Recent Case Studies

Flow Consulting Assessment and Intervention Case Studies

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Business Issue (Behavioral Lean Safety): Maintain a sustainable competitive advantage by creating an industry-leading behavior-based safety (BBS) program.
(Feb. 2013)

One of North America's largest industrial scaffolding service providers was looking for a way to maintain a sustainable competitive advantage by creating an industry-leading behavior-based safety (BBS) program. Previous BBS efforts had resulted in improvement but lacked full behavioral anchoring; the results had been consistent across work sites and improvement was leveling off.

Approach Used by Flow Consulting:

Flow Consulting collaborated with the company to develop a unique Behavioral Lean Sigma program to strengthen the existing BBS program, ensure sustainability of gains and to continually improve safety performance. The program is unique in that it provides a methodology for company leaders to understand why people are, or are not following safety procedures and what to do about it.

Lean practitioners who are familiar with the classic DMAIC (Define, Measure, Analyze, Improve, Control) process improvement cycle all agree that the final element — Control — is one of the most difficult to attain. Control requires that the process improvement initiative survive the test of time and become a sustainable habit. Behavioral Lean Sigma employs the tenants of Applied Behavioral Science to create "want to" rather than "have to" behaviors to ensure sustainability.

Flow Consulting rolled out the program first to the company President and all the Vice-Presidents to help ground them in Behavioral Lean Sigma techniques. Flow then took the program to the field and helped to establish a team of Safety Champions representing a cross section of field leaders from across the company. The Safety Champions participated in a 2 day working session to both learn Behavioral Lean Sigma techniques and simultaneously apply them to the real-time safety challenge facing them. All went to worksites to observe current practices and to test drive new intervention and safety coaching techniques.

As the team progressed through the DMAIC phases of our customized Behavioral Lean Sigma program the existing system and results were analyzed; the program was behaviorally anchored, refined and field piloted to test improvements. In addition to the training, Flow Consulting provided extensive on-site mentoring by participating in field visits with the Safety Champions to roll out the new program and to ensure knowledge transfer.

Results:

The new safety approach facilitated by Flow has resulted in a 30% improvement in overall safety metrics for the company to date and the trend is continuing to improve.

Business Issue: High-end electronics assembly product line experiencing long lead times, poor delivery performance, and high labor costs.
(Oct. 2012)

A Fortune 50 manufacturer of high-end electronic products was experiencing chaos on a critical product set. Evidence of the chaos included the following;

• Low first time yield
• Long and unpredictable lead times
• Poor delivery performance
• High labor costs
• Disappointed customers, both internal and external

This is a critical product line for the company, as it is the major supplier to the integration assembly process that follows this step in the overall process.

Approach Used by Flow Consulting:

Flow Consulting collaborated with the company to develop a unique Lean Sigma Green Belt training/mentoring program. The program is unique in that the class attacked an entire Value Stream, rather than a series of point projects. Flow customized the curriculum to cover topics very specific to the needs of the company and the Value Stream.

The class of 24 Green Belt candidates were divided into coordinated sub-projects, focused on the product line; the Front End (Capacity Management, Executable Orders), the Middle (Kitting through Pre-Test), and the Back end (Test through Shipment).

This was an expanded Green Belt course, taught in four three-day sessions across four months. In addition to the training, Flow Consulting provided extensive on-site mentoring between the training sessions, to ensure success and knowledge transfer. In support of this effort, Flow Consulting also trained ~120 leaders across the business, as most resistance to moving to a lean process comes from middle management.

The teams progressed through the DMAIC phases of Flows LeanSigma methodology. In just five months, entirely new physical and business processes were developed and put in place, from Order Drop to Shipping. Trials were conducted, cultural and leadership issues were addressed, and staffing and support levels were modified to match the product Value Stream. The product line was fully implemented, stabilized and measured.

the Impressive Results:

NOTE: In short, the product line is moving twice as fast, in a third less space, at half the cost.

This Green Belt effort was the second 'wave' to attack significant opportunities at the company. The first wave approached a slightly smaller Value Stream, with equivalent results. In 2013, the company has asked Flow to deliver the 3rd wave of GB trainees, and to develop 5 Black Belts.

Business Issue: Assimilated acquisition had long lead times, poor delivery performance, and high labor costs.
(May 2012)

A Fortune 50 manufacturer of high-end electronic storage solutions was assimilating a recent acquisition, and had transferred the product into their existing production footprint. The product line had first time yields of less than 20%, long lead times, poor delivery performance, and high labor costs. This is a strategic, growing product line for the company. As a result of the poor performance, the Business Product Team was considering moving the assembly area out of the current manufacturing location. In parallel, the company was considering different approaches to incorporate Lean Manufacturing. Some personnel had received on-line training, but the skills did not translate to the needed improvement on the product line.

Approach Used by Flow Consulting:

The 20 Green Belt candidates were divided into coordinated sub-projects, focused on the product line; quality, takt time/flow, and material preparation/delivery. The course was taught in four three-day sessions across four months. In addition to the training, Flow Consulting provided extensive on-site mentoring between the training sessions, to ensure success and knowledge transfer.

The teams progressed through the DMAIC phases of our customized LeanSigma methodology. Over five months, entirely new physical and business processes were developed and put in place, from Order Drop to Shipping. Trials were conducted, cultural and leadership issues were addressed, and staffing and support levels were modified to match the product Value Stream. The product line was fully implemented, stabilized and measured.

the Impressive Results:

• First time yield tripled within 2 weeks
• Labor requirements, including overhead, decreased by 40%
• Daily output moved from 12 units per day to 22 units, an 80% increase
• Cycle Time decreased by 30%, cycle time variation reduced 50%
• Material kitting time reduced by 50%
• Test cabling time (changeover) reduced by 75%

NOTE: As a direct result of Flow’s collaboration and unique approach, the product line is significantly better, faster, cheaper and more predictable. The company has asked Flow to repeat the process on a more complex, higher mix product line. Green Belt Wave 2, again with 3 project teams, is currently underway.

Business Issue: Roll up of companies had failed to yield cost savings.
(March 2012)

A mid-sized home-delivery provider of specialty consumer goods had acquired several businesses in adjacent markets resulting in multiple operations with degrees of overlap. The parent desired to have all its operations integrated and excess assets and personnel rationalized. The mandate was to complete analysis and planning within four weeks, begin implementation immediately after, and to take immediate action where indicated.

Approach Used by Flow Consulting:

Matt Stevens worked with the CEO, CFO, and COO to identify all areas of spending, operational overlaps, and outside forces that affect location decisions. He led the data gathering, organization and analysis, and designed a full-day rationalization planning meeting. Facilitating the leaders and other key players from finance, marketing, and operations. Matt helped the group to isolate all potential savings from rationalizing redundant locations and activities. Following the structure and leadership provided by Flow Consulting, the team worked through the support requirements and determined what additional analysis was needed for further savings.

Results:

• The team identified savings representing a 2% positive impact to EBITDA.
• A rapid-response integration plan positioned the team to implement in half the time of initial team and leadership expectations.

Business Issue: Labor, cycle time, inventory, delivery issues addressed.
(Feb. 2012)

One of the leading providers of fireplace hearths and woodstoves in America and Canada was experiencing significant issues with labor efficiencies, cycle time, inventory, and customer deliveries to promise.

Approach Used by Flow Consulting:

Flow Consulting's Robert LaVigne (with deep expertise as lean operating executive) was retained as the senior interim operating executive. He performed a rapid assessment to determine the key causes for the issues most affecting customers and profitability. He worked with his peers and the CEO to develop a strategic plan to implement a Sales and Operations Planning process, and moved offshore production back to the U.S. to fill internal capacity.

In addition, Robert led exhaustive time studies of each product line and implemented one-piece flow in every assembly line. He then introduced Key Performance Indicators (KPIs) to the shop floor and worked with the shop to monitor and respond to issues based on the KPIs.

Results:

Major improvements within 8 months:

• Lost-time accidents and OSHA “recordables” reduced by 90 percent.
• Raw material inventory reduction was reduced by 40 percent.
• Plant wide labor efficiency increase from 55 percent to 90 percent.
• EBITDA year over year performance increased by 209 percent.
• On-time delivery improved from less than 30 percent to more than 85 percent.

Business Issue: Severe supply and inventory issues (Jan. 2012)

A medium-sized international consumer products company had outgrown its homegrown Supply Chain Management system and was experiencing severe supply and inventory issues.

Approach Used by Flow Consulting:

Flow Consulting performed a comprehensive baseline analysis to develop an improvement strategy. Flow consultant Jeff Brown gathered an international team to analyze the current situation and to develop a future state plan to fully use the capability of an installed, but unused ERP system.

Results:

The immediate impact improved the inventory accuracy from low 80 percent to more than 98 percent allowing more efficient production planning and raw material ordering. Over a three month period, the sales orders, inventory levels, and production plan were tied together allowing a shift to Make-To-Order operation for all main products. Inventory levels were reduced by 31 percent based on actual sales with an end goal of 40 percent. Lead times were improved by 25 percent. Model changeover obsolescence was reduced by more than 70 percent. As importantly, the cooperation of all parties in the supply chain improved remarkably as a single, visible and properly coordinated plan competently directed the operations.