KJ Case Study: Operational Excellence
Company : Confidential
Engagement Lead: Jagadheeswaran Krishnan
Scope: Manufacturing Operations – High Precision Automotive Components
Industry: Automotive (Tier-1 Supplier)
Role: Lead Transformation
1. Executive Overview
This case study documents the implementation of Operational Excellence initiatives in a high-precision automotive manufacturing environment producing one million razor bearings per month under a Just-In-Time (Kanban) supply model to a global OEM. The factory operated 24×7×365 days, shipping approximately 33,333 components daily.
Upon assuming responsibility for operations, three critical challenges were identified: high defect rates, poor scrap value realization, and unsafe, labor-intensive forging operations. A combination of Six Sigma, Kaizen, Poka-Yoke, and strategic outsourcing interventions delivered step-change improvements in quality, cost, safety, and profitability.
2. Baseline Challenges Identified
Quality: Defect rate of ~32,000 ppm in bearing production
Cost Recovery: Alloy steel scrap sold at ~USD 0.07 per kg due to inefficient logistics
Operations Risk: Manual forging of bearing collets involving high manpower and safety risks
3. Quality Excellence Through Six Sigma (DMAIC)
While Kaizen and ISO 9001 practices were already in place, they proved insufficient for radical quality improvement. A Six Sigma DMAIC approach was applied to bearing production lines using CNC machines.
Key Actions:
Identified tool wear as the primary contributor to tolerance drift
Introduced process control limits tighter than customer tolerances
Increased tool change frequency to control variation
Results:
Defects reduced from 32,000 ppm to ~500 ppm per month
Significant reduction in rework, scrap, and customer risk
Demonstrated that controlled process variation outweighs tooling cost increases
4. Poka-Yoke (Mistake Proofing) for Zero Defect Assurance
A critical failure mode was identified in fuel valves used in carburetors, involving a 300-micron hole occasionally missed due to tool wear. Defects escaped inspection and caused engine failure at customer assembly.
Solution:
Implemented a simple physical Poka-Yoke using nylon suture wire
QC team passed wire through each valve, forming “garlands” of 50 pieces
Any missing hole was immediately detected and rejected
Outcome:
100% fail-proof inspection achieved
Zero customer complaints from this failure mode
Eliminated need for expensive automated inspection systems
5. Cost Optimization Through Kaizen (Scrap Management)
Scrap alloy steel was previously loaded loosely, limiting truck loads to ~2.5 tons on 12-ton trucks.
Kaizen Intervention:
Designed and fabricated a hydraulic scrap-compressing press
Compressed loose scrap into dense bricks, eliminating voids
Results:
Truck loading increased to full 12-ton capacity
Scrap realization improved to USD 0.30 per kg
400% revenue increase from scrap sales
Investment: USD 500, negligible incremental operating cost
Conclusion
The operational excellence initiatives implemented across this high-precision manufacturing environment demonstrate how structured methodologies and practical innovation can deliver transformational results. By integrating Six Sigma for defect reduction, Kaizen for cost optimization, Poka-Yoke for error prevention, and strategic outsourcing for risk and efficiency management, the organization achieved step-change improvements in quality, safety, cost, and profitability. Defects were reduced to near-zero levels, scrap revenues increased fourfold, and operational risks were eliminated while freeing capacity for future growth. Collectively, these interventions reinforced a culture of continuous improvement and established a robust, sustainable platform for world-class manufacturing performance.