Situation: DDR East was unable to keep up with demand in their engine block preparation area. They were remanufacturing an average of 13.2 engine blocks per day, less than half the customer demand of 30 units. To make up the difference, employees worked overtime and new engine blocks were supplemented into the production line. This had a negative impact on the bottom line.
Project: Detroit Diesel partnered with TechSolve to facilitate a value stream mapping event on the block prep area. The goal was to identify opportunities for improvement that would reduce overtime and eliminate dependency on new engine blocks.
After training in lean principles and value stream mapping, the team noticed that inventory levels were not consistent between cells. To better understand their capacity based on current demand, the team completed the current state map and conducted a capacity analysis in each cell in the value stream. Next, they brainstormed areas for improvement, choosing to focus on five main areas: Kanban, Welding Area, Overall flow, CNC Area Improvements and Inspection Process. An implementation plan was also generated.
Results:
- Developed a future state value stream map that will allow the block prep area to produce 30 blocks a day without dependence on new engine blocks.
- Reduced lead time by 50%.
- Avoided additional investments of more than $2 million.
TESTIMONIAL: “TechSolve has been a huge benefit to Detroit Diesel with the training, flexibility and expertise in various fields in order to decrease costs, become more efficient, reduce cycle times and also in training associates for future projects.”
– Greg Forshey, Lean Coordinator