MANUFACTURING

CLIENT IS AN ORIGINAL EQUIPMENT MANUFACTURER FOR THE TECHNOLOGY INDUSTRY AND WAS CONSOLIDATING MULTIPLE PLANT ACTIVITIES WITH LEAN/OUTSOURCING DRIVEN ENVIRONMENT TO A VIRTUAL SUPPLY CHAIN HIGH VELOCITY PERFORMANCE ORGANIZATION.  DUE TO THE CHANGE IN OPERATING PROCESSES, THE ORGANIZATION HAD NOT MADE THE NECESSARY ADJUSTMENTS FOR PROPER ORGANIZATIONAL ALIGNMENT.

 

 

BUSINESS ISSUES–

The client had outsourced non-proprietary activities, keeping key activities and final integration in-house.  There were multiple plants feeding the assembly requirements of final integration.  the organization had implemented lean manufacturing principles in all of its operations and was in the midst of implementing Oracle.  On-time delivery was a major issue at 62% vs. a goal of 100%

  • New product transition engineering issues
  • New product transition materials issue
  • Demand management issues
  • Customer Engineered Specials (CES) issues
  • Master scheduling issues
  • Purchasing issues
  • Slotting issues
  • Capacity analysis issues
  • Inventory record accuracy issues
  • Materials/warehousing issues
  • Expediting issues

PROJECT OBJECTIVES–

  • Improve on-time delivery
  • Reduce overtime hours
  • Streamline organization
  • Change operating culture from passive to active supervisory on-the-floor accountability using procedure information to manage
  • Design a formal management communications process encompassing a reason for variance/problem solving culture based on shift key performance indicators

MAL DELIVERED–

  • A unified Master Schedule Process
  • Buyer/Planner/Purchasing Control Process
  • Accuracy for Inventory
  • Total integrated manufacturing floor control process
  • Total material flow control process which controlled incoming parts delivery to correct units
  • Changed supervision from passive to active on-the-floor control managing people & using systems to make decisions
  • Defined & trained supervisory role & responsibilities for shop control
  • A formal, timely communications process forcing people to review daily plan vs. actual performance
  • Improvement of delivery performance from 60% to 90%
  • Streamlining of the Configuration Approval Change Process from 30 people to 5 people
  • Reduction of weekly stock outages from 3000 to 100
  • Improvement of plant productivity from 50% to 85%
  • Reduced overtime from 25% to 5%