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Case Study

Value Stream Mapping (VSM) exercise on a manufacturing and assembly process delivering in-excess of £2Mn annual savings.

Working with our clients’ Chinese supplier manufacturing and assembling complex electrical-mechanical devices we conducted a Value Stream Map (VSM) exercise to identify opportunities to reduce the cost of the supplied product.  We then support the client at the supplier in the delivery of these savings.

Key achievements

 

  • In excess of £2Mn annual saving on the costs of goods.
  • Additional savings expected following further supplier visits (currently curtailed by COVID19)

Supplier Management

  • Worked closely with our client’s procurement team in delivering the process improvements and cost reductions.
  • Worked closely with our client’s supplier,  to establish an accurate VSM and to identify and implement the opportunities.

Operational Excellence

  • Conducted VSM exercise on Chinese supplier
  • Defined and mapped the current state of the manufacturing and assembly lines
  • Identified opportunities through a number of activities:
    • Process change
    • Late configuration – reduction in SKU’s
    • Line balancing
    • Pull systems
    • SMED
    • Waste material recycling
    • Automation
  • The financial impact of each opportunity was estimated and then prioritised
  • Over £2Mn of savings have already been implemented with further opportunities to be realised once COVID restrictions are lifted.