Client Success Story: Fortune 100 Energy Infrastructure Provider Lean Action Workout – Kaizen Blitz dramatically improves large DC performance

Company Overview This case study outlines LEGACY’s work with a Fortune 100 energy infrastructure provider. This company has global teams designing technology solutions for the transmission, distribution, management, conversion and optimization of electrical power across multiple energy-intensive industries. They bring in over a billion dollars in revenue in over 20+ countries each year.

The Challenge: Issues with safety, quality and efficiency within pick and consolidation processes.

Specific Challenges:

• Significant safety issues within the facility due to layout, flow of work and PIT travel paths • Expanding consolidation footprint to handle batch and queue pick work • Excessive time spent matching product within orders due to significant travel waste • Unbalanced work levels between pick and consolidation processes

The Solution: LEGACY conducted Kaizen Blitz as part of a Lean Action Workout, which was two weeks of intense focus on safety, quality, delivery, and cost for pick and consolidation processes corporate, regional, operational, associate and partner representation.

• Surfaced and eliminated traffic and back safety issues with workstation redesign, re-layout and visual management and 5S techniques • Error-proofed overflow locations to remove risk of lost material • Improved prioritization of critical work through redesign of dispatch work • Improved efficiency by reducing travel waste and installing visual levers for correctly flexing resources • Improved space utilization by creating a crisis – removing 70% of existing staging area • Developed and implemented continued learning program to ensure adoption of programs- including clear SOP documentation, individual scorecard tracking and performance management to designated productivity, safety and efficiency KPIs

The Results:

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BEFORE AFTER

The Results: As a result of this Kaizen Blitz, efficiency was drastically improved.

Results:

• Zero reported OSHA recordable incidents since Kaizen Blitz • Reduced PPM below target of 450 • Sustained Rate of 363.73 through 16 weeks post-Kaizen Blitz • Established and met target of 1300 lines processed per day • Efficiency gains resulting in savings of $83,654 per annum for the operation • Reclaimed 5,292 square feet of space in the consolidation processing area

“The LEGACY team conducted Kaizen Blitz as part of a Lean Action Workout and we were proud to see efficiency gains in productivity and safety resulting in significant annual savings.” -LEGACY Lean and Quality Team

Visit LEGACYscs.com to find out more about improving your supply chain efficiency.

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YTD Avg PPM

31-M

ar

100

0

200

300

400

500

600

700

7-Ap

r

14-A

pr

21-A

pr

28-A

pr

5-M

ay

12-M

ay

19-M

ay

26-M

ay

2-Ju

n

16-J

un

23-J

un

30-J

un

7-Ju

l

14-J

ul

21-J

ul

28-J

ul

580

573

382

286

341 334336

350 360367

450

367

374 378 380 354 371384

387

Target PPM YTD Avg PPM