lean management case study

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Case Studies

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TXM Revolutionises BPH Attachments: Transforming Operations for Streamlined Excellence

Transform your operations with TXM. Find out how BPH Attachments improved information flow and product distribution.…

The Blueprint for Success at eKitchens: U-Cell Layout Design and Production Flow

Based in Western Australia eKitchens specialise in providing custom-made kitchen cabinets, benchtops, and other kitchen-…

Easy Access: Reaching New Heights

Watch the interview with Easy Access's Managing Director Jeff Wearmouth about the successful lean implementation underta…

Tasting the Success of Operational Excellence: Poppy’s Chocolate

Established with a passion for indulgent treats, Poppy's Chocolate has become synonymous with high-quality ingredients, …

Optimising Lead Times and Demand Forecasting with a Redesigned Layout

AMIA partnered with TXM to redesign their layout to help reduce lead times and improve their demand forecasting. Read ho…

New Facility Layout Improves Operational Efficiency at Edison & Day

TXM were called to help improve the operational efficiency at Edison and Day and eliminate the backlog of orders whilst …

Driving Cultural Change Through the Optimal Transfer of Information & Materials

SCD Remanufactured Vehicles contacted us to help drive cultural change in the business from taking order to delivery of …

Easyquip Interview: Moving from Batch to Flow Production

TXM worked with Easyquip to implement a new production process using value stream mapping to help rearrange their manufa…

TXM Lean Case Study – Harvest Moon – Lean Agribusiness

Planting the Seeds of Operational Excellence   The Challenge Our customer is a major grower and processor of fresh …

Interpod Interview: Building the Production Process for Modular Bathrooms

Interpod are Australia's largest builder of modular bathrooms for use in high rise settings. Watch the interview with CE…

Modular Bathrooms Built On the Foundations of Operational Excellence

Interpod are Australia's leading modular bathroom builder supplying to major property developers across Australia. Inter…

TXM Deliver Costs Savings and Reduced Lead Times for Tracerco Ltd

Tracerco is a world-leading industrial technology company. They asked TXM for help increasing the efficiency from quotat…

Operations Optimization at ICO Bath Leads to Record Sales Growth

TXM North America were tasked to help ICO Bath optimize operations through the application of Lean Thinking. At a site v…

Building the Optimal Warehouse Layout Drives Increased Output

TXM Lean Solutions UK were contacted by STS Ltd to create an optimal warehouse layout that would complement their busine…

Optimising Production Processes Ensures Consistent Manufacturing Output Increases

Optimising production processes help Truma UK meet predicted demand for a line of caravan moving systems and accessories…

Scalable Manufacturing System Implemented for Cutting Edge PFAS Chemical Decontamination Unit

What happens when you join an innovative company with an innovative product, an engaged team, and a challenge to reduce …

Olam Edible Nuts – Total Productive Maintenance in Agriculture

Total Productive Maintenance was introduced at Olam Orchards across its Almond producing facilities along the Murray Riv…

TXM Lean Case Study – CIVIQ Triples Output With Same Facility

CIVIQ produce high quality public use products for parks, sporting venues and all types of urban public use sapces. Empl…

Larnec Doors: Lean Processes Deliver 80% Reduction in Order Lead Time

Despite its rural location, Larnec Doors has undergone healthy growth since its inception but recently has come under pr…

TXM Lean Case Study – Specialist Door Solutions

Specialist Door Solutions required help condensing two sites into one and reowrking their production flow. Learn how TXM…

TXM Lean Case Study – Houston’s Farms the Lean Agribusiness

TXM pioneered the application of Lean manufacturing concepts to the end-to-end process of fresh vegetable production fro…

Operational Excellence Program Deployment for a Low Volume, Highly Customised Manufacturer

TXM deployed an operational excellence program to increase productivity and lead times for a multinational company speci…

TXM Lean Case Study – Metal Fabrication Facility Development

TXM Excellence Opérationelle recently helped our client a Metal Fabrication business develop a new facility layout to h…

TXM Lean Case Study – Ivyline

Established in 1976 Ivyline have become the trusted partner for retailers. Ivyline are based in Coventry, UK and import …

TXM Lean Case Study – Earlee Products

Learning the Recipe for Streamlining Food Processing Earlee Products has been creating ingredients and processing food p…

TXM Lean Case Study – Ferguson Plarre Bakehouses

Ferguson Plarre baker creating one of their signature cakes. The Challenge Ferguson Plarre Bakehouses is a family owned …

TXM Lean Case Study – EGR North America

EGR Group called upon TXM's services to help drive revenue growth by reducing work in progress and driving lead time fro…

TXM Lean Case Study – Hazchem Safety

Hazchem Safety in Brackley are the UK's leading supplier of safety clothing and equipment for the transport and handling…

TXM Lean Case Study – Broadfix

TXM helped Broadfix achieve a 25% reduction in inventory and their backorders have fallen by 80% all whilst using their …

TXM Lean Case Study – DMG Mori China

The Challenge DMG Mori is one of the largest machine tools builders in the world. Like many manufacturers in China, DMG …

TXM Lean Case Study – Due Diligence for Private Equity Firm

The Challenge Our client was a leading Private Equity firm looking to acquire a manufacturer of capital equipment. The t…

TXM Lean Case Study – Reduced Lead Time & Increased Competitiveness

The Challenge Our client is a leading precision engineering company focused on the defence and aerospace sectors. Thei…

TXM Lean Case Study – Lean Production System Enables Manufacturer to Double Revenue

TXM helped this truck parts manufacturer double revenue after the 2008 GFC. Read how a Lean Production System was implem…

TXM Lean Case Study – Lean Transformation in Oil Production

TXM Lean Case Study – Lean Transformation in Oil Production The Challenge Our client is an oil industry joint venture …

TXM Lean Case Study – Improving Supply Chain Performance in Paint Manufacturing

TXM was tasked with reducing inventory and increase on-time in full delivery by improving supply chain management and im…

TXM Lean Case Study – Reduction of Inventory and Cost for Mining Equipment Overhaul

Reduction of Inventory and Cost for Mining Equipment Overhaul Long Wall Mining is a highly mechanised and effective meth…

TXM Lean Case Study – Production Outsourcing Project Management

The Challenge Our client was a major global high technology manufacturer. Their operation was highly vertically integrat…

TXM Lean Case Study – Regional Lean Supply Chain Development

The Challenge Our client’s plant in China produces a limited range of products in high volumes for the Chinese market.…

TXM Lean Case Study – Multi Site Packaging Supplier Lean Transformation

TXM Lean Case Study – Multi Site Packaging Supplier Lean Transformation The Challenge Our client is the leading suppli…

TXM Lean Case Study – Reducing Lead Time by 60%

TXM Lean Case Study – Reducing Lead Time by 60% The Challenge Our client is a global coatings manufacturer. Their …

Lean Manufacturing Case Studies – How TXM has Helped Companies Improve Efficiency

If you want ways to lower your production costs without compromising quality, the TXM Lean manufacturing consulting services offer a path to success. The TXM team understands the details of industrial engineering and how they relate to lean manufacturing. We use this knowledge to design customized and comprehensive solutions to meet your business needs.

TXM’s consulting team consists of experts with years of experience in Lean manufacturing, the world’s most successful business process improvement system. We help you eliminate waste, deliver value for customers, and unlock your business’ full potential.

Examples of Lean Manufacturing in Action

We have completed dozens of Lean consultancy projects, from single factory layouts to multi-site, large-scale business transformations in the US and other countries like  Canada  and  the UK . TXM offered support as the following businesses learned to implement new ideas and apply their new Lean skills:

• Server Racks Australia: TXM implemented Value Stream Mapping to resolve bottlenecks in the company’s production processes.
• Laminex: The company implemented Visual Management Boards, Value Stream Mapping, and Standard Work to transform its operational culture and improve performance.
•  Agilent: Redesigned workflows and streamlined processes to make the company more efficient and competitive.
• Branach Manufacturing: TXM helped Branach Manufacturing to identify and fix process inefficiencies.
• MacNaught: The company implemented 5S and Kanban, among other Lean tools, with TXM guidance

These are just a few Lean Manufacturing Case Studies of organizations that wanted to increase their returns and get lasting results in the face of fierce competition. TXM’s experienced consultants helped them develop Lean projects to transform their businesses and reduce Work In Progress inventory and waste. We can do the same for your business.

Do you want to improve plant layout, improve workflow, reduce waste, improve operational efficiency and reduce noise like the Lean manufacturing examples above?  Contact TXM  now for innovative Lean solutions.

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Lean Six Sigma Case Studies

Welcome to the Lean Six Sigma Academy’s Case Studies section! Here, you will find a collection of real-world examples of how companies have successfully implemented the Lean Six Sigma methodology to improve their business operations. Each case study includes an overview of the business challenge that was faced, the approach that was taken, the results that were achieved and feedback from the client on their experience. These case studies showcase the wide range of industries and organizations that have benefited from Lean Six Sigma, and serve as inspiration and guidance for those looking to implement the methodology in their own business. 

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Orrcon Steel

The toyota production system.

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Latest Article: Lean Thinking in Action: Hurricane Sandy Video

While there are many case studies on lean, each organization’s needs are different. In these articles, we will discuss different case studies on Lean and how they were able to improve their efficiency. We will also include a case study of our own to help you get started with lean in your organisation.

Case Studies Articles

Lean thinking in action: hurricane sandy video.

This video is a brilliant example of how Lean and Lean Thinking can be used to improve processes, improve engagement,

Growing Capacity within a Global Pharmaceutical Company

In a groundbreaking initiative, Leanscape deployed its bespoke Lean methodology to revolutionise operational efficiency at PharmaCo, a leading player in the pharmaceutical industry. This collaboration was aimed at addressing and

An Operational Excellence Training Program Delivers $4M in Costs Savings

A global Lean Training Program has reached over 270 people worldwide and driven $4M+ in cost savings through project delivery

90-day Facility Management Turnaround with 27% Lift in Performance

A rapid operational turnaround to save performance penalties and reduce the risk of losing a $2.5M Facility Management contract. Our

Financial Services Company Takes Bold Steps to Improve Productivity

A national high street bank, suffering from regulatory changes, wanted to boost productivity in their processing centre to reduce SLA

A Global Lean Six Sigma Training Program

A Lean Program designed to create a culture of continuous improvement across Aramex Logistics. With over 350 people trained and offering a 36X

How Value Stream Mapping Helped a Saudi Startup

Value stream mapping is a powerful tool that can help startups optimize their operations and achieve their goals in the most efficient and sustainable way possible. By identifying and eliminating

2024 Recommended Reads for Transformative Thinking

In “Unlocking Your Mind: Essential Reads for Transformative Thinking,” we delve into a curated selection of books that challenge conventional thinking and inspire profound personal growth. These transformative titles not only expand your intellectual horizons

The Ultimate Guide to Lean and Manufacturing: Boosting Efficiency and Productivity

Lean Manufacturing, also known as Lean Production or simply Lean, is a systematic approach to improve efficiency and reduce waste in manufacturing processes. It focuses on identifying and eliminating non-value added activities, while striving for

8 Step Process for Unlocking Change | Driving Leadership

John Kotter’s 8 Phases of Change highlights a critical framework for understanding and implementing organisational change. This model is integral to organizational dynamics, offering a structured approach to navigating the complexities of transformation. However, as

The Synergy of Antifragility and Lean Thinking

The conventional ‘lean and mean’ approach to business is sorely tested in a world between digital disruption, geopolitical uncertainty, and climate change. Nassim Nicholas Taleb’s concept of antifragility offers a refreshing departure from traditional business

5 Essential Problem-Solving Strategies Every Business Leader Should Know

In this guide, we distil years of leadership wisdom into five core problem-solving strategies tailored for business success. Whether you’re navigating complex decisions, fostering team innovation, or seeking to enhance operational efficiency, our expert advice

Unveiling the Secrets of Blue Ocean Strategy for Business Growth

The Blue Ocean Strategy represents a seminal approach in the world of business strategy. It advocates for the creation of new, uncontested market spaces—termed ‘blue oceans’—as opposed to battling competitors in overcrowded ‘red oceans’. This

Accelerate Your Professional Growth with Lean Six Sigma Courses

In a competitive job market, standing out can be a challenge. Developing a unique skill set that distinguishes you from the crowd is essential for career progression. One such valuable skill is proficiency in Lean

5 Benefits and Power of A3 Problem Solving. Designed by Toyota

Welcome to the online version of our weekly newsletter! This is your one-stop destination for all the latest news, updates, and events happening in our community. Each week you can look forward to an array

The benefits of adopting a continuous improvement approach

The benefits of continuous improvement.

Continuous improvement is a powerful approach to business that helps businesses stay competitive and successful. It is an ongoing process of assessing and improving processes, products, services, and systems in

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Case studies

All articles about: case studies.

CASE STUDY – This Brazilian agrobusiness has developed a unique and clever management system that puts people at the heart of the work.

CASE STUDY – Faced with safety and quality issues, this Brazilian manufacturing plant installed a dojo, and the results are very promising.

CASE STUDY – Manuelita Sugar Mill in Colombia adopted Daily Management to bolster leadership effectiveness and operational outcomes, addressing siloed thinking and communication challenges.

CASE STUDY – The story of Norwegian furniture manufacturer Haugstad Møbel that, thanks to Lean Thinking, was able to transform its culture and unlock the potential of sustainable growth.

CASE STUDY – Thanks to Lean Thinking, this Spanish construction company was able to deliver a challenging project in one year, well ahead of schedule. Here’s how they did it.

WEB SERIES - In this episode, we head to Chilean Patagonia to visit a manufacturer of fish feed that turned to Lean Thinking to improve yield and eliminate inventory gaps and stock-outs.

CASE STUDY – When it had to develop a production process for a new product from scratch, this Dutch company leveraged lean tools and practices. And the results were impressive.

CASE STUDY – To bring consistency to the service provided to customers across their network of workshops, this Brazilian company has turned to Lean Thinking. Along the way, they found in it a different approach to leadership.

WEB SERIES – In the second episode of our docuseries on lean in Chile, we learn how, with a clear purpose and strong commitment from leadership, SKC is transforming its processes and mindset and building a competitive advantage.

CASE STUDY – By leveraging Daily Management (DM), Supergasbras was able to change its trajectory and add more value to the customer in a critical sector for society.

WEB SERIES – Season 2 is here! In the first episode of this season, we visit a company in Chile that shows us how sustainability can be the cornerstone of an improvement project... and not just an afterthought.

WEB SERIES – In the fourth and final episode of Season 1 of our docuseries, we visit home improvement and gardening retailer Leroy Merlin and learn about their efforts to lean out their supply chain.

CASE STUDY – The Hospital de Bellvitge in Barcelona is relying heavily on hoshin and Kata to create a working environment based on collaboration and joint problem solving.

WEB SERIES – Episode 3 of our docuseries on lean in Brazil takes us to the second largest bank in the country. Learn how Bradesco is striving to improve its processes to provide more value to its customers using Lean Thinking.

WEB SERIES – In Episode 2 of our docuseries on lean in Brazil, we learn how the pioneering efforts of a cancer clinic have inspired the city of São José dos Campos to transform into a lean healthcare cluster.

WEB SERIES – Today, we launch a new documentary series on lean around the world, with the first season focusing on lean in Brazil. In the first episode, we visit the lean clinic on a mission to reduce the burden on cancer in our lives.

CASE STUDY – A people-centric approach to work, improvement, and the adoption of automation is allowing this Norwegian company to thrive in a changing industry and environment.

CASE STUDY – This Shared Service Center in Poland has leveraged lean, technology, and automation to completely transform itself and provide an ever-better customer experience.

CASE STUDY – The Covid-19 pandemic has accelerated the application of Virtual Healthcare across the world. In South Australia, this has been implemented in urgent care.

CASE STUDY – The transfer of a patient from one care setting to another is a delicate time. Insurance company SulAmérica has used its extensive lean experience to improve transitional care, and here’s how they did it.

CASE STUDY – This transport and logistics company in Colombia has turned to Lean Thinking to become more adaptive and ensure an easier post-acquisition integration of new cultures.

CASE STUDY – Starting in January this year, the Mexican plant of this manufacturer of lighting and electrical solutions has initiated a lean transformation that has already led to impressive results in terms of productivity.

CASE STUDY – This digital organization has embarked on a cultural transformation that is allowing them to become more agile while keeping people and stimulating interactions at the heart of their work.

CASE STUDY – How do you give hundreds of primary care units the tools and knowledge they need to make improvements? The Catalan Health Service found the solution in hoshin kanri.

CASE STUDY – A Chilean company selling and servicing vehicles and equipment for a variety of industries has made of humility the leading trait of its cultural transformation, with great results.

CASE STUDY – We hear from a construction company in Chile that embarked on a lean journey in 2018 to transform its culture and improve the work on its many sites.

CASE STUDY – This Dutch SME is transforming its picking operation – partly with the introduction of a U-shaped design – to increase the number of orders it can fulfil every day.

NOTES FROM THE GEMBA – The author visits a private engineering school to learn about their approach to teach Lean Thinking and apply it to their own work.

CASE STUDY – This 104-year-old Chilean provider of integral solutions for the mining industry has turned to hoshin kanri to effectively connect everyone’s work with the overall business strategy.

CASE STUDY – This primary care unit in Brazil is hoping to become a model for other units in their system. Take note, this is how Lean Thinking can spread across healthcare systems.

CASE STUDY – This Norwegian firm learned that allowing every person and area to move up their own lean learning curve can steer the business away from fire-fighting and towards more strategic thinking.

CASE STUDY – This project in Brazil, part of a city-wide effort to improve patient flows, led to impressive results in the waiting time to access cancer care.

CASE STUDY – For the past year, Elementia Materiales, a producer of materials for the construction industry, has begun a lean journey that’s already brought impressive quality results.

FEATURE – This Siemens Group-owned medium-sized manufacturer of electrical low-voltage devices has been experimenting with hoshin kanri. In this article, they share their experience and lessons learned.

CASE STUDY – This Chilean agrobusiness company achieved great results in a very short time by applying lean to standardize its processes and improve its productivity. They are now berry fond of the methodology.

CASE STUDY – Combining the lean and agile methodologies, HP’s site in Barcelona has streamlined and greatly improved its product development. Along the way, they transformed their culture, too.

CASE STUDY – The turning point in this Colombian construction company’s transformation came when they started to embrace lean as a culture rather than just a set of tools.

CASE STUDY – This packaging company in Catalonia has been able to cleverly balance the resolution of urgent problems and the advancement of the lean transformation. But what to do when the burning platform is no more?

CASE STUDY – Brazil-based construction company Andrade Gutierrez has been able to sustain its transformation by consistently developing internal capabilities and making Lean Thinking its strategy.

CASE STUDY – The reimbursement department of the largest independent insurance company in Brazil has brought together lean and digitalization to improve its service to customers.

CASE STUDY – Clinical trials are known for their rigorous analysis and approval process. The experience of Roche Brasil teaches us what lean and agile thinking can do to speed it up.

CASE STUDY – Lean Thinking travels far and wide. Here’s how the experience and insights of an Indiana-based farmer have supported a USAID project to improve outcomes for farmers across Nigeria.

CASE STUDY – This hospital in Argentina has leveraged the power of Lean Thinking to greatly enhance patient care, even in the pandemic, and receive internationally renowned accreditations.

CASE STUDY – How does a small food shop in Sichuan turn into a $30 billion chain with around 900 restaurants in several countries? By always going the extra mile for customers!

CASE STUDY – Pall Corporation used lean product and process development principles to create the process to produce billions of doses of the Oxford/AstraZeneca vaccine for Covid-19 in record time.

CASE STUDY – Some blamed lean for the shortages of personal protective equipment (PPE) in first wave of the pandemic. This small Norwegian producer of disposable bedsheets used it to establish and ramp up the production of medical gowns for healthcare workers.

CASE STUDY – Have you ever considered how Lean Thinking could apply to politics? The author explains how the result of a mayoral race in southern Italy was ultimately determined by the lean approach adopted by one of the candidates.

CASE STUDY – This Barcelona hospital began its journey with ambitious projects and is starting to see the fruits of its labor, with the pandemic acting as an unexpected but powerful catalyst for change.

CASE STUDY – This hotel in Spain has been able to leverage Lean Thinking in its restaurant to successfully adapt to the new Covid-19 regulations enforced in the country, becoming more efficient along the way.

CASE STUDY – An Esquel factory in GuiLin, China injected lean principles and practices into its processes to become more efficient and environmentally-friendly.

CASE STUDY – Not even a pandemic can prevent a lean organization from learning: this hotel in Tenerife has decided to make the most of its forced closure to review and improve its processes.

CASE STUDY – By streamlining its internal processes, an agribusiness company in Brazil managed to reduce its material handling cycle time by 75% and the associated costs by 66%.

CASE STUDY – The implementation of lean in the internal logistics of a pharmaceutical company in Brazil proved key to increasing productivity and quality in the organization.

CASE STUDY – This insurtech venture has found in Lean Thinking a way to tackle its many scaling issues. It’s grown from two to fifty-five people in less than four years, ultimately thanks to a strong focus on quality.

CASES STUDY – Struggling to win the hearts and minds of his people, the author took lean home, learned as much as he could about it and brought it back to his business with the idea of making everybody's lives easier.

CASE STUDY – The author, who leads the CI team in a large real estate company, discusses the lean transformation of the business and role of the improvement team in it.

CASE STUDY – This Italian manufacturer has found in lean a way to ensure business continuity and provide support to a distraught workforce in the midst of the coronavirus outbreak.

CASE STUDY – Here’s the story of a mature lean company from Michigan. The author tells us about Zingerman’s Mail Order’s lean transformation, their challenges and their successes.

CASE STUDY – In a Brazilian insurance company, a team worked hard to streamline the revision of dental claims – a great example of Lean Thinking in an administrative process.

CASE STUDY – The story of this Norwegian window and door manufacturer shows how a deep and ongoing commitment to a lean transformation can help a company thrive against all odds.

CASE STUDY – This article briefly outlines the different stages of the lean transformation at Mercedes Benz Brazil, as the company looked for the best approach to engage everyone in continuous improvement.

FEATURE – How lean daily management helped a Brazilian construction company to stabilize production in a tailing dam elevation project.

CASE STUDY – A boutique law firm in Milan has initiated a lean transformation to turn around its processes, improve service to its clients and make life easier for the team.

CASE STUDY – This company in Botswana has embraced lean thinking passionately to build the capacity and ability to deal with higher demand for its converted vehicles. The author tells us about their journey.

CASE STUDY – From client and supplier to partners-in-lean: how solving a problem together transformed the relationship between a Dutch hospital and the laundry supplying clean garments to it.

CASE STUDY – Seven years ago, this Italian manufacturer ran an experiment to reduce inventory in its warehouse. Today, lean thinking permeates every aspect of life at FPZ.

CASE STUDY – What is the approach to people development used at Volvo Cars? The authors explain how the organization has created a production system fully owned by operators and managers.

CASE STUDY – Effectively deploying and executing your strategy requires mastering quick follow-ups at different levels of the organization – in other words, Daily Management.

CASE STUDY – Logistics can be the key to achieving success and creating a competitive advantage in a company. This case study tells the story of a port terminal in Brazil that has used lean to achieve significant gains in managing its road flow.

CASE STUDY – Catalonia’s largest hospital is undergoing a successful transformation – supported by pioneering hoshin experiments – that has already turned it into a poster child for lean healthcare in the region.

CASE STUDY – TechnipFMC has introduced the Concept Paper in its lean product development process. This article shares some of the learnings resulting from the experience.

CASE STUDY – Thousands of kaizens, a relentless focus on learning and the determination to continuously improve have made of this Norwegian company something of a lean fairytale.

CASE STUDY – What to do when you operate in a competitive market and are located in a remote corner of Europe, thousands of miles from your customer? One word: lean.

CASE STUDY – This Dutch company awards social benefits to the unemployed. Thanks to lean thinking, they were able to radically transform the service they offer them.

CASE STUDY – The CEO of a hospital in Johannesburg looks back to the last five years to reflect on a lean healthcare transformation that is creating positive outcomes for patients.

CASE STUDY – This automotive parts supplier based in southwest Spain is discovering the power of lean thinking applied to recruitment and Human Resources.

CASE STUDY – Starting with a series of pilot sites, the NHS is hoping to engage the Kata coaching approach to really spread an improvement culture to staff and patients.

CASE STUDY – The story of this NGO shows how visualizing the work enables improvement and removes barriers among teams. It is a first, fundamental step towards a lean transformation.

FEATURE – Philips has embarked in an ambitious development program for lean executives, which is helping the organization make substantial progress in their transformation.

FEATURE – Successfully engaging people and building a solid daily management system is allowing a Velux factory in Poland to fulfill its strategic goals.

CASE STUDY – This Polish debt collection company is refocusing its work around true customer needs and increasing problem visibility by implementing hoshin kanri.

FEATURE – A dedicated pathway and the introduction of lean healthcare principles is bringing people together to provide better care to older, frail people in an Irish hospital group.

FEATURE – By leveraging lean product and process development principles, Nichirin Spain is becoming more flexible managing last-minute changes in product design requested by customers.

FEATURE – One year into its lean journey, this Lithuanian mining company is winning the hearts and minds of its people. Here, the management team reflects on how they are doing it.

FEATURE – Dreamplace Hotels in Tenerife have been on an improvement journey for several years, but only recently did they find a way to truly become a learning organization: lean thinking.

FEATURE – Hospitals are often part of larger healthcare systems, which makes it critical to learn how to bring lean to such diverse and complex environments. We hear from a large hospital group in Ireland.

CASE STUDY – This Turkish producer of sanitaryware has boosted its quality so dramatically it’s now a player in the German market. It did so by bringing drastic change to its production system.

FEATURE – How an amusement park in Norway is using lean visual management to support actors during their busy schedule and to give visitors an experience they will never forget.

FEATURE – Building on the benefits of the Last Planner System™, lean thinking is supporting people at Turner Construction Company as they solve problems in a structured way.

FEATURE – A laboratory testing services firm in Istanbul has turned to lean management to reduce complexity, shorten lead-times, and make its growth sustainable.

CASE STUDY – A Turkish producer of gas valves for kitchen appliances has discovered the power of the lean principles of pull and flow, reaching results beyond its imagination.

FEATURE – The application of lean management to education is not new, but we all know how hard changing legacy systems is. This greenfield lean school aims higher, trying to rethink learning altogether.

FEATURE – The power of cross-pollination: learning from a manufacturing company has helped a cancer treatment center in Brazil to thrive in its lean transformation.

CASE STUDY – The author looks back at the impressive lean transformation of the Hungarian plant of Coloplast, a Danish company offering medical devices and services.

CASE STUDY – An elementary school in Budapest is trying to bring innovation to the education by harnessing the power of lean thinking combined with a solid digital strategy.

CASE STUDY – A physician tells PL the story of how the East Denver Medical Office became a catalyst for the lean transformation at Colorado Permanente Medical Group.

CASE STUDY – How do you keep up with a market changing at the speed of light? The Chief Inventor of an Australian digital company explains how they are using lean to safeguard their future.

CASE STUDY – An insurance company in São Paulo is experiencing a complete turnaround driven by a very capable Lean Office that understands its role is to gradually make people autonomous.

CASE STUDY – Faced with complex logistics and customer complaints, a small deli and butchery in Botswana saw in lean a way to bring the business back from the brink. The philosophy didn’t fail them.

CASE STUDY – One-piece flow and a focus on lean leadership and kaizen have allowed the Halfway Production Centre in Johannesburg to turn itself around in just 14 months.

Case Study of Lean Manufacturing Application in a New Process Introduction into a Rail Company

• First Online: 19 May 2021

Cite this chapter

• Rosa Hilda Félix Jácquez 4 ,
• María Merced Cruz Rentería 4 ,
• Ma. Dolores Delgado Celis 5 ,
• Alfonso Alejandro Lara Negrete 4 ,
• Daniel Torres Ramírez 4 &
• Claudia Leticia Dávila Martínez 4  

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The main purpose of this chapter is to demonstrate the use of lean manufacturing tools to solve different problems appearing in the practice, into the manufacturing projects. The methodology focused on one case study where applied lean manufacturing techniques, based on searching the continuous improvement and better performance to meet customer demand. For the analysis, financial justification, and the introduction of the process, the lean philosophy using Define, Measure, Analyze, Improve, Control (DMAIC) methodology in the back shop area where the project carried out. It will have significant business impact as the annual increase of 18,772 man-hours for the workshop as well as $6.0 million USD of savings for the company by performing the process internally with long-term contracts.

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Acknowledgements

Authors thankfully acknowledgments the opportunity to participate in this project, technical expertise, mentoring, and assistance provided by managers of Rail Company in Mexico.

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Department of Industrial Engineering, Instituto Tecnológico de San Luis Potosí, Soledad de Graciano Sánchez, México

Rosa Hilda Félix Jácquez, María Merced Cruz Rentería, Alfonso Alejandro Lara Negrete, Daniel Torres Ramírez & Claudia Leticia Dávila Martínez

Department of CEA, Tecnológico Nacional de México, Soledad de Graciano Sánchez, México

Ma. Dolores Delgado Celis

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Félix Jácquez, R.H., Cruz Rentería, M.M., Delgado Celis, M.D., Lara Negrete, A.A., Torres Ramírez, D., Dávila Martínez, C.L. (2021). Case Study of Lean Manufacturing Application in a New Process Introduction into a Rail Company. In: García Alcaraz, J.L., Sánchez-Ramírez, C., Gil López, A.J. (eds) Techniques, Tools and Methodologies Applied to Quality Assurance in Manufacturing . Springer, Cham. https://doi.org/10.1007/978-3-030-69314-5_18

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The Lean Post / Articles / To Successfully Apply Lean Thinking in Distribution, Go to Where the Action Is!

Executive Leadership

To Successfully Apply Lean Thinking in Distribution, Go to Where the Action Is!

By David Drickhamer

July 12, 2022

Two years after its first kaizen workshop, Plumbers Supply Company has made significant progress toward a lean business conversion. Starting with daily management walkabouts and standardized work, the 84-year-old, family-owned distributor has laid the groundwork for steady gains for years to come.

For a distributor, when your company slogan is “Everything Under the Sun,” you better be able to deliver. But what does being able to deliver actually mean when it comes to measuring day-to-day performance? The answer to that question offers a glimpse into the lean journey of Plumbers Supply Company .

Plumbers Supply At-a-Glance

• Headquarters: Louisville, Kentucky
• 13 locations in Kentucky and Indiana
• Serves plumbing, fire protection, and HVAC contractors and industrial/institutional customers
• Employs 100 at headquarters and six to 30 at each branch
• Family-owned

Based in Louisville, Kentucky, Plumbers Supply has 13 branches in Kentucky and Indiana that stock parts and supplies for plumbing, fire protection, and HVAC contractors, as well as industrial and institutional customers and facility managers. Several years ago, with an average line-item fill rate of over 95 percent, the company’s fire protection department was achieving best-in-class performance, at least according to the standard industry benchmark. Unhappy customers, however, had a different opinion. That’s because not having four or five out of every 100 items needed for a construction project could stop them from starting or completing a job.

The issue came to the attention of Jay Johnson, the company’s president, during the daily management “walkabout” that he implemented two years ago at the very beginning of the company’s lean initiative. “I’d be in that department three days per week, and every day it was the same issue,” Johnson recalls.

For a month, they tracked performance on the department’s walkabout review (WAR) board, a visual management tool that the Louisville branch uses to monitor expectations, performance, and issues as they come up. “Then we completely changed how we measure service performance at the department, branch and company levels to a 100% complete order fill rate…, and we were able to focus on improving performance for particular categories of product.”

Changing to a more customer-oriented measure of order fulfillment is just one indicator of the progress Plumbers Supply has made in a relatively short time. This Lean Enterprise Institute case study explores how lean can take root and transform the performance of a small (less than 250 employees), privately-held distribution business that bears very little resemblance to the automotive assembly line typically associated with lean management .

The Building Is Paid For

The original structure at the Plumbers Supply headquarters in Louisville dates back to 1898. Expanded regularly over the years, today it’s a warren of 31 rooms and storage zones with varying weight and height restrictions spread across four levels — accessible by stairs and freight elevator — plus 11 additional storage locations outside. Here employees use shopping carts and flatbeds to pick orders for some 45,000 stock-keeping units (SKUs) — every kind of plumbing and HVAC product and part you can imagine, including a selection of identical items made in the U.S., as preferred by some customers, or imported.

After they’ve picked the orders, the company delivers some directly to job sites. Customers can also pick up their orders at a will-call drive-through or go inside to the service counter. As part of an attempt to better forecast customer demand, a historical SKU study found that some 70 percent of the company’s product demand is unpredictable. Add in some dramatic seasonal fluctuations and nightly transfer shipments between locations, and you can start to get a feel for the procurement and inventory management challenges at Plumbers Supply.

Given the physical constraints of the facility and an uncompromising commitment to customer service, when it comes to making improvements, the company has one significant advantage over larger, more corporate organizations: a strong, family-oriented culture with a flat hierarchy and accessible leaders. It employs roughly 100 people at its headquarters in Louisville and six to 30 people at each other branch location. The company and its leaders have a reputation for treating both its customers and employees with respect and promoting from within. As one manager shared during our visit, “When I was having trouble with an employee’s performance, my boss asked me how I’d manage the situation if she was my aunt, for example, because that’s how we treat people.”

A Local Source of Inspiration

So why and where would a family-owned distribution business begin its lean journey? Through a local business group, Jay Johnson became friends with Jim Lancaster, CEO and owner of Lantech. Headquartered in Louisville, Lantech manufactures and markets pallet stretch-wrapping equipment, which Jim Lancaster’s father invented in the early 1970s. LEI’s James Womack and Daniel Jones featured the company’s early lean efforts in an entire chapter of their popular book, Lean Thinking (Free Press, 1996).

The main issue in a lot of businesses is that management isn’t connected to what’s happening in the business every day.

“The place to start [with lean] in any business is where your problems are. The main issue in a lot of businesses is that management isn’t connected to what’s happening in the business every day,” said Lancaster when asked about how Plumbers Supply got started. “What you’re trying to do is make changes in the business and convert people’s thinking, and give them a successful experience.”

Walking the floor of Lantech with Jim Lancaster in 2009, Jay Johnson recalls being impressed by the work cells, material flow , and cleanliness, even though it bore little resemblance to the workflow in his distribution operation . But as they walked from one area of the factory to the next, he was really struck by how Lancaster worked with the company’s employees to address and solve problems on the spot. It wasn’t a loose, management-by-wandering-around exercise.

“When I saw the decisions being made,” says Johnson, “and the fact that Jim had the rest of the afternoon to improve and work on strategic planning [that is, all of the things he couldn’t spend as much time doing in the past because he was firefighting and getting bombarded at his desk with issues and problems], I knew the daily walk was the place to start.”

Before the daily management walkabout, with 18 direct reports, Johnson wouldn’t have a chance to talk to some people for weeks. And he devoted a good chunk of every day toward addressing all of the issues that popped up that day, he recalls. So, today, if something needs management attention, everyone knows that the president and his team will be there later that day or tomorrow; they will be able to see the issue for themselves firsthand and address it.

“I’ve gone from having 10 to 20 gotta-minute meetings a day, to a one-and-a-half hour walkabout, with opportunities to see what’s going on, to see the gaps, and provide coaching then and there,” Johnson says.

Depending upon who’s on-site, the daily walkabout includes the president, operations manager, and CFO visiting each functional area of the business. The walks were awkward in the beginning, Johnson reports, and it took some time to get the cadence down. People often used the opportunity to point the finger at failures in other departments. However, over time the focus on process failures and improving the process, not what any individual might have done wrong, has slowly changed the culture. Everyone is less worried about defending their turf, says Johnson, and is even excited about fixing what’s wrong and improving the business.

“It takes guts for a company leader to do this, and to be ok with making mistakes,” Lancaster adds. “It’s not always where people think a CEO should be spending time.”

The Golden Triangle

The daily walkabout spotlighted some of the opportunities and barriers for improving service quality, which has always been the number one goal of the lean initiatives at Plumbers Supply. These opportunities included multiple handoffs, excessive travel and handling, and poor coordination between departments.

“There are differences between mapping a rack and pinion gear facility versus a warehousing and distribution business. They are obviously very different processes,” Johnson adds. “That’s been a struggle [for us], how to value-stream map our business and processes to identify the waste .”

At the same time that they began the management walks, the company introduced lean tools in an ongoing series of kaizen workshops designed to train leaders on how to use the lean tools effectively. For help, they pulled in Mike Garland, currently an independent lean consultant with 25 years of experience using lean tools to transform large and small businesses. Garland is on-site roughly one week each month, coaching and leading workshops.

For a distribution operation — or any business really — it’s important to have an experienced advisor, or “ sensei ,” as they are known in the lean world. In addition to teaching the fundamental principles, they can help figure out solutions when you run into a wall, says Lancaster. “It’s like anything. It’s all about depth and levels of knowledge and understanding,” he adds.

Garland’s initial focus at Plumbers Supply was helping to implement standardized work . This effort wasn’t just about documenting optimal procedures or creating checklists but incorporating visual cues within the work that indicate that it has been done — and done correctly.

“For improvements to hold,” explains Garland, “there has to be a standard. When the standard is followed, the work itself leaves a visual signal behind so support people (team leaders, supervisors, etc.) can see that the work was done correctly. If it’s not done correctly, they don’t beat up the operator, they explore what occurred that caused the work to be done out of standard.”

Garland describes this virtuous cycle of improvement and reinforcement as the Golden Triangle (see diagram below). For example, at Plumbers, the first area where they applied the concepts and tools was—logically enough—the main point of customer value creation: the order picking process. Here standardized work has reduced the time it takes new employees to learn all the storage locations and processes and become real contributors to the organization, from six months to three weeks. In addition, the changes reduced by half the employee walking distance per day for packing and staging orders.

As John Skees, Louisville’s operation manager, states, “creating standardized work should be done alongside the employee you are trying to support and the focus should be on making their job easier.”  John says that Golden-Triangle thinking allows managers to create a standard that can be built into the work environment, so it is easier to do the work correctly than to do it incorrectly. “This provides a better-quality service to our customers and a better work environment for our employees,” he adds.

The Golden Triangle: How Improvements are Maintained

Leadership Skill Development

The picking process at Plumbers Supply begins and ends at the “workbench” area. This order dispatch area is the heart of the business in terms of fulfillment and has been the subject of multiple kaizen workshops. One of the process changes here, for example, was re-prioritizing the sequence of orders, which previously were cherry-picked at random, to being organized by customer priority and picking efficiency .

“People pick better and faster now,” says Shaina Smith, warehouse manager. “Before, 10 to 20 errors in a day were normal. Now, five to six picking errors is a bad day.”

In addition to the major process changes and making everything visual, including the work of supervisors, Smith stresses that making improvements is just as much about the small things as the grand design. She says the key is to do something, make some improvement, every day.

Making such incremental progress — as other companies on their lean journeys have discovered — depends in large part on how supervisors manage the people who report to them. At Plumbers Supply, that has meant a renewed understanding that the primary job of leaders, especially on the floor, is to make everyone’s job easier and safer. When something goes wrong, as Johnson puts it, they try to conduct “autopsies without blame.” Walking the floor daily gives him a better understanding of how the supervisors manage the people who report to them.

“Lean gives us the vocabulary for how we should react to problems,” he says. “Now I can see if managers are adequately supporting people and the work they need to do.”

Beyond the Warehouse

Building on the management walkabout, the lean game plan at Plumbers Supply started with performance reporting on the WAR boards and standardized work, which was soon followed by 5S practices, problem-solving methods, team leader /supervisor training, and basic pull techniques. Kaizen workshops using these tools have tackled the warehouse and administrative areas, such as accounting. For example, Melanie Leasher, the controller at the time, first applied 5S to her office to set an example.

“I had cabinets in there from the previous controller that I’d never even looked in,” she recalls.

Leasher then helped the people in her department apply 5S to their work areas. Such changes can be threatening, because they generally mess with how everyone does their work, and the visual cues—like dedicated locations for everyone’s stapler—can seem pointless. But the benefit, in this case, became immediately obvious when they had to locate an important document at the desk of an employee who was out on vacation. Because of the 5S work, it was easy to see each stage of the work. And finding the document only took a minute. Next, Leasher applied 5S to the supply room, which hadn’t had a good cleanout in decades.

Supply Closet Before 5S

Supply Closet After 5S

Concurrent with the lean-related activities, Leasher and Jay Wilson, the company’s CFO, implemented a series of process changes and improvements to the company’s accounting and finance department that, over time, eliminated much of the need for a full-time controller. As a result, her old position was eliminated, and she was promoted to director of Continuous Improvement .

“In year two of our lean effort the struggle has been having the resources and talent after kaizens are done to do some of the follow-up work and having the structure to maintain and continue the improvements that we’ve put in place,” Johnson explains. With the limited resources of a small company, the strain on managers to make improvements, maintain the gains, and keep up with all of their other responsibilities, was slowing implementation. “We were still getting things done but the speed was just not at the level that I’d like to see.”

Leasher now works full-time planning and supporting the execution of kaizen workshops, with a particular focus on developing more line leaders who can use the lean tools to make their jobs easier. This will, the thinking goes, allow them more time to make daily improvements as a regular part of their job. She will also ensure all of the follow-up work is completed and support the company’s 12 other branches as lean is more fully introduced in those locations(see the Rollout Plan below). This process, management expects, should free up even more resources the company can dedicate to supporting the transformation process across the company.

Plumbers Supply Rollout Plan

Building Momentum

So far, Plumbers Supply hasn’t tried to tie the results of its lean efforts to any specific financial metrics. Such is the luxury of a private, family-owned business. Still, margin percentages are up because of lean cost savings and more consistent pricing. Leadership knowledge and development have also benefitted from the initiative.

On the operations side, productivity has increased by over 20% as revenues have grown. In addition, with the switch from a line item to the more customer-oriented 100% complete order fill rate metric, the company now has an actionable standard that will drive further service quality improvement. Dead inventory has also been cleared out.

It’s obvious from the significant progress achieved in a relatively short time and the push into the branch locations this year that Plumbers Supply is in it for the long haul, and the gains will continue to add up. As Johnson often says, “If you can improve at a faster rate than your competition, they become irrelevant over time.

Keep learning with the Leadership Q&A with Jay Johnson, president.

Editor’s Note:  This  Lean Post  is an updated version of an article published on November 29, 2012, one of the most popular posts about this vital lean practice. 

Lean Warehousing and Distribution Operations

Improve a distribution center's efficiency, quality, safety, and space utilization.

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About David Drickhamer

David Drickhamer is a leadership and management writer, editor, researcher, and journalist with over 20 years of experience.

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