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Iskraemeco Group
Savska loka 4,
4000 Kranj, Slovenia
Telephone: +(386) 4 206 4000
Email: info@iskraemeco.com

Manufacturing operations centers

Reducing losses and increasing efficiency in production

At Iskraemeco, we believe that every step in the production process is important to our success. That is why we are constantly looking for new ways to improve our processes, reduce losses and increase efficiency. In this article, we present some of the most important improvements we have recently implemented in our production processes in Kranj.

Why is loss prevention important? 

Every company generates different types of production losses. Each of these losses represents untapped potential and can have a negative impact on cost, product quality and customer satisfaction. There are eight basic types of loss, which can be summarized with  the acronym TIMWOOD(S):

  1. Transport: unnecessary movement of materials and products.
  2. Inventory: excessive stocks of material and finished products.
  3. Motion: unnecessary movement of workers between workplaces.
  4. Waiting: waiting for materials, tools, instructions, or for the completion of previous processes.
  5. Overprocessing: unnecessary or duplicated processes in production.
  6. Overproduction: production of more products than can be sold.
  7. Defects: product defects during production.
  8. Skills: underutilized knowledge and experience of employees.

How has Iskraemeco tackled each type of loss?

At Iskraemeco, we believe that success is the result of teamwork. That is why we have involved all employees in the improvement process, ranging from production, engineering, operational excellence, IT and development to management. Together, we have identified the eight basic types of loss that have the most impact on our business and developed specific measures to reduce them. The results of these joint efforts are visible at every step of our production.

Transport

Unnecessary material movements increase costs and the risk of damage. By optimizing workplace layout, implementing direct packaging, moving the packing room into the production area and using semi-automated forklifts, we have reduced transportation routes and increased efficiency.

Inventory

Excessive inventory ties up capital and can lead to product obsolescence. By implementing intermediate storage in production, setting a maximum allowed stock of material per line, using the FIFO (first in, first out) method and improving traceability, we have significantly reduced inventory losses and improved production efficiency.

Motion

Unnecessary employee movements can lead to fatigue, errors and lower productivity. By implementing the 5S+1 method, providing continuous employee training and optimizing workplaces, we have reduced unnecessary movements and improved ergonomics.

Waiting

Waiting times are not uncommon in production and can be caused by various factors, such as equipment breakdowns, material delivery delays or sub-optimal process planning. At Iskraemeco, we have developed an application to automatically record downtime on production lines, which enables us to quickly identify and resolve issues and prevent recurrence. Additionally, we have optimized production procedures and improved equipment maintenance.

Unnecessary workflows

By systematically analyzing our production processes, we have successfully eliminated numerous non-value-adding steps. We focused on optimizing packaging by implementing direct packaging immediately after the SMT process. Additionally, we reduced production time by cutting PCB boards directly after the SMT process and conducting functional tests immediately following the THT soldering process.

Overproduction

Overproduction leads to increased inventories and reduced flexibility. With the introduction of just-in-time approach, we have reduced excess production volumes and shifted our focus toward addressing current customer needs more effectively. We place a strong emphasis on the timely fulfillment of production orders, ensuring that we produce only what is required to meet immediate demand.

Defects

Equipment and material defects can cause production downtime and increase costs. We have reduced the number of defects through regular equipment maintenance and improved quality control of  incoming materials.

Skills

All employees bring valuable experience and expertise to the table. Through regular line meetings and continuous improvement workshops, we actively foster a collaborative environment where everyone is encouraged to contribute to finding innovative solutions.

What are the benefits of our improvements?

We have all been actively involved in finding new solutions and eliminating bottlenecks in our processes. Collaboration, innovation and a constant desire to learn have enabled us to achieve significant results:

  • Increased efficiency: By reducing losses, we have increased our production efficiency and therefore reduced costs.
  • Improved quality: Better process control and reduced defects have led to improved product quality.
  • Greater customer satisfaction: Faster delivery times and better product quality have increased customer satisfaction.
  • Better working environment: Optimizing workstations and reducing physical strain have led to a better working environment for our employees.
  • Increased competitiveness: Continuous improvements have made us more competitive in the market.

At Iskraemeco, we believe that continuous improvement is the key to success. By implementing various measures, we have significantly reduced production losses and increased our efficiency. However, we are aware that this is an ongoing process. Therefore, we will continue to look for new ways to improve our processes and remain competitive in the market.

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