The Challenge

Problem
• Large investment in a New Plant (9M£ Capex)
• Very long Payback period (7 years)
• Investment on-hold
Root Causes
• New Plant Design very Expensive
• Traditional Supply Chain Design Principles
• Too much waste designed in
The solution

• Value Stream Design: Develop the entire value chain, aligned with the vision of the plant and Lean Principles
• Plant Layout Design: Reduction of waste in logistics, processes and communication circuit
• 8 layouts developed and evaluated against previously identified muda
• Direct Link between process and packaging
The Results
The optimal layout resulted in a reduction of project CAPEX of 12% (£7.9 million) and a payback period of 3,5 years.

Lead Time from purchase order to customer delivery
Delivery Lead Time decreased by 10% corresponding to less 2 days

Plant Capacity
Plant capacity increased by 25%

Total distance travelled
Total distance travelled decrease by 20%
#assembly manufacturing #process manufacturing #research and development
See more on Assembly Manufacturing
Find out more about transformation in this sector
See more on Research & Development
Find out more about improving this business area