Case Study 1 - "We've already done lean!"

The first response we got when we discussed introducing lean into the semi-conductor plant was, "we've already done it!"  When we asked what they meant, the answer came back 'we've got 6S'.  This seemed odd since lean normally has 5S, but they explained they had incorporated the safety systems to make the extra S.

"We also have visual control" and to be sure there were lots of andon lights on the 'tools' used to manufacture the silicon wafers.  On further examination however, half of them were not working!

The company, like most companies who begin the lean journey, had serious cost issues and was prepared to consider any solutions, including lean, even though they were not optimistic. 

'We're different," was their response, 'we know it works in the automotive industry, but we don't have in-line manufacture and the plant doesn't lend itself to lean.  We think we've done as much with lean as we can."

Luckily the director who sponsored the project was more open minded.  He agreed to give lean a chance.  We trained a number of key employees in lean techniques and formed them into a project team.  After just over three months, they achieved the following:

• An annualised cost reduction of £320,000 p.a.
• WIP reduction of 70%
• 118% increase in WIP turns
• 18% reduction in manpower requirement
• 43% reduction in number of tools required
• 118% increase in OEE
• 30% reduction in lead time

As you might imagine, the project was self financing and the benefits continue indefinitely.  Not a bad result for a company that had 'already done lean'!