a tipping point, the company turned to TriVista for operational expertise.

Our Approach

TriVista utilized a two phase approach that included an operational diagnostic as well as an implementation strategy to develop and formally train resources with the new operational tools.
In Phase I, TriVista conducted an Operational Diagnostic to identify the root causes of the existing production management system and any operational improvement opportunities. With certified Lean and Six Sigma subject matter experts leading the diagnostic, TriVista utilized its deep experience in developing value stream maps and wasted movement diagrams to organize the existing process and detect gaps and bottlenecks in production. This, in combination with key management interviews and direct labor feedback, allowed TriVista to quickly and efficiently assess the overall system and conceptualize improvement solutions.

With the knowledge of Phase I in hand, TriVista partnered with the client to design and implement several foundational operational improvements that would provide the greatest impact on the company’s operations in the shortest amount of time. Aligning to the DMAIC process, TriVista developed a customized, central production planning system to train and empower facility management to take control of production scheduling. In conjunction with the system, assembly lines on the factory floor were redesigned and balanced according to Lean principles to support single piece flow. Baseline metrics including Key Performance Indicators allowed management to grade.