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$3 Switch Saves $250k

By simply replacing a $3 switch, our Oman-based steel company client dramatically reduced the amount of excess tube material shipped to their customers with every tube that they produced. As a result of the switch changeover, the average length of excess material, per tube, was reduced from 32mm to just 6mm. The total amount of material saved equated to 2,219 tubes and $250K in savings.

The Challenge

Based in Oman my client sought to review their material cutting process. Supplying steel bars of 6m they were allowed to ship longer lengths, but not shorter. Determine the volume of excess material shipped and seek to control the process.

The Results

  • Average excess material shipped per bar reduced from 32mm to 6mm.
  • Root cause identified as faulty $3 micro switch.
  • Gross annual savings of $250K.
  • Project lead awarded Green belt certification.
$3 Switch Saves $250k

The Lean 6-Sigma Training is eye opener for make a changes within an organisation; it gives a lot of opportunity to find Small Improvements which give huge savings.

Project Lead


$3 Switch Saves $250k

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