I interviewed Inigo Sanchez Orozco who discussed Benefits of Lean Implementation.
Can you provide a brief background of yourself?
First of all, thank you as well for your time. My name is Inigo Sanchez. I am Spanish. I am 34 years old. I am working in the United Kingdom for the last two years, and I have worked in Spain in different companies. All my jobs are related to Lean, reduced cost, implementation of Kanban, Kaizen events. So I have a Master degree, as supply chain manager. I have, as well, an honor degree Lean, logistics and reduced cost projects. And right now, I am a supply chain manager in a company called Holophane in UK, United Kingdom. We have another factory in Spain, in Barcelona, and we are for a group called Acuity Brands from the United States. We produce street light fittings for the roads, tunnels, train stations, with electronic / led components. This is what I am doing right now, supply chain manager in a company called Holophane in the United Kingdom.
Thank you. So can you talk about what are the benefits of Lean implementation?
Well, first of all, if you take account that Lean is, from my point of view, the best method to produce and to reduce all the waste in the production and supply chain flow. It is the method that Ford and Toyota companies used in the past. The benefits of implement Lean is just to have a good process, to have a good value stream map of all the supply chain. With it you can just see all the benefits to reduce all the costs in all the supply chain flow. You can implement Lean. You can reduce all the costs in all the flows. You can improve shipping time to customers. You can reduce all the lead time for production all the products.
So my point of view, Lean is the best method to have a good company. The benefits of Lean is related to the benefits to have more customers, to have more benefits in the companies.
How is it done effectively?
Well, first of all, to implement good Lean techniques and to reduce all the costs and reduce all the wastes in the supply chain flow, you have to have a clear picture where you are. You have to make a value stream map of the process, How do you make the things? What are the gaps in the process?And then you have to make another value stream map where you can see where you can be in one year, two years, and just work to obtain these results.
How is the best method? You have to make this value stream map, make Kaizen events with all the departments, all the people involved in the process that you see that are the most valuable person to solve the issues. You call all the departments in this Kaizen event.
You have to have key users for each department. Explain we're on this process. We want just to improve and implement these Lean techniques to have these benefits on this . And just keeping all the team and other people of the company aware that they have to attend these Kaizen events. They have to track the jobs that we've done, and just track all the things that we have improved and explain people that this is the actual situation, what we have done, what are the improvements that we have achieved with this implementation.
Can you share with us where you've seen some good results?
Well, when I joined this company two years ago, we had a lot of stock levels. So we began to make a Kaizen event to implement Kanban system in both factories in Spain and in UK . So we have reviews with this Kanban implementation of the production floor and with the vendors and we have reduce from 5 million pounds to 3 million pounds right now. So you can see the benefits of this Kanban implementation. We have reduced lead times from the vendors from 20 days to five days. We have just implemented just-in-time methods as well. All stock levels from raw materials, finished good , has been reduced . With this , we can , as well, offer our customers five days lead time. We have reduced lead-time , when I joined this company, the lead time to ship to customers, production lead time, was five weeks, and we have reduced these five weeks to five days. So we can offer to the customer the products in less time and with the same quality and with less cost.
We have as well implemented some productivity improvements in our production floor . We have right now 12 cells in UK and 10 cells of production in Barcelona. We have made these Kaizen events to see where are the problems in production .We have reduced the production time, more or less, in a half. We have a good example for that . In the past, it lasted one hour to produce one product in the cell. And with this Kaizen event, with the people, with operators and everybody that have joined this Kaizen event, we obtained to reduce this one-hour production to 20 minutes. So we have reduced for all the most value products, all the production times.
As well, we have improved the shipping on time to the customers, when I joined this company, from 85% to 95 right now. This Lean implementation, this value stream map, with the departments to explain to all the departments how is the process, has allowed us to improve it . Every department knows if we have an issue where to ask or to whom to ask to solve the problem. So we have achieved a way to improve all the shipping on time to the customer with this Lean implementation.
About Inigo Sanchez Orozco
Inigo Sanchez Orozco