Case Study: $106,971 Waste Material Reduction In 5 Months

You too can increase your personal value and save money for your company while you study Lean Six Sigma at your current location.

 

– No traveling to a training location.

– No accommodations required.

– Your boss does not miss out on your productivity.

– No expensive consultants getting in the way.

Background

One of my online Green Belt students, LS, entered my course end of January this year. He is working as a Lean specialist in an African affiliate of a Fortune 500 company with a HQ in Florida.

Although LS already had some background in Lean Manufacturing, he did not know Lean Six Sigma and definitely not the Herku Method (80/20 rule applied to Lean Six Sigma itself).

He enrolled to my Certification Program (see Option 2 at http://www.leansixsigmabelts.com/GreenBelt) and started his project together with studying the online training material.

The Problem

His project was about to reduce copper waste remainingon spools after the production of specific cables. LS measured: on average 26 kgs of copper per spool was scrapped.

This problem was present for a long time causing the company $138,000 each year due to high scrap. In addition to this material costs also handling costs are present.

The Solution

LS, following the Lean Six Sigma online Green Belt training, proceeded step-by-step towards the solution. After completion of each stage during the DMAIC roadmap (Define, Measure, Analyze, Improve and Control) he submitted his presentation material to me.

Once LS responded to me like this:

“I will tell you one thing that many were taught DMAIC but not the way you are doing it. Yours is practical unlike the theoretic one many did but has never brought out any fruits. I am so sure once am certified be least assured that at least 3 from the team will enroll. I intend to request my boss to recommend even to HQ in Miami so you could do it for others within our sister companies.”

After improving the measurement device (due to the Measure Phase) and identifying the main cause to high scrap (uncontrolled wiring of spools), LS has requested his manager to invest in an automatic stop switch.

The results

After installing the new digital scale and the automatic stop switch to avoid superfluous wires when producing the spools, LS was able to achieve a tremendous reduction of waste copper (see right part of the graph).

On average he reduced the copper waste by 88% from 26 kgs to 3 kgs per spool in 5 months!

After deducting the $6,000 and $997 from the gross annual savings, LSS has made a $100,000 savings for his company.

This savings is next year, the year after, and after… will amount $ 106,971 investments were already made.

Additional savings are 18 man-days per year due to less waiting and handling time by the operators.

You can achieve similar or even higher savings and improvements if you join now at

http://www.LeanSixSigmaBelts.com/GreenBelt

 

Warm regards,

Peter

PS: The ROI of this program in this particular case was 100 X the investment.

This company is planning to enroll 3 more students.

Number of seats are limited.

+31 55 737 00 02

+31 655 30 10 94

 

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