Lean Plant Redesign & Value Stream Transformation
Scope: 4 plants, 450+ personnel, 37 injection molding presses (150–2,060 ton), 3 mixed-model paint lines, 60,000 sq ft warehouse, sequencing for GM & Chrysler assembly plants
A Tier 1 automotive plastics manufacturer supplying body-side moldings, ATV hoods, and airbag components to GM and Chrysler was in operational chaos. Previous management had hidden quality problems rather than solving them — 40 trailers of suspect finished goods inventory were parked outside the facility, out of sight from the VP.
$650K
Annual Savings
100%
On-Time Delivery
15%
Manning Reduction
7 Days
Inventory (from 14)
Additional Measurable Results
- $52K/month in expedited freight eliminated
- $375K of suspect inventory salvaged and sold from 40 inherited trailers
- $32K/year saved by eliminating trailer rental expenses
- $102K annual savings from eliminating external trucking company
- $132K annual savings from closing 1 of 3 distribution centers
The Challenge
On-time delivery was 82%, and the company was spending thousands per month on expedited freight — using aircraft and third-party trucking for approximately 75% of shipments despite owning 3 trucks. Sales order quotes were too short given actual capacity and throughput times, creating a cycle of overpromising and expediting. Inventory levels sat at 14 days on hand across SWIP, finished goods, and raw materials — far above what demand required. The philosophy was simple: if leadership can't see it, it didn't happen.
Our Approach
- Cross-functional value stream mapping event conducted as a 5-day sprint — assembly manager, injection molding machinist, distribution supervisor, material handlers, inside sales, and design engineer
- VSM identified critical waste: excessive wait times between molding and paint, inefficient distribution/shipping, and misuse of external freight carriers while company-owned trucks sat idle
- Plant layout redesigned for lean flow across 60,000 sq ft of warehouse space
- Material staged 2 days prior to shipment instead of expedited at the last minute; company trucks replaced external carriers for majority of shipments
- Facility-wide Kanban system implemented — standardized SWIP, finished goods, and raw material inventories with calculated quantities based on actual demand
- 40 trailers of suspect inventory systematically evaluated — salvageable product recovered and sold, rented trailers returned
“Instead of reworking the suspect material, previous management just put it on trailers — out of sight so the VP couldn't see it. We pulled it all back, salvaged $375K, and eliminated the trailer rentals. Then we redesigned the entire plant flow in a series of 5-day sprints. OTD went from 82% to 100%.”
Project Lead, Lean Transformation
Tier 1 Automotive Plastics Manufacturer