CASE STUDY SS-BM-DG-100 | Diagnostic
Window & Patio Door Manufacturer Diagnostic Assessment
Improving Quality, Throughput, and Operational Efficiency
$2.15M
Annual Savings Potential Identified
20–30% ↑
OEE Improvement Potential
20% / 25% ↓
Remakes / Warranty Cost Opportunity
Challenge
Quality and Productivity Issues Constraining Customer Service and Profitability
- Customer Satisfaction Pressure: Declining service, recurring quality problems, and rising production costs were affecting the flagship manufacturing operation.
- High Defect Rates: Defects reached 6.3% on the Preservation line and 2.7% on Mezzo, contributing to remakes and increasing warranty exposure.
- Low Equipment Effectiveness: OEE measured only 48% on Mezzo and 54% on Preservation, limiting available production capacity and throughput.
- Delivery and Lead-Time Issues: OTIF performance was slipping while customer lead time reached seven days despite only 3.25 hours of calculated assembly time.
- Workforce Instability: High employee turnover reduced operational consistency, weakened productivity, and made sustained process improvement more difficult.
Solution
Comprehensive Diagnostic and Lean Roadmap Focused on Sustainable Improvement
- Comprehensive Diagnostic: Assessed quality, cost, labor productivity, throughput, scheduling, and operating practices to identify the highest-value improvement opportunities.
- Lean Transformation Roadmap: Developed a prioritized improvement plan targeting defect reduction, productivity gains, stronger process control, and improved daily execution.
- Daily Management System: Introduced MDI using visual SQDC boards, operating KPIs, and hourly performance reviews to create accountability at the point of execution.
- Production Flow Optimization: Improved 24/7 scheduling, staffing, line balancing, saw optimization, material flow, and finite scheduling to reduce cycle time and constraints.
- Focused Improvement and Sustainment: Deployed SWAT teams, visual management, leader standard work, War Rooms, and GEMBA routines to reinforce continuous improvement.
Results
Creating a Scalable Operating Model with Significant EBITDA Improvement Potential
- $2.15M Annual Savings Potential: Identified savings through labor productivity improvements, reduced remakes, stronger quality performance, and improved initial product quality.
- Lower Quality Costs: Projected a 20% reduction in remakes and 25% decrease in warranty-related costs through targeted defect-elimination initiatives.
- 20–30% OEE Improvement Potential: Optimized scheduling, balanced staffing, process discipline, and continuous improvement created significant additional capacity opportunity.
- Scalable Lean Operating System: Visual KPIs, standardized work, tiered management reviews, and leader routines established a repeatable framework for operational control.
- Stronger Customer and Financial Performance: Improvements positioned the business to increase delivery reliability, enhance customer satisfaction, and convert operating gains into EBITDA growth.