20%
Average productivity improvement
Boosting Productivity Through Targeted Kaizen Events: Continuous Improvement Unlocks Capacity in Cooling System Manufacturing
Industry: Industrial Manufacturing
Service: Manufacturing
Service: Operations Strategy and Transformation
Service: People and Organization
Our Client
A global manufacturer of engineered cooling systems for the power generation industry, operating a key heat exchange bundle production site in China that faced major capacity and delivery challenges.
The Challenge
To meet rising customer demand, the manufacturer needed to more than double production output at its China facility. Yet, operational inefficiencies and project delays in launching a second production line were putting delivery schedules and customer commitments at risk.
Key issues included:
- Capacity shortfall: Existing production could not meet growing customer demand.
- Delayed ramp-up: The second production line faced setbacks due to weak project oversight.
- Process inefficiencies: Complex workflows slowed production across CNC machining, welding, surface treatment, and assembly.
- Excess inventory: High raw material and WIP levels reduced flexibility and productivity.
Real Results Achieved Together
Through focused Kaizen events and improved project management, the plant achieved significant performance and financial gains.
57%
CNC machining efficiency increase
50%
Reduction in raw material and WIP inventory
$1M
annualized savings, surpassing $620K target
Transformation Impact
- Enhanced production capacity to meet growing market demand.
- Accelerated ramp-up of the second production line through structured risk management.
- Strengthened daily management with performance dashboards and KPIs.
- Reduced waste and complexity through process optimization and selective outsourcing.
- Built internal capability to sustain continuous improvement through leadership training.
Our Approach
EFESO implemented a targeted improvement program combining operational excellence tools with leadership enablement:
- Risk & Project Management for the Second Production Line
- Introduced structured project and risk management to accelerate commissioning.
- Applied quality control systems to reduce startup issues and delays.
- Productivity Improvement Through Kaizen Events
- Conducted focused Kaizen events across CNC machining, welding, surface treatment, and assembly.
- Developed an outsourcing strategy to reduce production complexity and boost capacity.
- Management Training & KPI Implementation
- Trained shop floor supervisors on performance management and continuous improvement.
- Introduced KPIs to track efficiency, quality, and throughput in real time.
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Facing Similar Challenges?
- Productivity bottlenecks or slow production ramp-ups.
- Reduce waste and complexity across manufacturing lines.
- Sustain improvement through strong project and people management.
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