2 year postponement of acquisition of new machines

A manufacturer of machined castings for export.

Customer

Manufacturer of machined castings for export – railway parts, off-road vehicles.

Problem

Inefficient machine utilization, that would have necessitated a massive CapEx (capital expenditure) on 18 new machines.

Outcome

Saving of Rs. 5.6 Cr. CapEx by freezing all new machine purchases, owing to improvement in OEE

About Leanworx user

Operates 56 machines, including CNC lathes, machining centers, and foundry equipment. Runs two 12-hour shifts with 1-hour breaks.

Before Leanworx

Faced the challenge of underutilized machines. A 15% growth in orders required additional capacity, and a significant CapEx on new machines.

The Leanworx Impact

Leanworx efficiently tackled downtime challenges by categorizing issues into two types: low-hanging fruit, quickly addressed through work ethics improvement, and high-hanging fruit, requiring more extensive system changes. The organization’s team swiftly eliminated low-hanging fruit downtime in a month with a pragmatic mix of incentives. The high-hanging fruit required more time and system adjustments, but Leanworx’s systematic approach and insightful reports, including Pareto charts, enabled a targeted reduction in machine downtime.

 

The Leanworx Benefit

The company successfully reduced downtime to 22% within a short span of 5 months, with sustained improvements in the subsequent 2 years. This achievement led to the postponement of a significant Rs. 5.6 Cr. capital expenditure for new machines by 2 years, by a freeze on all new machine purchases. They were able to cater to the steady 15% annual growth in orders in spite of not buying any new machines..

Free Webinar : Industry 4.0 - Unlocking machine shop profits: Are operators still holding the keys ? 15 June 2024, 2pm to 3pm, Saturday. 

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