The Challenge
![](https://kaizen.com/wp-content/uploads/2022/09/Picture16.png)
![](https://kaizen.com/wp-content/uploads/2022/09/Picture17.png)
Problem
• Low productivity of production and logistics teams
• 50 000m2 of extra rented warehouse space
• Necessary to adjust capacity in order to absorb new models to be produced
Root Causes
• Unbalanced combination of references to be produced on each production line
• Poor usage of available space, with inefficient layouts and structures
• Complex flows for movement of information and materials internally
• Packaging of material not adapted to specific product characteristics
The solution
![Fishbone assembly Concept](https://kaizen.com/app/images/pt/discrete/Picture18.png)
![material-handling-solutions-kits](https://kaizen.com/app/images/pt/discrete/Picture4.png)
• Project management using Mission Control Room, KAIZEN™ Events and Task Force Initiatives
• Layout organised according to fishbone concept: Line – Pre-Assembly – Kitting – Warehouse – Receiving Gate
• Follow-Lead Kitting, Pick-to-Light and Guided Trolley
• Implementation of Pallet-on-Wheels, Mizusumashi principle and Manual Transports
The Results
The project had a Payback period of 8 months with annual savings surpassing £38 million.
![Production Productivity](https://kaizen.com/app/images/pt/Strategy/Picture6.png)
Production Productivity
Production productivity increased by 27%, through the elimination of non-value-added activities
Amount of warehouse space required reduced by 30%
![Logistics Productivity](https://kaizen.com/app/images/pt/Strategy/Picture7.png)
Logistics Productivity
Logistics productivity increased by 29%, through the optimisation of layout and containers
Warehouse team productivity increased by 8%
#assembly manufacturing #operations
See more on Assembly Manufacturing
Find out more about transformation in this sector
See more on Operations
Find out more about improving this business area