A benchmark in lubricant production

This project was developed in one of the leading industrial units for lubricant production, part of a company in the energy sector with a strong presence in multiple markets. The unit was responsible for ensuring the availability of a broad portfolio of essential products used in both industrial and commercial applications.

Despite its high strategic importance, the unit was facing several operational challenges that required a structured transformation, with a particular focus on flexibility, efficiency, and continuous improvement.

Operational inefficiencies and low continuous improvement maturity

The project was structured into two complementary phases:

1. Diagnosis and design of the future vision and continuous improvement strategy.
2. Implementation of the improvement strategy.

The diagnostic phase encompassed several operational areas, including production, warehousing, laboratory, shipping dock, and planning, and involved mapping material and information flows, conducting on-site observations, and quantifying process waste.

This analysis identified a set of improvement opportunities with direct impact on operational efficiency, service level, and flexibility. The main challenges identified included:

• Service level failures and frequent stockouts.
• High-speed lines with low utilization and reduced efficiency.
• Production geared toward large batch sizes, limiting responsiveness to demand variability.
• Excessive levels of finished goods and raw material stocks.
• Difficulty meeting demand peaks in bulk filling operations.
• Low maturity in continuous improvement practices among operational teams.

Faced with this diagnosis, the company committed to launching a transformation based on a structured Kaizen Lean approach, aimed at creating a future vision and defining a continuous improvement strategy with cross-functional impact throughout the operation.

Operational transformation through the implementation of a continuous improvement culture

Following the completion of the diagnostic phase, the implementation of the continuous improvement strategy began. This phase focused on realizing the identified opportunities through structured projects led by multidisciplinary teams, targeting tangible gains in efficiency, flexibility, and customer service. The main initiatives developed are described below.

1. Pull Planning:

This subproject focused on implementing a pull-based production system, ensuring stock levels reflected actual consumption and avoiding excess across the supply chain.

The main objectives included:

• Aligning raw materials, work-in-progress, and finished goods stocks with actual demand.
• Reducing finished goods coverage.
• Reducing raw materials coverage.
• Reducing the number of references with no demand.

2. Flexible factory

Aiming to increase responsiveness to market needs and reduce stock levels, this initiative focused on shifting from large-batch production to a more agile model. Benchmarking visits were conducted before designing the solution.

The objectives included:

• Creating small-batch and high-frequency production flows.
• Improving customer service levels.
• Reducing finished goods stock levels.

3. Filling efficiency

This subproject focused on optimizing the filling lines to maximize the performance of existing equipment.

The defined objectives were:

• Increasing line productivity by 10 percentage points.
• Reducing downtime.
• Standardizing operating procedures and best practices.

4. Warehouse optimization

This initiative focused on redesigning warehouse layout and internal logistics, aiming to eliminate waste and enhance warehouse operation performance.

The objectives were:

• Creating continuous flow in logistics operations.
• Improving productivity in handling and storage tasks.
• Redefining layout and storage processes to increase efficiency.

5. Continuous improvement culture: Daily Kaizen and Kaizen Leaders

Recognizing that sustained improvement depends on team engagement, a cross-functional initiative was launched to foster a culture of continuous improvement.

The main objectives included:

• Establishing Daily Kaizen routines focused on indicator analysis, activity planning, and structured problem-solving on-site.
• Implementing the 5S methodology to promote workstation organization, improve efficiency, and safety.
• Training leadership to reinforce continuous improvement behaviors, including practices such as Gemba Walks.
• Developing effective communication tools between operational and support teams.
• Implementing visual systems for real-time production control and agile decision-making.

These interconnected initiatives enabled the transformation of the plant’s core processes and supported sustainable operational improvements. The approach was driven by multidisciplinary teams, with a strong focus on empowering people and applying Kaizen Lean methodologies.

Significant gains in efficiency, service, and costs

The implementation of the continuous improvement strategy at the lubricant plant led to a profound transformation, both operational and cultural. Building a culture of continuous improvement helped embed sustainable practices that elevated the site’s overall performance.

The main results included:

• Service level improvement:
  • 7 percentage point increase in the Perfect Order indicator,reflecting a more effective response to customer needs.
  • 8% reduction in the multiple deliveries indicator,reflecting a reduction in service failures.
• Stock reduction:
  • 20% reduction in finished goods inventory (days of sales coverage), contributing to working capital release.
  • 9% reduction in additive stocks (days of consumption coverage), contributing to the release of cash flow.
• Increased filling efficiency:
  • 7 percentage point increase in filling line efficiency, reflecting better use of available resources.
  • 12% reduction in scrap rate (0.2 p.p.), directly improving product value.
    
    

In addition to the improvements in efficiency, service level, and inventory management, the results also translated into significant financial benefits through capital release and reduced operating costs. These outcomes highlight the success of the operational transformation and the impact of a structured continuous improvement approach. Team engagement, clear goals, and the application of Kaizen Lean methodologies enabled sustainable, replicable gains across other units in the organization.

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