Opal Engineering, based in Phagwara, Punjab, is a reputed manufacturer in the diesel engine and power equipment segment serving agricultural, industrial, and commercial applications. With rising market demand alongside increasing cost pressures, Opal Engineering engaged PX Consulting in a Lean Manufacturing and Operational Excellence transformation to improve efficiency, reduce waste, and enhance profitability across machining, assembly, and testing operations.
Opal Engineering faced a set of interconnected operational issues that were impacting competitiveness and responsiveness. Manufacturing costs were high, putting pressure on pricing and margins.Material flow and plant layout across engine assembly processes were inefficient, leading to excessive movement, delays, and non-value-added effort. Excess inventory and high work-in-process (WIP) increased lead times and tied up working capital.
Standardization across machining, assembly, and testing was limited, creating variability in output and quality. Additionally, there was low visibility of losses and cost drivers on the shop floor, making it difficult to prioritize actions and sustain improvements.
PX Consulting implemented a structured nine-month Lean Manufacturing program focused on diagnosing root causes, executing lean interventions, and building internal capability for long-term sustainability.
The program began with an end-to-end value stream mapping (VSM) of diesel engine manufacturing to capture the full flow from machining to assembly and testing. Line balancing and takt time analysis were conducted to identify mismatch between demand rhythm and actual capacity. Major cost leakages and operational bottlenecks were identified, creating a clear, quantified improvement agenda.
Lean practices were then deployed across the shop floor to improve flow and eliminate waste. 5S and workplace organization were implemented across machining and assembly areas to improve productivity, reduce searching/waiting time, and strengthen discipline. Process flow optimization and layout rationalization reduced unnecessary movement and improved adjacency of operations. Kaizen initiatives targeted material movement, changeover time, and rework reduction, delivering quick wins while building momentum. Standard work and visual controls were introduced to stabilize methods and improve consistency across shifts and teams.
To ensure improvements were sustained, internal Lean champions were developed to drive continuous improvement routines. A Daily Management System (DMS) and performance dashboards were deployed to create a cadence of review, escalation, and closure at team and leadership levels. A governance mechanism for continuous improvement and cost tracking was implemented to maintain focus on savings delivery and prevent backsliding.
The overall solution included a customized Lean Manufacturing framework for diesel engine operations, optimized assembly line flow and manpower deployment, SOPs for critical engine processes, real-time performance visibility through visual management, and a structured cost-reduction and waste-elimination roadmap.
The transformation delivered significant financial and operational results. Opal Engineering achieved annual cost savings of approximately ₹1.8 Crore through waste reduction and productivity improvement. Material movement and WIP inventory reduced substantially, improving flow and shortening lead times.
Throughput and on-time delivery improved through better line balance, standard work, and faster issue resolution. Shop-floor discipline strengthened, with clearer accountability and ownership of performance. Most importantly, a sustainable continuous improvement culture was embedded through internal Lean champions, daily management routines, and ongoing cost tracking governance.