Broad initiative around production and supply chain efficiency
Uddeholm works in the mechanical engineering industry and related services in more than 100 countries. Customers are mainly in the automotive, consumer products, aviation and electronics industries. Its operations are characterized by complex and advanced production processes, making production redesign difficult. High levels of tied up capital were Uddeholm’s main concern. Their order to delivery process was fluctuating, with a typical delivery performance of about 30%. Production capacity was considerably underutilized.
What we did.
We launched an urgent transition project to release tied-up capital by visualizing buffers and clarifying planning and control rules. We initiated and facilitated the progress, while Uddeholm took responsibility for implementing the necessary changes. This has been a long-term commitment for us. Deep internal involvement and mutual understanding are key success factors in change management projects such as this one.
The next step was the launch of a lean realization project in which we helped to develop a company-specific production system. This involved a step-wise development process where each step was concluded by an audit performed by an internal team of experts. This has entailed a functioning 5S system, standardized operations and systematic quality assurance processes. Uddeholm is now working independently towards full lean realization.
- Increased delivery precision from 30% to 85%
- 30% reduction in work-in-process (WIP)
- Consistent 3%-5% yearly productivity increase
- Reduction in throughput times from 42 to 19 days
- More than 600 employees trained in Lean Production
- Increased customer satisfaction according to yearly surveys