The company and its culture of innovation in the construction sector

This company is a benchmark in the construction and public works sector, operating two factories located in different cities. Its main activity is the production of excavators, with some components, such as track chains, manufactured in-house.

For this organization, continuous improvement isn’t just a goal—it’s a core part of its culture and philosophy. Through a relentless and forward-thinking transformation, the company is focused on streamlining operations, ensuring employee safety, and driving team development.

The challenge of organizational transformation

In this context of organizational transformation, the company faced several obstacles that were crucial to its progress. The main challenges included:

Ensuring employee commitment and active involvement

The main goal of the project was to establish a culture of continuous improvement, focusing on developing internal team skills to lead breakthrough projects and drive independent improvements in everyday tasks. To ensure full commitment and active participation, the project introduced three levels of Daily Kaizen across the business unit, spanning three distinct sectors.

Increasing operational efficiency and improving OEE

Improving the Overall Equipment Effectiveness (OEE) of two critical machines, with target increases of 12 and 14 percentage points, posed a significant challenge in terms of process optimization and operational efficiency.

Restructuring inventory management to reduce stock levels

Reducing the chain stock required a complete overhaul of inventory management methods, presenting significant logistical and operational challenges. This initiative was crucial for enabling the organization to respond swiftly to market demands while keeping costs down.

Empowering teams

Defining and training specialists in continuous improvement methodologies was fundamental to the project’s success. However, this required time and resources to ensure all teams were adequately prepared and aligned with the project’s goals.

Approach to increasing operational efficiency

To address the identified challenges, processes were optimized to increase operational efficiency, fostering a culture of collaboration and innovation. The following actions were implemented:

Training leaders and specialists

The Kaizen Leaders training and equipping specialists in continuous improvement methodologies through the Kaizen Change Management (KCM) program was essential in developing a culture of continuous improvement. This training enabled leaders to promote and implement initiatives that encouraged active participation from everyone, helping to overcome the initial resistance.

Implementation of the Obeya Room

The implementation of the Obeya Room, combined with daily meetings and the application of Hoshin Kanri, facilitated project management by promoting the sharing of best practices and enhancing operational transparency. Using Hoshin Kanri enabled a clear definition of strategic objectives and team alignment, ensuring that over 200 improvement actions were addressed quickly and efficiently. Daily Kaizen empowered teams to identify and resolve operational issues promptly.

Adoption of 5S and autonomous maintenance practices

The adoption of 5S practices and the implementation of autonomous maintenance were key in transforming the work environment. These practices created a cleaner, more organized space, reducing waste and improving process efficiency. Autonomous maintenance allowed employees to take responsibility for equipment upkeep, fostering greater involvement in identifying issues.

Application of the Kobetsu Kaizen methodology and process improvement

The Kobetsu Kaizen methodology facilitated waste identification and elimination, fostering an innovative approach. Process standardization, combined with problem-solving routines, using Kamishibai, and implementing Standard Work, ensured that improvements were sustainable and integrated into daily operations. Kamishibai provided effective visual communication, allowing for task standardization and quick identification of deviations. At the same time, Standard Work ensured that best practices were documented and consistently followed. Gemba Walk activities allowed teams to observe processes on-site, identifying improvement opportunities and promoting a culture of continuous learning. Finally, implementing SMED reduced changeover times, enhancing flexibility and operational efficiency.

“Work takes place in a room with real-time visual displays, using simple post-its to track the progress of the process. Regular visits to the equipment are also crucial for understanding its current condition.” – Process Manager

Implementation of pull flow and process standardization

The implementation of pull flow and process standardization were critical for operational efficiency. The pull flow system, supported by Kanban, ensured more effective inventory management and a faster response to market demands. Additionally, process standardization aligned all teams, reducing variability and contributing to greater efficiency and effectiveness in daily operations.

Results achieved through Kobetsu Kaizen

The implementation of the three levels of Daily Kaizen throughout the entire business unit, covering three sectors, led to breakthrough improvements. This effort resulted in three Kobetsu Kaizen projects, with the following outstanding results:

• 15% improvement in OEE: Overall Equipment Effectiveness was optimized, reflecting an increase in productivity.
• Reduction in scrap parts for specific equipment: This reduction resulted in cost savings of €90,000.
• 45% reduction in chain stock: This reduction contributed to more efficient inventory management, minimizing costs and improving material flow.

“The key to Kobetsu Kaizen’s success is respecting each step, avoiding the search for solutions before the problem is properly defined (…). Last but not least, tracking results and ensuring that actions are sustained over time are essential steps that, at the time, we tended to underestimate.” – Process Manager

These results highlight the effectiveness of the continuous improvement initiatives and the successful implementation of the Daily Kaizen levels within the organization. Overall, this journey demonstrates that transformation is possible. By adopting a culture of continuous improvement, companies can not only overcome similar challenges but also unlock new opportunities for innovation and efficiency, giving them a distinct competitive edge in the market.

We are committed to respecting our clients’ confidentiality. While we have altered or omitted their names, the results are genuine.