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Reducing Costs with Kaizen Events

Unconventional Tooling Design Layout Results in Higher Yield, Lower Material Cost

The Challenge:

High-volume production requires controlled manufacturing processes in order to ensure that long-running jobs get out the door on time, meet specifications, and are cost-effective. One proven way to accomplish this is through kaizen events.

In a recent project with a large automotive customer, CGR sought to reduce costs while ensuring that production would not be delayed or negatively affected. This project involved multiple kaizen events to identify and solve potential challenges.

When estimating the cost of a new part, it is important to analyze die-cutting capabilities, raw materials, processing methods, and tooling. Because this customer’s part had an annual volume of 3,000,000 pieces and was a mature platform, tooling layout and design did not initially seem like opportunities for cost reductions.

Businessmen Are Analyzing The Data From The Report

The Solution:

CGR formed a Kaizen team to evaluate the manufacturing process, developing several potentially cost-saving ideas with a particular focus on tooling. During these kaizen events, we were able to re-engineer the tooling configuration from a common layout to a more obscure one; this increased the yield and decreased annual raw material costs by $26,000.

By proactively evaluating costs on an ongoing basis and passing savings directly to our customers, CGR ensures that your business will be successful. In summary, kaizen events help us optimise every stage of the process for maximum benefit.

Looking for ways to reduce costs on a future project without jeopardizing streamlined production? Contact our team to learn more about partnering with CGR!

Watch Richard Wilmoth deliver a live presentation of this project’s details at our Open House.

Reduce Operating Costs by Implementing Kaizen