After a market dip, a truck manufacturer needed to ramp production back up. One of its plants couldn’t even meet current demand, although its installed capacity was more than sufficient. After more than a year, the in-house team had got stuck. Working with Axisto, the production delay against plan fell from 40% to 0%, and the plant delivered 9% more output.
Duration: nine months
“I still don’t entirely understand what you did with us, but you gave us our self-confidence back.”- Chief Operating Officer
The situation
After a market dip, a truck manufacturer needed to ramp production back up. One of its plants, a large site, couldn’t even meet current demand, let alone the higher volumes. Installed capacity wasn’t the problem: in theory it was more than sufficient.
The plant was producing too few cabs and was unreliable with it. Another plant in the group was covering the shortfall, at high cost. The in-house team had been working on the problem for more than a year, but had got stuck. Then, rather unexpectedly, came the request for help.
What was really wrong
Conversations with people across the organisation made clear what the inability to solve the problems had done. People had begun to doubt themselves and their colleagues. It was as if the whole organisation had lost its self-confidence.
Knowledge wasn’t what was missing: there was plenty of Lean Six Sigma expertise, and it was visible throughout the plant. But people were so stuck in their failed attempts that they could no longer see a way forward. Through targeted performance analyses and observation of day-to-day operations, we jointly developed a clear, shared picture of what needed to happen.
What we did together
Listened properly first. Over the past year, people had put a great deal of thought and energy into solving the problems. We took the time to talk to people across the organisation, and listened to their experiences, thoughts and emotions.
Mapped out the way forward together, in two-month steps. Periods people could see their way through, with detailed steps we developed together with them.
Quick, visible improvements to what people really cared about. We intervened logically and in a targeted way in the day-to-day management of production. The first improvements addressed things people considered important, and which they had assumed would never be fixed. Every step forward did a great deal for morale: people could see light at the end of the tunnel again.
Managed shift by shift, hour by hour. We strengthened the performance management framework, above all in its hour-by-hour and day-by-day dynamics. By managing each shift’s performance against target and keeping the improvement cycle turning quickly, the focus shifted to the real problems, and variation in performance fell rapidly. That brought calm to the organisation, and time for structural improvements.
Removed root causes instead of fighting symptoms. Problems affecting production at the time were solved quickly and permanently by tackling their root cause.
Worked together more effectively. We helped people give each other more effective feedback, run better meetings, and genuinely look for the root cause rather than reacting to consequences.
The foundation beneath the results: discipline in working to standard work instructions and action plans for deviations, focus on hour-by-hour targets, visual management, and ownership of work areas and targets, deep into the organisation.
What it delivered
- Production delay against plan: 40% → 0%
- Output: +9%
- Overtime costs: −60%
- Expedited freight costs eliminated entirely
- People who are proud of the improvement they achieved themselves, with the skills and self-confidence to keep improving
What happened afterwards
The plant continued to perform well, and went on to deliver even more output. It grew into a best-in-class plant, and the plant manager was promoted.
Axisto was subsequently asked to carry out further projects within the company.
