From Lean to Smart Operations: The Design and Implementation of a Shop-Floor Warehouse Model for Operational Excellence at DAB Pumps

This thesis describes the journey and outcomes of a project carried out at DAB Pumps Hungary by the Operations Excellence team, focused on the transition from Lean to Smart Operations. The project concerned the design and implementation of Shop Floor Warehouses (SFWs) for each production line with the goal to improve material traceability, minimize inventory anomalies, and enhance the integration between digital and physical production flows. These initiatives also streamlined material handling and line-side stocks which reduced errors and improved process's reliability and efficiency. Lean replenishment systems such as Kanban and TPOP were integrated, and Value Stream Mapping (VSM) was used to analyze the As-Is and To-Be states. The study followed a mixed-method approach combining Action Research and Case Study Methodology, allowing active participation and critical reflection. The implementation of SFWs led to better stock accuracy, fewer urgent orders, and smoother coordination between departments. The results show how digital tools and Lean principles can effectively support Operational Excellence and assist business transitions from Lean towards Smart Operations.