Case Study – AGC, Kwinana WA
| Client Description | AGC Ausgroup is the leading integrated service solutions to the energy, mining and industrial sectors across Australia and South East Asia. |
| Project Type | Lean Six Sigma with Suppliers |
| Project Location | Western Australia, Australia |
| Client size | 6,500 Employees |
| Project Duration | 5 months |
| Client Industry Sector | Oil & Gas |
Challenge Faced:
Improve supplier on-time delivery performance: A manufacturing supplier of spools (piping)was an estimated 10 months behind schedule. As the spool manufacturer was on the critical path for the LNG construction project, the delayed spools were a critical risk to first-gas target date.
Project Outcome:
• With a 91% increase in outputs the spool manufacturer is no longer on the critical path for the LNG construction project and removed from the riskregister.
• Hard dollar savings in reduced labour and expediting USD$3,200,000.
Project Deliverables:
• Worked with vendor to have vendor improve their own performance (working through influence).
• Value Stream Mapping of entire manufacturing process to identify bottlenecks.
• Focused improved efforts on two key bottleneck processes.
• Conducted a Measurement System Analysis to identify inconsistencies in decision making at pass/fail inspection process. Standardized inspection to reduce rework from 80% to 20%.
• Established a daily Milk-Run to remove waiting time and achieve consistent deliveries of finished spools to client site
• Embedded SOPs for cosmetic inspection to ensure right-first-time inspection decisions
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