How a Kaizen Event Unlocked Nearly 20% More Output for a Large Industrial Manufacturer

Led by Daniel Penn Associates senior consultant Mike Beauregard, a cross-functional team redesigned plant layout, material flow, and point-of-use inventory to increase productivity, shorten lead times, reduce excess inventory, and improve on-time delivery.

Executive Summary

A large industrial manufacturer and distributor of water-moving products used a Kaizen event to address excessive travel, poor material flow, layout inefficiencies, excess inventory, and delayed order fulfillment. Led by Daniel Penn Associates (DPA) senior consultant Mike Beauregard, the cross-functional team mapped workflows, measured travel distance, identified waste, and implemented practical changes in assembly, storage, welding, and material handling. The result was a roadmap to support nearly 20% higher output, shorter lead times, safer handling, and stronger on-time delivery performance.

Who this case study is for:

This case study offers context for manufacturing CEOs, CFOs, COOs, plant managers, operations managers, and continuous improvement leaders seeking practical ways to improve manufacturing productivity, increase throughput, reduce lead times, improve on-time delivery, and reduce excess inventory without adding labor.

The challenge: Strong demand, weak flow

A large U.S. manufacturer and distributor of water-moving products faced a common but costly operations problem: demand was strong, but production flow was not.

Across the plant, parts and assemblies traveled excessive distances. Inventory was not always stored where it was needed. Employees spent valuable time searching for materials, retrieving components, and working around layout constraints instead of producing finished goods. The result was too much motion, too much transportation, too much work-in-process, and too little flow.

Leadership set a clear goal: increase annual parts output by 20% while improving safety, shortening lead times, reducing excess inventory, and strengthening on-time delivery.

Why the company launched a Kaizen event

To address those issues, the manufacturer engaged Daniel Penn Associates and its senior consultant, Mike Beauregard, to lead a focused manufacturing kaizen event focused on plant layout optimization, material flow improvement, and productivity improvement.

This was not a narrow cost-cutting exercise. It was a cross-functional effort to improve how work moved through the plant, how materials were staged, how production priorities were communicated, and how people interacted with the physical layout.

The team’s formal targets included:

• At least 85% on-time delivery.
• 24–48-hour lead times for stock items.
• 2–4-week lead times for non-stock items/
• 4–8-week lead times for make-to-order products.
• Elimination of excess inventory.
• Improved safety and better workflow discipline.

What problems were hurting productivity

The Kaizen team found that the plant processed multiple part families with different routing complexity. When the team mapped representative product families, it found extremely long travel distances built into the operation.

One workflow measured 924 feet. A more complex “every process” path measured 2,968 feet.

Those measurements confirmed a deeper problem: Productivity losses were embedded in the layout itself. Parts moved through disconnected areas. Point-of-use inventory was limited or poorly organized. Work-in-process storage was cluttered and constrained. Employees lost time locating material, retrieving parts from remote areas, and retracing steps when parts were moved or staged inconsistently.

For manufacturing leaders, this is a critical lesson: Low throughput is not always a labor problem or a machine-capacity problem. It is often a material flow problem.

What the company wanted to achieve

The goals of the event were both operational and strategic: Increase throughput without adding headcount. Improve manufacturing productivity by reducing wasted travel and motion. Shorten lead times. Reduce excess inventory. Improve on-time delivery performance. Improve safety in material handling and storage. Build changes the team could sustain after the event.

How the Kaizen event was run

DPA’s Mike Beauregard and the cross-functional team used a practical lean manufacturing approach. The team was first trained in lean and flow manufacturing concepts. After the training, the team got to work. They:

• Brainstormed wastes in the current operation.
• Mapped processes by manufacturing complexity.
• Walked the workflows, observed the operations, and measured travel distances.
• Identified obstacles to manufacturing, delays, and storage issues.
• Generated improvement ideas.
• Implemented selected changes during the event.
• Built action plans for the remaining opportunities.

The team generated 53 improvement ideas, giving leadership both immediate actions and a broader roadmap for continuous improvement.

What changes were identified

The kaizen event produced several practical changes tied directly to layout, flow, and point-of-use inventory.

Assembly and laser flow

The team recommended moving laser engraving and assembly closer together so engraved parts could be moved directly into assembly, reducing wasted travel.

Assembly redesign and standardization

Assembly benches were reviewed for standardization. The team identified the tools and supplies needed at each bench, set up a standardized bench as a model, and gathered operator input to guide the rollout.

Inventory closer to the point of use

The team reviewed assembly components using ERP data and operator input. Frequently used components were marked for relocation closer to assembly, while infrequently used items were flagged to move back to warehouse storage.

Kitting for recurring work

For tools and gauges needed for specific jobs, the team began using labeled kits stored in designated locations near the work area.

Weld consolidation and better flow

The team recommended consolidating weld operations, weld storage, and weld pressure testing to reduce wasted travel and simplify movement for complex jobs.

Safer hose storage and handling

The team addressed safety issues with large-diameter hose storage by moving the hoses closer to the hose assembly and away from a difficult lift-truck route that required repeated lifting and lowering through a narrow path.

Smaller batch sizes and better prioritization

The team also emphasized reducing batch sizes and producing according to the priorities set by planning rather than by perceived convenience, giving the plant greater flexibility to respond to urgent jobs.

Key Projected Benefits from the Kaizen Event

Measurable Benefits Identified

The event translated lean improvements into business outcomes.

• Moving the assembly closer to the laser will eliminate about 22 feet of walking per job, saving approximately 638,000 feet annually.
• Weld flow changes and kitting for complex jobs will save 32,400 feet per year.
• Assembly inventory changes are projected to save 297,600 feet annually by reducing the need for repeated trips to distant storage areas.
• Relocating forgings and castings closer to machining can save another 148,800 feet annually.
• In total, the identified changes represented roughly 1,116,800 feet of annual travel that will be eliminated.
• Based on 23 employees producing 241,448 parts in one year, the Kaizen event estimated that productivity could rise from 5.6 parts per hour per employee to 6.7, a 19.6% increase in output without adding labor.

What steps were taken during and after the event

This kaizen did not end with a list of ideas. The team also:

• Created a Kaizen newspaper to track action items.
• Began physical moves during the event.
• Established a model standardized assembly bench.
• Started kitting for recurring work.
• Identified implementation needs, including racks, whiteboards, tables, and tools.
• Planned weekly meetings to review actions and assign ownership.
• Coordinated with plant leadership on timing and responsibilities.

For executives, this is an important point: a Kaizen event produces value when ideas are paired with execution discipline.

Lessons learned for other manufacturers

Several lessons emerged from the team’s work:

• Small changes can build momentum quickly.
• Layout and material flow have a major effect on throughput.
• Inventory should be stored near the point of use whenever demand is frequent.
• Standardization reduces wasted motion and inconsistency.
• Signs, labels, and visual controls are necessary so improvements stick.
• Batch size and planning discipline affect responsiveness as much as layout does.
• Safety improvements and productivity improvements often come from the same change.

For manufacturers pursuing operational excellence, the larger message is clear: Hidden capacity often exists inside the current operation. A focused kaizen event can reveal it, quantify it, and convert it into measurable gains in throughput, lead time, and delivery performance.

Looking for hidden capacity in your plant?

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For more Kaizen articles:

• Kaizen Multiplier Effect
• Kaizen team boosts packaging operation OEE by 66.5%
• Clean Room Staple Loading Kaizen Event — Medical Device Manufacturer
• How to make your virtual Kaizen initiative a success. 

Looking for hidden capacity in your plant?

Daniel Penn Associates helps manufacturers improve throughput, reduce wasted motion, optimize material flow, shorten lead times, and build sustainable continuous improvement systems through practical Kaizen events and lean implementation.

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