Ardagh – Lead time reduction of 25%

ardaghArdagh – Hoogeveen delivers recyclable tin packaging to manufacturers of milk powder and baby food. Especially thanks to booming demand from Asia, Ardagh and Ergo-Design started improving the production processes. More added value for customers was achieved by decreasing the order lead times, increasing delivery performance and reducing stock.

Value Stream Mapping (VSM) formed the basis for discussions about the future, and led to a long-term plan in the form of ‘The Lean Roadmap’. Lead time reduction is essential to minimise waste (Lean) and serve customers on time. As a first step in the roadmap, agreements were made about the production processes: how, when and with what accuracy the (internal) customer would be delivered. Performance indicators (KPIs) have been appointed to monitor these agreements. The results are positive: Substantial improvement in the delivery performance of sub-processes, plan-based working instead of ‘fire-fighting’, a reduction in closing stocks and a reduction of lead times with 25%. Also within the Ardagh Division where Hoogeveen is part of, this performance has not gone unnoticed given the rewarded “Supply Chain Award!

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