40% lead time reduction results and 39% FTE reduction
BUSINESS CONTEXT
- Producer of analytical lab equipment.
- Process of assembling products:
- Has long and unstable lead times.
- Results in high WIP and high stock of finished product.
CUSTOMER NEED
- Reduce operational costs by:
- Reducing lead time and improving labour productivity.
- Reduce stock of finished products.
RESULTS
- Avg. lead time reduced from 13 -> 8 days; reduction of 40%.
- FTE reduction as result of LT reduction 39% of production & related staff.
- Stock of finished goods reduced by 58%.
CHANGES
- Moved from MTS -> MTO.
- Reduced and stabilised lead time by implementing IDEX: data-based monitoring of the process and solving production issues.
- Implement planning board to visualize assembly progress.
R&G APPROACH
- Conduct analysis to establish baseline & realistic goals.
- Data based identification of root causes leading to long lead time.
- Organize switch to MTO.