Integrated supply chain & manufacturing optimisation
BUSINESS CONTEXT
- Producer and supplier of press fitting systems and pipes.
- Capacity shortage because of strong volume growth.
- Lack of self-engaged operational improvements.
CUSTOMER NEED
- Improved delivery service & reduced inventory & cost.
- More manufacturing output while maintaining high quality.
- A sustainable operational improvement program.
RESULTS
- Delivery service up 74%.
- 35% inventory reduction.
- 18-59% machine output increase for bottleneck areas.
- 20% reduction of machine time needed, same demand.
- Significant EBITDA improvement.
CHANGES
- New leadership reviews to analyze process variances on service, throughput, due date.
- IDEX: daily follow-up against production standards, changeovers and due dates.
- Demand-based replenishment principles.
- Reduced sourcing lead times.
R&G APPROACH
- Initiated pull system in supply chain triggered by true customer request date.
- Implemented Stable Operations & Demand Pulse.
- Leadership coaching in the use of the operating system.