Rotheram based Kostal UK, a subsidiary of a German family owned business that designs and manufactures plastic moulded electrical switches for the automotive industry, has benefitted from the adoption of Lean manufacturing techniques across its business and supply chain.
“we recognised to be able to survive in a very competitive environment we had to do things differently. Everyone in the organisation had to change and work in a Lean thinking culture. I strongly believe if we hadn’t adopted Lean we would not be in business today.”
Barry Johnson, HR Manager
Achievements in the last three years have included:
- Reduction of direct employees by 25% (no redundancy all natural wastage)
- Increase of sales turnover by 25%
- 50% reduction in cost of quality
- Improved end of line ppm by 72%
- Scrap reduced by 45%
- Generation of 23% additional assembly floor space
- Achievement of annual profit targets
The business has won a string of awards of the past three years with the crowning achievement being the Silver Excellence Award for Quality, Cost and Delivery from the main customer Ford. Barry Johnson stated “the improvements were made to enhance the business, but the ultimate test is how good your customer thinks you are. It was very pleasing to have the recognition of Ford for our efforts.” Lean Business Solutions put Kostal forward as an exemplar company for the introduction of Lean on a nationally run D.T.I. programme called Inside Industry and other companies can now come and visit and experience the journey Kostal have started.