Cost Stabilization and TPM Uplift in Aluminum Profile ManufacturingKENO Aluminum, Ningbo China, Mining & Metallurgy

Crafts: Cost Deployment
Service: Lean Production & Sustainability
Project Date: October 18, 2021
Project_Keno
KENO is a premier Chinese manufacturer of high-precision industrial aluminum profiles, widely applied in automotive systems and OA devices. With an annual capacity of 12,000 tons and advanced casting, extrusion, and drawing lines, KENO supplies parts for global brands such as BMW, Audi, Canon, and HP.

To address mounting pressure from raw material price volatility and quality inconsistencies due to equipment breakdowns, Eddso partnered with KENO to execute a structured cost deployment initiative integrated with Total Productive Maintenance (TPM). The program aimed to identify major cost leakage points and enhance equipment stability across core processes.

Challenge

KENO’s production was facing a dual challenge—external cost pressure from fluctuating aluminum ingot prices and internal yield loss due to unstable machinery performance.

  • Unquantified Cost Drivers
    Cost accounting lacked clarity on where performance losses were accumulating across departments.
  • Reactive Maintenance Culture
    Machines were often repaired only after failure, causing unplanned downtime and material scrap.
  • No Cost-to-Process Mapping
    Process-specific cost impacts were not traced to corresponding equipment or operator actions.
  • Limited Operator Ownership
    Maintenance activities and loss tracking were isolated to engineering teams, with little line-level engagement.

Solution

Eddso introduced a dual-path strategy, combining a visual cost-loss analysis with progressive TPM routines, supported by production and maintenance alignment.

  • Multi-Layered Cost Breakdown
    Costs were structured into Material, Process, Quality, and Delay categories, traced to responsible areas.
  • TPM Loss Tree & Calendar
    Weekly TPM cycles were established with prioritized equipment, and loss triggers were visually tracked.
  • Cross-functional Audit Teams
    Cost-centric audits were launched with joint participation from Production, Quality, and Maintenance.
  • Process Capability Stabilization
    Tooling and extrusion parameters were standardized through controlled trials to reduce variability.

Results

Within four months, KENO recorded measurable savings and improved operational stability.

  • Cost Visibility Boost
    Cost allocation transparency improved across 5 departments, with loss origins clearly documented.
  • Unplanned Downtime ↓ 40%
    TPM routines reduced minor stops and breakdowns, stabilizing shift-level production flow.
  • Material Scrap ↓ 18%
    Early warning thresholds and loss feedback loops reduced extrusion defects and surface flaws.
  • Workforce Engagement ↑
    Over 60% of line operators participated in cost-loss workshops and maintenance observations.

How can Cost Deployment reduce Raw Material Risks in your operation?