Implementing a lean management system in the home appliance industry

Amid shifting industry dynamics and rising market demands, this multinational prioritized a structured, company-wide Lean implementation.

This case study demonstrates how aligning people, processes, and objectives through a management model grounded in continuous improvement and operational excellence can drive lasting impact.

The company and its journey in the home appliance sector

With over 100 years of history, this multinational is now a global leader in home appliance manufacturing. With a presence in more than 150 markets and annual sales exceeding 60 million units, it operates across consumer and professional segments.

With approximately 37 manufacturing plants and over 100 distribution centers, the company’s mission is to deliver complete and innovative solutions, supported by prestigious brands and a strong commitment to operational excellence.

Challenges at the project’s starting point

Before implementing the Global Management System (GMS), the company faced several obstacles that hindered its operational performance and made it difficult to establish a culture of continuous improvement. The main challenges included:

• Lack of alignment between strategy and operations: There was a clear disconnect between the goals set by top management and their execution by operational teams, making it challenging to track results and ensure consistency in day-to-day actions.
• Low logistical and operational productivity: With a target of achieving 25% productivity in material handling, it was clear that internal flows needed optimization and waste had to be eliminated.
• Difficulty controlling costs and ensuring sustainable savings: Accumulated inefficiencies led to budget overruns, putting the organization’s financial targets at risk.
• Need to build team capabilities and engagement: There was no structured training and certification program in Lean methodologies, limiting the teams’ ability to participate in continuous improvement and independently apply Lean tools.

Project framework and ambition aligned with lean manufacturing

To address the identified challenges, a project was launched with the goal of implementing a Global Management System (GMS) based on Lean Manufacturing principles, as part of the company’s strategic plan. The system’s structure was built on five key pillars—safety, quality, cost, delivery, and people—and supported by core values such as stability, process improvement, and cultural change.

The approach included:

• Deploying strategic objectives using the Business Plan Deployment (BPD) tool.
• Developing targeted training programs.
• Establishing a Lean audit system to ensure compliance.

Figure 1 – Project framework and foundations

Business plan structure and leadership levels

The business plan was deployed across three hierarchical levels to ensure alignment between strategic, tactical, and operational goals:

Level 1 – Leadership

Led by the plant director, this level focused exclusively on management indicators. It included systematic reviews of goals and methods, aligning mission, vision, and objectives through the 7-Step method to address the root causes affecting the organization’s five key pillars: safety, quality, cost, delivery, and people.

Level 2 – Projects

This level, managed by area leaders, focused on performance indicators and involved applying methodologies such as SMED, line balancing, process mapping, and logistics productivity.

Level 3 – Daily management

The last level was led by the production supervisors, guided by activity indicators, with the main focus on daily routines such as audits, PDCA follow-up, 5S methodology, checking factory transport vehicles and skills development.

Figure 2 – Deployment, implementation, and control of business objectives

Implementation methodology: A structured 12-action model

To ensure the effective implementation of the Global Management System (GMS), the company developed a plan based on 12 integrated actions designed to apply Lean principles consistently across all areas of the organization:

1. Applying the 7-Step method to analyze deviation causes and define structured corrective actions.
2. Deploying the business plan across three organizational levels (strategic, tactical, and operational), supported by monthly follow-up meetings.
3. Conducting certification workshops on stability tools such as 5S, visual factory, and line balancing.
4. Training in process improvement tools, including the PDCA cycle and structured problem-solving methods.
5. Applying the SMED tool to optimize efficiency in technical areas.
6. Implementing a Lean audit process to ensure compliance with defined standards.
7. Optimizing line balancing to improve takt time and eliminate waste.
8. Launching a logistics program focused on material handling productivity and efficiency.
9. Running a preventive coaching program for operations and maintenance teams to sustain improvements.
10. Gradually certifying operators at “Apprentice” (30%) and “Leader” (15%) levels.
11. Conducting an international certification of the plant, recognizing the maturity of the implemented system.
12. Embedding continuous improvement as a core pillar of the company’s operational excellence model.

Results achieved through project implementation

The systematic application of Lean principles and the implementation of the Daily Management System (SGG) led to significant and sustained improvements across the organization’s key performance indicators. Progress was made in all strategic areas—from safety and sustainability to quality, cost control, logistics, and people development:

Safety and sustainability

The application of Lean practices and regular audits consistently improved workplace safety and environmental sustainability:

• Annual accident rate: < 0.68%, above the target of <0.54%, but showing positive trends driven by implemented preventive measures.
• Landfill waste rate: 6.81%, meeting the pre-established goal of <7.04%.
• Waste-to-energy rate: 10.90%, also within the target of <11%.

Quality

Significant improvements were seen in key production quality indicators, both on assembly lines and in technical areas. One of the primary metrics used was NRFT (Not Right First Time), which tracks the number of units failing to meet quality standards on their first pass through production lines, directly reflecting process efficiency and robustness:

• NRFT on assembly lines: 72,340 ppm, meeting the target of <81,000 ppm.
• NRFT in technical areas: 10,220 ppm, within the goal of <11,000 ppm.
• Warranty service rate: 2.04%, aligned with the target of <2.15%, reinforcing the reliability of the delivered products.

Cost and delivery

The company has made significant progress in budget management and production execution, although challenges remain in logistics productivity:

• Annual budget compliance: 6% below the forecasted value, resulting in actual cost savings.
• Material handling productivity: Reached 24%, reflecting a 50% improvement from the initial state following the implementation of the logistics program.

People

• “Apprentice” operator certification: Achieved by 30% of employees, equipping them with core production system tools.
• “Leader” operator certification: Reached by 15%, demonstrating advanced skills in leading Lean initiatives.
• International plant certification: Recognized the maturity of the implemented Lean system.

Operational highlights of the project

In addition to area-specific indicators, three high-impact outcomes underscore the overall effectiveness of the implemented management model:

• +376% achievement of the financial savings target, driven by waste elimination, rigorous budget control, and operational gains.
• −80% reduction in backlogged post-sales logistics orders, ensuring greater reliability and responsiveness to customers.
• +50% improvement in initiative execution lead times, reflecting enhanced focus, discipline, and efficiency in improvement actions.

Conclusion: Advancing toward sustainable operational excellence and continuous improvement

This project demonstrated that the structured implementation of a Lean system—supported by training initiatives, robust process improvement tools, and cross-functional team engagement—can deliver tangible and lasting results.

Figure 3 – Summary of the lessons learned

Operating in the discrete manufacturing sector, this company strengthened its commitment to continuous improvement by aligning its culture with processes and people, solidifying its position as a global benchmark in operational excellence.

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