Process optimization to increase production capacity

Initial Situation: The client was facing major delivery issues, primarily due to an extremely aggressive transfer plan and an overly slow learning curve. Despite significant investments in both equipment and human resources, delivery performance showed no signs of improvement, with delay penalties exceeding one million euros per day. After more than six months of ongoing support from the corporate group, the client decided to seek external consulting (EFFECTIVE FLUX) to help increase production output and recover accumulated delays.

Activities Performed:

1. Analysis of the current situation and creation of the Current State VSM
2. Identification, prioritization, and immediate launch of urgent actions—under the directive of the corporation’s president stating that we had hours, not days or weeks, to act:

   - Improving communication and addressing grey areas between departments (planning, logistics, production, engineering, maintenance)
   - Optimization and implementation of shop floor management at level 1 and 2 (performance measurement, personnel involvement, process improvement activities, training and increasing flexibility of direct labor)
   - Reducing quality issues by extending the traceability system (poka‑yoke) across multiple processes and manufacturing areas
   - Increasing equipment effectiveness (OEE) by reducing unplanned downtime (equipment failures, setup/changeover times, material discrepancies, etc.) and optimizing planning
   - Increasing production line productivity by optimizing programs, standardizing process parameters, and balancing the production line
   - Training personnel on critical topics (first line management, SMED, TPM, spare parts stock optimization/forecasting) and providing coaching during implementation

Results: After three months of running the consulting project, the following improvements were achieved

1. Changeover time was reduced by 70%

2. The backlog (equivalent to approximately 3 weeks of production) was fully recovered, and additionally, safety stalls were built (equivalent to approximately 2 weeks of production)
3. Production output doubled, and OEE increased by 100%. At this point, the company is even discussing either returning to a 3‑shift schedule instead of the previous 4 shifts or shutting down / preserving 20% of its production capacity.

Note: The increase in production capacity did not require investments in new equipment.