[Case Study] Productivity Improvement Project at an Overseas Factory

A Multidimensional Approach Targeting a 30% Increase in Productivity

results
  • Shortening of Lead Time
  • Inventory Optimization
  • Reduction of Transport (Handling) Distance
  • Productivity Improvement

We carried out a shop-floor–focused improvement project at an overseas manufacturing plant with the aim of fundamentally improving both productivity and quality.

Based on the issues identified during our factory assessment, we organized four specialized teams aligned with key improvement themes and conducted three full days of on-site kaizen activities.

Industry details
precision equipment
Country
Asian base
Company size
Employee headcount: ~1,000
Assignment
Productivity Improvement
Purpose
生産性 向上
Industry
電機・電子精密機器
Project Overview
The project was driven by the following four key focus areas:

Process Improvement Team Aimed to streamline multiple key processes by reducing manpower requirements, consolidating workstations, shortening operator movement, improving work efficiency, and eliminating waste.
Work Standardization & Workforce Allocation Team Focused on processes with a high proportion of manual work, emphasizing work standardization, multi-skilling of operators, and reducing manpower requirements.
Quality Improvement Team Targeted processes with high defect rates, driving advanced root-cause analysis, improving inspection accuracy, and enhancing yield.
Production Control System Improvement Team Reviewed and redesigned management methods and systems to shorten the overall factory lead time (from 21 days to a target of 15 days) and to strengthen traceability.
Improvement Process (3 Days)
Day 1: Sharing Issues & Defining Improvement Policies
  • Review of previous diagnostic results
  • Data-driven explanation of the impact of layout optimization
  • Foundational improvement training for management and key personnel

→ Establish a common language for improvement across the organization



Day 2–3: Shop-Floor-Centered Improvement Activities
  • On-site observation and issue identification
  • Motion analysis
  • Workability improvements and workflow optimization<
  • Examination of layout proposals

→ Implemented a wide range of improvements with immediate and repeatable effects



Key Initiatives and Outcomes by Team
Process Improvement Team Work Standardization & Workforce Allocation Team
Workflow Improvement & Workstation Reallocation
  • Relocated the storage area for finished shipments
  • Reduced non–value-added motions
  • Increased the ratio of direct work, resulting in improved productivity
Development of a Multi-Skilled Workforce
  • Standardized skill maps across all processes
  • Created a structured training plan (updated every three months)
  • Developed SOPs (Standard Operating Procedures)

→ Enabled de-personalization of work and flexible workforce allocation

 Eliminating Variability in Work Speed
  • Conducted data-driven analysis of work pace
  • Created an environment that allows operators to focus on value-added tasks

→ Ensured stable production capacity

Reduction of Setup Time
  • Converted internal setup tasks into external setup tasks
  • Reconfigured material storage locations

→ Significantly improved machine utilization

Workability Improvements Toward One-Person Operation
  • Adjusted workstation heights
  • Enhanced safety within the work area

→ Achieved both labor reduction and improved safety

Quality Improvement Team Production Control System Improvement Team
Focused Improvements on Critical Processes with Low First-Pass Yield
  • Identified processes with particularly low first-pass yield and narrowed down defect factors by process
Approached the true root cause
  • Conducted thorough “5 Whys” analysis
  • Analyzed defect locations and timing based on data

→ Enabled deeper understanding of core issues and improved the precision of countermeasures

Fundamental Reform of the Inspection Process
  • Developed standardized work instructions
  • Visualized inspector skill levels
  • Improved working conditions (lighting, space, posture)

→ Achieved consistent quality regardless of who performs the inspection

 Reducing Overall Factory Lead Time
  • Redefined standard lead times based on actual process capability
  • Developed production plans calculated backward from the bottleneck process capacity
Enhancing Traceability
  • Streamlined lot-based tracking methods
  • Improved work instructions to clearly show gaps between plan and actual

→ Strengthened factory-wide visibility and the continuous improvement cycle
Overall Results Achieved Through This Improvement Initiative
  • Productivity Improvement上
    • Enhanced labor productivity through workflow optimization, multi-skilling, and process integration
  • Quality Stabilization
    • Improved first-pass yield through true root-cause analysis and standardized inspection processes
  • 30% Lead Time Reduction
    • Significant shortening achieved through workflow streamlining and reduced work-in-process inventory
  • Significant Enhancement of Management Capability
    • Improved planning accuracy through visualization of production schedules and effective use of work instructions
  • Fostering a Culture of Continuous Improvement
    • Combining training with on-site improvement activities enabled the development of a self-driven improvement culture
On-site Improvement Specialist
Ito Akihiro

Genba Kaizen Consultant

Akihiro Ito is active on the front line as a shop floor improvement consultant. He has improved a wide variety of large and medium-sized shop floors of over 300 companies in more than 12 countries in Japan and overseas, and has solved the problems of each shop floor every time. Based on his experience working on the production control system, he implements improvement activities in all processes of a factory such as sales, materials, production control, manufacturing, and outsourcing. In addition, he implements the improvement activities together with the people at the shop floor, make the culture of shop floor improvement rooted in the company, and realize quality improvement, productivity improvement and lead time reduction.

Consultants from major companies
with experience in over 40 countries will respond.
Please feel free to contact us.

Online/remote Assessment
Download documents
Contact us

If you are in a hurry, please call us.

+81-3-5783-3571
（Japan time）
Open 08:30 – 17:30
Except for Saturday, Sunday, holidays, Year-End and New-Year holidays
All cases
List of cases by purpose
生産性 向上コスト削減リードタイム短縮その他人材育成在庫管理収益改善Quality improvementCost reductionProfitability improvementInventory controlLead time reductionHuman resource development5sProfitability improvementOthers
List of cases by industry
その他自動車精密機器食品電機・電子AutomobileElectrical and electronicEnergyMetalfoodOthers

3 reasons why we are chosen REASON

REASON 1

Improvement experience of
more than 1,500 companies in 40 countries

There must be the shop floor issues that cannot be solved by your own company alone. Improvements and reforms for manufacturing industry to survive, regardless of country or industry, need development of your human resources through practical experiences of improvement, and strengthening of your production system base.

REASON 2

Consulting that shop floor workers
acknowledge our superiority and be pleased

In conventional consulting styles, there was a distance between consultant and the shop floor because it was promoted mainly consultant and management executives. Our consultant can provide a guidance without a distance between consultant and the shop floor through the guidance based on the “seeds of improvement” in a concrete way, instead of “finding fault” like a critic.

REASON 3

Continuous improvement will continue
even after the end of guidance

While strengthening “human resource development”, we focus on the “overall flow” from design to purchasing, manufacturing, logistics, and production control, and provide guidance that matches the actual situation of your company. Continuous improvement will continue even after the end of guidance through the guidance that is acceptable to the shop floor workers.

Consultants from major companies
with experience in over 40 countries will respond.
Please feel free to contact us.

Online/remote Assessment
Download documents
Contact us

If you are in a hurry, please call us.

+81-3-5783-3571
（Japan time）
Open 08:30 – 17:30
Except for Saturday, Sunday, holidays, Year-End and New-Year holidays