Walter Tools: When continuous improvement reinforces performance

The machining and cutting tools industry is constantly evolving in a competitive environment characterized by high demands for quality, lead times, and performance.  Sectors such as aerospace, the automotive industry, and the energy sector demand strict standards, high process reliability, and the ability to adapt quickly to fluctuating demand and increasingly diverse product ranges.

In this context, flow control, lead time reduction, setup stability, and operational team engagement become key success factors. A company structured according to Lean principles, with flow-oriented management, standardized methods, and a continuous improvement dynamic, can gain agility, ensure its performance, and keep pace with the transformation of its production units.

Walter Tools: industrial expertise in the service of performance

Created in 1963, Gunther Tools is a subsidiary of the Swedish group Sandvik, operating under the Walter Tools brand, with 3,800 employees and 10 factories worldwide. The company specializes in the production of tungsten carbide cutting tools, particularly for the aerospace, automotive, general mechanics, and medical sectors. In 2024, the company invested €2.3 million in automating its production processes, demonstrating its commitment to modernization and continuous improvement in industrial competitiveness.

This transformation initiative was recognized at the KAIZEN™ Awards France 2025, a ceremony that honors companies for the excellence of their kaizen projects and the measurable impact of their continuous improvement actions. At the Alsace site, primarily dedicated to manufacturing new tools and reconditioning drill bits and end mills, the central Lean department coordinates practices across the facilities. The site has also held the “Alsace Excellence” certification since 2024, recognizing its economic performance, ethics, social commitment, and environmental responsibility. All of this aligns with a clearly stated vision: “Walter is the first choice for creating added value with high-level engineering solutions,” based on shared values of collaboration, curiosity, responsibility, and customer focus.

Figure 1 – Walter Tools values displayed in the company

Addressing challenges to keep pace with performance growth

Prior to the project’s launch, the existing organizational structure ensured production and met customer needs. However, an analysis on the shop floor, supported by Value Stream Mapping (VSM), revealed several areas for improvement that would increase production, strengthen flexibility, and ensure long-term industrial performance. These challenges were seen not as failures, but as growth opportunities aligned with the business unit’s objectives.

Method variability and process stability

Production relied heavily on operators’ experience, who adjusted their practices as needed. While this approach allowed quality and volumes to be maintained, it also generated variability in methods, which had an impact on process stability and consistency of results. It therefore became necessary to structure and standardize methods (grinding, polishing, and pack preparation) while also integrating team expertise.

High setup times and equipment performance

Excessively long setup times limited the ability to switch between production runs and reduced the business unit’s flexibility. They also had a direct impact on OEE and production capacity. In a context of product diversification and increasing volume, it became necessary to reduce and stabilize setups to increase the number of changeovers and improve equipment performance.

Flow organization and work in progress

Machines were arranged by process, which, combined with batch production, generated high levels of work in progress and long waiting times between different steps. While functional, this organization lacked flow and clarity. The challenge was to rethink the layout and flows in order to reduce waste, improve component circulation, and move toward a more continuous operation.

Production planning and flexibility

The relatively long lead times of the existing production plan limited the ability to respond to demand variability. The company, in fact, had to reconcile two complementary needs: maximize productivity in large series and increase flexibility in small series. It therefore became necessary to review the weekly production organization and the order entry rules.

Team engagement and practice evolution

The project’s success depended heavily on team buy-in on the shop floor. Some practices, particularly standardization, could initially be perceived as a constraint. The challenge was therefore to co-develop the new organization with operators, leverage their knowledge, and support a sustainable evolution of practices toward shared continuous improvement.

A structured transformation based on Lean and kaizen principles

To effectively transform the organization of tungsten carbide drill production, the business unit implemented a coherent set of actions based on Lean principles, with strong involvement from shop floor teams. The approach adopted aimed to address objectives defined along the SQDPC axes (Safety, Quality, Delivery, Production, and Cost), while simultaneously acting on flow management, process stability, shop floor physical organization, and daily practices, in order to achieve measurable and sustainable results.

Figure 2 – SQDPC visual management board used for daily performance tracking

Developing a shared understanding of Lean

From the project launch, Lean training was provided to the entire project team and sector operators. This training was based on an internal “Just-in-time” simulation, conducted partially over several days. Through hands-on learning exercises, participants experienced, in practice, the concepts of flow, work in progress (WIP), inventory, scrap, poka yoke, and 5S. This immersive approach made it possible to create a common language and facilitate the adoption of Lean principles by the teams.

Project coordination and visual management

At the same time, an obeya room was created to centralize key project information. This room provides visibility into KPIs, action plans, and work progress while fostering coordination among departments. It has become an essential tool for daily project management, providing shared visibility and enabling faster decision-making.

Figure 3 – Obeya room in Walter Tools

Flow diagnostics and waste analysis

Detailed process data collection was carried out over two months. Each step, indicator, and key parameter was collected manually on site or extracted from the Movex M3 ERP.

This diagnostic phase involved a strong on-site presence, aiming to fully incorporate the operators’ expertise. Each process step, as well as key indicators and parameters, was analyzed. This approach, combined with a strong on-site presence, made it possible to integrate operator expertise and accurately identify waste related to setups, quality, unplanned downtime, and equipment performance (OEE). In this context, conducting a Value Stream Mapping (VSM) served as the basis for defining priority improvement areas.

Standardizing methods and ensuring practice safety

Introducing standard work was a key factor in the project. Practices, which previously varied from one employee to another, were analyzed and then formalized into clear and accessible instructions. In addition, this implementation was supported by training and awareness sessions, complemented by regular internal audits aimed at ensuring compliance with standards and promoting their continuous improvement.

Shop floor restructuring and flow reorganization

A new layout was designed to streamline flow, reduce unnecessary movement, and promote versatility across machines. This reorganization is based on capacity analysis, budget estimation, and real tests on the production line. It also incorporates a new planning logic: large series are concentrated at the end of the week, with a reduced number of employees to maximize productivity, while small series are processed during the week to increase flexibility.

Reducing setup times through SMED

A SMED workshop was conducted, focusing on the most time-consuming changeovers. With operator collaboration, setup sequences were analysed, formalized, and optimized. Implemented actions included formalizing scripts, optimizing calibrations, applying the 5S method at workstations, systematic measurement of grinding wheels, and standardizing setup sequences. This approach made it possible to significantly reduce setup times, thereby improving flexibility and equipment performance.

Tangible impacts aligned with SQDPC objectives

The results presented below reflect the achievement of the project’s objectives, defined and managed along the SQDPC axes, and provide a clear view of the impact on the unit’s overall performance.

Safety

• Safety was integrated from the outset, both in the reorganization of production equipment and the design of the new layout.

Quality

• −15% scrap rate due to method standardization and more reliable setups.

Delivery

• −30% lead time between different production stages.

Production

• +20% productivity per setup.
• +30% daily setups completed.
• 100% of standards developed jointly with production unit teams.
• −37% setup time on ANCA grinding and sharpening machines (via SMED).
• Greater machine versatility, with a 30 % increase in the cross-machine coverage rate.
• Improved flow organization and better machine utilization due to the new layout.

Cost

• €100 K in annual savings. 

Beyond the results achieved, this project illustrates the sustainable impact of applying Lean principles and the kaizen methodology on organization and behaviors. By leveraging flow management, standardized practices, and team-driven continuous improvement, the transformation enabled the establishment of a collective dynamic focused on performance and learning. Early and continuous team engagement was a determining factor in evolving practices and ensuring the sustainability of the results.

Figure 4 – Walter Tools team with the KAIZEN™ Awards France prize

This cultural evolution is summarized by Grégory Philipps, Deputy Head of the UAP (Autonomous Production Unit):

“By involving employees, we were able to change mindsets. Thanks to this cultural evolution, operators themselves became active agents in the continuous improvement dynamic.”