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    Outline Factory Relocation

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    jasminetso
    This document summarizes a case study about a manufacturing consulting company, CMC, helping a client factory in China reduce costs without automation. CMC's work included re-engineering assembly lines to increase productivity, providing hands-on training for managers and operators, and developing key performance indicators. As a result, the factory reduced its cost structure by $1.5 million annually by decreasing staff and improving processes. CMC also helped the factory gain $1.5 million in additional profit by taking on new business with its increased capacity.

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    © All Rights Reserved
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    Outline Factory Relocation

    Uploaded by

    jasminetso
    300 views5 pages
    This document summarizes a case study about a manufacturing consulting company, CMC, helping a client factory in China reduce costs without automation. CMC's work included re-engineering assembly lines to increase productivity, providing hands-on training for managers and operators, and developing key performance indicators. As a result, the factory reduced its cost structure by $1.5 million annually by decreasing staff and improving processes. CMC also helped the factory gain $1.5 million in additional profit by taking on new business with its increased capacity.

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    Outline Factory Relocation

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    This document summarizes a case study about a manufacturing consulting company, CMC, helping a client factory in China reduce costs without automation. CMC's work included re-engineering assembly lines to increase productivity, providing hands-on training for managers and operators, and developing key performance indicators. As a result, the factory reduced its cost structure by $1.5 million annually by decreasing staff and improving processes. CMC also helped the factory gain $1.5 million in additional profit by taking on new business with its increased capacity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    300 views5 pages

    Outline Factory Relocation

    Uploaded by

    jasminetso
    This document summarizes a case study about a manufacturing consulting company, CMC, helping a client factory in China reduce costs without automation. CMC's work included re-engineering assembly lines to increase productivity, providing hands-on training for managers and operators, and developing key performance indicators. As a result, the factory reduced its cost structure by $1.5 million annually by decreasing staff and improving processes. CMC also helped the factory gain $1.5 million in additional profit by taking on new business with its increased capacity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    +86 755 8253 0056 (CN)

    +1 443 485 6415 (US)


    Pollution In China WhitepaperPollution In China Whitepaper

    New Factory Setup in China

    Supporting your Greenfield and Brownfield Projects

    contact CMC

    Home
    Practice Areas - New Factory Setup

    Are you planning to set up a new production plant from scratch? CMC’s specialists have managed this process multiple tim
    several countries and provinces.

    Project management

    Project management

    Putting up a new factory requires careful planning and execution (from construction to equipment installation to workforce
    training). It calls for a project management approach that involves experienced specialists. Everything has to come togethe
    the right time.

    Site selection

    Site selection

    China is a large and diverse country. You might want to be in a coastal area with lots of skilled labor, you it might make mor
    sense to be far away from the ports and have a low-cost, stable workforce. The site selection also depends on the main sup
    location, and on the overall movement of material once the factory is functioning.

    Building and overall layout

    Building and overall layout

    Thinking of the overall layout at this stage will help improve material flow and save a lot of internal logistics costs down the
    The number of levels might depend on the amount of real estate available, the size of the equipment to be used in producti
    the risk of floods in the area, and other such considerations.

    Processes
    Processes

    This step dives deper into the details. We help our clients answer questions such as: What machines and equipment are ne
    what level of equipment reliability and how much automation is called for, how to arrange the workstations, how to ensure
    processes are tightly linked for lower costs and shorter lead times, etc.

    Hiring

    Hiring

    How many employees are needed at launch? What qualifications and experience should they have? How to hire them and
    evaluate them in time?

    Training

    Training

    Depending on the type of workers that are hired (e.g. most of them have experience with direct competitors vs. they have
    seen your product before), more or less training needs to be necessary. In any case, this is also the right time to create a co
    culture, as well as testing the equipment and checking some components coming from suppliers.

    Launch

    Launch

    Many things can go wrong at this stage, and a lot of management attention is needed. For example the suppliers might not
    deliver on time, or some of the equipment might not be working as expected.

    Good news — if steps 1 to 6 as outlined above are executed correctly, the launch is usually relatively smooth.
    This manufacturing case study showcases how CMC's China manufacturing consultants achieved an impressive cost reducti
    in a China factory without automation by way of:

    Assembly Lines Re-engineering — Working hand-in-hand with top management, and with the knowledge-based of having
    up hundreds of lean-style manufacturing lines, CMC was able to drive line re-organization that resulted in increased
    productivity and speed.

    Hands-on Training Programs for Managers and Operators — CMC worked with the existing management team and allowed
    staff to start generating valuable suggestions, and implementing change, through a 6-month training program. Training focu
    a a variety of topics which you will read about, including basic lean training, preventive maintenance, material control, 5S,
    standard work, quick changeovers and quality alerts, and so on.

    Development of KPIs — As part of this engagement CMC consultants taught the factory how to set up KPIs for both top-lev
    and middle-management, and even teams of line-workers. This allowed the factory to continue to drive continuous
    improvement even after the engagement was finished.

    Over this 12-months engagement the factory reduced its cost structure by 1.5 million USD a year. Assembly line re-enginee
    and improved quality (i.e. less rework) allowed the factory to reduce the number of production operators from 208 to 123.
    streamlining of administrative and support processes resulted in 38 fewer indirect workers, and better inventory control
    resulted in massive savings.

    On top of all this, the increased capacity meant the factory was able to accept new business, resulting in 1.5 million USD in
    additional profit.

    To read this in-depth case study and learn what tools CMC consultants used to create such profits and cost reduction, simp
    fill out the form on this page and click DOWNLOAD NOW.

    Share this offer with your networks:

    Share on Facebook Share on LinkedIn Share on Twitter Share on Google+


    How CMC gained a cost reduction in a China factory without automation Case study

    In this manufacturing case study you will learn what approach CMC consultants followed, and what results were reached. T
    main themes are listed below:

    Making Waste Visible to Employees – CMC gave training classes to all operators and middle managers, to ensure they could
    recognize waste in their working environment. The projects led by employee teams, guided by CMC, led to serious savings.

    Purchasing & Planning Policy — New rules in purchasing, planning, and inventory control were set in place. The factory mo
    toward JIT procurement and production.
    New Production Organization — CMC streamlined inefficient production flows that were generating enormous waste in tim
    and money. In addition, CMC consultants prepared new jigs and fixtures while implementing more balanced production lin

    New HR policy — CMC applied an incentive scheme based on teamwork that allowed the factory to avoid the pitfalls of
    piecework while keeping the operators motivated.

    In six months, CMC improved the factory’s cash position by 3,450,000 RMB. On-time shipments increased from 39% to 65%
    rework costs were divided by 8, scrap rate was reduced by 30%, and 100 fewer operators were required (for a similar
    production volume).

    To read this in-depth case study and learn what tools CMC consultants used, simply fill out the form to the right and click
    SEND.
    Lesson learned in my case study

    Re-engineering of the Formwork preparation and erection process achieved by using


    1 alternative formwork system

    2 Training Programs for Engineer, Superintendent, Foreman and Labour

    Benchmark with the resources required and productivity achieved with the other type
    3 of formwork and countries

    No waste generated during the formwork preparation process

    Achieved a much higher reusability for the plywood panel and another product life cycle
    can be achieved by using the same system steel framework

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