Sancell is a Victoria based manufacturer of protective packaging solutions including products such as bubble wrap, padded mailing bags and pool covers. The company was established in 1988, and since its inception it has evolved into one of the most respective names in bubble, foam wrap and protective packaging.
The biggest challenge for the company was sourcing their waste data to move forward with new, efficient processes and increase profitability. Sancell engaged with Vative to assist with managing the shop-floor and staff members as well as to discover unnecessary waste.
Sancell needed to streamline its processes and identify waste, particularly with the company’s extrusion line operations to increase profitability.
Sancell took part in a 12-month Lean Training Program involving all shop-floor and staff members. Lean training and 5S (Sort, Set, Shine, Standardise Sustain) methodology were implemented alongside formal project teams, supported by Vative’s Lean experts in implementation of defined improvement projects.
An average ROI of 2167 per cent was achieved over 13 formal Continuous Improvement projects. The project with the highest ROI of 5174 per cent was the reduction of product waste on 2 extrusion lines. Ultimately, for an investment of only $3,500 an annual saving of at least $200,000 was realised.
Once Sancell knew where their main contributors to waste were, they were able to focus on reducing waste without major investment. By focusing and involving all operators daily through waste meetings, analysing problems and applying waste reducing Lean methods, Sancell gained several logistical and financial improvements for the long-term benefit of the company.
“We only invested $3500, and are now saving at least $200,000 each year with the Lean principles in place.” – Sancell Management