With Lean Manufacturing and ERP more efficiency in steel construction

Since 2018, a fresh wind has been blowing through the organization at Meco Metal. The Belgian steelmaker has gone through a huge transformation. By embracing Lean Manufacturing and implementing a 'dedicated' ERP, efficiency and job satisfaction have increased tremendously. In a fascinating webinar the 'people responsible' talk about the road to this success. On these pages a short preview. 

In 2018, the management team of Meco Metal was tasked with privatizing, professionalizing and making the company independent and profitable. "As an avid supporter of Lean Manufacturing, we started with a thorough analysis of the company and its organizational structure," begins Harry Seij-kens, business manager of Meco Metal. "Things we ran into were, for example, a sawtooth production process (i.e., without continuity in the process), no site management, unclear processes and, above all, lots of waste. We then formed a core team consisting of Domien Driesen for rough planning and calculations, Remi Moonen for fine planning and yours truly."

Initially, the core team set to work naming areas for improvement. "With healthy experience in Lean, we started working on a list of improvement points and wishes, which to this day is our working document. We have now reached point 590 and we are far from finished," says Seijkens enthusiastically. It was also quite a change for the employees on the floor. "With ingrained behavior, change is always difficult and on top of that it had to happen quickly. We involve our employees very emphatically in the continuous improvement process, so that they actively contribute to solutions. Once they saw that conditions were improving, trust arose and we really took up the challenge together. After all, our staff is our greatest asset." 

Lean is about process improvement. "It's about increasing efficiency and effectiveness in everything you do," said Jan-Hein Tempelman, Lean Sensei at The Lean Six Sigma Company. "One way to look at it is to see process improvement as a profession. Just like a plumber or a doctor. All professionals have a toolbox. Depending on the challenges they face, they open their toolbox and not only choose the right tool, they know how to use it. But this is not enough; a company with a few professionals will not change the culture. The ultimate goal of Lean is not to solve problems, but to create a culture of continuous improvement. Where every team and every individual evaluates their performance every day to ensure maximum customer value."

One of the tools in the toolbox is 5S. "It's a method for taking waste out of the process caused by the way the workplace is set up," says Tempelman. "5S ensures that you don't have to search anymore, that everything has a logical place so you don't have to walk as much. The employees are much more efficient, they don't spend unnecessary time looking for materials. A second important tool in the toolbox is Flow, or delivering products and services in a constant flow, where the different sub-operations follow each other seamlessly. At Meco Metal, we have eliminated a lot of waste in this way, such as unnecessary transportation and unnecessary stocking. Employees pick up items only once and complete the process in a constant flow, after which the invoice can go straight out the door."

To achieve constant Flow, efficient planning is crucial. "Planning disruptions are a thing of the past since the implementation of LiemarX," says Domien Driesen, production manager at Meco Metal. "The ERP system gives more insight into planning and a much better overview of capacity than our previous ERP system. We no longer have any 'waste' and searching for data is automatic." Jan van Hapert, business manager of Liemar Software, says, "Fortunately, Meco Metal also saw the need for a well-designed ERP. The three key-users were already involved in the initial discussions, so we were able to work very specifically toward the right solution. On the basis of a 'specification' of wishes and requirements, we proposed a Proof of Concept. And that turned out to be a hit." Seijkens is also enormously satisfied with LiemarX and Liemar Software's approach: "It was the first time in my career that a software solution was delivered on time, within budget and without any production loss. In addition, LiemarX significantly facilitated Lean implementation, something that was absolutely impossible with our old package." 

These are turbulent times, even in steel construction. "The timing of the huge transformation could not have been better as far as we are concerned, we may now cautiously conclude," says Seijkens. "We managed to double our tonnage with virtually the same number of people. In addition, it has helped us make the company more attractive to existing and potentially new employees. To maintain that edge, we still evaluate every day how we can do even better. The whole process of continuous improvement is in everyone's DNA down to the last fiber."