The Company

Founded in 1960, this leading company in the rotogravure industry specializes in the production of printing cylinders. With a strong family tradition, the organization maintains production units in Portugal, Hungary, and France to ensure flexibility and punctuality in client deliveries.

The company distinguishes itself in the market by using advanced technology to reproduce designs tailored to specific printing processes. It performs precise color corrections considering printer profiles and centralizes reproduction services, thus ensuring a consistent brand identity across different markets.

Besides its commitment to quality, the company also focuses on sustainability, offering solutions such as cylinder recycling and combining premium quality with reduced environmental impact. The electromechanical engraving systems operate continuously, running 24/7 to ensure and maximize efficiency.

The Challenge

In the highly competitive rotogravure sector, the company faced several challenges intensified by increasing demand, which required short production deadlines and adaptability to consumer trends. Another major challenge was maintaining exceptionally high-quality standards in cylinder engraving to ensure consistent and high-resolution results.

In addition, operational costs were high due to the need for qualified staff, continuous investments in cutting-edge technologies, and the requirement for high-quality materials.

Another critical aspect to address was environmental management and sustainability, especially concerning the consumption and management of chemicals.

To effectively address these challenges, the company initiated an improvement project to enhance customer service levels, reduce operational costs, and decrease order response times, establishing a more agile and cost-effective operation. The following describes the challenges and the actions implemented to address them:

Customer Service Level

Differentiating the market through reduced delivery times and the ability to adapt to client-specific needs. The project aimed to reduce production lead time by 15% and ensure that 100% of orders were delivered on time. Considering that all factory-produced items are unique, a tailored approach for each item was necessary, and a planning tool operating under a 100% Make-To-Order (MTO) model was implemented.

Operational Costs

Optimizing efficiency and resource economy to reduce operational costs through strategies like Just-in-Time production to meet customer demand and reduce stock (WIP) on the shop floor was crucial. Other initiatives included reducing defects due to excessive product handling and increasing operator productivity by 20%.

Culture of Continuous Improvement

Establishing a culture of continuous improvement within the company through Daily Kaizen. Leaders were equipped with tools to organize teamwork more efficiently, analyze performance indicators, and develop improvement actions autonomously.

The Approach

The approach to tackling the identified challenges and achieving the defined objectives focused on various operational and management strategies rigorously implemented in line with Kaizen principles. These actions involved a series of detailed and interconnected initiatives:

Daily Kaizen and Team Meetings

The Production, Prepress, Supervision, and Maintenance teams adopted Daily Kaizen routines. This method involved developing an interface for analyzing indicators, creating a self-quality matrix, and training in structured problem-solving tools. Additionally, internal team process audit routines were implemented to ensure the continuity and effectiveness of improvements.

Mizusumashi and Logistics Route Planning

Logistics operation loads (time spent moving carts between stations) were calculated, defining the standard capacity of each buffer in the number of carts and the routes for moving cylinders according to the routes. All the buffers on the shop floor were marked and identified with barcodes to facilitate tracking and management. A Power Apps application was also developed to allow logistics movements to be recorded and quick access to routes and defect notifications. Finally, a dashboard was implemented for continuous monitoring of logistics work.

Standard Work for Reception Operations

The material reception methodology was analyzed and improved to reduce defects caused by errors during reception and better to control material from suppliers or clients for cylinder reuse. Workstations were also created and equipped with measuring instruments and computers. An interface was developed to digitize procedures with guides to facilitate reception processes, integrating them with the warehouse stock management system.

Pull Planning – Planning Tool Implementation

To maximize efficiency and response to market fluctuations, customers have been classified in the system into A, B and C categories, aligning operations with each category’s strategic relevance. A 100% Make-To-Order (MTO) production strategy was fully adopted, focusing on customizing production to meet exact demand without excess inventory. This new planning model also involved an in-depth analysis of variables impacting cylinder execution time in each production section, leading to the definition of product type clusters based on these variables, allowing for more precise and efficient planning.

Furthermore, a comprehensive evaluation of factory capacity in hours was conducted, aiding in resource optimization. Equipment was dedicated to specific types of cylinders based on historical production analysis and device specifics, enhancing operational efficiency. An automated system for defining lead time in each section based on shipping dates and sequencing cylinders was also implemented, facilitating a continuous and efficient production flow. Finally, to improve communication and increase process transparency, an application was developed for operators on the shop floor to consult the production plan in real-time, allowing for quick adjustments as necessary.

SMED – Setup Time Reduction

An in-depth analysis of setup times identified and eliminated significant waste. Setup tasks were categorized as external and internal, and standard parts for the main clients were produced, representing 75% of the production volume.

TPM – Preventive and Autonomous Maintenance

This strategy focused on implementing preventive and autonomous maintenance practices, maximizing equipment efficiency, and minimizing unexpected downtimes.

Each of these initiatives was carefully planned and executed to ensure continuous improvement in operations and strengthen the company’s resilience and competitiveness in the market.

Results

Implementing this improvement project brought significant changes to the company’s operations and substantial, quantifiable impacts on financial and operational results. These significant improvements reflect the strategies implemented throughout the project. The results achieved were:

Increased Operational Productivity

Operational productivity significantly increased, measured by the number of cylinders produced per man-hour (MH). This index rose by 17.91%, from 0.335 cylinders/MH to 0.395/MH, demonstrating the effectiveness of process optimization measures and continuous employee training.

Reduction in Production Lead Time

One of the project’s primary objectives was to decrease the total production time in days. Data indicates a 38.46% reduction in lead time, from 7.8 days to 4.8 days. This result reflects the efficiency of the new planning and logistics routines, allowing for faster deliveries and better responsiveness to customer demand.

Reduction in Overtime Hours

Implementing better work practices and increasing overall efficiency, the company reduced paid overtime by 23.89%, from 341 monthly hours to 260 hours. This result highlights the impact of improvements in time management and task distribution, reducing the need for work beyond regular hours and lowering associated costs.

Financial Benefit and EBITDA Increase

The project brought significant financial benefits, mainly due to the reduction in operational costs. The company’s EBITDA increased substantially, growing by €500,000 in the project implementation year. These financial gains underscore the success of the improvement project in terms of operational efficiency and direct contribution to the company’s financial health.

This company’s example inspires other organizations facing similar challenges, showing that substantial and lasting results can be achieved with the right investments in processes and training.

The company transformed significant challenges into growth opportunities and competitive advantage through a meticulous approach that included process optimization, team training, and technological adaptation.