Improved processes through value stream mapping saved Keihin Europe £24,000
The challenge
Keihin Europe had identified value stream mapping (VSM) as a key technique to deliver improvements in production support processes and wanted to deliver VSM training to a cross-functional group of managers.
The company
Keihin Europe Ltd manufacture and sell a range of engine management systems for the automotive and motorcycle markets. The manufacture at Hamilton focuses on the electronic control units for these systems.
Keihin Europe Ltd is 40% owned by Honda and are part of the Global Keihin Corporation based in Japan. It was formed in November 2001 and was initially based in Cumbernauld and are now in Hamilton International Technology Park.
How SMAS helped
A SMAS Practitioner delivered training to the management team on a number of relevant VSM techniques:
- Big Picture Mapping
- Process Activity Mapping
- 4 Fields Mapping
- Value Add/Non Value Add Mapping
- Spaghetti Mapping
This training included lean awareness, as well as the application of each mapping technique. Learning was consolidated by applying the various techniques to existing processes.
Four key projects were identified:
- final quality audit removal feasibility
- material delivery processes to production
- purchase of key consumables
- stock accuracy.
The team also created a spreadsheet to help collect and analyse their mapping data. Simple project paperwork was created to define the projects and monitor their progress.
Outcomes
VSM has been established as a key technique for improving processes through reduction in non value add activity. The training has also helped to encourage cross-functional teamworking on process improvement and processes that involve a number of different functions within the business.
The savings from the four projects defined during the training is estimated to be in the region of £24,000 a year along with WIP reduction savings of £50,000.
Training was targeted at management level to gain the maximum amount of benefit in the shortest amount of time. This also gave the management team the tools required to train their own departments in the future.
Raymond Watson, Chief Operating Officer at Keihin Europe Ltd said:
The VSM training from SMAS was excellent and has helped significantly in streamlining and standardising the approach used within the company for identifying and eliminating waste. This activity will contribute significantly in helping Keihin Europe remain competitive and achieving our key goals.
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