Background
A global multi-billion-dollar company with thousands of employees specializes in manufacturing chemicals, paint, and coatings. The company’s automotive coatings site faced significant challenges, including multi-million-dollar scrap problems, surface defects, and product contamination. These issues led to customer complaints, rework, extra manufacturing hours, and immense pressure from corporate headquarters to improve the situation. To address these problems, a comprehensive improvement strategy was implemented, focusing on deep analysis, process optimization, and equipment investment.
Challenges
➢ Multi-Million-Dollar Scrap Problem: The site faced significant financial losses due to coating problems and surface defects.
➢ Customer Complaints: High expectations from the automotive industry led to frequent customer complaints.
➢ Rework and Extra Manufacturing Hours: Significant resources were spent on rework and additional manufacturing hours to address defects.
➢ Corporate Pressure: The local management faced corporate expectations to significantly improve the situation.
Implementation
Scrap-Related Deep Analysis and Process Conditions Improvement:
➢Conducted a thorough analysis of existing processes to identify the root causes of coating problems and surface defects.
➢Mapped the entire production process to visualize and understand the flow of materials, identifying areas where defects and scrap were most likely to occur.
Six Sigma Defect Minimization:
➢ Used Six Sigma Analysis and RCA tools, such as Fishbone Diagrams and Five Whys, to identify and eliminate root causes of defects and scrap.
➢ Implemented process improvements, including adjusting application techniques, optimizing curing processes, and improving equipment maintenance schedules to minimize defects.
Site Equipment Investment Projects:
➢ Invested in new, state-of-the-art equipment to enhance process efficiency and reduce the likelihood of defects and scrap.
Contamination Minimization Projects:
➢ Implemented contamination control projects to significantly reduce product contamination. This included better handling and storage practices, improved cleaning procedures, and stricter environmental controls.
Results
➢ $750K Yearly Scrap Reduction.
➢60% to 80% Product Contamination Reduction.
➢ 22% to 27% Lamination Process Efficiency Improvement.
➢ Up to 100% Elimination of Some Defect Types.
Testimonials
“The implementation of Lean Six Sigma methodologies was a turning point for our site. By systematically addressing the root causes of defects and scrap, we’ve achieved remarkable improvements in product quality and operational efficiency. The reduction in scrap has not only saved us millions of dollars but also strengthened our relationship with key automotive customers..“ – VP of Operations
“Our focus on quality control and process optimization has paid off tremendously. The enhanced inspection protocols and real-time monitoring have significantly reduced defect rates, ensuring that we meet the stringent quality expectations of the automotive industry. Our customers have noticed the difference and have expressed their satisfaction with our products.“ – Director of Quality
