Starting Point: A Flow Split Across Three Floors
It is assumed that the larger the production area, the more efficient the operation. Yet a poorly designed factory layout can create excess inventory, long transport distances and a heavy internal logistics load.
The main problem of the three-floor production facility was the interrupted flow of material and product caused by the layout. Distances between operations led to high work-in-process inventory, production areas were filled with stock and the internal logistics workload kept growing. The main problems were:
- Split flow: Production was divided across floors and workshops operated independently of each other.
- High inventory and transport: Inventory accumulated between operations, and unnecessary product transport and handling increased the internal logistics workload.
- Unbalanced processes: There was an imbalance between injection and assembly; production and delivery times grew longer.
Approach: A System Where Products Flow Continuously
The core need was not more production space but a new flow system in which products could move continuously and in balance. We started by redesigning the production flow of the main product group:
- Existing product and material movements were analyzed.
- Operations scattered across different stations were combined into a cellular production structure.
- A one-piece flow system was established for the main product group; processes were linked with a pull system.
- Injection and assembly operations were synchronized with a Kanban system.
- Work-in-process inventory levels were limited in a controlled way; lines were balanced to the set production pace.
- The factory layout was rearranged to support continuous flow.
Result: The Transformation Scorecard
At the end of the two-year transformation, work-in-process inventory fell 70%, total operational efficiency rose 40% and production moved from three floors to two. The model was chosen as the best practice among the customer’s group companies.
| Parameter | Before | After | Improvement |
|---|---|---|---|
| Work-in-process inventory levels | Baseline | -%70 | Inventory reduction |
| Total operational efficiency | Baseline | +%40 | Efficiency increase |
| Number of production floors | 3 | 2 | One floor of space gained |
| Investment payback time | – | 5.5 months | Fast payback |
If you have high inventory, long transport distances or layout-related production losses in your facility, let us evaluate improvement opportunities together.
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