Challenge:
A high-volume consumer goods manufacturer faced excessive scrap rates, increasing costs and eroding margins.
Solution:
Lean DMAIC (Define, Measure, Analyze, Improve, Control) methodology was applied to reduce waste. Hoshin Kanri structured initiatives to align cross-functional teams, while the Balanced Scorecard monitored scrap rates, cost savings, and throughput.
Outcome:
- Scrap rates reduced by 50%.
- $2 million annual cost savings from material waste reduction.
- Throughput increased by 15%.