To cut costs, tire businesses must optimize all organizational and technological processes. Even ones as simple as the method of stacking tires in a vehicle or proper storage.
Looking for ways to optimize production, the major Japanese tire manufacturer often followed a top-down model, where costs are reduced by switching to cheaper contractors, increasing volumes and streamlining processes. When these avenues were exhausted, the company opted for a bottom-up model, where processes are optimized through employee engagement and manufacturing adjustments.
The customer was familiar with Lean manufacturing and was looking for someone who could conduct high-quality process analysis and train employees. The company turned to ICL Services for this purpose.
Key Challenges
- Implement Lean manufacturing and train employees.
Implemented our solution
The rollout was done in three stages.
The first step is to present the situation "as is." At this stage, 27 benchmarking instruments and some proprietary techniques were used. ICL Services experts toured the facility, took pictures of the work environment, and collected data on the work of the 3,500 employees.
Next, a map of value streams was made using VSM (Value Stream Mapping) methodology. It records how long each process takes down to the minute. In parallel, every employee movement was visualized via the Spaghetti tool. This approach allows us to find gaps in many areas and identify bottlenecks.
The second stage involved learning, analysis, and planning. ICL Services experts conducted staff training for the customer's employees and selected Lean champions, who could independently initiate and implement further changes.
During face-to-face meetings, employees analyzed bottlenecks and calculated downtime and losses. Then they took the initiative to write out the current processes based on what they would personally want them to be. At this stage, ICL Services experts played the role of mentors and helped find the right solution to business cases.
The advantage of this approach is that employees engage with processes more closely, see flaws and realize what needs improving. External motivation allows them to unlock their potential and find the most effective solutions.
The third step included supporting the Lean community. After training, ICL Services experts continue to advise employees and guide them in their work. Lean champions have already started making changes, while ICL Services helped organize regular events to discuss initiatives and challenges. These meetings allowed the employees to learn from international experience and maintain the Lean culture at production facilities.
Results
- Changes initiated by ICL Services and the Lean cul-ture created allow the customer to grow their net profit by 3-5%;
- The customer reduced working capital spending by switching to small-scale production tactics based on seasonal fluctuations and demand. In this way, goods are sold immedi-ately which reduces the market volatility risks;
- Thanks to the Three "No's" rule – don't create defective items, don't ac-cept defective items, and don't pass on defective items – the customer has reduced the number of defective tires in circula-tion;
- ICL Services experts have taught rank-and-file em-ployees how to perform typical equipment maintenance, which has reduced the frequency of breakdowns and down-time;
- Loyalty to the company increased among employ-ees because their ideas were heard and incorpo-rated into the production process;
- The customer was able to cut costs and increase performance and output without hiring new work-ers or raising wages.