A local structural steel fabrication company wanted to increase production in their welding shop. This company solicited the help of an outside (consulting) Lean Expert for over six months to initiate Lean thinking, introduce Lean tools, and implement changes required to remove waste in their processes.
As a result, the steel manufacturing company experienced several significant benefits without adding extra resources:
- Increased production flow in welding shop by 50%, from 32 assemblies per day to 48 assemblies per day
- Reduced work area by 25% (10,888 ft2 to 8,166 ft2), clearing square footage for future expansion
- Decreased lead time by 50% (from 8 days to 4 days)
- Increased revenue per hour by 55%
While the numbers speak for themselves, it is important to point out two things:
- Customers will receive their products faster
- The production facility will see higher profits
Lean implementation isn’t just about making more money, but it can be a motivating factor for business owners who are hesitant about adopting Lean. As this case study illustrates, when a company invests time and resources into their Lean journey, they see massive benefits they might not see otherwise.