The Segezha Group’s Vyatka plywood mill in Kirov, Russia was experiencing a critical defect on the high-grade veneer the plant was producing. Pinholes, which are described at pinpoint damage of surface layer of finished product were appearing in 14.66% of the production in January. The mill took steps to implement methods of lean production and efficiency improvements. Working groups were established to identify production-related problems and ways to tackle them. Economically sound improvement suggestions offered by employees were considered while implementing production processes, and innovators receive financial rewards. As a result, In April-May, the percentage of such defective products dropped down to 0.95% and the mill’s output of high-grade plywood increased on average by 9%.
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