Pacific Brands Lean Supplier Development Project +28.1% in production efficiency

 

Client: Pacific Brands – Jiangyin Harvest Knitting & Garments

Location: Jiangyin, China

 

THE CHALLENGE

Pacific Brands is a leading supplier of everyday brands in Oceania, with products ranging from footwear, home wear, underwear to hosiery and work wear. Facing the fierce of competition, Pacific Brands aimed to reduce the costs and the lead time through the implementation of the Lean management of their suppliers. Pacific Brands3 As the key supplier of Pacific Brands’ outerwear, Jiangyin Harvest has an extensive mode of operation and a shorter lead time than the industry average. Although they have already started to implement Lean, without any real results yet, there is still significant room for improvement.

The main challenges they faced with include:

  • A large number of raw materials and WIP inventory in the production area and warehouse
  • A long lead time among the production processes
  • A messy production site, prone to quality problems

 

THE SOLUTION

TXM customized a Lean implementation project for Jiangyin Harvest, including a lean leadership development, a value stream mapping, a visual management, the establishment of the continuous flow, etc., and coached to implement Lean on the site.

  • Lean Leadership Development: TXM conducted a one-day Lean workshop for Jiangyin Harvest and for the representatives of the PBA, introduced the key concepts and principles of Lean, and coached the management team to experience the Lean process through a Lean simulation (Paper Plane Game).

Pacifi Brands 1

  • Value Stream Mapping: TXM conducted the VSM analysis training for the management team, developed the current state and the future state of the value stream map along with the department managers, formulated a detailed action plans and reviewed the implementation of the action plans every week.
  • Visual Management: TXM applied the method of “Kanban Management” to achieve the visual management of the operational management goals and the production plan so that problems can be clearly seen and quickly solved by the front line leaders.

Pacific Brands 2

  • Continuous Flow:
    • Established a Pilot Line, combining the ironing and packaging process with sewing process to reduce the production processes and WIP;
    • Created a “One Piece Flow” mode of production that significantly improved the productivity.
    • Established a Production Board to track output every hour and timely respond to and solve problems;
    • Created a “sewing-delivery-cutting” pull system, improved the materials conveyance among processes and reduced the WIP in cutting and delivery areas.

 

THE RESULTS

  • Through the implementation of the Lean improvement project, Jiangyin Harvest achieved a 16.7% reduction in Total Lead Time, a 53.8% reduction in WIP inventory, a 63.6% reduction in the Ironing and Packaging area and a 28.1% increase in production efficiency.
  • The managers and the line leaders at Jiangyin Harvest became “Lean Leaders”, so they will continue to drive improvements of the plant performance, solve daily problems and improve the production efficiency and the product quality.