Case Study
Lean Implementation Reduces Labor Costs by 10.45%
Lean Implementation Reduces Labor Costs by 10.45% Overview Kenco Logistic Services manages a 684,000 square foot packaging and distribution facility for a global diesel engine manufacturer. The Kenco operation employs 552 employees, shipping 292,000 lines and 3,111,294 pieces monthly. The operation packages 45,048 lines and 4,143,205 pieces per month. Other services provided by Kenco include safety management, engineering, financial reporting, human resources, maintenance, and training and quality. Challenge A solution was needed to achieve the annual cost target which was set by the customer’s budgeting process. Solution The Kenco operation team took the cost challenge and viewed is an opportunity to implement LEAN. The implementation plan started with training on the basics of LEAN. T