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C.L. Smith is on a Lean Journey to drive greater customer value and deliver operational excellence.

We will achieve this by deploying Enterprise-wide Lean methodologies for our business, our customers and our supply chain.

Our Lean Guiding Principles:


CULTURE: Adopt a Continuous Improvement Company Culture. CUSTOMERS: Evaluate Processes through Our Customers Perspective. SYSTEMS: Deliver world-class Operational Performance. SUPPLY CHAIN: Engage Our Partners as a key part of Solution.

A Lean Case Study: Value Stream Mapping


THE CHALLENGE
The corporate purchasing group of a leading household and home improvement products customer launched a major cost reduction initiative requiring each supplier reduce their cost of products and services by 2.0% to 3.0% and/or offer them a rebate program.

THE STRATEGY
C.L. Smith faced this challenge head-on by turning to their newly launched, corporate wide Lean Initiative and invited the customer to participate in an Enterprise Wide Value Stream Mapping (VSM) event to map out aggressive savings ideas. The customer agreed and the event planning began. Both C.L. Smith and the customer had representation from the major areas of their businesses.

Value Stream Map

THE APPROACH
The C.L. Smith team spent a day mapping the process from product selection through invoice payment for regular re-order products in advance of the scheduled customer event date to make a more value added session for the customer. The team looked at the process with an eye to identify process wastes (8 Lean Wastes) from every area of the order entry, purchasing and manufacturing processes. The team also identified potential customer improvement opportunities that would help save time and costs. During the VSM event both teams reviewed the VSM map and collaborated on the opportunities identified and brainstormed additional ideas that could be implemented together to achieve additional cost reduction, improved communication and reduced lead-time.

8 Wastes of Lean:
Defects Overproduction Waiting Transportation Inventory Motion Extra Processing Non-Utilized Talents

THE OUTCOME
The team identified 34 opportunities to reduce waste and streamline the entire process. These opportunities were plotted in a Johari Window (Impact Matrix) to identify the impact of the teams goal and implementation priority for those opportunities. As a result, over $150,000 of real cost savings were indentified and agreed to. The session ended with a detailed implementation plan being created that identified each teams action items and dates. Over 50% of the opportunities have been realized to date and the team is continuing to implement and identify addition opportunities.

CUSTOMER BENEFITS:
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Identified 34 costs savings opportunities which exceeded customer expectations. New Product Development time has been streamlined and organized. The overall process was improved by eliminating process waste and non-value activities. Customer views C.L. Smiths role as Strategic Partner who met the challenge.

34 Opportunities = $150,000+ in Real Cost Savings